GAMANIA DIGITAL ENTERTAINMENT CO., LTD. FINANCIAL STATEMENTS and REPORT of INDEPENDENT ACCOUNTANTS MARCH 31, 2006 and 2005 These

GAMANIA DIGITAL ENTERTAINMENT CO., LTD.

FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS

MARCH 31, 2006 AND 2005

These English financial statements were translated from the financial statements originally prepared in Chinese Report of Independent Accountants

(05) R.F014.5026

To the Board of Directors and Stockholders of Gamania Digital Entertainment Co., Ltd.

We have reviewed the accompanying balance sheets of Gamania Digital Entertainment Co., Ltd. as of March 31, 2006 and 2005, and the related statements of income and of cash flows for the three-month periods then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our reviews.

Except as explained in the following paragraph, our review was made in accordance with the Generally Accepted Auditing Standards NO.36,“Review of Financial Statements” in the Republic of China. A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards in the Republic of China, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

The financial statements included certain long-term investments, accounted for under the equity method, stated at $494,730,000 and $694,906,000 as of March 31, 2006 and 2005, respectively, and the related investment loss of $61,778,000 and $11,270,000 for the three-month periods then ended, respectively, as described in Note 4(8). These amounts and the related disclosure in Note 11, were based on the their respective financial statements, which were not reviewed by independent accountants.

～ 1 ～ Based on our review, except for the effects on the financial statements of such adjustments and disclosure information of investee companies, if any, as might have been determined to be necessary had the financial statements of the investee companies been reviewed as explained in the preceding paragraph, we are not aware of any material modifications that should be made to the accompanying financial statements referred above in order for the them to be in conformity with the “Rules Governing Preparation of the Financial Statements of Securities Issuers” and generally accepted accounting principles in the Republic of China.

As discussed in Note 3, effective in the fourth quarter of 2004, the Company adopted R.O.C. Statement of Financial Accounting Standards No. 35,” Accounting for Assets Impairment”. As a result of the change in the method of accounting, total assets and stockholders’ equity were decreased by $321,770,000, as of March 31, 2005, and the change had no significant effect on net income for the three-month period ended March 31, 2006.

April 21, 2006

The accompanying financial statements are not intended to present the financial position and results of operations and cash flows of the Company in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices utilized in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying financial statements and report of the independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

～ 2 ～ GAMANIA DIGITAL ENTERTAINMENT CO., LTD. BALANCE SHEETS MARCH 31, (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

2006 2005 2006 2005 (Review Only) (Review Only) (Review Only) (Review Only) ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current Assets Current Liabilities Cash and cash equivalents (Note 4(1)) $ 370,210 $ 80,084 Short-term loans (Note 4(12)) $ 30,000 $ 30,000 Financial assets at fair value through profit or loss – Notes payable-third parties 64,025 68,532 current (Note 4(2)) 280,943 868,700 Notes payable – related parties (Note 5) 140,366 61,737 Financial assets carried at cost – current (Note 4(3)) 9,851 - Accounts payable 92,111 46,047 Notes receivables – third parties – net (Note 4(4)) 59,067 54,223 Income tax payable (Note 4(19)) 31,289 35,191 Notes receivables – related parties – net (Note 5) 560 1,710 Accrued expenses 69,790 72,557 Accounts receivables – third parties – net (Note 4(5)) 697,373 510,870 Other payables – related parties (Note 5) 74,495 164,895 Accounts receivables – related parties – net (Note 5) 1,106 - Other payables – third parties 24,210 16,762 Other receivables – third parties (Note 4(6)) 173,198 154,362 Unearned revenue collected in advance 108,631 75,469 Other receivables – related parties (Note 5) 46,037 40,674 Current portion of long-term liabilities (Notes 4(13) 53,769 52,801 Other financial assets – current (Note 6) 30,000 - Other current liabilities 14,901 5,388 Inventories (Note 4(7)) 20,342 12,986 703,587 629,379 Prepaid expenses 4,878 14,212 Deferred income tax assets – current (Note 4(19)) 29,897 36,488 Long-term Liability 1,723,482 1,774,309 Long – term loans (Note 4(13)) 287,692 341,461 287,692 341,461 Long-term Investments Financial assets carried at cost – non-current (Note 4(3)) 2,700 26,846 Other Liability Long-term investments – accounted for under the equity method (Note 4(8)) 494,730 694,906 Accrued pension liabilities (Note 4(14)) 4,217 3,851 497,430 721,752 Guarantee deposits 42 34 4,259 3,885 Property, Plant and Equipment (Notes 4(9) and 6) Total Liabilities 995,538 974,725 Cost Land 147,751 147,751 Buildings 151,962 145,828 Stockholders' Equity Machinery and equipment 665,021 533,407 Common stock (Note 1 and 4(15)) 1,468,787 1,529,177 Transportation equipment 1,700 1,700 Capital reserve (Note 4(16)) Computer and communication equipment 69,304 94,759 Paid-in capital in excess of par 1,003,484 1,339,117 Leasehold improvement 43,919 80,975 Treasury stock (Note 4(21)) - 20,145 Other equipment 3,740 5,349 Gain on disposal of property, plant and equipment 221 221 Cost and appraisal increment 1,083,397 1,009,769 Retained earnings Less: Accumulated depreciation ( 471,875)( 393,431) Legal reserve (Note 4(17)) - 103,066 611,522 616,338 Accumulated deficit (Note 4(18)) ( 402,743) ( 370,711) Cumulative translation adjustments 24,658 18,613 Other Assets Treasury stock (Note 4(21)) ( 94,275) ( 302,140) Refundable deposits 6,244 6,802 Total Stockholders' Equity 2,000,132 2,337,488 Deferred charges (Notes 4(11) and 7) 125,302 120,058 Commitments and Contingent Liabilities (Notes 5 and 7) Deferred income tax assets – non-current (Note 4(19)) 31,690 72,954 163,236 199,814

TOTAL LIABILITIES AND STOCKHOLDERS' TOTAL ASSETS $ 2,995,670 $ 3,312,213 EQUITY $ 2,995,670 $ 3,312,213

The accompanying notes are an integral part of these financial statements. See report of independent accountants dated April 21, 2006.

～ 3 ～ GAMANIA DIGITAL ENTERTAINMENT CO., LTD. STATEMENTS OF INCOME THREE-MONTH PERIODS ENDED MARCH 31, (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

2006 2005 (Review Only) (Review Only) Operating revenues Sales revenue (Note 5) $ 694,548 $ 446,270 Sales returns ( 14,412) ( 24,367) Sales allowances ( 10,605)( 10,990) Net sales revenue 669,531 410,913 Service revenue (Note 5) 26,723 41,883 Operating revenues 696,254 452,796 Operating costs Cost of goods sold (Notes 4(23) and 5) ( 370,136)( 218,267) Gross profit 326,118 234,529 Operating expenses (Notes 4(23) and 5) Selling expenses ( 64,288) ( 43,157) General and administrative expenses ( 94,768) ( 98,043) Research and development expenses ( 22,517)( 19,319) Total operating expenses ( 181,573)( 160,519) Operating income 144,545 74,010 Non-operating income Interest income 280 47 Gain on adjustment of financial asset (Note 4(2)) 943 - Gains on sale of investments 821 383 Foreign exchange gain 541 - Rental income (Note 5) 5,384 1,392 Gain from price recovery of inventories 2,748 - Miscellaneous income 986 1,159 Total non-operating income 11,703 2,981 Non-operating expenses Interest expense ( 2,132) ( 1,638) Investment loss accounted for under equity method (Note 4 (8)) ( 61,778) ( 11,270) Loss on decline in market value of obsolete inventories - ( 2,099) Miscellaneous losses ( 5)( 1,689) Total non–operating expenses ( 63,915)( 16,696) Income before income tax 92,333 60,295 Income tax expense (Note 4 (19)) ( 35,616)( 32,813) Net income $ 56,717 $ 27,482 2006 2005 Before income tax After income tax Before income tax After income tax Basic earnings per share (in dollars) (Note 4(20)) Net Income $ 0.63 $ 0.39 $ 0.41 $ 0.19 Assumptive pro EPS on new long-term investment accounting principle: Net income $ 92,333 $ 56,717 $ 64,862 $ 32,049 Basic earnings per share (in dollars) Net Income $ 0.63 $ 0.39 $ 0.44 $ 0.22

The accompanying notes are an integral part of these financial statements. See report of independent accountants dated April 21, 2006

～ 4 ～ GAMANIA DIGITAL ENTERTAINMENT CO., LTD. STATEMENTS OF CASH FLOWS THREE-MONTH PERIODS ENDED MARCH 31, (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

