<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: vf-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39895 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>
      <div>
        <hr style="COLOR: #000000" align="left" noshade size="3" width="100%">
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; 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; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
        D.C. 20549 </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="center" noshade size="1" width="15%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of the </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
        of report (Date of earliest event reported): November 10, 2005 (November
        7,
        2005)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="center" noshade size="1" width="15%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>THE
        CYBER GROUP NETWORK CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <hr style="COLOR: #000000" align="center" noshade size="1" width="25%">
        </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nevada</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>000-28153</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="27%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>33-0901534</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(State
                  or other jurisdiction of</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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 align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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 align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="27%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Post
        Office Box 948264, Maitland, FL 32794-8264</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <hr style="COLOR: #000000" align="center" noshade size="1" width="20%">
        </div><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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(407)
        645-4433</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <hr style="COLOR: #000000" align="center" noshade size="1" width="15%">
        </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Issuer
        Telephone number) </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;
        ]
        Written communications pursuant to Rule 425 under the Securities Act (17
        CFR
        230.425)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;
        ]
        Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17
        CFR
        240.14a-12(b))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;
        ]
        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; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;
        ]
        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
        Act
        (17 CFR 240.13e-4(c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="left" noshade size="3" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.01 Entry into a Material Definitive Agreement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        more
        fully described in Item 2.01 below, on September 20, 2005, The Cyber Group
        Network Corporation (the &#8220;Registrant&#8221; or &#8220;CGPN&#8221;) executed a Share Exchange
        Agreement (&#8220;Exchange Agreement&#8221;) by and among R. Scott Cramer, Steve Lowe, David
        Wassung (all hereinafter collectively referred to as the &#8220;CGPN Shareholders&#8221;)
        and the Registrant on the one hand, and Skystar Bio-Pharmaceutical (Cayman)
        Holdings Co., Ltd., a Cayman Island Company (&#8220;Skystar&#8221;), and the shareholders of
        100% of Skystar&#8217;s common stock (the &#8220;Skystar Shareholders&#8221;), on the other hand.
        Under the Exchange Agreement, on the Closing Date, the Registrant will issue
        shares of the Registrant&#8217;s Series B Preferred Stock (the &#8220;CGPN Shares&#8221;) to the
        Skystar Shareholders in exchange for 100% of the common stock of Skystar.
        The
        CGPN Shares issued shall be convertible, in the aggregate, into a number
        of
        shares of the Registrant&#8217;s common stock that would equal 89.5% of the
        outstanding shares of the Registrant&#8217;s common stock, if the shares were to be
        converted on the Closing Date. In addition, on the Closing Date, Skystar
        will
        pay the Registrant an amount equal to $120,000, which shall be used to pay
        liabilities of the Registrant. On November 6, 2005 the parties to the Share
        Exchange Agreement entered into a Third Amendment to the Exchange Agreement
        whereby Skystar will hold CGPN Shareholders harmless for any payment of up
        to
        US$50,000 made by CGPN in connection with the settlement of any claims
        (&#8220;Claims&#8221;) and up to US$10,000 in attorney&#8217;s fees incurred in defense of any
        such Claims. Any amount paid by CGPN in excess of US$50,000 plus US$10,000
        in
        attorney&#8217;s fees incurred in connection with the Claims shall be the
        responsibility of the CGPN Shareholders and shall be paid in cash within
        30 days
        after written notification is delivered to CGPN Shareholders. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        closing of this transaction (the &#8220;Closing&#8221;) occurred on November 7, 2005 (the
&#8220;Closing Date&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        2.01 Acquisition or Disposition of Assets</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 20, 2005, The Cyber Group Network Corporation (the &#8220;Registrant&#8221; or
&#8220;CGPN&#8221;) executed a Share Exchange Agreement (&#8220;Exchange Agreement&#8221;) by and among
        R. Scott Cramer, Steve Lowe, David Wassung (all hereinafter collectively
        referred to as the &#8220;CGPN Shareholders&#8221;) and the Registrant on the one hand, and
        Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman Island Company
        (&#8220;Skystar&#8221;), and the shareholders of 100% of Skystar&#8217;s common stock (the
&#8220;Skystar Shareholders&#8221;), on the other hand. Under the Exchange Agreement, on the
        Closing Date, the Registrant will issue shares of the Registrant&#8217;s Series B
        Preferred Stock (the &#8220;CGPN Shares&#8221;) to the Skystar Shareholders in exchange for
        100% of the common stock of Skystar. The CGPN Shares issued shall be
        convertible, in the aggregate, into a number of shares of the Registrant&#8217;s
        common stock that would equal 89.5% of the outstanding shares of the
