1314183--3/14/2008--Jingwei_International

related topics

{operation, international, foreign}

{stock, price, share}

{regulation, change, law}

{property, intellectual, protect}

{customer, product, revenue}

{personnel, key, retain}

{acquisition, growth, future}

{stock, price, operating}

{regulation, government, change}

{interest, director, officer}

{competitive, industry, competition}

{control, financial, internal}

{product, market, service}

{condition, economic, financial}

{capital, credit, financial}

Risks Related to Our Business We have a limited operating history which provides a limited basis for you to evaluate our financial and operating performance. Our business depends to a large extent on mobile telecommunications service providers in China and any deterioration of such relationships may result in severe disruptions to our business. Our financial condition and results of operations may be materially affected by the changes in policies or guidelines of the mobile telecommunications service providers. Our customers are concentrated in a limited number of industries and a slowdown in these industries could have an adverse effect on our business. The markets in which we operate are highly competitive and fragmented and we may not be able to maintain market share. Key employees are essential to growing our business and could choose to work elsewhere. Although individual members of our management team have experience as officers of publicly-traded companies, much of that experience came prior to the adoption of the Sarbanes-Oxley Act and we may be required to implement compliance infrastructure without adequate resources. Failure to provide significant management attention to international operations may negatively affect our business. If we need additional financing, which may not be available on satisfactory terms or at all. We must respond quickly and effectively to new technological developments in order to remain competitive. If we fail to protect adequately or enforce our intellectual property rights, or to secure rights to patents of others, the value of our intellectual property rights could diminish. If we infringe the rights of third parties, we could be prevented from selling products, forced to pay damages and compelled to defend against litigation. We have never paid cash dividends and are not likely to do so in the foreseeable future. Risks Associated With Doing Business In Greater China Our operations and assets in greater China are subject to significant political and economic uncertainties. Currency fluctuations and restrictions on currency exchange may adversely affect our business, including limiting our ability to convert Chinese renminbi into foreign currencies and, if Chinese renminbi were to decline in value, reducing our revenue in U.S. dollar terms. We are required to obtain licenses to expand our business into other provinces of mainland China. Existing and proposed regulation in the areas of consumer privacy, data use and/or security could affect our financial condition. We may have limited legal recourse under PRC law if disputes arise under our contracts with third parties. We must comply with the Foreign Corrupt Practices Act which could disadvantage us in the markets in which we operate. PRC laws and regulations restrict foreign investment in China s telecommunications service industry and we have entered into contractual agreements with Jingwei Communications to control and realize the benefits of the business. We are relying upon PRC laws and there is substantial uncertainty regarding the interpretation and application of current or future PRC laws and regulations. The contractual agreements between Jingwei HengTong and Jingwei Communications may not be as effective in providing operational control as direct ownership of these businesses and may be ineffective to permit consolidation of the financial results of the business. Risks Related to the Common Stock As we did not timely file or have declared effective a registration statement to register for resale shares from our recent offering we could be required to pay liquidated damages. We are controlled by a small number of existing shareholders, who may make decisions with which you may disagree

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1314183--3/14/2008--Jingwei_International_LTD