2006 2005 (Review Only) (Review Only) Cash flows from operating activities Net income $ 56,717 $ 27,482 Adjustments to reconcile net income to net cash provided by operating activities: Provision for (reversion of) allowance for sales returns ( 7,841) 6,306 Provision for (recovery of) decline in market value and obsolescence on inventories and write – off of inventory ( 2,748) 2,099 Depreciation expenses 38,246 33,488 Amortization expenses 13,323 17,419 Gain on sale of investments ( 821) ( 383) Gain on disposal of fixed assets - 6 Gain on adjustment of financial asset ( 943) - Investment loss accounted for under equity method 61,778 11,270 Changes in assets and liabilities (increase) decrease: Notes receivable – third parties - net 25,749 16,408 Notes receivable – related parties - net 1,923 ( 1,710) Accounts receivables - third parties - net ( 194,440) 9,201 Accounts receivables - related parties - net 269 1,843 Other receivables - third parties - net 39,935 ( 37,653) Other receivables - related parties - net 2,457 ( 3,127) Inventories ( 3,167) ( 5,713) Prepaid expenses 4,176 ( 1,292) Deferred income tax assets 24,525 16,204 Notes payable 4,859 23,301 Notes payable – related parties 51,466 61,737 Accounts payable ( 1,926) ( 40,348) Income tax payable 10,914 16,606 Accrued expenses ( 57,675) ( 28,237) Other payables – related parties ( 55,760) ( 3,623) Other payables – third parties ( 8,515) 11,432 Unearned revenue collected in advance 49,008 ( 19,372) Other current liabilities 7,799 ( 2,359) Accrued pension liabilities ( 551) 606 Net cash provided by operating activities 58,757 111,591

～ 5 ～ GAMANIA DIGITAL ENTERTAINMENT CO., LTD. STATEMENTS OF CASH FLOWS (CONTINUED) THREE-MONTH PERIODS ENDED MARCH 31, (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

2006 2005 (Review Only) (Review Only) Cash flows from investing activities Increase in financial asset held for trading-bond funds ($ 755,000) ($ 1,245,700) Proceeds from disposal of financial asset held for trading- bond funds 475,821 377,383 Increase in long-term investments - subsidiary ( 34,890) ( 57,295) Acquisition of property, plant and equipment ( 15,820) ( 21,959) Proceeds from disposal of property, plant and equipment - 3,283 Increase in deferred charges ( 9,476) ( 24,986) (Increase) decrease in refundable deposits, net ( 103) 1,928 Net cash used in investing activities ( 339,468) ( 967,346) Cash flows from financing activities Increase in short-term loans - 30,000 Decrease (increase) in long-term loans ( 942) 148,214 Acquisition of treasury stock ( 94,275) - Net cash (used in) provided by financing activities ( 95,217) 178,214 Net decrease in cash ( 375,928) ( 677,541) Cash and cash equivalents at beginning of period 746,138 757,625 Cash and cash equivalents at end of period $ 370,210 $ 80,084 Supplemental disclosure of cash flow information Cash paid during the period for: Interest $ 2,790 $ 1,809 Income taxes $ 177 $ 3 Cash paid for purchase of property, plant and equipment: Property, plant and equipment acquired $ 13,633 $ 19,659 Payable at end of period ( 407) ( 2,584) Payable at beginning of period 2,594 4,884 Cash paid $ 15,820 $ 21,959

The accompanying notes are an integral part of the financial statements. See report of independent accountants dated April 21, 2006

～ 6 ～ GAMANIA DIGITAL ENTERTAINMENT CO., LTD. NOTES TO FINANCIAL STATEMENTS MARCH 31, 2006 AND 2005 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS INDICATED) (REVIEWED ONLY)

1. HISTORY AND ORGANIZATION Gamania Digital Entertainment Co., Ltd. (the Company) was incorporated in June 1995 under the provisions of the Company Law of the Republic of China (R.O.C.) as a company limited by shares. As of March 31, 2006, the total authorized shares of common stock was $2,500,000 consisted of 250 million shares of common stock (including 15 million shares for employee stock options), at par value of $10 (NT dollars) per share, and issued and outstanding capital was $1,468,787. The Company engages in software services, TV programming and magazine publications. As of March 31, 2006, the Company had 526 employees.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying non-consolidated financial statements were prepared in conformity with the “Rules Governing the Preparation of Financial Statements of Securities Issuers” and generally accepted accounting principles in the Republic of China. Significant accounting policies are summarized as follows: (1) Foreign currency transactions The accounts of the Company are maintained in New Taiwan dollars. Transactions arising in foreign currencies are translated into New Taiwan dollars at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into New Taiwan dollars at the exchange rates prevailing at the balance sheet date. Foreign exchange gains or losses are included in the current year’s net income.

～ 7 ～ (2) Financial assets at fair value through profit of loss A) Financial assets at fair value through profit or loss for equity stocks, are recognized as of the trade date at fair value. Financial assets at fair value through profit or loss for bonds, beneficiary certificates and derivative instruments, are recognized as of the settlement date at fair value. B) These financial instruments are subsequently remeasured and stated at fair value, and the gain or loss is recognized in profit or loss. The fair value of listed stocks and closed-end mutual funds is based on latest quoted fair prices of the accounting period. The fair value of open-end mutual funds is based on the net asset value at the balance sheet date. C) The accounting policies before December 31, 2005 refer to Note 3. (3) Financial assets carried at cost A) Investment in unlisted equity instruments is recognized initially at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. B) If there is any objective evidence that the financial asset is impaired, the impairment loss is recognized in profit or loss. Such impairment loss cannot be reversed. C) The accounting policies before December 31, 2005 refer to Note 3. (4) Allowance for doubtful accounts Allowance for doubtful accounts is provided based on an evaluation of the collectibility of ending balances of notes receivable, accounts receivable and other receivables (including balances from related parties), taking into account the aging analysis of receivables. (5) Inventories Apply to the perpetual inventory system and the original cost is the cost to obtain the assets. Inventories are stated at the lower of cost or market value based on the aggregate value method. Market value is determined using the net realizable value. Cost is determined using the weighted average method. Allowance for loss is provided on obsolete inventories.

～ 8 ～ (6) Long-term equity investments accounted for under equity method A) Long-term equity investments in which the Company holds more than 20% of the investee company’s voting shares or has the ability to exercise significant influence on the investee’s operational decisions are accounted for under the equity method. The excess of the initial investment cost over the acquired net asset value of the investee attributable to goodwill is no longer amortized and carries on tests of impairment every year, effective January 1, 2006. Retrospective adjustment of the amount of goodwill amortized in previous years is not required. B) Long-term investments in foreign investee companies accounted for under the equity method and denominated in foreign currency are translated into New Taiwan dollars at the exchange rate prevailing at the balance sheet date. The unrealized exchange loss resulting from translation is deferred in the cumulative translation adjustment account in the stockholders’ equity. C) The capital reserve and long-term investment amounts are adjusted by the variance between the investment cost and net assets of the investee due to the disproportionate acquisition or decrease of shares in connection with the capital increase or decrease by the investee company. If the balance of capital reserve from long-term investment is not sufficient, then retained earnings are debited. D) Details on assets impairment of long-term investments accounted for under the equity method are listed in Note 2(10). (7) Property, plant and equipment A) Depreciation is provided on the straight-line method using the estimated useful lives of the assets plus one year as salvage value, except for leasehold improvements, which is based on the shorter of the contract period or the life of the asset. The estimated useful lives are 55 years for buildings and 3 to 5 years for the other property, plant and equipment. B) When an asset is sold or retired, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is included in current non-operating result..

～ 9 ～

C) Major renewals or betterments are capitalized. Maintenance and repairs are charged to expense as incurred. D) Details on assets impairment are listed in Note 2(10). (8) Deferred charges A) Cost of software copyrights are capitalized and amortized under the straight- line basis over the estimated useful lives. B) Royalties payments for operating online game software are capitalized and amortized based actual units of play. C) Detail on assets impairment are listed in Note 2(10). (9) Other intangible assets A) Other intangible assets consist primarily of technology fees are amortized over one year. B) Detail on assets impairment are listed in Note 2(10). (10) Impairment of assets A) Impairments loss is recognized when recoverable amount is below the book value due to changes of environment or occurrences of some events. Recoverable amounts is the higher of fair value less cost to sell or value in use of an asset. Fair value less cost to sell is the selling price of an asset in an arm’s length transaction between knowledgeable and willing parties, less the cost of disposal. Value in use is present value of the future cash flow expected to be derived from an asset. B) If there is an indication that an asset has recovered its value of the impairment loss recognized in prior period, a gain is recognized to the extent of the impairment loss recognized. No recovery in impairment loss is recognized in goodwill. (11) Employee stock option plan The cost of employee stock option plan is determined using the “intrinsic value method＂, effective on Jan.1, 2004. In addition, the Company discloses the

～ 10 ～ pro froma net income and earnings per share as if the under “fair-value-based method” has been adopted.

