1. The State of Service & Support in China Presented by Dr. Baumin Lee President, Teleweb Inc. April 27, 2005

2. Bio – Dr. Baumin Lee  China MII CRM Committee Deputy Director  MII Federation of Informationization Promotion Expert Consultant  China Academy of Labor and Social Security Chief Auditor  MII Call Center Professional Jon Standard Commi Expert  Taiwan Call Center Development Association Director  1998-present Teleweb Inc. CIO  2002-present Shanghai Teleweb Technology President  1998-2005 05Info Inc. CTO  1996,iPlanet Inc. Technical Director  1997-1998 ， Tandem Corp. Technical Manager  1988-1995 Bell Labs MTS  1983-1987, National Regulatory Research  Institute Research Associate  The Ohio State University, ISE Department P.HD.  The Ohio State University Adjunct Professor

3. OUTLINE Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

4. Technical Support and Help Desk Outsourcing Market International Data Corporation (IDC) predicts that the compounded annual growth rate (CAGR) for help desk outsourcing over the next five years will be 11.2%. According to IDC, the market for technical support and help desk business process outsourcing is expected to grow from $14.0 billion in 2002 to $21.5 billion in 2007. Dollars in Billion 20022007 Source: Gartner Dataquest

5. Technical Support and Help Desk Outsourcing Market 2002 2003 2004 2005 2006 2007 Source: IDC 12/2002

6. Business Process Outsourcing Market Gartner’s most recent projection for the worldwide BPO market predicted a $234 billion opportunity by 2005, with the market growing at a compound annual growth rate of 14% between 2000 and 2005. 20002005 Source: Gartner Dataquest

7. Market for Offshore Outsourcing 3.3 million jobs to go offshore Over the next 13 years, 3.3 million U.S. service industry jobs and $136 billion in wages will move offshore to countries like India, Russia, China, and the Philippines. The IT industry will lead the initial overseas exodus. Source: 2002 Forrester Research, Inc.

8. OUTLINE  Technical Support and Help Desk Outsourcing Market The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

9. THE PEOPLE’S REPUBLIC OF CHINA Population of 1.3 billion people in 2004, expected to grow to 1.5 billion in 2020 3.7 million square miles: 22 provinces, 3 municipalities, and 5 autonomous regions Socialist Market Economy in 1976  One Country, Two Systems Tiananmen Square in 1989 GDP grew 8% and export grew 12% annually in 1978 – 1992 WTO in 2002 and Olympics in 2008, World Trade Show 2010 Open door policy to keep economic development on track

10. China Political, Economic, and Social Environment Political Environment economic system reform and establishment of socialist market economic system Government Service Department have all established service-type call center, and this becomes a powerful growth field of China’s call center industry the political environment of China has been gradually improved Economic Environment China has maintained an annual increase rate of 9%, Estimated by experts, The contribution of China’s economic growth to the world GDP is 14%, only after U.S. (20.7%) The financial revenue of the whole country has reached 2.17 trillion Yuan with an increase of 278.7 billion Yuan than that of last year The 2008 Beijing Olympics and 2010 Shanghai World Fair will continuously promote the development of China’s economy Social Environment China is a society that values human relations and face-to-face communication. The concept of conducting business activities by phone hasn’t been broadly accepted. The service style of call center strengthens the customer relationship and is expanding its social foundation in China The call center for tele-shopping and e-commerce still lacks support from direct users The social and individual credit system of China hasn’t established at present..

11. China IT & Software Industry China’s mobile phone market has overtaken the US and is now the biggest in the world with more than 190 million subscribers at the end of 2003. China is planning to spend more than $120 billion over the next five years developing its telecom and IT industries. The number of Internet users in China at the end of 2003 has reached 85 million and will be 150 million by 2005. Now China is the world’s second-largest Internet user base. China software market is expected to achieve a compound growth rate (CAGR) of 36.9%, reaching US$7.7 billion in 2006. ERP applications will grow at a CAGR of 32% to reach US$3.6 billion by 2005. The CRM market is expected to grow at a CAGR of 37%, to reach US$2.7 billion by 2005.

12. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

13. China Call Center Industry Snapshot 125,900+ call center seats Compound annual growth rate >16% Industry value estimate US$2.1 billion 60% have been operating for <4 years Non services call centers < 20% Outsourcing call centers < 16% Average CSR salary US$3500 Annual loaded salary less than US$4000 >88% Call Center consulting and training market >US$500M

14. China Vs. Worldwide Call Center Industry Infrastructure 0% 20% 40% 60% 80% 100% GlobalChina 27% 73% 14.37% 85.63% System Integration Outsourcing, Consulting & training Source ： CTIForum

15. Market Engineering Seats Forecasts for the China Call Center Services Market Source: CTIForum 2004

16. Market Drivers Rank Driver1 Year2-3 Years 4-5 Years 1Reduction in telephone service tariff HighMediumLow 2Explosive growth in the telecom services market HighMediumLow 3Establishment of call centers by banking, and finance industries Medium Low 4Increasing intensity of competition drives need to improve customer service Medium High 5Reduction in call center equipment costs drive demand Medium Low Source: Frost & Sullivan

17. Market Restraints RankRestraints1 Year2-3 Years 4-5 Years 1Cost issues deter potential customers HighMediumLow 2Companies need to prepare their business for Call Center implementation Medium Low 3Failure to show economic returnMedium Low Source: Frost & Sullivan China Call Center Market: Market Restraints Ranked in Order of Impact, 2001-2005

18. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

19. Trends in China Service Center Market is still relatively immature China Service Centers tend to be small China Service Centers not always tightly managed Customer service most common business functions Major technology Gaps Majority are planning to upgrade their Technology Low uptake of external QA programs Outsourcing is fastest growing sector Major issues with accessibility of skilled HR resources

20. What Are the Challenges Lack of resources/industry know-how on technology and people management Price competition on system integrators and outsourcing call centers The doubtful effects for call center consulting The traditional concepts from high level management. Call Center managers have difficulties on high quality people hiring, training, applying advanced technology, etc. Internal Process is too long to kick off projects

21. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

22. Trends in Call Center/Technical Support Technology Multi-Media Contact Center IP Call Center Voice Web Portal (Self-Services) Knowledge Workers Integrated Contact Centers Across Companies & Cross Border

23. Channels of Customer Contact are Expanding

24. Existing Technology ACD 67%48 % 78 % 81 % 68 % 82 % 67 % 70 % IVR 28%33733551354643 CTI 26%28491828222628 Customer Contact/CRM Software 42%33684345434746 Workforce Management 18%1026171918 Speech Recognition 1%21408404 Call Recording 15%30503549372835 Voice & Data Recording & Quality Monitoring 5%051477411 IP Telephony 5%224116117 Predictive Dialer 6%7292216611 E-learning system 6%03010115610 ChinaHKIndiaMalaysiaPhilippinesSingaporeThailandAll AsiaCountries Source: callcenters.net 2003

25. Equipment Enhancement Plan ChinaHKIndiaMalaysiaPhilippine s Singapor e Thailand All Asian Countries Combined ACD21%6%34%11%28%18%31%21% IVR16%10%42%8%35%18%25%22% CTI16%8%31%9% 8%16%14%

26. CRM, WFM, and PD Enhancement Plan China HKIndiaMalaysiaPhilippin es Singapo re Thailand All Asian Countries Combined CRM14%12%33%8%15%26%22%18% WFM6%4%22%3%18%6%12%10% PD7%4%22%2%4% 6%7%

27. VoIP and Speech Recognition Enhancement Plan ChinaHKIndiaMalaysiaPhilippinesSingaporeThailandAll Asian Countries Combined VoIP3%2%16%2%4%6%5% SRS3%1%19%2%4%10%5%6%

28. Decision Making ChinaHKIndiaMalaysiaPhilippinesSingaporeThailandAll Asian Countries Combined Call Center Manager 38%64%18%30%53%29%28%46% Finance manager/Director 7%15%9%19%6%4%6%19% Marketing Manager 4%7%20%14%0%8%2%11% IT Manager 7%5%20%12%13%24%5%15% Special Project Team 1% 9%2%6%24%2%6% Senior Manager 31%11%19%18%23%14%53%25%

29. Call Center Issues Faced in Next 12 Months ChinaHKIndiaMalaysiaPhilippinesSingaporeThailandAll Asian Countries Combined Agent’s lack of skills 5%0%5%1%0%8%17%5% Budget/high expenses 2%4%3%15%4%18%7% Technology/System Issues 13%7%11%7%11%12%22%12% Competition & client retention 5%3%11%3%4%2%6%5% Customer Dissatisfaction 2%1%5%12%4%10%6%5% Insufficient Employees 9%11%0%3%0%5%12%7% Turnover Rate 1% 11%4%6%14%2%5%

30. Current China Service Center Operations Issues Labour shortage Staff Motivation and Training Managing Growth and System integration Need to demonstrate ROI Sunk Costs restraining purchases Lack of management skills/experiences Poor technology/system issues Standardized operation procedures CRM implementation Language Capabilities

31. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology China SCP Experience  Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

32. 95Teleweb SCP KPIs SCP Elem Name of ElementSCP Metrics95Teleweb Metrics 3.02Response Time80% within 5 minutes80%/20 seconds 3.03Initial Call Back Response Time 80% customers get callback within 2 hours 24 hours 3.04Resolution TimeCompany Specific3 min 3.06First Contact ResolutionCompany specific>=97% 3.07Customer Abandon Rate<=8%<=4% 3.08Electronic Support Request Acknowledgment 80% within 1 hoursNA 3.09Electronic Support Response Time 80% email get response along with potential resolution within 2 hours 24 hours

33. 2004 Audit Results

34. Benchmark Comparison

35. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience Characteristics of China Support Centers  China support Centers SWOT Analysis  Leading China Outsourcing Call Center – 95Teleweb Inc. Introduction

36. Characteristics of China Support Centers 1.Corporate Culture and Environment 2.Employee Training, Staffing, and Incentives 3.Levels of Customer Service 4.Incorporating Customer Feedback 5.Interdepartmental Relationship and Consistency Across Channels 6.Measuring Customer Centricity and Links between Contact center Performance and the bottom line 7.Tools and Technology

37. 1. Corporate Culture and Environment Motivation for the organization to become customer centric, including barriers that the organization had to overcome Customer service philosophy How culture has aided or worked against the contact center’s focus on customers How company leaders internally demonstrate their commitment to customer centricity How companies ensure that each contact with the customer is made with warmth and appropriate intimacy Individual responsibility in the contact center for resolving customer complaints

38. 2. Employee Training, Staffing and Incentives Developing necessary qualities in customer-centric technical support agents Attracting, hiring, retaining, and motivating support talent that have both people skills and technical skills Optimizing staffing levels in the contact center to provide the level of customer service that customers desire, while balancing the company’s cost and resource requirements Ensuring the contact center performance management system supports the employee and management behavior necessary to deliver the optimal customer experience

39. 3. Levels of Customer Services Providing mass customization Segmenting customers and determining levels of service Managing growth in the customer base Exceeding the expectations of customers Explaining service commitments to customers

40. 4. Incorporating Customer Feedback Soliciting customer comments Soliciting perceptions of competitors’ performance as well as of company performance Determining the attributes that contribute to customer loyalty Demonstrating a link between a customer-centric approach and increased customer loyalty Sharing, posting, and updating contact center performance measures Having a future orientation toward customer needs

41. 5. Interdepartmental Relationships and Consistency Across Contact Channels Contact center relationship with other areas of the company Process for resolving conflict between departments Assurance that customer contacts and service delivery are consistent across all contact channels The process by which front-line service collaborates with back-office process

42. 6. Measuring Customer Centricity and Links between Contact Center Performance and the Bottom Line Measuring success in the contact center Ensuring customer contact representatives and center measures are balanced Balancing efficiency measures with softer measures of customer centricity Tracking internal metrics that are predictors of increases or decreases in overall company success or customer satisfaction Measuring ROI on customer-centric initiatives Constructing a business case to justify the strategic plan for customer centricity

43. 7. Tools and Technology Existing technology in place Assurance that everyone in the organization has a complete picture of the customer at all times Role of knowledge management systems to enable customer centricity Self-service technology

44. Future Directions of China Call Centers More centralization – to achieve cost savings and increase efficiencies From cost center to profit center – Inbound to outbound Incorporation of new technologies/applications  Speech recognition and web collaboration: investigations now, implementation next 12 to 24 months  CTI: often linked to longer term CRM implementations.  CRM: some planning & implementation over next 12 to 24 months  VoIP: limited planning at present, seen as longer term (2-4 years) for implementation. Quality concerns delaying adoption

45. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers China support Centers SWOT Analysis  Leading China Outsourcing Call Center - 95Info Inc. Introduction

46. China Now on The Radar Distrust of legal system U.S. ignorance/perception of China Weak English skills Slower development of business relationships Corruption/piracy /trust Critical shortage of skilled IT resources Management of internal opposition to WTO reforms WTO opening up markets Very large domestic market 2008 Olympics U.S. investment focus Cooperation with India / Accepting Indian providers Finding creative ways to take on large projects Mass producing skilled IT professionals Threats/Risks Political stability. Strong government support Very large domestic market Economic environment Attractive after entry into WTO Non-Latin language skills Infrastructure – leapfrogs Hong Kong — gateway for the more timid Cost of human resources: 20-40% cheaper than India Reverse brain drain Strong Linux skills Intellectual-property protection and piracy Education level Lack of process Poor levels of English Poor technical innovators IT companies small Weak marketers Weak R&D budgets and efforts Lack of international name brands Lack of innovative software products Weakness (Challenges ) Strengths Opportunities

