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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
      D.C. 20549&#160;</strong></font>&#160;</div>
    <div>
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section&#160;13 or 15(d) of the </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      Exchange Act of 1934 </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      August 16, 2006&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman"><strong>CYBER
      MERCHANTS EXCHANGE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>(Exact
      name of registrant as specified in Charter) </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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            </td>
            <td valign="top" width="28%">
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          <tr>
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                or other jurisdiction of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>incorporation
                or organization)</strong></font></div>
            </td>
            <td valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Commission
                File No.)</strong></font></div>
            </td>
            <td valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(IRS
                Employee Identification
                No.)</strong></font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5th
      Floor, QPL Industrial Building, 126-140 Texaco Road, </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tsuen
      Wan, Hong Kong</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Address
      of Principal Executive Offices) </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(852)
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2944-9905</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Issuer
      Telephone number) </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below): </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27.05pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27.05pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27.05pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b)) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27.05pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c)) </font></div>
    <div>&#160;</div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Forward
      Looking Statements </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Form
      8-K and other reports filed by Registrant from time to time with the Securities
      and Exchange Commission (collectively the &#8220;Filings&#8221;) contain or may contain
      forward looking statements and information that are based upon beliefs of,
      and
      information currently available to, Registrant&#8217;s management as well as estimates
      and assumptions made by Registrant&#8217;s management. When used in the filings the
      words &#8220;anticipate&#8221;, &#8220;believe&#8221;, &#8220;estimate&#8221;, &#8220;expect&#8221;, &#8220;future&#8221;, &#8220;intend&#8221;, &#8220;plan&#8221;
or the negative of these terms and similar expressions as they relate to
      Registrant or Registrant&#8217;s management identify forward looking statements. Such
      statements reflect the current view of Registrant with respect to future events
      and are subject to risks, uncertainties, assumptions and other factors
      (including the risks contained in the section of this report entitled &#8220;Risk
      Factors&#8221;) relating to Registrant&#8217;s industry, Registrant&#8217;s operations and results
      of operations and any businesses that may be acquired by Registrant. Should
      one
      or more of these risks or uncertainties materialize, or should the underlying
      assumptions prove incorrect, actual results may differ significantly from those
      anticipated, believed, estimated, expected, intended or planned. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      Registrant believes that the expectations reflected in the forward looking
      statements are reasonable, Registrant cannot guarantee future results, levels
      of
      activity, performance or achievements. Except as required by applicable law,
      including the securities laws of the United States, Registrant does not intend
      to update any of the forward-looking statements to conform these statements
      to
      actual results. The following discussion should be read in conjunction with
      Registrant&#8217;s pro forma financial statements and the related notes that will be
      filed herein. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      this
      Form 8-K, references to &#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; &#8220;our company,&#8221; &#8220;Cyber&#8221; or the
&#8220;Registrant&#8221; refer to Cyber Merchants Exchange, Inc., a California corporation.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PREFACE:</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Current Report on Form 8-K is being filed concurrently with and is in connection
      with the other Current Report on Form 8-K filed on this same date which more
      completely describes the closing of Cyber&#8217;s share exchange transaction (the
&#8220;Exchange&#8221;) pursuant to the Exchange Agreement dated July 7, 2006 that was
      executed by Cyber with KI Equity Partners II, LLC, a Delaware limited liability
      company (&#8220;KI Equity&#8221;), Prime Fortune Enterprises Limited, an international
      business company incorporated in the British Virgin Islands ("Prime"), the
      equity owners of Prime, which consist of Prime Corporate Developments Limited
      (&#8220;Prime Corporate&#8221;), Kwok Chung and Lui Sau Wan (collectively, the &#8220;Prime
      Shareholders&#8221;) and Hamptons Investment Group Ltd. (&#8220;HIG&#8221;), and as amended on
      August 14, 2006 by the First Amendment to the Exchange Agreement (the
&#8220;Amendment&#8221;) executed by Cyber with KI Equity, Prime, the Prime Shareholders,
      HIG, Infosmart Group Limited (&#8220;Infosmart&#8221;), and each of the equity owners of
      Infosmart. Pursuant to the Exchange Agreement and the Amendment, Cyber acquired
      all of the Infosmart Shares from the Infosmart Shareholders, and the Infosmart
      Shareholders transferred and contributed all of their Infosmart Shares to Cyber.
      In exchange, Cyber issued to the Infosmart Shareholders 1,000,000 shares of
      Series A Preferred Shares, which shall be convertible into 116,721,360 shares
      of
      Cyber&#8217;s common stock. The closing of the transactions (the &#8220;Closing&#8221;)
      contemplated by the Exchange Agreement and the First Amendment to the Exchange
      Agreement and for the Financing described below occurred on August 16, 2006
      (the
&#8220;Closing Date&#8221;). Following the Closing Date, Infosmart became a wholly owned
      subsidiary of Cyber. Reference is made to Item 1.01 and 2.01 of the other
      Current Report on Form 8-K filed concurrently with this Form 8-K, which
      disclosures regarding the Exchange are incorporated herein by reference.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      consummation of the Exchange was contingent on a minimum of $7,000,000 (or
      such
      lesser amount as mutually agreed to by Registrant and the placement agent)
      being
      subscribed for, and funded into escrow, by certain accredited and institutional
      investors (&#8220;Investors&#8221;) for the purchase of shares of Series B Convertible
      Preferred Stock (&#8220;Series B Preferred Shares&#8221;) of Cyber promptly after the
      closing of the Exchange under terms and conditions approved by Cyber&#8217;s board of
      directors immediately following the Exchange (the &#8220;Financing&#8221;). Immediately
      following the Closing Date, we received gross proceeds of approximately $7.65
      million in connection with the Financing from the Investors. Pursuant to
      Subscription Agreements entered into with these Investors, we sold 1,092,857.143
      shares of our Series B Preferred Stock at a price per share of $7.00. Each
      share
      of Series B Preferred Stock will be convertible into shares of our common stock.