(12) Deferred income tax assets and income tax A) Income tax is provided based on accounting income after adjusting for permanent differences. The provision for income tax includes deferred income tax resulting from items reported in different periods for tax and financial reporting purposes. Deferred income tax assets or liabilities are further classified into current and non-current items based on the classifications of the related assets or liabilities or on the expected reversal date of the temporary differences and are presented on the financial statements as net balance. Valuation allowance for deferred income tax assets is recognized if it is more likely than not that the tax benefits will not be realized. B) Tax credits resulting from equipment purchase, technology acquisition, research and development expenditure, training expense and long-term equity investment, etc. are recognized as current income tax benefit when it incurred. C) Over or under provision of prior years' income tax liabilities is included in the current year's income tax expense. D) According to the Taiwan imputation tax system, and undistributed current earnings of a company derived on or after January 1, 1998 is subject to an additional 10% corporate income tax if the earnings are not distributed before a specific time. This 10% additional corporate income tax is recorded as income tax expense in the period the stockholders approved a resolution to retain the earnings. E) According to“ Taiwan basic tax rules＂ carried into effective on Jan. 1, 2006, income tax is accounted based on the income tax law or other regulations when income tax is above or equal basic tax. When income tax

～ 11 ～ is lower basic tax, difference between income tax and basic tax should be recognized, besides accounted based on income tax law or other regulations. The difference can not be deducted from investment credits accounted based on other regulations. (13) Retirement plan A) Under the defined benefit pension plan, net periodic pension cost are recognized in accordance with the actuarial calculations. The net periodic pension costs include service cost, interest cost, expected return on plan assets, unrecognized net transition obligation and amortization of gains or losses on plan assets. Unrecognized net transition obligation is amortized on a straight-line basis over 15 years. B) Under the defined contribution pension plan, net periodic pension costs are recognized as incurred. C) Minimal pension liabilities were adjusted in accordance with net periodic pension cost and fund contributed in terminal financial statements. (14) Treasury Stock A) Treasury stocks acquired are stated at cost using the weighted average method. B) Upon disposal, the related gain is credited to “capital reserve-treasury stock transaction” and any loss is offset against this capital reserve account. However, when the balance of this capital reserve account is insufficient to offset the loss, then the remaining amount is charged against retained earnings. C) Upon registration of cancellation, except the book value offset sum of “common stock” and “capital reserve-additional paid-in”, the related gain is credited to “capital reserve-treasury stock transaction” and any loss is offset against this capital reserve account. However, when the balance of this capital reserve account is insufficient to offset the loss, then the remaining

～ 12 ～ amount is charged against retained earnings. (15) Revenue, costs and expenses A) Costs from development of software for sale are recognized as research expense before establishing technical feasibility. B) Revenue from prepaid cards for on-line game is deferred and is recognized based on points consumed. C) Revenue from software and other merchandise is recognized upon sale and delivery of goods to retailers. D) Sales returns are estimated based on percentage of sales. E) Costs and expenses are recognized as incurred. (16) Earnings per Share A) The computation of earnings per share is as follows: Basic earnings per share: net income divided by the weighted average number of shares outstanding during the period.Diluted earnings per share: the computation is the same as basic earnings per share, except that the potential dilute shares were assumed to have been converted to common stock at the beginning of the period and net income was adjusted by the amount associated with the conversion. B) The potential dilute shares are employee stock options. The Company adopted the “treasury stock method” in computing the dilute affect of the employee stock options. (17) Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the amounts of revenue, cost of revenue and expenses during the period. Actual results could differ from those estimates.

～ 13 ～ 3. CHANGES IN ACCOUNTING PRINCIPLES (1) Impairment of assets Effective in the fourth quarter of 2004, the Company adopted the newly issued R.O.C. Statement of Financial Accounting Standards No. 35, “Accounting for Assets Impairment ”. As a result of this change in accounting principle, the net income and total assets was decreased by $321,770 in 2004, respectively. (2) Goodwill Effective January 1, 2006, the Company adopted the amended of R.O.C. SFAS No.1, No. 5, No. 7, No. 25 and No. 35. and discontinued the amortization of goodwill. As a result of the adoption of the newly issued SFAS, net income was increased by $1,771 and earnings per share was increased by $0.012 for the three months ended March 31, 2006. (3) Financial instruments Effective January 1, 2006, the Company adopted the R.O.C. SFAS No. 34, “Accounting for Financial Instruments”, and No.36, “Disclosure and Presentation of Financial Instruments” and reclassified certain accounts of the financial statements for the period ended December 31, 2005. Certain accounting policies prior to December 31, 2005 are as follows: A) Short-term investments Short-term investments are stated at the lower of cost or market value ; cost is determined using the weighted average method. The market value of listed equity securities and closed-end mutual funds are determined based on average closing prices of the last month before the balance sheet date. The market value of open-end mutual funds is determined based on the net asset value as of the balance sheet date. B) Long-term investments accounted for under the cost method Long-term investments are stated at the lower of cost or market value for listed companies and at cost for unlisted companies, if the ratio of the Company’s voting rights in the investee company is below 20% and if the

～ 14 ～ Company has no ability to exercise significant influence in the management of the investee company. Valuation allowance for unrealized loss under this method is shown under stockholders’ equity. When it becomes evidently clear that there has been a permanent impairment in value, and the probability of recovery is unlikely, loss is recognized in the current year’s operating results. C) The adoption of the change in accounting principle has no impact for the Company.

4. DESCRIPTION OF SIGNIFICANT ACCOUNTS (1) Cash and cash equivalents March 31, 2006 2005 Cash on hand $ 262 $ 395 Cash in banks 369,948 79,689 $ 370,210 $ 80,084 (2) Financial assets at fair value through profit or loss March 31, 2006 2005 Current items: Financial asset held for trading Bonds fund $ 280,000 $ 868,700 Adjustment of financial asset held for trading 943 - $ 280,943 $ 868,700 (3) Financial assets carried at cost March 31, 2006 2005 Current items: Unlistd stocks Joyon Entertainment Co., Ltd. $ 9,851 $ - Non-current items: Unlisted stocks Buybooks Digital Technology Corp.Ltd. $ - $ 2,995 ECD Interactive Corporation 2,700 5,200 Joyon Entertainment Co., Ltd. - 9,851 RAVA Ideologie Inc. - 8,800 $ 2,700 $ 26,846

～ 15 ～ A) The investments were measured at cost since their fair value cannot be measured reliably. B) The Company intends to dispose its holding in Joyon Entertainment Co., Ltd., investment accounted for under the cost method. The chairman has been fully authorized to oversee the disposal. C) The Company recognized a permanent impairment loss in Buybooks Digital Technology Corp. Ltd., RAVA Indeologie Inc., and ECD Interactive Corporation, investments accounted for under the cost method, in the amounts of $2,995, $8,800 and $2,500 in 2005, respectively. In addition, RAVA Ideologie Inc., investment accounted for under the cost method, began liquidation process in September 2005 and the process has not been completed. (4) Notes receivable - net March 31, 2006 2005 Notes receivable $ 59,083 $ 54,239 Less: Allowance for doubtful accounts ( 16)( 16) $ 59,067 $ 54,223 (5) Accounts receivables - net March 31, 2006 2005 Accounts receivables $ 745,185 $ 559,605 Less: Allowance for doubtful accounts ( 41,581) ( 39,893) Allowance for sales returns ( 6,211)( 8,842) $ 697,393 $ 510,870 (6) Other receivables-net March 31, 2006 2005 Commissions receivable (Note) $ 183,073 $ 164,149 Others 325 2,102 Less: Allowance for doubtful accounts ( 10,200)( 11,889) $ 173,198 $ 154,362

Note: Commissions receivable is generated from sales of subsidiary’s on-line games and peripheral products.

～ 16 ～ (7) Inventories March 31, 2006 2005 Inventories $ 37,179 $ 35,534 Less: Reserve for loss on decline in market value and obsolescence ( 16,837)( 22,548) $ 20,342 $ 12,986 (8) Long-term investments accounted for under the equity method A) List of long-term investments

March 31, 2006 Investment loss of Ownership three-month period Name of investee Original cost Percentage Balance ended March 31, 2006 Gamania Holdings Ltd. $ 911,043 100% $ 108,193 ($ 15,198) Gamania Korea Co., Ltd. 96,224 100% 18,480 ( 16,094) Alibangbang Digital Games Co., Ltd. 90,000 95.56% 12,033 ( 7,188) NC Taiwan Co., Ltd. 71,400 51% 96,768 ( 14,239) Taiwan Index Co., Ltd. 208,200 69.40% 64,164 ( 4,252) Gamania Asia investment Co., Ltd. 190,000 100% 136,411 ( 365) Gamania Digital Entertainment Labuan Holdings, Ltd. 329 100% 168 - Soga Interactive Co., Ltd. 28,000 40% 21,363 ( 2,140) Playcoo Co. 40,000 30.3% 37,150 ( 2,302) Total $ 1,635,196 $ 494,730 $ 61,778

～ 17 ～ List of long-term investments

March 31, 2005 Investment (loss) income for Original cost Ownership three-month period Name of investee Percentage Balance ended March 31, 2005 Gamania Holdings Ltd. $ 862,737 100% $ 217,994 ($ 9,123) Gamania Korea Co., Ltd. 80,189 100% 130,981 37 Alibangbang Digital Games Co., Ltd. 60,000 93.33% 13,759 ( 6,504) NC Taiwan Co., Ltd. 71,400 51% 85,305 16,832 Taiwan Index Co., Ltd. 208,200 69.40% 161,755 ( 4,784) Gamania Asia investment Co., Ltd. 90,000 100% 77,567 ( 2,058) Gamania Digital Entertainment Labuan Holdings, Ltd. 67 100% 96 ( 5) Soga Interactive Co., Ltd. 13,600 40% 7,449 ( 5,665) Total $ 1,386,193 $ 694,906 ($ 11,270) B) The long-term investments accounted for under the equity method for three months ended March 31, 2006 and 2005, were based on the financial statements which have not been reviewed by independent accountants. (9) Property, plant, and equipment March 31, 2006 2005 Cost Land $ 147,751 $ 147,751 Buildings 151,962 145,828 Machinery and equipment 665,021 533,407 Transportation equipment 1,700 1,700 Computer and communication equipment 69,304 94,759 Leasehold improvements 43,919 80,975 Other equipment 3,740 5,349 1,083,397 1,009,769 Accumulated depreciation Buildings ( 9,545) ( 6,306) Machinery and equipment ( 367,797) ( 260,470) Transportation equipment ( 1,157) ( 874) Computer and communication equipment ( 53,555) ( 63,472) Leasehold improvements ( 36,540) ( 58,464) Other equipment ( 3,281) ( 3,845) ( 471,875) ( 393,431) $ 611,522 $ 616,338