        Registrant&#8217;s common stock, if the shares were to be converted on the Closing
        Date. In addition, on the Closing Date, Skystar will pay the Registrant an
        amount equal to $120,000, which shall be used to pay liabilities of the
        Registrant. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        parties&#8217; completion of the transactions contemplated under the Exchange
        Agreement (the &#8220;Closing&#8221;) were subject to the satisfaction of certain
        contingencies including, without limitation, Skystar's delivery of contracts
        or
        a series of related contracts with Xian Tianxing Bio-Pharmaceutical Co.,
        Ltd., a
        Chinese Company, to the Registrant, and also the Registrant&#8217;s delivery to
        Skystar of a release without prejudice from any claims against CGPN, whether
        actual or contingent, that is satisfactory to Skystar legal counsel, at his
        sole
        discretion</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>.</em></strong></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">The
        directors of the Registrant and the CGPN Shareholders have approved the Exchange
        Agreement and the transactions contemplated thereunder. Skystar&#8217;s directors and
        the Skystar Shareholders have approved the Exchange Agreement and the
        transactions contemplated thereunder (the &#8220;Exchange Transaction&#8221;). </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 6, 2005 the parties to the Share Exchange Agreement entered into
        a
        Third Amendment to the Exchange Agreement whereby Skystar will hold CGPN
        Shareholders harmless for any payment of up to US$50,000 made by CGPN in
        connection with the settlement of any claims (&#8220;Claims&#8221;) and up to US$10,000 in
        attorney&#8217;s fees incurred in defense of any such Claims. Any amount paid by CGPN
        in excess of US$50,000 plus US$10,000 in attorney&#8217;s fees incurred in connection
        with the Claims shall be the responsibility of the CGPN Shareholders and
        shall
        be paid in cash within 30 days after written notification is delivered to
        CGPN
        Shareholders.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        closing of this transaction (the &#8220;Closing&#8221;) occurred on November 7, 2005 (the
&#8220;Closing Date&#8221;). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        the transaction, the Registrant was a development stage computer security
        company that developed and marketed its computer security hardware and software
        devices. The Registrant was in the process of developing two products, computer
        security software and a computer hardware device for tracking missing or
        stolen
        computers. However, in the past two years, both the development of the hardware
        product and the sales of the software product generated minimal revenue for
        the
        Registrant. From and after the Closing Date, the Registrant&#8217;s primary operations
        will now consist of the operations of Skystar.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font size="2">In
        this report, when we use phrases such as "we,"
        "our," "company," "us," we are referring to Cyber Group Network Corporation,
        Skystar and Xian Tianxing Bio-Pharmaceutical Co., Ltd, as a combined
        entity.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>DESCRIPTION
        OF BUSINESS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Skystar
        was incorporated under the laws of the Cayman Islands on January 24, 2005.
        The
        People's Republic of China (PRC), &#160;PRC law currently have limits on
        foreign
        ownership of certain companies. To comply with these foreign ownership
        restrictions, we operate our bio-pharmaceutical business in China through
        Xian
        Tianxing Bio-Pharmaceutical Co., Ltd., a PRC joint stock company. Xian Tianxing
        holds the licenses and approvals necessary to operate our bio-pharmaceutical
        business in China. We have contractual arrangements with Xian Tianxing and
        its
        shareholders pursuant to which we provide technology consulting and other
        general business operation services to Xian Tianxing. Through these contractual
        arrangements, we also have the ability to substantially influence Xian
        Tianxing&#8217;s daily operations and financial affairs, appoint its senior executives
        and approve all matters requiring shareholder approval. As a result of these
        contractual arrangements, which enable us to control Xian Tianxing, we are
        considered the primary beneficiary of Xian Tianxing. Accordingly, we consolidate
        Xian Tianxing&#8217;s results, assets and liabilities in our financial statements. For
        a description of these contractual arrangements, see &#8220;Contractual Arrangements
        with Xian Tianxing and its Shareholders.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONTRACTUAL
        ARRANGEMENTS WITH XIAN TIANXING AND ITS SHAREHOLDERS </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        relationships with Xian Tianxing and its shareholders are governed by a series
        of contractual arrangements. Under PRC laws, each of Skystar and Xian Tianxing
        is an independent legal person and neither of them is exposed to liabilities
        incurred by the other party. Other than pursuant to the contractual arrangements
        between Skystar and Xian Tianxing, Xian Tianxing does not transfer any other
        funds generated from its operations to Skystar. On October 28, 2005, we entered
        into the following contractual arrangements: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Consulting
        Services Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        Pursuant to the exclusive consulting services agreement between Skystar and
        Xian
        Tianxing, Skystar has the exclusive right to provide to Xian Tianxing general
        bio-pharmaceutical business operations services as well as consulting services
        related to the technological research, development, design and manufacturing
        of
        bio-pharmaceutical products (the &#8220;Services&#8221;). Skystar also seconds employees to
        Xian Tianxing for whom Xian Tianxing bears the costs and expenses. Under
        this
        agreement, Skystar owns the intellectual property rights developed or discovered
        through research and development providing the Services for Xian Tianxing.