      The closing of the transactions contemplated by the Financing occurred on August
      16, 2006. Reference is made to Item 2.01 of the Current Report on Form 8-K
      filed
      concurrently with this Form 8-K for a more complete description of the
      Financing, which disclosures therein are also incorporated herein by reference.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      events and transactions described in the Items below are in connection with
      the
      Closing of the Exchange and the Financing. This Form 8-K Current Report is
      being
      filed separately because the number of &#8220;Items&#8221; that can be filed in one Current
      Report on Form 8-K is nine (9) and the Company will exceed the limit if it
      includes the Items below in the other Form 8-K Current Report that the Company
      is filing concurrently with this Form 8-K.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      4.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Change
      in Registrant&#8217;s Certifying Accountant</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cyber
      has
      informed Corbin &amp; Company, LLP ("Corbin"), its independent registered public
      accounting firm, that Cyber has dismissed Corbin and has engaged a new
      independent registered public accounting firm. The new independent registered
      public accounting firm is PKF Hong Kong (&#8220;PKF&#8221;). Pursuant to Item 304(a)
      Regulation S-K under the Securities Act of 1933, as amended, and under the
      Securities Exchange Act of 1934, as amended, the Company reports as
      follows:</font></div>
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          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;"><font size="2">(a)</font></td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)<font id="TAB2" style="COLOR: black; LETTER-SPACING: -1.05pt" size="3">&#160;</font></font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cyber
                dismissed Corbin as its independent registered public accounting
                firm
                effective on August 22, 2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 27pt;">
              </td>
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></td>
              <td align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
                  the period August 25, 2005 (inception) to May 31, 2006, Cyber's
                  financial
                  statements did not contain any adverse opinions or disclaimers
                  of opinion,
                  and were not qualified or modified as to uncertainty, audit scope,
                  or
                  accounting principles, except for an explanatory paragraph indicating
                  substantial doubt about the Company&#8217;s ability to continue as a going
                  concern in the audit report for the period August 25, 2005 (inception)
                  to
                  May 31, 2006.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                dismissal of Corbin and engagement of PKF was approved by the
                Corporation's Board of Directors. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cyber
                and Corbin did not have any disagreements with regard to any matter
                of
                accounting principles or practices, financial statement disclosure,
                or
                auditing scope or procedure for the audited financials for the period
                from
                August 25, 2005 (inception) to May 31, 2006 and subsequent interim
                period
                from May 31, 2006 through the date of
                dismissal.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
                Cyber's fiscal year ended May 31, 2006, prior to the dismissal of
                Corbin,
                Cyber did not experience any reportable
                events.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  August 16, 2006, Cyber engaged PKF of Hong Kong, to be Cyber's
                  independent
                  registered public accounting
                  firm.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
                to engaging PKF,&#160;Cyber had not consulted&#160;PKF regarding the
                application of accounting principles to a specified transaction,
                completed
                or proposed, the type of audit opinion that might be rendered on
                Cyber&#8217;s
                financial statements or a reportable event, nor did&#160;Cyber consult
                with PKF&#160;regarding any disagreements with its prior auditor on any
                matter of accounting principles or practices, financial statement
                disclosure, or auditing scope or procedure, which disagreements,
                if not
                resolved to the satisfaction of the prior auditor, would have caused
                it to
                make a reference to the subject matter of the disagreements in connection
                with its reports.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cyber
                did not have any disagreements with Corbin and therefore did not
                discuss
                any past disagreements with Corbin.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Registrant has requested Corbin to furnish it with a letter addressed
                to
                the SEC stating whether it agrees with the statements made by the
                Registrant regarding Corbin. Attached hereto as Exhibit 16 is a copy
                of
                Corbin's letter to the SEC dated August 22,
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;5.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Departure
      of Directors or Principal Officers; Election of Directors; Appointment of
      Principal Officers. </strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reference
      is made to the disclosures set forth under Item 2.01 of the other Current Report
      on Form 8-K filed concurrently with this Form 8-K, which disclosures regarding
      the resignation and appointment of the directors and officers described below
      in
      connection with the Exchange and Financing transactions are incorporated herein
      by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Resignation
      of Directors </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      August 16, 2006, Margie L. Blackwell, Luca Toscani, Jeff L. Andrews and Kevin
      R.
      Keating resigned as members of the Company&#8217;s board of directors of the Company.
      There were no disagreements between these directors and the Company or any
      officer or director of the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Resignation
      of Officers </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      August 16, 2006, Kevin R. Keating resigned as the President, Treasurer and
      Secretary of the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Appointment
      of Directors </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      August 16, 2006, the following persons were appointed as members of the Board
      of
      Directors: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kwok
      Chung (&#8220;Andy Kwok&#8221;), Infosmart&#8217;s current Chief Executive Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sze
      Po
      Nei (&#8220;Pauline Sze&#8221;), Infosmart&#8217;s current Chief Financial Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andrew
      Chung Yuen Chang (&#8220;Andrew Chang&#8221;), a director of Infosmart</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Godwin
      Wong, an independent director designated by KI Equity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      business background descriptions of the newly appointed directors are as
      follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Kwok
      Chung, </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Executive Officer, President and Director, has over 12 years experience in
      the
      optical storage media industry. In 1993, he began his international sales career
      with a subsidiary of Sonopress AG, one of the world&#8217;s top three pre-recorded
      CD/DVD manufacturers, and gained significant experience of the dynamics of
      storage media markets around the world. In 1997, Mr. Kwok co-founded Mega Winner
      (HK), Ltd. (&#8220;Mega Winner&#8221;), a leading CD manufacturer, before spotting the DVDR
      market opportunity and co-founding Infosmart in 2002. He served as Chairman
      of
      the Hong Kong Optical Disc Manufacturing and Technology Association from 2000
      to
      2002. He received his Bachelor of Mathematics degree from the Chinese University
      of Hong Kong. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sze
      Po Nei, </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Financial Officer, Treasurer, Secretary, and Director, co-founded Infosmart
      in
      2002 and oversees its finance, human resources, accounting, purchasing and
      shipping departments. Before joining Infosmart, she worked with Wing Shing
      Cassette Manufacturing Co. Ltd. between 1996 and 1998 and witnessed the
      evolution of media production from cassette to VCD to DVDR. She established
      her
      own company, Mega Century, with her spouse in 1998 to produce VCDs. Ms. Sze&#8217;s
      relationship with and ownership in Mega Century were completely terminated
      in
      February 2005. Ms. Sze received her degree in Business Administration from
      the
      British Columbian Institute of Technology in Canada. Ms. Sze is the wife of
      Mr.
      Wong Hiu Ming (&#8220;Tony Wong&#8221;), who is a non-executive member of the Board of
      Directors of Infosmart and its subsidiaries Info Smart International Enterprises
      Limited (&#8220;IS International&#8221;), Info Smart Technology Limited (&#8220;IS Technology&#8221;),
      and Infoscience Media Limited (&#8220;IS Media&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Andrew
      Chung Yuen Chang, </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman
      of the Board of Directors, is a seasoned entrepreneur. In 1995, he founded
      Hang
      Tat International (HK) Ltd., a telecommunication devices manufacturing business,
      which today employs 1,400 workers and has revenues of $15 million. Hang Tat
      International (HK) Ltd. exports most of its output to the U.S. and its major
      customers include Family Dollar, Best Buy, Circuit City, Southern Telecom and
      jWIN Electronics. Mr. Chang holds a Master of Economics degree from the
      University of Macquaire, Australia and a Bachelor of Commerce degree majoring
      in
      accounting from the University of New South Wales, Australia. Mr. Chang is
      the
      cousin of Mr. Tony Wong, one of Infosmart&#8217;s non-executive directors and the
      husband of Ms. Sze Po Nei.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Godwin
      Wong</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      Director, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">has
      been
      on the faculty </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      the
      Haas School of Business at the University of California, Berkeley for twenty
      years. He was raised </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
      Hong
      Kong and was educated in U.S.A. with Ph.D. from Harvard University, Master&#8217;s
      from U.C.L.A. and baccalaureate from the University of Wisconsin. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
      Wong
      serves on the Board of Directors of the United Commercial Bank, other NASDAQ
      companies and certain technology ventures in the San Francisco area and
      overseas, and previously for other California financial institutions. He has
      been advisor/consultant, and specialist/strategist to various organizations,
      corporations, government agencies, business enterprises in the U.S., Canada,
      Europe and Asia. Dr. Wong has been appointed Chief Expert Advisor for the City
      Government of Beijing HaiDian, where the Silicon Valley of China, Zhong Guan
      Cun, is situated. He also serves as director of one of the top ten software
      companies in Shanghai.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">He
      has
      assisted companies in the negotiation of businesses transactions, technology
      transfer, mergers and acquisitions. Representing various investment groups,
      he
      has run his own San Francisco management companies in real estate, consulting,