～ 18 ～ (10) Other intangible assets March 31, 2006 2005 Prepayment for technology fee $ 38,298 $ 38,298 Less: Accumulated impairment ( 38,298) ( 38,298) $ - $ - In the fourth quarter of 2004, the Company adopted the R.O.C. Statement of Financial of Accounting Standards No. 35, “Accounting for Assets Impairment ” and recognized a loss of $38,298. (11) Deferred charges March 31, 2006 2005 Royalties payments $ 373,426 $ 343,802 Unamortized expense 75,289 59,728 448,715 403,530 Less: Accumulated impairment ( 323,413) ( 283,472) $ 125,302 $ 120,058 In the fourth quarter of 2004, the Company adopted the R.O.C. Statement of Financial of Accounting Standards No. 35, “Accounting for Assets Impairment ” and recognized a loss of $283,472. As of March 31, 2006, total accumulated loss recognized for deferred charges is $323,413. (12) Short-term loans March 31, 2006 2005 Short-term bank loans $ 30,000 $ 30,000 Annual interest rates 1.85% 1.51% Credit lines $ 415,000 $ 399,000

～ 19 ～ (13) Long-term Loans Financial Total Period/Terms March 31, Bank Credit Lines of Repayment 2006 2005 International Bank $ 49,000 03.28.2002 ~ 03.28.2017 Two $ 41,461 $ 45,231 of Taipei year grace period, 52 equal quarterly installments starting from year 3 International Bank 51,000 08.19.2002 ~ 08.19.2017 - 49,031 of Taipei Two year grace period, 52 equal quarterly installments starting from year 3 (Note) Chiao Tung Bank 200,000 08.30.2004 ~ 08.30.2007 50,000 50,000 Principal due on maturity Chiao Tung Bank 200,000 12.31.2004 ~ 12.31.2007 100,000 100,000 Principal due on maturity Chang Hwa Bank 150,000 02.14.2005 ~ 02.14.2009 First year grace period, 12 equal semi-annual installments starting from year 2. 150,000 150,000 Less: Current 341,461 394,262 portion ( 53,769) ( 52,801) $ 287,692 $341,461 (Note) Principal repaid before due date.

(14) Accrued pension liability (A) The Company has a non-contributory and funded defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees before the implementation of the Labor Pension Act on July 1, 2005. Under the defined benefit plan, two units are accrued for each year of service for the first 15 years and one unit for each units year thereafter with a maximum of 45 units. Retirement benefits are based the number of units accrued and the average monthly salaries and wages of the last six months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Central Trust of China under the name of the independent retirement fund committee. For the three-month period ended March 31, 2006 and 2005, net pension costs recognized by the Company under the

～ 20 ～ defined benefit plan amounted to $201 and $2,189. The balance of the retirement fund deposited with Central Trust of China was $20,831 and $15,773 as of March 31, 2006 and 2005, respectively. The fund balances are not reflected in the financial statements. (B) Effective July 1st 2005, in accordance with Labor Pension Act, the Company adopted defined contribution pension plan (New Plan). Under the New Plan, employees have the option to join the New Plan and the Company contributes monthly an amount of based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts deposited with the Bureau of Labor Insurance. Benefits accrued under the New Plan are portable when the employment is terminated. The net pension costs recognized by the Company under he defined contribution plan for the three-month period ended March 31, 2006 amounted to $3,999. (15) Common Stock On March 18, 2005, August 30, 2005, and February 15, 2006, the Company’s Board of Directors adopted resolutions to decrease its paid-in capital to $1,468,787 by retiring 1,072,000 shares, 1,039,000 shares and 5,000,000 shares of treasury stocks, respectively. (16) Capital reserve Share premiums from the issuance of new shares and donations may be used to increase capital stock if the Company has surplus in retained earnings. The amount that can be transferred to capital stock each year is limited to 10% of this balance. Other capital reserves can only be used to cover the accumulated deficit when the legal reserve is insufficient to cover the accumulated deficit.

～ 21 ～ (17) Legal reserve Pursuant to the R.O.C. Company Law, 10% of the annual after-tax net income of the Company, after covering accumulated losses, must be appropriated as legal reserve until its total amount equals the issued capital stock. Legal reserve can only be used to cover accumulated losses or to increase capital. Legal reserve can be used to increase capital only if the accumulated amount of legal reserve is more than 50% of paid-in capital, and the amount is limited to 50% of its balance. (18) Undistributed earnings/special reserve A) As stipulated in the Company’s Articles of Incorporation, the current earnings, if any, shall be distributed in the following order, (a) Pay for taxes and duties. (b) Covering prior years’ accumulated deficit, if any. (c) After deducting items (a) and (b), 10% of the remaining amount is appropriated as legal reserve. (d) In addition to the amount appropriated for legal reserve, the Company may appropriate an amount equal to the negative items in the stockholders’ equity from retained earnings as special reserve. (e) Interest on capital. (f) After deducting items (a) to (e), 10%～15% of the remaining earnings is appropriated as employees’ bonuses and up to 2% as remuneration to directors and supervisors. (g) The remaining amount is to be distributed to stockholders in accordance with the resolution adopted at the stockholders’ meeting. B) The Taiwan imputation tax system requires that any undistributed current earnings of a company derived on or after January 1, 1998 be subject to an additional corporate income tax if the earnings are not distributed before a specific time. This 10% additional tax on undistributed earnings paid by the company may be used as a tax credit by shareholders, including foreign shareholders, against the withholding tax on dividends. In addition, the domestic shareholder can claim a proportionate share of the company’s corporate income tax as a tax credit against their individual income tax liability effective 1998.

～ 22 ～ C) As of March 31, 2006, the Company is in an accumulated deficit position. The Company’s Board of Directors has adopted a resolution not to distribute dividends, employee bonus, and directors’ remuneration which is to be resolved at the shareholders’ meeting. In addition, the Board adopted a resolution to use $267,318 of capital reserve to cover the accumulated deficit. D) As of December 31, 2005, the Company was in a deficit position. The Company’s Board of Directors has adopted a resolution not to distribute dividends, employee bonus, and directors’ remuneration. In addition, the Board adopted a resolution to use $103,066 of legal reserve and $291,201 of capital reserve to cover the accumulated deficit of $394,267. E) The Company incurred net loss in 2004, accordingly the shareholders passed a resolution not to distribute any dividends, employee bonus, and directors’ remuneration. F) For current status on these resolutions, please visit the Taiwan Stock Exchange website. (19) Income tax payable A) Income tax payable and income tax expense for the periods ended March 31, 2006 and 2005 are reconciled as follows: Three-month periods ended March 31, 2006 2005 Current year income tax expense $ 35,616 $ 9,262 Additional 10% corporate income tax - on undistributed earnings 23,551 35,616 32,813 Add (Less): Net change in deferred income tax assets ( 24,525) ( 16,204) Over provision of prior year’s income tax 20,375 18,585 Prepaid income tax ( 177) ( 3) Income tax payable $ 31,289 $ 35,191

～ 23 ～ B) Deferred income tax assets are as follows: March 31, 2006 2005 Deferred income tax assets - current $ 29,897 $ 36,488 Deferred income tax assets-non-current 31,690 72,954 $ 61,587 $ 109,442 C) The temporary differences and related income tax effect are as follows: March 31, 2006 2005 Amount Tax effect Amount Tax effect Current items: Allowance for loss on decline in market value and inventories obsolescence $ 17,535 $ 4,384 $ 22,548 $ 5,638 Allowance for sales returns 6,211 1,553 8,842 2,210 Over provision of allowance for bad debts 45,403 11,350 47,639 11,910 Welfare expenses 1,000 250 1,464 366 Investment tax credit 12,360 16,364 $ 29,897 $ 36,488 Non-current items: Welfare expenses $ 750 $ 187 $ 1,750 $ 437 Impairment losses 215,480 53,870 294,956 73,739 Reserve for foreign investment ( 219,236) ( 54,809) ( 163,608) ( 40,902) Investment tax credit 32,442 39,680 $ 31,690 $ 72,954

～ 24 ～ D) As of March 31, 2006 and 2005, the balance of shareholders account of deductible tax were as follows: March 31, 2006 2005 The balance of shareholders account of deductible tax $ 22,065 $ 7,387 2005 Actual creditable tax ratio - 2004 Actual creditable tax ratio - E) As of March 31, 2006 and 2005, the information regarding the undistributed earning are as follows: March 31, 2006 2005 On or after January 1, 1998 a. Earnings not subjected to 10% income tax $ 56,717 $ 27,482 b. Earnings subjected to 10% income tax ( 459,460)( 398,193) ($ 402,743) ($ 370,711) F) (a) As of March 31, 2006, the Company’s income tax returns for the years through 2002 have been assessed and approved by the Tax Authority. (b) The Company was assessed $963 in additional tax for the year 1999, and in 2002 and 2003, the Company filed an appeal to contest the assessment. The Ministry of Finance has rendered an unfavorable judgment and the Company had prepaid all of the additional income tax, as well as, filed a second appeal to the High Administrative Court. (c) The Tax Authority imposed additional tax and penalties amounting to $26,293 on the Company’s 2001 income tax return. The Company paid $244 and is contesting the remaining balance and penalties imposed by the Tax Authority. The Company has filed for re-examination in April 2005. (d) The Tax Authority imposed additional tax amounting to $127,204 on the Company’s 2002 income tax return. The Company paid $4,050 and is contesting the remaining balance imposed by the Tax Authority. The Company has filed for re-examination in February 2006.