        Xian
        Tianxing pays a quarterly consulting service fees in Renminbi (&#8220;RMB&#8221;) to Skystar
        that is equal to all of Xian Tianxing&#8217;s revenue for such quarter.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Operating
        Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        Pursuant to the operating agreement among Skystar, Xian Tianxing and the
        shareholders of Xian Tianxing who collectively hold the majority of the
        outstanding shares of Xian Tianxing (collectively &#8220;Xian&#8217;s Majority
        Shareholders&#8221;), Skystar provides guidance and instructions on Xian Tianxing&#8217;s
        daily operations, financial management and employment issues. The shareholders
        of Xian Tianxing must designate the candidates recommended by Skystar as
        their
        representatives on Xian Tianxing&#8217;s board of directors. Skystar has the right to
        appoint senior executives of Xian Tianxing. In addition, Skystar agrees to
        guarantee Xian Tianxing&#8217;s performance under any agreements or arrangements
        relating to Xian Tianxing&#8217;s business arrangements with any third party. Xian
        Tianxing, in return, agrees to pledge its accounts receivable and all of
        its
        assets to Skystar. Moreover, Xian Tianxing agrees that without the prior
        consent
        of Skystar, Xian Tianxing will not engage in any transactions that could
        materially affect the assets, liabilities, rights or operations of Xian
        Tianxing, including, without limitation, incurrence or assumption of any
        indebtedness, sale or purchase of any assets or rights, incurrence of any
        encumbrance on any of its assets or intellectual property rights in favor
        of a
        third party or transfer of any agreements relating to its business operation
        to
        any third party. The term of this agreement is ten (10) years from October
        28,
        2005 and may be extended only upon Skystar&#8217;s written confirmation prior to the
        expiration of the this agreement, with the extended term to be mutually agreed
        upon by the parties.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Equity
        Pledge Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>.
        </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        the
        equity pledge agreement between the shareholders of Xian Tianxing and Skystar,
        the shareholders of Xian Tianxing pledged all of their equity interests in
        Xian
        Tianxing to Skystar to guarantee Xian Tianxing&#8217;s performance of its obligations
        under the technology consulting agreement. If Xian Tianxing or Xian&#8217;s Majority
        Shareholders breaches its respective contractual obligations, Skystar, as
        pledgee, will be entitled to certain rights, including the right to sell
        the
        pledged equity interests. The Xian Majority Shareholders also agreed that
        upon
        occurrence of any event of default, Skystar shall be granted an exclusive,
        irrevocable power of attorney to take actions in the place and stead of the
        Xian
        Shareholders to carry out the security provisions of the equity pledge agreement
        and take any action and execute any instrument that Skystar may deem necessary
        or advisable to accomplish the purposes of the equity pledge agreement. The
        shareholders of Xian Tianxing agreed not to dispose of the pledged equity
        interests or take any actions that would prejudice Skystar&#8217;s interest. The
        equity pledge agreement will expire two (2) years after Xian Tianxing
        obligations under the exclusive consulting services agreement have been
        fulfilled.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Option
        Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        the
        option agreement between the shareholders of Xian Tianxing and Skystar, the
        shareholders of Xian Tianxing irrevocably granted Skystar or its designated
        person an exclusive option to purchase, to the extent permitted under PRC
        law,
        all or part of the equity interests in Xian Tianxing for the cost of the
        initial
        contributions to the registered capital or the minimum amount of consideration
        permitted by applicable PRC law. Skystar or its designated person has sole
        discretion to decide when to exercise the option, whether in part or in full.