      and investment management with over 35 employees. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">He
      speaks, reads and writes fluent Chinese in four dialects. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(d)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Appointment
      of Officers </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      August 16, 2006, the newly appointed directors described above in Item 5.02(c)
      appointed the following persons as executive officers of Cyber, with the
      respective titles as set forth opposite his or her name below: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="middle" width="36%">&#160;</td>
            <td align="left" valign="middle" width="37%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="36%" style="border-bottom: medium none;">
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                of Officer</u></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
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          <tr>
            <td align="left" valign="top" width="36%">
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                Chung</font></div>
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                Po Nei</font></div>
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                Financial Officer, Treasurer and
                Secretary</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      business background and family relationship descriptions of the officers and
      directors are described above. The related transactions of Mr. Kwok Chung (also
      known as &#8220;Andy Kwok&#8221;) and Ms. Sze Po Nei (also known as &#8220;Pauline Sze&#8221;) in
      connection with Infosmart, which after the Closing of the Exchange and Financing
      Transactions described above, became a subsidiary of Cyber, is described
      below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Advances
      from Related Parties</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Advances
      from certain related parties to Infosmart&#8217;s working capital are as
      follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="5" valign="bottom" width="25%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                of December 31,</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">External
                Scene</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">129,000</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tech
                Power Resources Company, which is controlled by minority interest,
                Ms. Li
                Woon Che (before the Reorganization) of ISTL</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">96,448</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mega
                Century</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">490,549</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prime
                Corporate</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,217,054</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">906,209</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rise
                Tech </font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154,317</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andy
                Kwok</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">384,961</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tony
                Wong</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,189,370</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">&#160;</td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,217,054</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,350,854</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      above
      advances are interest-free, unsecured and all of the related parties have
      undertaken not to demand repayment in the next twelve months. As of December
      31,
      2005, the amounts originally due to Tony Wong, Eternal Scene and Pauline Sze,
      which amounted to $3,870, $129,000 and $1,707,348, respectively, were assigned
      to Prime Corporate pursuant to consent letters dated the same date.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Related
      Party Material Transactions</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Infosmart&#8217;s
      material transactions with related parties during the years ended December
      31,
      2005 and 2004 included:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="5" valign="bottom" width="25%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                ended December 31,</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
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            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                of raw materials to Mega Century at costs actual incurred</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29,197</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">499,217</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                of finished goods from Mega Century at</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">market
                prices</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,667</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,292,156</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                of finished goods to Mega Century at market</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prices</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,040</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Factory
                rentals received from Mega Century at market rentals</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,572</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,873</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Machinery
                rentals received from Mega Century at</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">market
                rentals</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">481,500</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Quarters
                rentals paid to Eternal Scene at market rentals</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">62,274</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mega
      Century Limited, a Hong Kong company (&#8220;Mega Century&#8221;), is a company formerly
      controlled by Ms. Pauline Sze. However, only the transactions with Mega Century
      up to February 7, 2005 are regarded as related party transactions as the
      management considers that Mega Century was no longer a related party following
      the transfer of entire interest in Mega Century by Ms. Sze and her family
      members.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Reorganization
      Related Transactions</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      October 20, 2005, Infosmart and its subsidiaries (including IS Technology,
      IS
      International and IS Media) reorganized their corporate structure (the
&#8220;Infosmart Reorganization&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immediately
      before the Reorganization, the 20,000 fully-paid issued and outstanding shares
      of IS Technology were held as follows: (a) 14,255 shares held by Eternal Scene
      International Limited (&#8220;Eternal Scene&#8221;) (an entity controlled by Infosmart CFO
      and Director Sze Po Nei (&#8220;Pauline Sze&#8221;)); (b) 4,245 shares held by Infosmart CEO
      and Director Mr. Kwok Chung (&#8220;Andy Kwok&#8221;) and (c) 1,500 shares held in trust by
      Ms. Li Woon Che (&#8220;Ms. Li&#8221;) for the benefit of Ms. Lui Sau Wan (&#8220;Ms. Lui&#8221;),
      representing approximately 71.3%, 21.2% and 7.5% of the entire issued common
      stock of ISTL, respectively. On October 19, 2005, IS Technology increased its
      authorized share capital to 5,000,000 shares. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Reorganization, on October 20, 2005, Prime Corporate
      Developments Limited (&#8220;Prime Corporate&#8221;), a company solely owned and controlled
      by Pauline Sze, converted $617,287 (equivalent to HK$4,800,000) in outstanding
      loans to IS Technology into 4,800,000 shares of IS Technology&#8217;s voting common
      stock, par value $0.13 (equivalent to HK$1) per share. Prime Corporate then
      directed IS Technology to issue 4,799,999 IS Technology shares to Infosmart
      and
      one (1) IS Technology share to be held in trust by Mr. Wong Hiu Ming (&#8220;Tony
      Wong&#8221;) for the benefit of Prime Corporate, the husband of Pauline Sze, instead
      of issuing such shares to Prime Corporate. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Further,
      following the conversion, Infosmart also acquired the remaining 20,000
      outstanding and issued shares of IS Technology stock as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Infosmart
                acquired the 14,255 IS Technology shares previously held by Eternal
                Scene
                in exchange for a cash payment of HK$14,255 or approximately
                US$1,827.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                Kwok agreed to transfer his 4,245 IS Technology shares to Infosmart
                in
                exchange for an issuance to him by Infosmart of 43 shares of Infosmart
                stock. After transferring his 4,245 IS Technology shares to Infosmart,
                Mr.
                Kwok then assigned his right to receive the 43 Infosmart shares to
                Prime
                Fortune Enterprises Limited (&#8220;Prime Fortune&#8221;). All of the 1,000 fully-paid
                issued and outstanding shares of Prime Fortune&#8217;s stock are held as
                follows: 713 shares by Prime Corporate, 212 shares by Mr. Kwok, and
                75
                shares by Ms. Lui.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
                  Li, who held the 1,500 IS Technology shares in trust for the benefit
                  of
                  Ms. Lui, agreed to transfer 1,500 IS Technology shares in exchange
                  for an
                  issuance to her by Infosmart of 15 shares of Infosmart stock. After
                  transferring the 1,500 IS Technology shares to Infosmart, Ms. Li
                  then
                  waived</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">her
                  right to receive the 15 Infosmart
                  shares.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immediately
      before the Reorganization, the 200 fully-paid issued shares of IS International
      were held as follows: (a) 161 shares by Prime Corporate Developments Limited
      (&#8220;Prime Corporate&#8221;), an entity controlled by Infosmart CFO and Director Pauline
      Sze, Prime Corporate&#8217;s sole shareholder; (b) 24 shares by Rise Tech Holdings
      Limited (&#8220;Rise Tech&#8221;); and (c) 15 shares held in trust by Ms. Li for the benefit
      of Ms. Lui, representing 80.5%, 12.0% and 7.5% of the entire issued common
      stock
      of IS International. Infosmart acquired all 200 issued and outstanding shares
      of
      IS Technology stock as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prime
                Corporate agreed to transfer its 161 IS International shares to Infosmart
                in exchange for an issuance to Prime Corporate by Infosmart of 161
                shares
                of Infosmart stock to Prime Corporate (including an issuance of one
                (1)
                share to Tony Wong, to hold in trust for the benefit of Prime Corporate).
                After transferring its 161 IS Technology shares to Infosmart, Prime
                Corporate then assigned its right to receive the 161 Infosmart shares
                to
                Prime Fortune.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rise
                Tech agreed to transfer its 24 IS International shares to Infosmart
                in
                exchange for an issuance to Rise Tech by Infosmart of 24 shares of
                Infosmart stock. After transferring its 24 IS Technology shares to
                Infosmart, Rise Tech then waived its right to receive the 24 Infosmart
                shares.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
                Li, who held the 15 IS International shares in trust for the benefit
                of
                Ms. Lui, agreed to transfer 15 IS International shares in exchange
                for an
                issuance to Ms. Li by Infosmart of 15 shares of Infosmart stock.