～ 25 ～ G) The two incremental income associated with the Company’s investments in the development of its PC-based and internet-based computer games are exempt from income tax for five years (2001 to 2005 and 2002 to 2006). The tax exempt income amounted to $15,035 for the year ended March 31,2006. H) As of March 31, 2006 according to “Income Tax Law” and “Statute for Upgrading Industries,” the Company had investment tax credits in the amount of $44,802 to offset taxable income for the next four years. The details are as follows: Un-utilized Year of Deductible item Total Credits balance expiration Research and $ 13,843 $ 13,843 2008 development expenditures 〃 16,697 16,697 2009 〃 4,734 4,734 2010 Machinery and equipment 2,195 2,195 2008 〃 1,000 1,000 2009 〃 2,789 2,789 2010 Employees training 1,342 1,342 2008 〃 2,064 2,064 2009 〃 138 138 2010 $ 44,802 $ 44,802 (20) Earnings per share Three-month period ended March 31, 2006 Amount Weighted Earnings per share (Note) average outstanding common Before income tax After income tax shares Before income tax After income tax Earnings per share Net income $ 92,333 $ 56,717 146,454 $ 0.63 $ 0.39 As of March 31, 2006, the outstanding employee stock option has no dilutive effect.

～ 26 ～ Three-month period ended March 31, 2005 Amount Weighted Earnngs per share (Note ) average outstanding common Before income tax After income tax shares Before income tax After income tax Earning per share Net income $ 60,295 $ 27,482 147,918 $ 0.41 $ 0.19

As of March 31, 2005, the outstanding employee stock option has no dilutive effect. Note: In New Taiwan Dollars.

(21) Treasury Stock

Three-month period ended March 31, 2006 A) Purposes Beginning shares (Note) Additions Disposals Ending shares (Note) Employees stock option 5,000 6,378 ( 5,000) 6,378

Three-month period ended March 31, 2005 Purposes Beginning shares (Note) Additions Disposals Ending shares (Note) Employees stock option 5,000 - - 5,000 To enhance Company’s credit rating and shareholders’ equity 1,072 - ( 1.072) - 6,072 - ( 1.072) 5,000 Note: Amount in thousands of shares.

B) The maximum and ending balances of treasury stock for the three-month period ended March 31, 2006 and 2005 are as follow: March 31, 2006 March 31, 2005 Maximum balance Ending balance Maximum balance Ending balance $ 302,140 $ 94,275 $ 319,214 $ 302,140

～ 27 ～ C) Treasury stocks purchased on February 16, 2006 were examined by Ministry of Economic Affairs, R.O.C. As a result, the additional paid in capital-in excess of par was decreased by $34,160, the additional paid in capital- treasury stock transaction was decreased by $27,162 and accumulated deficit was increased by $190,818. In additional, 6,378,000 shares were purchased continually since March 20, 2006. D) Treasury stocks purchased on April 18, 2005 and October 4, 2005 were retired. As a result, the additional paid in capital-treasury stock transaction was increased by $10,051 and the additional paid in capital-in excess of par was decreased by $19,660. E) According to the R.O.C Security Exchange Act, the percentage of the number of shares of treasury stocks may not exceed 10% of the total shares of common stocks issued by the Company and the total amount of treasury stock may not exceed the total amount of retained earnings, paid-in capital in excess of par value, and realized capital reserve. F) According to the R.O.C Security Exchange Act, treasury stocks held by the Company can not be pledged, and shall bear no right of shareholders until reissued. G) According to the R.O.C. Security Exchange Act, treasury shares for the purpose of enhancing Company’s credit and shareholder’s equity not reissued within three years shall be retired, all other purpose treasury stock shall be reissued within six months of acquisition. (22) Employee Stock Option Plan A) On December 25, 2003, the board of directors approved an employee stock option plan. The program involves the issuance of 10, 000 units of option with one unit equal to one thousand shares of common stock. When the contributed capital changes as a result of the issuance of new shares of common stock, the option price will be adjusted based on a predetermined formula. The stock option has a exercise period of six years. Employees will be able to exercise these options after two years under the policy in accordance with the procedures of the employee stock option plan.

～ 28 ～ B) The units and weighted average exercise price of the stock options for the three-month period ended March 31, 2006 and 2005 are as follows: For the three-month period ended March 31, 2005 2006 Weighted- Weighted- average average Units exercise price Units exercise price Stock Options (in thousands) (in dollars) (Note) (in thousands) (in dollars) (Note) Beginning balance (Note) 10,000 $ 32.80 10,000 $ 32.80 Number of options granted - - - - Adjustment due to issuance of stock dividends - - - - Exercised - - - - Cancelled - - - - Ending balance (Note) 10,000 $ 32.80 10,000 $ 32.80 Exercisable at the period of the year - - Authorized but unissued at the period of the year - -

(Note) The exercise price has been adjusted in accordance with the teams of the plan.

C) As of March 31, 2006 and 2005, the details of outstanding stock options are as follows:

For the three-month period ended March 31, 2006

Outstanding stock options Exercisable stock options

Weighted- average Weighted- average

exercise price exercise price

Exercise price Units Weighted- average (in dollars) Units (in dollars)

(in dollars) (in thousands) remaining life (year) (in thousands)

$ 32.80 10,000 3.83 $ 32.80 - $ -

～ 29 ～ For the three-month period ended March 31, 2005

Outstanding stock options Exercisable stock options

Weighted- average Weighted- average

exercise price exercise price

Exercise price Units Weighted- average (in dollars) Units (in dollars)

(in dollars) (in thousands) remaining life (year) (in thousands)

$ 32.80 10,000 4.83 $ 32.80 - $ -

D) The pro forma information as if the “fair-value method” has been adopted is as follows: (a) Model: The Black-Scholes model. (b) Assumptions: For the three-month period For the three-month period ended March 31, 2006 ended March 31, 2005

Black-Scholes model assumptions Dividend yield 0% 0% Volatility 62.02% 62.02% Risk-free interest rate 1.95% 1.95%

Expected life of the option 6 years 6 years Exercise price $ 32.8 (in dollars) $ 32.8 (in dollars) Amortization period 2～3 years 2～3 years (c) Result of evaluation: For the three-month period For the three-month period ended March 31, 2006 ended March 31, 2005

Weighted average fair value of $ 17.4656 (in dollars) $ 17.4656 (in dollars) options granted to employees The compensation cost under “fair 3,317 16,028 value method”

～ 30 ～ (d) Pro forma information:

For the three-month period For the three-month period ended March 31, 2006 ended March 31, 2005 Net income Net income $ $ 56,717 27,482 Pro forma net income 53,400 11,454 Basic earnings EPS (in dollars) (in dollars) re 0.39 0.19 Pro forma EPS (in dollars) (in dollars) 0.36 0.08 Diluted earnings EPS (in dollars) (in dollars) per share 0.39 0.19 Pro forma EPS (in dollars) (in dollars) 0.36 0.08

(23) Personnel, Depreciation and Amortization Expenses Three-month period ended

March 31, 2006 2005 Personnel expenses Salaries $ 78,559 $ 72,127 Labor and health insurances 5,845 5,156 Pension 4,200 2,189 Other 4,222 4,719 $ 92,826 $ 84,191 Depreciation expense $ 38,246 $ 33,488 Amortization expense 15,317 17,419 $ 53,563 $ 50,907

～ 31 ～ 5. RELATED PARTY TRANSACTIONS (1) Names and relationship of related parties Names of related parties Relationship with the Company Gamania Digital Entertainment (Japan) A subsidiary of the Company Co., Ltd. (Gamania (Japan)) Gamania China Holdings Ltd. (G.C.H) 〞 Gamania Digital Entertainment (H.K.) 〞 Co., Ltd. (Gamania (H.K.)) Gamania Korea Co., Ltd. (Gamania 〞 (Korea)) Gamania Holdings Ltd. (G.H) 〞 Gamania International Holdings Ltd. 〞 (G.I.H) Gamania Sino Holdings Ltd. (Sino) 〞 NC Taiwan Co., Ltd. (NC Taiwan) 〞 Alibangbang Digital Games Co., Ltd. 〞 (Alibangbang) Gamania Digital Entertainment (Beijing) Co., Ltd. (Gamania 〞 (Beijing)) Taiwan Index Co., Ltd (Taiwan Index) 〞 Gamania Asia Investment Co., Ltd. 〞 (Gamania Asia) Gamania Digital Entertainment Labuan 〞 Holdings, Ltd. (Gamania (Labuan)) Soga Interactive Co., Ltd. (Soga) Investee accounted for under equity method Playcoo Co. 〞

～ 32 ～ (2) Significant transactions with related parties A) Service revenue For the three-month period ended March 31,

2006 2005 % of net service % of net service Amount revenue Amount revenue NC Taiwan $ 2,848 11 $ 831 2 Taiwan Index 608 2 2,040 5 $ 3,456 13 $ 2,871 7 The terms and prices of sales were negotiated in consideration of different factors including products, cost and competitors. It’s not as compared with other same transactions. B) Royalty revenue For the three-month period ended March 31, 2006 2005 % of royalty revenue % of royalty revenue Amount Amount Gamania (H.K.) $ 698 $ 86 $ 283 $ 52 Collected royalty amounts from subsidiaries for the on-line game. It’s not as compared with other same transactions. C) Other operating revenue For the three-month period ended March 31,

2006 2005 % of net % of net Amount sales revenue Amount sales revenue Gamania (Japan) $ 515 $ 7 $ 305 $ 5 Taiwan Index 255 3 9 - Gamania (H.K.) 226 3 238 4 Gamania (Beijing) 44 - 78 1 $ 1,040 $ 13 $ 630 $ 10 Collected from subsidiaries for services revenue. The terms are negotiated and it’s not as compared with other same transactions.