        The term of this agreement is ten (10) years from October 28, 2005 and may
        be
        extended prior to its expiration by written agreement of the
        parties.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Proxy
        Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        Pursuant
        to the proxy agreement among Skystar, Xian&#8217;s Majority Shareholders, and Xian
        Tianxing, Xian&#8217;s Majority Shareholders agreed to entrust all the rights to
        exercise their voting power to the person(s) appointed by Skystar. The parties
        entered into a proxy agreement where Xian&#8217;s Majority Shareholders have agreed to
        irrevocably grant a person to be designated by Skystar with the right to
        exercise Xian&#8217;s Majority Shareholders&#8217; voting rights and their other rights
        including the attendance at and the voting of Xian&#8217;s Majority Shareholders&#8217;
        shares at the shareholder&#8217;s meetings (or by written consent in lieu of meetings)
        in accordance with applicable laws and its Article of Association, including
        but
        not limited to the rights to sell or transfer all or any of his equity interests
        of the Company, and appoint and vote for the directors and Chairman as the
        authorized representative of the shareholders of Company. The term of this
        Proxy
        Agreement is ten (10) years from the October 28, 2005 and may be extended
        prior
        to its expiration by written agreement of the parties. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>XIAN
        TIANXING BIO-PHARMACEUTICAL CO., LTD.</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        discussed above, our operations are conducted through Xian Tianxing
        Bio-Pharmaceutical Co., Ltd. (hereafter &#8220;Xian Tianxing&#8221;) (formerly Xian Tianxing
        Science and Technology Development Co., Ltd.) is a joint stock company
        incorporated in Xi&#8217;an, China in July 1997. After eight (8) years of development,
        we have become a high-tech enterprise with registered capital of RMB 42,000,000,
        and are engaged in research, development, production, marketing and sales
        of
        bio-pharmaceutical and veterinary products. Our business divisions include
        a
        bio-pharmaceutical products division, a veterinary drugs division, a fodder
        or
        feed additive division, and a microorganism preparation division.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PRINCIPAL
        PRODUCTS OR SERVICES AND THEIR MARKETS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Currently,
        we have four major lines of products:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left">
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="LINE-HEIGHT: 1">
                  <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
                  <td align="left">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                      Bio-pharmaceutical veterinary vaccine line currently includes
                      over 10
                      different products;</font></div>
                  </td>
                </tr>

            </table>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left">
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="LINE-HEIGHT: 1">
                  <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
                  <td align="left">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                      Veterinary Medicine line for poultry and livestock currently
                      includes over
                      40 products;</font></div>
                  </td>
                </tr>

            </table>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                  Feed Additives line currently includes over 10 products;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                  Micro-organism products line currently includes over 10
                  products.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Among
        the
        Company&#8217;s prominent products is DLV chicken vaccine for prevention of avian
        coccidiosis disease. DLV chicken vaccine has won a number of accreditation
        and
        awards from PRC national authorities. It is safe, effective and easy to
        administer, and has proved to save costs by 60% as compared to using chemical
        medicines. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
        ongoing research and development, management expects that the Company will
        continue to introduce new products to the market.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DISTRIBUTION
        METHODS OF THE PRODUCTS OR SERVICES AND OUR CUSTOMERS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has a distribution network covering 27 provinces in the PRC. Currently,
        we have approximately two hundred and eighty (280) distribution agents
        throughout the PRC. The Company will continue to establish more representative
        offices and engage additional distribution agents in order to strengthen
        its
        distribution network.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        also started to distribute our products in markets outside of the PRC. In
        particular, some of the Company&#8217;s bio-pharmaceutical products are now being
        exported to Vietnam and Taiwan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company recognizes the importance of branding as well as packaging. All of
        our
        Company&#8217;s products bear a uniform brand but we also brand and package our
        products with specialized designs to differentiate the different categories
        of
        the Company&#8217;s products. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conduct promotional marketing activities to publicize and enhance the Company&#8217;s
        image as well as to reinforce the recognition of the Company&#8217;s brand name
        include:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">1.</font></div>
              </td>
              <td>
                <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">publishing
                  advertisements and articles in national as well as specialized
                  and
                  provincial newspapers, magazines, and in other media, including
                  the
                  Internet;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">2.</font></div>
              </td>
              <td>
                <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">participation
                  in national meetings, seminars, symposiums, exhibitions for
                  bio-pharmaceutical and other related
                  industries;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">3.</font></div>
              </td>
              <td>
                <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">organizing
                  cooperative promotional activities with distributors;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">4.</font></div>
              </td>
              <td>
                <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">sending
                  direct mail to major farms.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        Company currently has over four hundred (400) customers, including over seventy
        (70) major direct customers in twenty seven (27) provinces in the
        PRC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATUS
        OF ANY PUBLICLY ANNOUNCED NEW PRODUCT OR SERVICE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMPETITION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        three major competitors in the PRC: Jielin Bio-Tech Production Co., Ltd.,
        Qilu
        Animal Health Production Co., Ltd., and Zhongmu Industrial Joint Stock Co.,
        Ltd.