                After
                transferring the 15 IS Technology shares to Infosmart, Ms. Li then
                assigned</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">her
                right to receive the 15 Infosmart shares to Prime
                Fortune.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thus,
      after the Reorganization, Infosmart beneficially owned all 4,820,000 shares
      of
      issued and outstanding shares IS Technology stock, and all 200 shares of issued
      and outstanding shares IS International stock. IS Technology owns all of the
      issued and outstanding shares of IS Media&#8217;s stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Further,
      as described above, the following persons assigned the rights to receive a
      total
      of 219 Infosmart shares to Prime Fortune, as follows: (1) Mr. Kwok, 43 shares;
      (2) Ms. Li, 15 shares; and (3) Prime Corporate, 161 shares. Rather than being
      issued the 219 Infosmart shares, Prime Fortune agreed to waive its rights to
      all
      219 Infosmart shares in exchange for the issuance of one (1) share of Infosmart
      stock, which&#160;was the only issued and outstanding share of Infosmart stock
      following the Reorganization. Thus, following the Infosmart Reorganization,
      Prime Fortune became the owner of 100% of the voting power in
      Infosmart.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Re-structuring
      Related Transactions</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      August
      2006, the board of directors of both Prime and Infosmart decided to re-structure
      certain shareholdings in Infosmart, so that after the re-structuring, Prime
      would no longer own 100% of Infosmart&#8217;s issued capital shares and so that Prime
      Corporate, Kwok Chung and Lui Sau Wan would replace Prime as the direct owners
      of 100% of the issued capital shares and equity ownership of Infosmart (the
      &#8220;Re-structuring&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      the Re-structuring, Prime owned 100% of the issued capital shares of Infosmart,
      which consisted on one (1) issued capital share, and Prime&#8217;s issued capital
      shares were owned as follows: 713 shares held by Prime Corporate, 212 shares
      held by Kwok Chung, and 75 shares held by Lui Sau Wan. On August 11, 2006,
      and
      in connection with the Re-structuring, Prime&#8217;s board of directors approved
      resolutions for Prime to transfer the one (1) issued capital share of Infosmart
      owned by Prime to Prime shareholder Kwok Chung in exchange for a cash payment
      of
      $1.00 (the &#8220;Prime Transfer&#8221;), and that pursuant to such resolutions, Prime
      transferred the one Infosmart share to Kwok Chung on August 11, 2006 in exchange
      for the $1.00 cash payment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Further,
      on August 11, 2006 and concurrent with the Prime Transfer, the Company&#8217;s Board
      approved resolutions for the issuance of 999 new shares in Infosmart to Prime
      Corporate Developments Limited (&#8220;Prime Corporate&#8221;), Kwok Chung and Lui Sau Wan,
      as follows: 713 shares to Prime Corporate, 211 shares to Kwok Chung, and 75
      shares to Lui Sau Wan, in exchange for a cash payment by Prime Corporate, Kwok
      Chung and Lui Sau Wan of $1.00 per Infosmart share that each receives (the
      &#8220;Infosmart Share Issuance&#8221;) or an aggregate total payment of $999 for such
      shares, and that on August 11, 2006, the Company issued the 999 Infosmart
      shares, in amounts as described above, to Prime Corporate, Kwok Chung and Lui
      Sau Wan and, in exchange, received the $999 cash payment, pursuant to such
      resolutions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>A</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">s
      a
      result of and immediately after the Prime Transfer and the Infosmart Share
      Issuance, Prime Corporate, Kwok Chung and Lui Sau Wan became the owners of
      100%
      of the issued capital shares of Infosmart, with each of them owning the same
      number of Infosmart shares as the number of Prime shares that each currently
      owns. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Other
      Related Transactions</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      the
      period December 31, 2005 through the Closing of the Exchange Agreement, Prime
      Corporate Developments Limited, a Company shareholder and a related entity
      solely owned by Infosmart&#8217;s CFO and Director Ms. Pauline Sze, has loaned
      approximately $384,615 to Infosmart in connection with the construction of
      the
      Discobras manufacturing facility that Infosmart is building in Brazil.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EMPLOYMENT
      AGREEMENTS OF THE EXECUTIVE OFFICERS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following are summaries of Infosmart&#8217;s employment agreements with its executive
      officers and/or directors, which Cyber plans to assume following the Closing
      of
      the Exchange: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Infosmart
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">entered
      into a Letter of Appointment agreement with Mr. Andy Kwok on June 1, 2006.
      Effective June 1, 2006, Mr. Kwok was appointed Chief Executive Officer and
      Director of Infosmart and his base monthly salary is HK$60,000 per month or
      approximately US$7,772 per month. Such salary is subject to an annual review
      by
      the Board of Directors (&#8220;Board&#8221;) at a time determined by the Board. Under the
      terms of the agreement, Mr. Kwok is also entitled to receive reimbursements
      for
      all reasonable business, office personnel, company-related entertainment and
      travel expenses that he incurs or he pays for on behalf of the Company.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Infosmart
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">entered
      into a Letter of Appointment agreement with Mr. Andrew Chang on July 1, 2006.
      Effective July 1, 2006, Mr. Chang was appointed Chairman and Director of
      Infosmart and his base monthly salary is HK$50,000 per month or approximately
      US$6,435 per month. Such salary is subject to an annual review by the Board
      of
      Directors (&#8220;Board&#8221;) at a time determined by the Board. Under the terms of the
      agreement, Mr. Chang is also entitled to receive reimbursements for all
      reasonable business, office personnel, company-related entertainment and travel
      expenses that he incurs or he pays for on behalf of the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Infosmart
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">entered
      into a Letter of Appointment agreement with Ms. Pauline Sze on June 1, 2006.
      Effective June 1, 2006, Mr. Sze was appointed Chief Financial Officer and
      Director of Infosmart and his base monthly salary is HK$50,000 per month or
      approximately US$6,435 per month. Such salary is subject to an annual review
      by
      the Board of Directors (&#8220;Board&#8221;) at a time determined by the Board. Under the
      terms of the agreement, Ms. Sze is also entitled to receive reimbursements
      for
      all reasonable business, office personnel, company-related entertainment and
      travel expenses that she incurs or she pays for on behalf of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the above-described Letters of Appointment agreements state the officer and/or
      directors employment may be terminated immediately, without Company prior notice
      or payment in lieu of notice if at any time the officer and or director (1)
      becomes physically or mentally disabled whether totally or partially so that
      he
      is substantially unable to perform his duties for a period of or for 30 days
      in
      the aggregate in any period of six consecutive months, (2) is convicted of
      a
      criminal offense, except one which in the reasonable of the Board does not
      affect his position with the Company at the time of such conviction, (3) commits
      repeated or continued (after warning) any persistent or material breach of
      the
      employment agreement; (4) is guilty of willful neglect in discharging his duties
      or commits any grave misconduct which in the absolute opinion of the Board
      tends
      to bring himself or the Company into disrepute; or (5) commits an act of
      bankruptcy or compounded with his creditors generally or is guilty of conduct
      which would make his continued appointment prejudicial to the interests of
      the
      Company. Further, the agreements provide for employee insurance, mandatory
      provident fund benefits and, after completion of the three-month probation
      period, medical insurance. These agreements also contain restrictive covenants
      preventing competition with Infosmart during their employment and for a period
      of 12 months after termination, and also covenants preventing the use of
      confidential business information, except in connection with the performance
      of
      their duties for the Company, during or at any time after termination of their
      employment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[The
      remainder of this page is left blank intentionally.]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statement and Exhibits. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FINANCIAL
      STATEMENTS OF BUSINESS ACQUIRED.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>None.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PRO
      FORMA
      FINANCIAL INFORMATION.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>None.&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBITS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      INDEX</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
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          <tr>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font>&#160;

                <hr style="COLOR: black" align="center" noshade size="2" width="90%">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;

                <hr style="COLOR: black" align="left" noshade size="2" width="10%">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Letter
                dated August 22, 2006 of Corbin &amp; Company, LLP. </font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17.1</font></div>
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            <td align="left" valign="top" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Letter
                of Resignation from Kevin R. Keating to the Board of Directors
                </font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17.2</font></div>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Letter
                of Resignation of directors Jeff Andrews, Margie Blackwell and Luca
                Toscani to the Board of Directors </font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.19</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Appointment
                Letter Agreement by and among Sze Po Nei and Infosmart Group Limited
                dated
                June 1, 2006 (1)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.20</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Appointment
                Letter Agreement by and among Andrew Chang and Infosmart Group Limited
                dated July 1, 2006 (1)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.21</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Appointment
                Letter Agreement by and among Kwok Chung and Infosmart Group Limited
                dated
                July 1, 2006 (1)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-------------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
      as
      an exhibit to Current Report on Form 8-K filed by the Company concurrently
      with
      this Current Report on Form 8-K and incorporated herein by
      reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Report on Form 8-K to be signed on its behalf by the
      undersigned hereunto duly authorized. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="40%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CYBER
                MERCHANTS EXCHANGE INC.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Date:&#160;August
                23, 2006</font></div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></div>
            </td>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Kwok Chung</font></div>
              </div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="2" width="45%">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kwok
                Chung</font></div>
            </td>
          </tr>
          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Executive Officer</font></div>
            </td>
          </tr>

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{"company-data": {"conformed-name": "CYBER MERCHANTS EXCHANGE INC", "cik": "0001066961", "assigned-sic": "7389", "irs-number": "954597370", "state-of-incorporation": "CA", "fiscal-year-end": "0531"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15643", "film-number": "061051897"}, "business-address": {"street1": "600 S LAKE AVE", "street2": "STE 405", "city": "PASADENA", "state": "CA", "zip": "91106", "phone": "6267935000"}, "former-company": {"former-conformed-name": "WORLD WIDE MAGIC NET INC", "date-changed": "19980727"}}
Unassociated Document
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of
      report (Date of earliest event reported):
August 16, 2006
CYBER
      MERCHANTS EXCHANGE, INC.