D) Purchases For the three-month period ended March 31,

2006 2005 % of % of Amount net purchase Amount net purchase NC Taiwan $ 54,211 $ 63 $ 3,134 $ 6 Taiwan Index 3,068 4 9,456 18

～ 33 ～ $ 57,279 $ 67 $ 12,590 $ 24

Purchase consists of sales of products incurred on behalf of the subsidiaries. The terms are negotiated and it’s not as compared with other same transactions. E) Publishing expense For the three-month period ended March 31, 2006 2005 % of % of Amount publishing expense Amount publishing expense NC Taiwan $ 552 $ 6 $ - $ - Amount represents royalties for publishing right. F) Advertising expense

For the three-month period ended March 31,

2006 2005 % of % of Amount advertising expense Amount advertising expense Taiwan Index $ 778 $ 11 $ 1,451 $ 9 Advertising expense is paid to subsidiaries for providing advertisement. The term and prices of advertising expense were negotiated in contract of different factors. G) Rent revenue

For the three-month period ended March 31,

2006 2005 % of net % of net Amount rent revenue Amount rent revenue Gamania (Korea) $ 2,255 42 $ - - Gamania (Beijing) 2,205 41 - - Gamania (H.K.) 732 13 - - NC Taiwan 97 2 1,354 97 Taiwan Index 54 1 - - Others - - 6 1 $ 5,343 99 $ 1,360 98 The term and prices of rent revenue were negotiated in contract of different factors. Payments are collected with monthly notes receivables from NC

～ 34 ～ Taiwan and Taiwan Index, other payments are offseted by accounts receivable and accounts payable quarterly. H) Other revenue

For the three-month period ended March 31,

2006 2005 % of net % of net Amount other revenue Amount other revenue NC Taiwan $ 575 58 $ - - Taiwan Index 274 28 115 10 Gamania (Korea) - - 1 - $ 849 $ 86 $ 116 $ 10

Collected from subsidiaries for services revenue. I) Note receivable

March 31, 2006 March 31, 2005

% of net % of net Amount note receivable Amount note receivable Taiwan Index $ 460 1 $ - - NC Taiwan 82 - 1,587 3 Others 18 - 123 - $ 560 $ 1 $ 1,710 $ 3

Note receivable are receivables from subsidiaries for providing customer services and sale of goods.

J) Accounts receivables

March 31, 2006 March 31, 2005

% of net Amount % of net Amount accounts receivables accounts receivables Gamania (Japan)(Note) $ 2,422 - $ - - Taiwan Index 504 - - - Gamania (H.K.) 153 - - - Gamania (Beijing)(Note) 76 - - - 3,155 - - - Less:Other receivables ( 2,049) - - - $ 1,106 - $ - -

～ 35 ～

Account receivables are receivables from subsidiaries for providing customer services and sales of goods. (Note) The overdue accounts receivables from royalty and service are reclassified to other receivables. K) Other receivables

March 31, 2006 March 31, 2005

% of net other receivables % of net Amount Amount other receivables Gamania (Japan) $ 19,426 9 $ 3,713 2 Gamania (Beijing) 7,206 3 1,941 1 Gamania (Korea) 6,664 3 - - Gamania (H.K.) 5,567 3 8,375 4 NC Taiwan 2,539 1 6,598 3 G.I.H 846 - - - G.H 838 - - - Soga 401 - 16,187 8 Taiwan Index 378 - 1,575 1 Others 123 - 2,285 1 $ 43,988 19 $ 40,674 20 Other receivables consist of payments for the purchase of materials, miscellaneous expenses, machinery and equipment on behalf of related parties. L) Other receivable-financial

March 31, 2006 The Highest Balance Ending Balance Rate Interest revenue Gamania (Japan) $ 2,011 $ 2,011 - $ - Gamania (Beijing) $ 38 $ 38 - $ - The ending balance of other receivable-financial were overdue accounts receivables. According to the regulation NO.167 issued in 2004 by Accounting Research and Development Foundation in Taiwan, the overdue other receivables are disclosed as other receivable-financial. M) Note payable

March 31, 2006 March 31, 2005 Amount % of net Amount % of net

～ 36 ～ note payable note payable NC Taiwan $ 140,366 69 $ 58,650 45 Taiwan Index - - 3,087 2 $ 140,366 69 $ 61,737 47 Note payable consists of sales of products incurred on behalf of the subsidiaries. N) Other payables

March 31, 2006 March 31, 2005

% of net % of net Amount other payables Amount other payables NC Taiwan $ 41,150 42 $ 111,043 61 Taiwan Index 27,323 28 49,420 27 Gamania (Japan) 4,419 4 2,228 1 Gamania (H.K.) 938 1 - - Gamania (Korea) 552 - - - Gamania (Beijing) 113 - 1,617 1 Others - - 587 - $ 74,495 75 $ 164,895 90 Other payable consists of sales of products, expenses incurred on behalf of the subsidiaries and payments of goods returned. O) Commitments The Comapany provided guarantees for bank loans of its related party as follows:

March 31, 2006 2005 Gamania (Korea) $ 30,000 $ - NC Taiwan - 30,000 $ 30,000 $ 30,000

6. DETAILS OF PLEDGED OR RESTRICTED ASSETS

～ 37 ～ March 31, Assets 2006 2005 Purpose Time deposits (shown in other $ 30,000 $ - Provided guarantees financial assets-current) of its related party Land 141,717 141,717 Long-term loans / Credit lines Buildings 105,663 107,673 〞 Machinery equipment 25,982 33,285 〞 $ 303,362 $ 282,675 7. COMMITMENTS AND CONTINGENT LIABILITIES Except Note (5), others are as follows, (1) As of March 31, 2006, the total future rental payments for the next 3 years under non-cancellable operating lease agreements for the Company’s office building was $20,386. (2) The Company has contracted the use of cable lines, T1 and T3, with rental charges based on utilization. In additional, the Company has contracted with several on-line game vendors, and will pay royalty based on actual usage. (3) As of March 31, 2006, the Company had contracted for accounting software and related consulting services totaling $30,860, of which $30,425 have been paid, and accounted as Deferred Charges. (4) As described in Note 4(19), the Tax Authority assessed additional income tax of $963 the 1999 income tax return for disallowing the R&D investment tax credits. In 2002, the Company has filed an appeal which was rejected by the Ministry of Finance. As required under the regulations, the Company has prepaid additional income tax and filed the second appeal to the High Administrative Court in 2003. The case is currently pending. (5) As stated in Note 4(19), the Tax Authority imposed additional tax and penalties amounting to $26,293 on the Company’s 2001 income tax return. The Company has reassessed the 2001 income tax return and deemed its additional liability to be $244. The Company has filed for re-examination in April, 2005 to contest the balance of tax and penalties. (6) As stated in Note 4(19), the Tax Authority imposed additional tax and penalties

～ 38 ～ amount to $127,204 on the Company’s 2002 income tax return and the Company paid 2002 income tax return exceeded the limits prescribed in the Income Tax Law $4,050. However, the Company is contesting the balance due and penalties. The Company filed for re-examination in February , 2006. (7) For the period from January 1, 2006 to December 31, 2006, First Commercial Bank has provided guarantee on behalf the Company to a customer.

8. MAJOR CATASTROPHE None.

9. SUBSEQUENT EVENTS None.

10. OTHERS (1) Financial statement presentation Certain accounts in the three-month period ended March 31, 2005 financial statements have been reclassified to conform to the three-month period ended March 31, 2006 financial statement presentation. (2) The fair values of the financial instruments

March 31, 2006 March 31, 2005 Fair value Fair value Quotations Quotations Estimated in an active Estimated Book in an active using a Book market using a value market valuation value valuation Financial instruments Non-derivative financial instruments Assets

Financial assets with fair $1,377,571 (Note) $1,377,571 $ 841,923 (Note) $ 841,923 values equal to book values

～ 39 ～ Financial asset held for 280,943 280,943 - 868,700 868,700 - trading Financial assets carried 12,551 - - 26,846 - - at cost Refundable deposits 6,244 - 5,551 6,802 - 6,242 Liabilities Financial liabilities $ 594,956 (Note) $ 594,956 $ 553,910 (Note) $ 553,910 with fair values equal to book values Long-term loans 287,692 - 264,687 341,461 - 306,607 Guarantee deposits 42 - 42 34 - 34 Note: Please see described in (A)

The methods and assumptions to estimate the fair values of the financial instruments are summarized below: A) For short-term instruments, the book value is approximated the fair value. The carrying amounts of short-term non-derivative financial assets and liabilities, which include cash and cash equivalents, notes and accounts receivables (included related parties), other receivables (included related parties), other financial assets-current, short-term loans, notes and accounts payable (included related parties), income tax payable, accrued expenses, other payables (included related parties), current portion of long-term liabilities and other current liabilities, approximate their fair value because of their short-term maturates. B) The fair value of the refundable deposits is based on the present value of expected cash flow amount. The discount rate was the one-year deposit rate of the Directorate General of Postal Remittances and Savings Bank. C) The fair value of the long-term loans is based on the present value of expected cash flow amount. The discount rate was another instrument that is substantially the same from 2.475% to 3.47%. D) The fair value of guarantee deposits is the book value since the amount is in- significant. E) Off-balance sheet financial instruments with credit risk: March 31, 2006 2005 Guarantee for loans borrowed by related $ 30,000 $ 30,000 parties