        These companies have more assets and have a larger market share. The Company
        is
        able to compete with these competitors because of its location in Northwest
        China, its unique products and its lower prices. Other than these three
        competitors, most of other competitors produce only one or two products.
        The
        Company produces a complete series of forage additive products and veterinary
        medicine products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SOURCES
        AND AVAILABILITY OF RAW MATERIALS AND THE PRINCIPAL SUPPLIERS
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shanghai
        Yino Technology Development, Zhejiang Shenghua Baike BioTech Co., Ltd., Shan&#8217;xi
        Yongfeng Shuye Technology Co., Ltd., Shan&#8217;xi Guosi Packaging Co., Ltd., and
        Huxian Tianyuan Co., Ltd., supplied over fifty percent (50%) of the raw
        materials we used to manufacture our products. The Company designs, creates
        prototypes and manufactures its products at its manufacturing facilities
        located
        at Xi&#8217;an city, Shang&#8217;xi province, PRC. Our principal raw materials include
        Chinese herbs, such as Huoxiang, Huanglian, and Zhang Red Flowers. The prices
        for these raw materials are subject to market forces largely beyond our control,
        including energy costs, organic chemical feedstocks, market demand, and freight
        costs. The prices for these raw materials have varied significantly in the
        past
        and may vary significantly in the future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PATENTS,
        TRADEMARKS, LICENSES, FRANCHISES, CONCESSIONS, ROYALTY AGREEMENTS OR LABOR
        CONTRACTS </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        rely
        on a combination of trademark, copyright and trade secret protection laws
        in
        China and other jurisdictions, as well as confidentiality procedures and
        contractual provisions to protect our intellectual property and our brand.
        We
        have one issued patented special technology in China, valid for 10 years
        and we
        intend to apply for more patents to protect our core technologies. We also
        enter
        into confidentiality, non-compete and invention assignment agreements with
        our
        employees and consultants and nondisclosure agreements with third parties.
        &#8220;Jiateng Jun&#8221; and &#8220;Star Pigeon&#8221; are our registered trademarks in the PRC.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bio-pharmaceutical
        companies are at times involved in litigation based on allegations of
        infringement or other violations of intellectual property rights. Furthermore,
        the application of laws governing intellectual property rights in the PRC
        and
        abroad is uncertain and evolving and could involve substantial risks to us.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GOVERNMENT
        APPROVAL AND REGULATION OF THE COMPANY&#8217;S PRINCIPAL PRODUCTS OR
        SERVICES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Government
        approval is required for the production of bio-pharmaceutical products. The
        Chinese Ministry of Agriculture has granted the Company three government
        permits
        to produce the following products: Forage Additive Products, Additive and
        Mixed
        Forage Products and Veterinary Medicine Products. For the production of the
        veterinary medicine, there is a national standard known as the Good
        Manufacturing Practice (&#8220;GMP&#8221;) standard. A company must establish its facility
        according to GMP standards, including both the facility and the production
        process. After establishing such facility, the Company files an application
        to
        operate the facility with the Ministry of Agriculture of the PRC government,
        which then sends a team of specialists to conduct an on-site inspection of
        the
        facility. A company cannot start production at the facility until it receives
        approval from the Ministry of Agriculture to begin operations. The Company
        currently has obtained the requisite approval and licenses from the Ministry
        of
        Agriculture in order to operate our production facilities. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RESEARCH
        AND DEVELOPMENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        place
        great emphasis on product research and development. In cooperation with Shanghai
        Poultry Verminosis and Institution and Shanxi Microbial Institute, the Company
        has established two research and development centers. Major projects currently
        being undertaken at these centers focus on the following:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></div>
              </td>
              <td>
                <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"><u>Development
                  of new bio-pharmaceutical products for animal immunization by employing
                  new technologies in microorganism and bacterium</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  We will be placing greater resources into the research and development
                  of
                  toxoid, mixed vaccines of toxoid and thalli, genetic vaccines and
                  complex
                  titanium vaccines, which we believe will gradually replace traditional
                  chemical drugs and which will greatly impact the animal vaccination
                  industry. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></div>
              </td>
              <td>
                <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"><u>Development
                  of protein technology and enzyme mechanism</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  Introducing the technology in polypeptides, the Company is cooperating
                  with relevant research institutes to develop new products to cure
                  piglet
                  diarrhea. The products will stimulate the release of growth hormones
                  in
                  piglets, improve their ability to produce antibody and excrete
                  stomach
                  acidity, enhance the activity of albumen enzyme and adjust the
                  activity of
                  T.B. cells, thereby improving their all-around disease-resistance
                  ability.