(Exact
      name of registrant as specified in Charter)
California
001-15643
95-4597370
(State
                or other jurisdiction of
incorporation
                or organization)
(Commission
                File No.)
(IRS
                Employee Identification
                No.)
5th
      Floor, QPL Industrial Building, 126-140 Texaco Road,
Tsuen
      Wan, Hong Kong
(Address
      of Principal Executive Offices)
(852)
2944-9905
(Issuer
      Telephone number)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
¨
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
¨
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
¨
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Forward
      Looking Statements
This
      Form
      8-K and other reports filed by Registrant from time to time with the Securities
      and Exchange Commission (collectively the "Filings") contain or may contain
      forward looking statements and information that are based upon beliefs of,
      and
      information currently available to, Registrant's management as well as estimates
      and assumptions made by Registrant's management. When used in the filings the
      words "anticipate", "believe", "estimate", "expect", "future", "intend", "plan"
or the negative of these terms and similar expressions as they relate to
      Registrant or Registrant's management identify forward looking statements. Such
      statements reflect the current view of Registrant with respect to future events
      and are subject to risks, uncertainties, assumptions and other factors
      (including the risks contained in the section of this report entitled "Risk
      Factors") relating to Registrant's industry, Registrant's operations and results
      of operations and any businesses that may be acquired by Registrant. Should
      one
      or more of these risks or uncertainties materialize, or should the underlying
      assumptions prove incorrect, actual results may differ significantly from those
      anticipated, believed, estimated, expected, intended or planned.
Although
      Registrant believes that the expectations reflected in the forward looking
      statements are reasonable, Registrant cannot guarantee future results, levels
      of
      activity, performance or achievements. Except as required by applicable law,
      including the securities laws of the United States, Registrant does not intend
      to update any of the forward-looking statements to conform these statements
      to
      actual results. The following discussion should be read in conjunction with
      Registrant's pro forma financial statements and the related notes that will be
      filed herein.
In
      this
      Form 8-K, references to "we," "our," "us," "our company," "Cyber" or the
"Registrant" refer to Cyber Merchants Exchange, Inc., a California corporation.
PREFACE:
This
      Current Report on Form 8-K is being filed concurrently with and is in connection
      with the other Current Report on Form 8-K filed on this same date which more
      completely describes the closing of Cyber's share exchange transaction (the
"Exchange") pursuant to the Exchange Agreement dated July 7, 2006 that was
      executed by Cyber with KI Equity Partners II, LLC, a Delaware limited liability
      company ("KI Equity"), Prime Fortune Enterprises Limited, an international
      business company incorporated in the British Virgin Islands ("Prime"), the
      equity owners of Prime, which consist of Prime Corporate Developments Limited
      ("Prime Corporate"), Kwok Chung and Lui Sau Wan (collectively, the "Prime
      Shareholders") and Hamptons Investment Group Ltd. ("HIG"), and as amended on
      August 14, 2006 by the First Amendment to the Exchange Agreement (the
"Amendment") executed by Cyber with KI Equity, Prime, the Prime Shareholders,
      HIG, Infosmart Group Limited ("Infosmart"), and each of the equity owners of
      Infosmart. Pursuant to the Exchange Agreement and the Amendment, Cyber acquired
      all of the Infosmart Shares from the Infosmart Shareholders, and the Infosmart
      Shareholders transferred and contributed all of their Infosmart Shares to Cyber.
      In exchange, Cyber issued to the Infosmart Shareholders 1,000,000 shares of
      Series A Preferred Shares, which shall be convertible into 116,721,360 shares
      of
      Cyber's common stock. The closing of the transactions (the "Closing")
      contemplated by the Exchange Agreement and the First Amendment to the Exchange
      Agreement and for the Financing described below occurred on August 16, 2006
      (the
"Closing Date"). Following the Closing Date, Infosmart became a wholly owned
      subsidiary of Cyber. Reference is made to Item 1.01 and 2.01 of the other
      Current Report on Form 8-K filed concurrently with this Form 8-K, which
      disclosures regarding the Exchange are incorporated herein by reference.
The
      consummation of the Exchange was contingent on a minimum of $7,000,000 (or
      such
      lesser amount as mutually agreed to by Registrant and the placement agent)
      being
      subscribed for, and funded into escrow, by certain accredited and institutional
      investors ("Investors") for the purchase of shares of Series B Convertible
      Preferred Stock ("Series B Preferred Shares") of Cyber promptly after the
      closing of the Exchange under terms and conditions approved by Cyber's board of
      directors immediately following the Exchange (the "Financing"). Immediately
      following the Closing Date, we received gross proceeds of approximately $7.65
      million in connection with the Financing from the Investors. Pursuant to
      Subscription Agreements entered into with these Investors, we sold 1,092,857.143
      shares of our Series B Preferred Stock at a price per share of $7.00. Each
      share
      of Series B Preferred Stock will be convertible into shares of our common stock.
      The closing of the transactions contemplated by the Financing occurred on August
      16, 2006. Reference is made to Item 2.01 of the Current Report on Form 8-K
      filed
      concurrently with this Form 8-K for a more complete description of the
      Financing, which disclosures therein are also incorporated herein by reference.
The
      events and transactions described in the Items below are in connection with
      the
      Closing of the Exchange and the Financing. This Form 8-K Current Report is
      being
      filed separately because the number of "Items" that can be filed in one Current
      Report on Form 8-K is nine (9) and the Company will exceed the limit if it
      includes the Items below in the other Form 8-K Current Report that the Company
      is filing concurrently with this Form 8-K.
Item
      4.01
Change
      in Registrant's Certifying Accountant
Cyber
      has
      informed Corbin & Company, LLP ("Corbin"), its independent registered public
      accounting firm, that Cyber has dismissed Corbin and has engaged a new
      independent registered public accounting firm. The new independent registered
      public accounting firm is PKF Hong Kong ("PKF"). Pursuant to Item 304(a)
      Regulation S-K under the Securities Act of 1933, as amended, and under the
      Securities Exchange Act of 1934, as amended, the Company reports as
      follows:
(a)
(i)
Cyber
                dismissed Corbin as its independent registered public accounting
                firm
                effective on August 22, 2006.
(ii)
During
                  the period August 25, 2005 (inception) to May 31, 2006, Cyber's
                  financial
                  statements did not contain any adverse opinions or disclaimers
                  of opinion,
                  and were not qualified or modified as to uncertainty, audit scope,
                  or
                  accounting principles, except for an explanatory paragraph indicating
                  substantial doubt about the Company's ability to continue as a going
                  concern in the audit report for the period August 25, 2005 (inception)
                  to
                  May 31, 2006.