～ 40 ～ According to the Company’s credit policy, guarantees can be provided for the loans borrowed by the subsidiaries in which the Company directly or indirectly holds more than 50% voting rights and over which the Company can exercise controlling power. No collaterals have been requested from these subsidiaries as the Company is able to monitor their credit standing. Should these subsidiaries default, the losses incurred by the Company approximate to the amount of the guarantees provided by the Company. (3) Procedure of financial risk control and hedge The Company’s activities expose it to a variety of financial risks: (including market risk, credit risk, liquidity risk and cash flow interest rate risk). The Company’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial performance. The Company’s risk management programme considers the effect of economic environment, competition and market value risk. The Company attains to the best risk position, holds appropriate liquidity position and centers on managements all of the market risks. To reach the objective of risk management, the Company’s hedged activities are focused on the market value risk and the cash flow risk. (4) Information of financial risk A) Financial instruments of equity Items March 31, 2006 Financial assets carried at cost-current $ 9,851 Financial assets carried at cost-non-current 2,700 $ 12,551

(A) Market risk The Company’s trading of financial assets is effected by market price. The Company doesn’t expect to have significant market risk because the Company has set a stop loss limit. (B) Credit risk The Company has evaluated credit of opposite and expects no assumpsit, so the chance of credit risk is low. (C) Liquidity risk

～ 41 ～ There is no broad market so the Company expects to have liquidity risk. (D) Cash flow interest rate risk As the Company has no significant interest-bearing assets, the Company’s cash flows are substantially independent of changes in market interest rates. B) Financial instruments of liabilities Items March 31, 2006 Financial assets at fair value through profit $ 280,943 or loss

(A) Market risk As floating interest of bonds fund are adopted by the Company, so the Company expects no significant market risk. (B) Credit risk The Company made investment in bonds fund with many distinguished financial apparatus which have good affiance to break up risk. The Company expects no assumpsit, so the chance of credit risk is low. (C) Liquidity risk There is a broad market for the Company’s bonds fund, so the Company expects to sell by accessible fair value briskly. (D) Cash flow interest rate risk As floating interest of financial instruments for liabilities are adopted by the Company. Effective interest will fluctuate by fluctuations in market interest and it will make fluctuations in cash flow in the future. C) Receivables Items March 31, 2006 Account receivables $ 698,499 Note receivables 59,627

Other receivables 219,235 $ 977,361

(A) Market risk The Company’s receivables are due within one year, so the Company

～ 42 ～ expects no significant market risk. (B) Credit risk The debtor of the Company has good affiance, so the Company expects no significant credit risk. (C) Liquidity risk The Company’s receivables are due within one year, so the Company expects no significant liquidity risk. (D) Cash flow interest rate risk The Company’s receivables are due within one year, so the Company expects no significant cash flow interest risk. D) Loans Items March 31, 2006 Short-term loans $ 30,000 Long-term loans (including current portion 341,461 of long-term liabilities) $ 371,461

(A) Market risk As floating interest of working capital for loans are adopted by the Company, so the Company expects no significant market risk. (B) Credit risk None. (C) Liquidity risk Because the Company’s working capital is enough for need of coffers, so it expects no significant liquidity risk. (D) Cash flow interest risk As floating interest of loans are adopted by the Company. Effective interest will fluctuate by fluctuations in market interest and it will make fluctuations in cash flow in the future.

(5) For the three-month period ended March 31, 2006 and 2005, the Company donated magazines amounting to $8,525 and $3,865, respectively, to political parties, charities, and educational institutes that are accredited by the

～ 43 ～ government, without significant appointed considerations.

～ 44 ～ 11. DISCLOSURE INFORMATION (1) Related information of significant transactions A) Financing activities to any company or person: None B) Guarantee information: Unit: Thousands of New Taiwan Dollars The Company or Parties being guaranteed investee companies Maximum of Maximum Ratio of Ceiling of the Amount of outstanding guarantee Outstanding accumulated outstanding Relationship guarantee for guarantee with amount for the three- guarantee amount guarantee amount guarantee to the Number with the such party collateral Name Name month period ended at March 31, 2006 to net value of the respective party (Note 1) Company placed (Note 4) March 31, 2006 Company (Note 3) (Note 2) 0 The Company Gamania Korea 2 $ 30,000 $ 30,000 $ 30,000 None 1.50% $ 440,636 Co., Ltd. (30% of the Company’s capital)

Note 1: Number 0 represents the Company. Note 2: Number 2 means the Company directly owns over 50% of the shares of the subsidiary. Note 3: In accordance with the Company’s policy, the total guarantee amount of the Company may not exceed 30% of the Company’s capital. Note 4: $30,000, and should not exceed the guaranteed company’s capital.

～ 45 ～ C) Marketable securities held at March 31, 2006: Unit: Thousands of New Taiwan Dollars / Thousands of Shares March 31, 2006 Type of marketable securities Relationship of the Market value Name of marketable issuers with the General ledger Company (Note (1)) securities security holders account Number of shares Book value Percentage (Note (2)) Note

Long-term The Company Common Stock Gamania Holdings Ltd. Subsidiary 26,771 $ 108,193 100% $ 108,193 None investment

〞〞 Gamania Korea Co., Ltd. 〞〞 493 18,480 100% 18,480 〞

Alibangbang Digital 〞〞〞〞 8,600 12,033 95.56% 12,033 〞 Games Co., Ltd.

〞〞 NC Taiwan Co., Ltd. 〞〞 7,140 96,768 51.00% 96,768 〞

〞〞 Taiwan Index Co., Ltd. 〞〞 17,350 64,164 69.40% 64,164 〞

Gamania Asia Investmet 〞〞〞〞 19,000 136,411 100% 136,411 〞 Co., Ltd. Gamania Digital 〞〞 Entertainment Labuan 〞〞 10 168 100% 168 〞 Holdings, Ltd. Investee company 〞〞 Soga Interactive Co., Ltd. accounted for under 〞 2,800 21,363 40% 21,363 〞 equity method

〞〞 Playcoo Co. 〞〞 4,000 37,150 30.30% 37,150 〞

Investee company Financial assets Buybooks Digital 〞〞 accounted financial carried at 300 - 3.74% - 〞 Technology Co., Ltd. assets carried at cost cost-non-current ECD Interactive 〞〞〞〞 2,040 2,700 18.55% 2,700 〞 Corporation

～ 46 ～ Unit: Thousands of New Taiwan Dollars / Thousands of Shares March 31, 2006 Type of marketable securities Relationship of the Market value Name of marketable issuers with the General ledger Company (Note (1)) securities security holders account Number of shares Book value Percentage (Note (2)) Note

Investee company Financial assets Joyon Entertainment Co., The Company Common Stock accounted financial carried at 697 $ 9,851 11.47% $ 9,851 None Ltd. assets carried at cost cost-current Financial assets 〞〞 RAVA Ideologie Inc. 〞 carried at 880 - 8.69% - 〞 cost-non-current 〞〞 Zona Inc. 〞〞 1,000 - 10.34% - 〞 Financial assets at 〞 Bonds Fund Fund 1 None fair value through 2,355 35,117 - 35,117 〞 profit or loss-current 〞〞 Fund 2 〞〞 2,683 30,101 - 30,101 〞

〞〞 Fund 3 〞〞 2,322 30,101 - 30,101 〞

〞〞 Fund 4 〞〞 3,410 50,194 - 50,194 〞

〞〞 Fund 5 〞〞 4,322 50,164 - 50,164 〞

〞〞 Fund 6 〞〞 185 30,100 - 30,100 〞

〞〞 Fund 7 〞〞 2,694 30,101 - 30,101 〞

〞〞 Fund 8 〞〞 2,470 25,065 - 25,065 〞 Note (1): Market securities consist of stocks, bonds, beneficiary certificates and their derivative instruments. Note (2): The market value of listed equity securities and closed-end mutual funds is determined based on closing price of balance sheet date. The market value of open-end mutual funds is determined based on the net asset par value as of balance sheet date.