47. OUTLINE  Technical Support and Help Desk Outsourcing Market  The People’s Republic of China  China Call Center Market Status  China Call Center/Technical Support Challenges  Trend in Call Center Technology  China SCP Experience  Characteristics of China Support Centers China support Centers SWOT Analysis Leading China Outsourcing Call Center - 95Info Inc. Introduction

48. Company Overview Founded in 1998, joint venture between Teleweb Inc. and CPTT group. 700 staff (CSRs, Supervisors, managers, project management, account management, CRM developers, IT technician) and some offshore management Regional sales (Beijing, Guangzhou, Shanghai, Xian) High-profile and active board of directors High-profile brand clients (~200) Client Lists:

49. Company Profile A global provider of IT and business process outsourcing solutions to Fortune 1000 corporations, Chinese enterprises, and service organizations. Ability to integrate customer services into a flexible, total single- point-of-contact solution is a key element of 95Info’s success. Strong commitment to quality and has been delivering IT service solutions for over 6 years in China. Partnerships with some of the best-in-class corporations provide 95Info with unparalleled experience in providing IT support solutions:  Help Desk/Call Center Services  Technical/Management Staffing  Professional Services/System Integration  Training Programs

50. Internationally Recognized Client Base affording significant growth potential and highly respected references Multiple Service Offerings that provide expanded business opportunities with existing clients for new services Technically Proficient Employee base that enables us to compete more effectively for sophisticated IT support services Recognition for Delivery of Quality services in the form of ISO9001:2000and SCP certifications, the international standard for quality assurance and operating consistency Advanced Technology infrastructure featuring state-of-the-art call center enabling the company to maintain a leading provider of the IT support services Strong financial position and solid balance sheet Key Competitive Strengths

51. 95Teleweb is leading the Pack (source : Anderson Consulting) Unicom High Low Company Resources High Competition Landscape in Beijing & Shanghai ITS 800 Teleservices Bell South Bertelsmann @network TCY Haier China Motion Compaq- Start Shanghai Post & Telecom 269Hong Fan Great Infotech Size of Circle Competitors’ current market performance Company Resources Based on parent company size and resources and connection with industries in China Call Center Expertise Based on call center operation experience,outsourcing experience, and breadth of services managed Operation in Beijing Operation in Shanghai Operation in both Not in operation yet CCID 95Teleweb Expertise Sykes Shanghai

52. Call Center & CRM leading Service Provide– Industry Scope: Telecom, Insurance, Securities, Banking, IT, Auto, Pharmaceutical, Durable Goods Client list: Microsoft, Nokia, Alcatel, Nortel, D&B, China Unicom, China Life Insurance, VW, Legend, Tai-Kang and Tai-Ping Insurance, Sony-Ericsson, China Railroad Telecom, China Telecom and China Netcom, etc. World-Class Service: 2004 & 2005 China Best Outsourcing Call Center Service Award. Continuous development and update of solution packages Proven management team to deliver satisfactory services Professional team to keep close ties with clients/prospect Comprehensive and sophisticated call center training curricula and certification programs Achievements To Date

53. Market Positioning Multi-channel Customer Service solutions: Vertical Markets  High-tech Manufacturers  Automotive Manufacturers  Telecom/Financial Business Model  BPO  Consulting/Training/System Integration  Enterprise CRM Application implementations Solution Suite  Customer Relationship Management  Telemarketing with e-fulfillment

54. Quality Awards and Certifications ISO9001:2000 Certification  First outsourcing company in China to receive ISO certification CFIP:2004 Best China Outsourcing Call Center Award  The first outsourcing company to receive MII CFIP the Best large call center award, the best call center manager award, and the best call center service agent award sina.com Survey 2004: Five star awards among 21 automobile care line centers Zol.com survey: 2004 Number 1 and 2 best mobile handset call centers among 20 mobile call centers Sony-Ericsson 2004 Number 1 best call center among global 35 call centers “The number one call center outsourcing service provider in China based on market share, company resources and expertise.” - Anderson consulting, 2001 SCP certification: 2004  First outsourcing call center in China to seek SCP certification “One of the leading call center service providers in China” – IDC 2003

55. Our Impressive Customer List

56. Thank You! A Q & Q U E S T I O N S A N S W E R S Baumin Lee (86) 13701215695 (86) 56801060 ext. 5308 Baumin.lee@95teleweb.com