(iii)
The
                dismissal of Corbin and engagement of PKF was approved by the
                Corporation's Board of Directors.
(iv)
Cyber
                and Corbin did not have any disagreements with regard to any matter
                of
                accounting principles or practices, financial statement disclosure,
                or
                auditing scope or procedure for the audited financials for the period
                from
                August 25, 2005 (inception) to May 31, 2006 and subsequent interim
                period
                from May 31, 2006 through the date of
                dismissal.
(v)
During
                Cyber's fiscal year ended May 31, 2006, prior to the dismissal of
                Corbin,
                Cyber did not experience any reportable
                events.
(b)
On
                  August 16, 2006, Cyber engaged PKF of Hong Kong, to be Cyber's
                  independent
                  registered public accounting
                  firm.
(i)
Prior
                to engaging PKF, Cyber had not consulted PKF regarding the
                application of accounting principles to a specified transaction,
                completed
                or proposed, the type of audit opinion that might be rendered on
                Cyber's
                financial statements or a reportable event, nor did Cyber consult
                with PKF regarding any disagreements with its prior auditor on any
                matter of accounting principles or practices, financial statement
                disclosure, or auditing scope or procedure, which disagreements,
                if not
                resolved to the satisfaction of the prior auditor, would have caused
                it to
                make a reference to the subject matter of the disagreements in connection
                with its reports.
(ii)
Cyber
                did not have any disagreements with Corbin and therefore did not
                discuss
                any past disagreements with Corbin.
(c)
The
                Registrant has requested Corbin to furnish it with a letter addressed
                to
                the SEC stating whether it agrees with the statements made by the
                Registrant regarding Corbin. Attached hereto as Exhibit 16 is a copy
                of
                Corbin's letter to the SEC dated August 22,
                2006.
Item 5.02
Departure
      of Directors or Principal Officers; Election of Directors; Appointment of
      Principal Officers.
Reference
      is made to the disclosures set forth under Item 2.01 of the other Current Report
      on Form 8-K filed concurrently with this Form 8-K, which disclosures regarding
      the resignation and appointment of the directors and officers described below
      in
      connection with the Exchange and Financing transactions are incorporated herein
      by reference.
(a)
Resignation
      of Directors
Effective
      August 16, 2006, Margie L. Blackwell, Luca Toscani, Jeff L. Andrews and Kevin
      R.
      Keating resigned as members of the Company's board of directors of the Company.
      There were no disagreements between these directors and the Company or any
      officer or director of the Company.
(b)
Resignation
      of Officers
Effective
      August 16, 2006, Kevin R. Keating resigned as the President, Treasurer and
      Secretary of the Company.
(c)
Appointment
      of Directors
Effective
      August 16, 2006, the following persons were appointed as members of the Board
      of
      Directors:
·
Kwok
      Chung ("Andy Kwok"), Infosmart's current Chief Executive Officer
·
Sze
      Po
      Nei ("Pauline Sze"), Infosmart's current Chief Financial Officer
·
Andrew
      Chung Yuen Chang ("Andrew Chang"), a director of Infosmart
·
Godwin
      Wong, an independent director designated by KI Equity.
The
      business background descriptions of the newly appointed directors are as
      follows:
Kwok
      Chung,
Chief
      Executive Officer, President and Director, has over 12 years experience in
      the
      optical storage media industry. In 1993, he began his international sales career
      with a subsidiary of Sonopress AG, one of the world's top three pre-recorded
      CD/DVD manufacturers, and gained significant experience of the dynamics of
      storage media markets around the world. In 1997, Mr. Kwok co-founded Mega Winner
      (HK), Ltd. ("Mega Winner"), a leading CD manufacturer, before spotting the DVDR
      market opportunity and co-founding Infosmart in 2002. He served as Chairman
      of
      the Hong Kong Optical Disc Manufacturing and Technology Association from 2000
      to
      2002. He received his Bachelor of Mathematics degree from the Chinese University
      of Hong Kong.
Sze
      Po Nei,
Chief
      Financial Officer, Treasurer, Secretary, and Director, co-founded Infosmart
      in
      2002 and oversees its finance, human resources, accounting, purchasing and
      shipping departments. Before joining Infosmart, she worked with Wing Shing
      Cassette Manufacturing Co. Ltd. between 1996 and 1998 and witnessed the
      evolution of media production from cassette to VCD to DVDR. She established
      her
      own company, Mega Century, with her spouse in 1998 to produce VCDs. Ms. Sze's
      relationship with and ownership in Mega Century were completely terminated
      in
      February 2005. Ms. Sze received her degree in Business Administration from
      the
      British Columbian Institute of Technology in Canada. Ms. Sze is the wife of
      Mr.
      Wong Hiu Ming ("Tony Wong"), who is a non-executive member of the Board of
      Directors of Infosmart and its subsidiaries Info Smart International Enterprises
      Limited ("IS International"), Info Smart Technology Limited ("IS Technology"),
      and Infoscience Media Limited ("IS Media").
Andrew
      Chung Yuen Chang,
Chairman
      of the Board of Directors, is a seasoned entrepreneur. In 1995, he founded
      Hang
      Tat International (HK) Ltd., a telecommunication devices manufacturing business,
      which today employs 1,400 workers and has revenues of $15 million. Hang Tat
      International (HK) Ltd. exports most of its output to the U.S. and its major
      customers include Family Dollar, Best Buy, Circuit City, Southern Telecom and
      jWIN Electronics. Mr. Chang holds a Master of Economics degree from the
      University of Macquaire, Australia and a Bachelor of Commerce degree majoring
      in
      accounting from the University of New South Wales, Australia. Mr. Chang is
      the
      cousin of Mr. Tony Wong, one of Infosmart's non-executive directors and the
      husband of Ms. Sze Po Nei.
Godwin
      Wong
,
      Director,
has
      been
      on the faculty
of
      the
      Haas School of Business at the University of California, Berkeley for twenty
      years. He was raised
in
      Hong
      Kong and was educated in U.S.A. with Ph.D. from Harvard University, Master's
      from U.C.L.A. and baccalaureate from the University of Wisconsin.
Dr.
      Wong
      serves on the Board of Directors of the United Commercial Bank, other NASDAQ
      companies and certain technology ventures in the San Francisco area and
      overseas, and previously for other California financial institutions. He has
      been advisor/consultant, and specialist/strategist to various organizations,
      corporations, government agencies, business enterprises in the U.S., Canada,
      Europe and Asia. Dr. Wong has been appointed Chief Expert Advisor for the City
      Government of Beijing HaiDian, where the Silicon Valley of China, Zhong Guan
      Cun, is situated. He also serves as director of one of the top ten software
      companies in Shanghai.
He
      has
      assisted companies in the negotiation of businesses transactions, technology
      transfer, mergers and acquisitions. Representing various investment groups,
      he
      has run his own San Francisco management companies in real estate, consulting,
      and investment management with over 35 employees.
He
      speaks, reads and writes fluent Chinese in four dialects.
(d)
Appointment
      of Officers
Effective
      August 16, 2006, the newly appointed directors described above in Item 5.02(c)
      appointed the following persons as executive officers of Cyber, with the
      respective titles as set forth opposite his or her name below:
Name
                of Officer
Title/Position
Kwok
                Chung
President
                and Chief Executive Officer
Sze
                Po Nei
Chief
                Financial Officer, Treasurer and
                Secretary
The
      business background and family relationship descriptions of the officers and
      directors are described above. The related transactions of Mr. Kwok Chung (also
      known as "Andy Kwok") and Ms. Sze Po Nei (also known as "Pauline Sze") in
      connection with Infosmart, which after the Closing of the Exchange and Financing
      Transactions described above, became a subsidiary of Cyber, is described
      below.
CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS:
Advances
      from Related Parties
Advances
      from certain related parties to Infosmart's working capital are as
      follows:
As
                of December 31,
2005
2004
External
                Scene
$
-
$
129,000
Tech
                Power Resources Company, which is controlled by minority interest,
                Ms. Li
                Woon Che (before the Reorganization) of ISTL
-
96,448
Mega
                Century
-
$
490,549
Prime
                Corporate
2,217,054
906,209
Rise
                Tech
-
154,317
Andy
                Kwok
-
384,961
Tony
                Wong
-
1,189,370
$
2,217,054
$
3,350,854
The
      above
      advances are interest-free, unsecured and all of the related parties have
      undertaken not to demand repayment in the next twelve months. As of December
      31,
      2005, the amounts originally due to Tony Wong, Eternal Scene and Pauline Sze,
      which amounted to $3,870, $129,000 and $1,707,348, respectively, were assigned
      to Prime Corporate pursuant to consent letters dated the same date.
Related
      Party Material Transactions
Infosmart's
      material transactions with related parties during the years ended December
      31,
      2005 and 2004 included:
Year
                ended December 31,
2005
2004
Sales
                of raw materials to Mega Century at costs actual incurred
$
29,197
$
499,217
Purchases
                of finished goods from Mega Century at
market
                prices
24,667
1,292,156
Sales
                of finished goods to Mega Century at market
Prices
-
26,040
Factory
                rentals received from Mega Century at market rentals
2,572
17,873
Machinery
                rentals received from Mega Century at
market
                rentals
-
481,500
Quarters
                rentals paid to Eternal Scene at market rentals
-
$
62,274
Mega
      Century Limited, a Hong Kong company ("Mega Century"), is a company formerly
      controlled by Ms. Pauline Sze. However, only the transactions with Mega Century
      up to February 7, 2005 are regarded as related party transactions as the
      management considers that Mega Century was no longer a related party following
      the transfer of entire interest in Mega Century by Ms. Sze and her family
      members.
Reorganization
      Related Transactions
On
      October 20, 2005, Infosmart and its subsidiaries (including IS Technology,
      IS
      International and IS Media) reorganized their corporate structure (the
"Infosmart Reorganization").
Immediately
      before the Reorganization, the 20,000 fully-paid issued and outstanding shares
      of IS Technology were held as follows: (a) 14,255 shares held by Eternal Scene
      International Limited ("Eternal Scene") (an entity controlled by Infosmart CFO
      and Director Sze Po Nei ("Pauline Sze")); (b) 4,245 shares held by Infosmart CEO
      and Director Mr. Kwok Chung ("Andy Kwok") and (c) 1,500 shares held in trust by
      Ms. Li Woon Che ("Ms. Li") for the benefit of Ms. Lui Sau Wan ("Ms. Lui"),
      representing approximately 71.3%, 21.2% and 7.5% of the entire issued common
      stock of ISTL, respectively. On October 19, 2005, IS Technology increased its
      authorized share capital to 5,000,000 shares.
In
      connection with the Reorganization, on October 20, 2005, Prime Corporate
      Developments Limited ("Prime Corporate"), a company solely owned and controlled
      by Pauline Sze, converted $617,287 (equivalent to HK$4,800,000) in outstanding
      loans to IS Technology into 4,800,000 shares of IS Technology's voting common
      stock, par value $0.13 (equivalent to HK$1) per share. Prime Corporate then
      directed IS Technology to issue 4,799,999 IS Technology shares to Infosmart
      and
      one (1) IS Technology share to be held in trust by Mr. Wong Hiu Ming ("Tony
      Wong") for the benefit of Prime Corporate, the husband of Pauline Sze, instead
      of issuing such shares to Prime Corporate.
Further,
      following the conversion, Infosmart also acquired the remaining 20,000
      outstanding and issued shares of IS Technology stock as follows:
1.
Infosmart
                acquired the 14,255 IS Technology shares previously held by Eternal
                Scene
                in exchange for a cash payment of HK$14,255 or approximately
                US$1,827.
2.
Mr.
                Kwok agreed to transfer his 4,245 IS Technology shares to Infosmart
                in
                exchange for an issuance to him by Infosmart of 43 shares of Infosmart
                stock. After transferring his 4,245 IS Technology shares to Infosmart,
                Mr.
                Kwok then assigned his right to receive the 43 Infosmart shares to
                Prime
                Fortune Enterprises Limited ("Prime Fortune"). All of the 1,000 fully-paid
                issued and outstanding shares of Prime Fortune's stock are held as
                follows: 713 shares by Prime Corporate, 212 shares by Mr. Kwok, and
                75
                shares by Ms. Lui.
3.
Ms.
                  Li, who held the 1,500 IS Technology shares in trust for the benefit
                  of
                  Ms. Lui, agreed to transfer 1,500 IS Technology shares in exchange
                  for an
                  issuance to her by Infosmart of 15 shares of Infosmart stock. After
                  transferring the 1,500 IS Technology shares to Infosmart, Ms. Li
                  then
                  waived
her
                  right to receive the 15 Infosmart
                  shares.
Immediately
      before the Reorganization, the 200 fully-paid issued shares of IS International
      were held as follows: (a) 161 shares by Prime Corporate Developments Limited
      ("Prime Corporate"), an entity controlled by Infosmart CFO and Director Pauline
      Sze, Prime Corporate's sole shareholder; (b) 24 shares by Rise Tech Holdings
      Limited ("Rise Tech"); and (c) 15 shares held in trust by Ms. Li for the benefit
      of Ms. Lui, representing 80.5%, 12.0% and 7.5% of the entire issued common
      stock
      of IS International. Infosmart acquired all 200 issued and outstanding shares
      of
      IS Technology stock as follows:
1.
Prime
                Corporate agreed to transfer its 161 IS International shares to Infosmart
                in exchange for an issuance to Prime Corporate by Infosmart of 161
                shares
                of Infosmart stock to Prime Corporate (including an issuance of one
                (1)
                share to Tony Wong, to hold in trust for the benefit of Prime Corporate).
                After transferring its 161 IS Technology shares to Infosmart, Prime
                Corporate then assigned its right to receive the 161 Infosmart shares
                to
                Prime Fortune.
2.
Rise
                Tech agreed to transfer its 24 IS International shares to Infosmart
                in
                exchange for an issuance to Rise Tech by Infosmart of 24 shares of
                Infosmart stock. After transferring its 24 IS Technology shares to
                Infosmart, Rise Tech then waived its right to receive the 24 Infosmart
                shares.
3.
Ms.
                Li, who held the 15 IS International shares in trust for the benefit
                of
                Ms. Lui, agreed to transfer 15 IS International shares in exchange
                for an
                issuance to Ms. Li by Infosmart of 15 shares of Infosmart stock.
                After
                transferring the 15 IS Technology shares to Infosmart, Ms. Li then
                assigned
her
                right to receive the 15 Infosmart shares to Prime
                Fortune.
Thus,
      after the Reorganization, Infosmart beneficially owned all 4,820,000 shares
      of
      issued and outstanding shares IS Technology stock, and all 200 shares of issued
      and outstanding shares IS International stock. IS Technology owns all of the
      issued and outstanding shares of IS Media's stock.
Further,
      as described above, the following persons assigned the rights to receive a
      total
      of 219 Infosmart shares to Prime Fortune, as follows: (1) Mr. Kwok, 43 shares;
      (2) Ms. Li, 15 shares; and (3) Prime Corporate, 161 shares. Rather than being
      issued the 219 Infosmart shares, Prime Fortune agreed to waive its rights to
      all
      219 Infosmart shares in exchange for the issuance of one (1) share of Infosmart
      stock, which was the only issued and outstanding share of Infosmart stock
      following the Reorganization. Thus, following the Infosmart Reorganization,
      Prime Fortune became the owner of 100% of the voting power in
      Infosmart.