D) Marketable securities acquired or sold during the period ended March 31, 2006 in excess of $100,000 or 20% of capital: None. E) Acquired real estate in excess of $100,000 or 20% of capital: None. F) Disposal of real estate in excess of $100,000 or 20% of capital: None. G) Sales to or purchases from related parties in excess of $100,000 or 20% of capital: None. ～ 47 ～ H) Receivable from related parties in excess of $100,000 or 20% of capital: None. I) Information on derivative transaction: None. (2) Information of investee companies

A) Information of investee companies:

Unit: Thousands of New Taiwan Dollars / Thousands of Shares Original investment cost Held by the Company Investment (Loss) Gain Main operating (loss) gain Company Name of investee Location Number of incurred by the Note recognized by activities 2006.3.31 2005.12.31 Percentage Book value Investee Shares the Company 3F, Harbour Center, Gamania Box 1348, George Town, Investment、 The Company Holdings Ltd. Grand Cayman, Cayman $ 911,043 $ 892,188 26,771 100% $108,193 ($ 15,198) ($ 15,198) Subsidiary holding company Islands, British West Indies 3F, NO.75-6 Soodang Gamania B/D, Samsung-Dong Design and sale of 〞 96,224 80,189 493 100% 18,480 ( 16,094) ( 16,094) 〞 Korea Co., Ltd Kang Nam-Gu, Seoul software Korea 18F, No. 736 Chang- Design and Alibangbang Cheng Rd., Chung-Ho research and 〞 Digital Games 90,000 90,000 8,600 95.56% 12,033 ( 7,522) ( 7,188) 〞 City, development of Co., Ltd. Taipei County, Taiwan software NC Taiwan Design and sale of 〞〞 71,400 71,400 7,140 51% 96,768 ( 27,407) ( 14,239) 〞 Co., Ltd. software Taiwan Index Co., 〞〞 Software service 208,200 208,200 17,350 69.40% 64,164 ( 1,195) ( 4,252) 〞 Ltd. Gamania Asia 〞 Investment Co., 〞 Investment 190,000 190,000 19,000 100% 136,411 ( 365) ( 365) 〞 Ltd. Gamania Digital Level 9F, Main Office Entertainment Tower, Financial Park, Investment 、〞 329 329 10 100% 168 - - 〞 Labuan 87000 Labuan FT Labuan, Holding Company Holdings, Ltd. Malaysia

～ 48 ～ Main Original investment cost Held by the Company (Loss)gain Investment( loss) Company Name of investee Location operating Number of incurred by the gain recognized Note 2006.3.31 2005.12.31 Percentage Book value activities Shares Investee by the Company Investee 18F, No.736 Chang- Design and company Soga Interactive Co., Cheng Rd., Chung-Ho The Company research of $ 28,000 $ 28,000 2,800 40% $ 21,363 ($ 5,351) ($ 2,140) accounted for Ltd. City, Taipei County, software under equity Taiwan method Supply Software 4F-4, No.215 Cheng-de 〞 Playcoo Co. Service and 40,000 40,000 4,000 30.3% 37,150 ( 7,597) ( 2,302) 〞 Rd., Taipei City, Taiwan electric information 18F, No.736 Chang- Gamania Asia Design and Taiwan Index Co., Cheng Rd., Chung-Ho Investment Co., sale of 80,625 80,625 6,800 27.20% 27,239 ( 1,195) ( 325) 〞 Ltd. City, Taipei County, Ltd software Taiwan 3F, Harbour Center, Box Gamania 1348, George Town, Investment Gamania USD26,771 USD26,191 USD3,357 International Grand Cayman, Cayman holding 26,771 100% (USD 470 (USD 470 Subsidiary Holdings Ltd. thousand thousand Thousand Holdings Ltd. Islands, British West company thousand) thousand) Indies Gamania Design and Gamania Digital Sumitomo Ooimachi Bldg sale USD12,240 USD12,240 International (North) 4F, 1-20-6 Ooi, 17 100% USD1,793 (USD 163 (USD 163 Entertainment of software; thousand thousand 〞 Holdings Ltd. Shinagawa-Ku, thousand thousand) thousand) (Japan.) Co., Sale of Tokyo , Japan 140-0014 Ltd. hardware Gamania 3F, Harbour Center, Box Gamania China 1348, George Town, Investment USD17,330 USD16,750 International USD1,571 (USD 332 (USD 307 Holdings Ltd. Grand Caymam, Cayman holding thousand thousand 16,604 92.81% 〞 Holdings Ltd. Islands, British West company thousand thousand) thousand) Indies 4F, One Capital Place, Gamania China Gamania Sino USD14,830 USD14,250 P.O. box 847 gt, Grand General USD 103 (USD 753 (USD 753 Holdings Ltd. Holdings Ltd. thousand thousand N/A 100% 〞 Cayman, Cayman Islands, Investment thousand thousand) thousand) British West Indies

～ 49 ～ Main Original investment cost Held by the Company (Loss)gain Investment( loss) Company Name of investee Location operating Number of incurred by the gain recognized Note 2006.3.31 2005.12.31 Percentage Book value activities Shares Investee by the Company Rm2106, Bldg No.5 Gamania Digital Design and USD11,480 USD11,480 Gamania Sino (US 464 (USD 622 (USD 622 Entertainment Soho New Town, No.88, sale of thousand thousand N/A 100% Subsidiary Holdings Ltd. (Beijing) Co., Ltd. Jian Guo Re Beijing, software Thousand) thousand) thousand) 1000022 China Gamania Gamania China Digital 50F, China Online Centre, Design and USD3,009 USD3,009 USD1,593 USD 421 USD 421 Holdings Ltd. 333 Lockhart Road, sale of 35,500 100% 〞 Entertainment thousand thousand thousand thousand thousand Wanchai, Hong Kong software (H.K.) Co., Ltd.

Gamania China 50F, China Online Centre, Design and (USD 6 G.A. Co., Limited. 333 Lockhart Road, sale of Note Note N/A 100% - - 〞 thousand) Holdings Ltd. Wanchai, Hong Kong software

Note:The original invstment cost is $HK2.

～ 50 ～ B) Financing activities to any company or person: None

C) Guarantee information: None.

D) Marketable securities held at March 31, 2006:

March 31, 2006 Name of Type of marketable securities marketable Relationship with General ledger Market value Issuer (Note (1)) securities the security holders account Number of shares Book value Percentage (Note (2)) Note Gamania Gamanina Common Stock International Subsidiary Long-term 26,771 USD3,357 100% USD3,357 None Holdings Ltd. Holdings Ltd. investments thousand Thousand Gamania Gamania Digital USD1,793 USD1,793 International 〞 Entertainment 〞〞 17 thousand 100% thousand 〞 Holdings Ltd. (Japan) Co., Ltd. Gamania Gamania China USD1,571 USD1,571 International 〞 Holdings Ltd. 〞〞 16,604 thousand 92.81% thousand 〞 Holdings Ltd. Gamania (USD 6 (USD 6 China 〞 G.A. Co., Limited. 〞〞 N/A thousand) 100% thousand) 〞 Holdings Ltd. Gamania Gamania Digital USD1,593 USD1,593 China 〞 Entertainment 〞〞 35,500 thousand 100% Thousand 〞 Holdings Ltd. (H.K.) Co., Ltd. Gamania China Gamania Sino USD 103 USD 103 Holdings Ltd. 〞 Holdings Ltd. 〞〞 N/A thousand 100% Thousand 〞 Gamania Sino Gamania Digital Holdings Co., 〞 Entertainment 〞〞 N/A (USD 464 100% (USD 464 〞 Ltd. (Beijing) Co., Ltd. thousand) thousand) Gamania Asia Investee company Investment Co., 〞 Taiwan Index accounted for under 〞 6,800 $27,239 27.20% $27,239 〞 Ltd. Co., Ltd. the equity method Note (1): Marketable securities consist of stocks, bonds, beneficiary certificates and their derivative instruments. Note (2): The market value of listed equity securities and closed-end mutual funds is determined based on closing price of balance sheet date. The market value of open-end mutual funds is determined based on the net asset par value as of balance sheet date. Note (3): Unit:Share.

～ 51 ～ E) Marketable securities acquired or sold during the period ended March 31, 2006 in excess of $100,000 or 20% of capital: None.

F) Acquired real estate in excess of $100,000 or 20% of capital: None.

G) Disposal of real estate in excess of $100,000 or 20% of capital: None.

H) Sale to or purchases from related parties in excess of $100,000 or 20% of capital: None.

I) Receivable from related parties in excess of $100,000 or 20% of capital:

Overdue receivable Allowance Balance of receivable Action adopted for Subsequent for doubtful Name of creditor Transaction parties Relationship from related parties Turnover rate Amount overdue accounts Collections accounts provided NC Taiwan Co., The Company Parent Company $ 140,366 (Note) $ - (Note) $ - $ - Ltd. Note : This rate represents the turnover rate on the receivables from the Company for the merchandise sold by the Company. As the payments are made to NC Taiwan Co., Ltd. within three months after the Company receives the payments, the turnover rate is not applicable.

J) Information on derivative transactions: None.

～ 52 ～ (3) DISCLOSURE OF INFORMATION ON INVESTMENT IN MAINLAND CHINA Accumulated Remitted or received Direct and Investment loss Accumulated Accumulated Balance of investment investment amount indirect recognized Name of investee in Main Investment investment as investment investment income Capital during the period percentage during the Mainland China activities method of March 31, as of March at March 31, received as of period 2006 31, 2006 2006 of March 31, Remitted Received ownership (Note (3)) 2006 (RMB Design (USD9,350 (USD9,350 Gamania Digital (USD 576 (USD431 and sale 94,815 Entertainment (Note (2)) thousand) - $ - thousand) 92.81% thousand) thousand) $ - of thousand) (Beijing) Co., Ltd. ($ 18,616) ($13,990) $303,501 $303,501 software $383,925

Accumulated amount of investment in Mainland Related investment amount approved by FIA The upper limit of investment in Mainland China China as of March 31, 2006

$ 303,501(USD9,350thousand) $405,101 (Note (1)) $ 800,053

Note (1): Related total investment amount approved by FIA is USD12,480,000 or NTD 405,101 thousand based on 32.46exchange rate.

Note (2): Investment through a holding company registered in a country other than Taiwan or Mainland China.

Note (3): Investment loss recognized in the period is calculated based on the percentage of indirect ownership using unreviewed financial statements of the investee.

The Company has no significant transactions with the holding Company or its subsidiaries in Mainland China.

～ 53 ～