Re-structuring
      Related Transactions
In
      August
      2006, the board of directors of both Prime and Infosmart decided to re-structure
      certain shareholdings in Infosmart, so that after the re-structuring, Prime
      would no longer own 100% of Infosmart's issued capital shares and so that Prime
      Corporate, Kwok Chung and Lui Sau Wan would replace Prime as the direct owners
      of 100% of the issued capital shares and equity ownership of Infosmart (the
      "Re-structuring").
Prior
      to
      the Re-structuring, Prime owned 100% of the issued capital shares of Infosmart,
      which consisted on one (1) issued capital share, and Prime's issued capital
      shares were owned as follows: 713 shares held by Prime Corporate, 212 shares
      held by Kwok Chung, and 75 shares held by Lui Sau Wan. On August 11, 2006,
      and
      in connection with the Re-structuring, Prime's board of directors approved
      resolutions for Prime to transfer the one (1) issued capital share of Infosmart
      owned by Prime to Prime shareholder Kwok Chung in exchange for a cash payment
      of
      $1.00 (the "Prime Transfer"), and that pursuant to such resolutions, Prime
      transferred the one Infosmart share to Kwok Chung on August 11, 2006 in exchange
      for the $1.00 cash payment.
Further,
      on August 11, 2006 and concurrent with the Prime Transfer, the Company's Board
      approved resolutions for the issuance of 999 new shares in Infosmart to Prime
      Corporate Developments Limited ("Prime Corporate"), Kwok Chung and Lui Sau Wan,
      as follows: 713 shares to Prime Corporate, 211 shares to Kwok Chung, and 75
      shares to Lui Sau Wan, in exchange for a cash payment by Prime Corporate, Kwok
      Chung and Lui Sau Wan of $1.00 per Infosmart share that each receives (the
      "Infosmart Share Issuance") or an aggregate total payment of $999 for such
      shares, and that on August 11, 2006, the Company issued the 999 Infosmart
      shares, in amounts as described above, to Prime Corporate, Kwok Chung and Lui
      Sau Wan and, in exchange, received the $999 cash payment, pursuant to such
      resolutions.
A
s
      a
      result of and immediately after the Prime Transfer and the Infosmart Share
      Issuance, Prime Corporate, Kwok Chung and Lui Sau Wan became the owners of
      100%
      of the issued capital shares of Infosmart, with each of them owning the same
      number of Infosmart shares as the number of Prime shares that each currently
      owns.
Other
      Related Transactions
For
      the
      period December 31, 2005 through the Closing of the Exchange Agreement, Prime
      Corporate Developments Limited, a Company shareholder and a related entity
      solely owned by Infosmart's CFO and Director Ms. Pauline Sze, has loaned
      approximately $384,615 to Infosmart in connection with the construction of
      the
      Discobras manufacturing facility that Infosmart is building in Brazil.
EMPLOYMENT
      AGREEMENTS OF THE EXECUTIVE OFFICERS
The
      following are summaries of Infosmart's employment agreements with its executive
      officers and/or directors, which Cyber plans to assume following the Closing
      of
      the Exchange:
Infosmart
entered
      into a Letter of Appointment agreement with Mr. Andy Kwok on June 1, 2006.
      Effective June 1, 2006, Mr. Kwok was appointed Chief Executive Officer and
      Director of Infosmart and his base monthly salary is HK$60,000 per month or
      approximately US$7,772 per month. Such salary is subject to an annual review
      by
      the Board of Directors ("Board") at a time determined by the Board. Under the
      terms of the agreement, Mr. Kwok is also entitled to receive reimbursements
      for
      all reasonable business, office personnel, company-related entertainment and
      travel expenses that he incurs or he pays for on behalf of the Company.
Infosmart
entered
      into a Letter of Appointment agreement with Mr. Andrew Chang on July 1, 2006.
      Effective July 1, 2006, Mr. Chang was appointed Chairman and Director of
      Infosmart and his base monthly salary is HK$50,000 per month or approximately
      US$6,435 per month. Such salary is subject to an annual review by the Board
      of
      Directors ("Board") at a time determined by the Board. Under the terms of the
      agreement, Mr. Chang is also entitled to receive reimbursements for all
      reasonable business, office personnel, company-related entertainment and travel
      expenses that he incurs or he pays for on behalf of the Company.
Infosmart
entered
      into a Letter of Appointment agreement with Ms. Pauline Sze on June 1, 2006.
      Effective June 1, 2006, Mr. Sze was appointed Chief Financial Officer and
      Director of Infosmart and his base monthly salary is HK$50,000 per month or
      approximately US$6,435 per month. Such salary is subject to an annual review
      by
      the Board of Directors ("Board") at a time determined by the Board. Under the
      terms of the agreement, Ms. Sze is also entitled to receive reimbursements
      for
      all reasonable business, office personnel, company-related entertainment and
      travel expenses that she incurs or she pays for on behalf of the
      Company.
All
      of
      the above-described Letters of Appointment agreements state the officer and/or
      directors employment may be terminated immediately, without Company prior notice
      or payment in lieu of notice if at any time the officer and or director (1)
      becomes physically or mentally disabled whether totally or partially so that
      he
      is substantially unable to perform his duties for a period of or for 30 days
      in
      the aggregate in any period of six consecutive months, (2) is convicted of
      a
      criminal offense, except one which in the reasonable of the Board does not
      affect his position with the Company at the time of such conviction, (3) commits
      repeated or continued (after warning) any persistent or material breach of
      the
      employment agreement; (4) is guilty of willful neglect in discharging his duties
      or commits any grave misconduct which in the absolute opinion of the Board
      tends
      to bring himself or the Company into disrepute; or (5) commits an act of
      bankruptcy or compounded with his creditors generally or is guilty of conduct
      which would make his continued appointment prejudicial to the interests of
      the
      Company. Further, the agreements provide for employee insurance, mandatory
      provident fund benefits and, after completion of the three-month probation
      period, medical insurance. These agreements also contain restrictive covenants
      preventing competition with Infosmart during their employment and for a period
      of 12 months after termination, and also covenants preventing the use of
      confidential business information, except in connection with the performance
      of
      their duties for the Company, during or at any time after termination of their
      employment.
[The
      remainder of this page is left blank intentionally.]
Item 9.01
Financial
      Statement and Exhibits.
(a)
FINANCIAL
      STATEMENTS OF BUSINESS ACQUIRED.
None.
(b)
PRO
      FORMA
      FINANCIAL INFORMATION.
None.
(c)
EXHIBITS
EXHIBIT
      INDEX
Exhibit
Number
16
Description
Letter
                dated August 22, 2006 of Corbin & Company, LLP.
17.1
Letter
                of Resignation from Kevin R. Keating to the Board of Directors
17.2
Letter
                of Resignation of directors Jeff Andrews, Margie Blackwell and Luca
                Toscani to the Board of Directors
10.19
Appointment
                Letter Agreement by and among Sze Po Nei and Infosmart Group Limited
                dated
                June 1, 2006 (1)
10.20
Appointment
                Letter Agreement by and among Andrew Chang and Infosmart Group Limited
                dated July 1, 2006 (1)
10.21
Appointment
                Letter Agreement by and among Kwok Chung and Infosmart Group Limited
                dated
                July 1, 2006 (1)
-------------------------
(1)
Filed
      as
      an exhibit to Current Report on Form 8-K filed by the Company concurrently
      with
      this Current Report on Form 8-K and incorporated herein by
      reference.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Report on Form 8-K to be signed on its behalf by the
      undersigned hereunto duly authorized.
CYBER
                MERCHANTS EXCHANGE INC.
Date: August
                23, 2006
By:
/s/
                  Kwok Chung
Kwok
                Chung
Chief
                Executive Officer