                  We expect these new products will greatly reduce the use of traditional
                  chemical drugs and lead to more environmentally friendly livestock
                  raising. These products are now in the interim stage of development.
                  The
                  Company is also developing complex enzyme preparations as new feed
                  additives and aims to use anti-inflammatory enzyme, polyase, and
                  cellulose
                  to form the best combination that will effectively dissolve and
                  cause the
                  additive to be absorbed in the feed. This will greatly improve
                  the
                  absorption rate of the feed, thereby reducing the ratio of usage
                  of feed
                  versus meat, while concurrently reducing the incidence of disease
                  in
                  livestock and poultry. We believe that we will be able to introduce
                  these
                  complex enzyme mechanism products to the market by the end of
                  2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font></div>
              </td>
              <td>
                <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"><u>Development
                  of non-pathogenic micro-organisms</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  The Company is also developing non-pathogenic micro-organisms and,
                  based
                  upon current products of microbe preparations, lactobacillus, bacillus,
                  bifid bacterium baceroid, and combined with the most appropriate
                  oligosaccharide preparations to produce living bacterium which
                  will be
                  applied to cure gastrointestinal tract diseases resulting from
                  the
                  maladjustment of flora. Microorganism preparations will prove to
                  be
                  effective cure and prevention for livestock disease, and will greatly
                  reduce the use of antibiotic and other
                  drugs.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font></div>
              </td>
              <td>
                <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"><u>Development
                  of veterinary medicines for pets</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  We believe that the pet markets have been fast growing along with
                  the
                  growing economy in the PRC. We believe that this niche is being
                  overlooked
                  by local manufacturers. To take advantage of this opportunity,
                  we have
                  over 20 products of veterinary medicines for pets are in the course
                  of
                  development. The Company expects to start introducing these new
                  products
                  for the pet market in 2006.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        2003,
        we spent approximately $50,000 or approximately 2.7% of the Company&#8217;s 2003
        revenue, on research and development of various bio-pharmaceutical products.
        In
        2004, the Company spent approximately $70,000 or approximately 1.5% of the
        Company&#8217;s 2004 revenue on research and development of products. For the first 6
        months of 2005, the Company has spent approximately $70,000 research and
        development projects, which is approximately 2.4% of its revenue.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COSTS
        AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        compliance with PRC environmental regulations, the Company spent approximately
        $10,000 in 2003, $15,000 in 2005, and approximately $30,000.00 for the first
        6
        months of 2005, mainly for the wastewater treatment in connection with our
        production facilities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EMPLOYEES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        2003,
        the Company had 66 employees, of which 62 worked as full time employees.
        In
        2004, the Company had 136 employees, of which 130 worked as full time employees.
        Currently, the Company has 163 employees, 158 of which are full time employees.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>MANAGEMENT&#8217;S
        DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        were
        originally incorporated in Nevada under the name &#8220;Hollywood Entertainment
        Network, Inc.&#8221; (the "Company") on September 24, 1998 with a principal business
        objective to operate as an independent film company in the business of motion
        picture production and distribution. On May 23, 2000, we underwent a reverse
        merger and abandoned this enterprise to become a developer of computer security
        software and hardware and changed our name to The Cyber Group Network
        Corporation to reflect this change in business. On November 7, 2005, we acquired
        Skystar pursuant to the terms of the Exchange Agreement. This transaction
        was
        accounted for as a reverse merger (recapitalization) with Skystar deemed
        to be
        the accounting acquirer, and us as the legal acquirer. Accordingly, the
        historical financial information presented in future financial statements
        will
        be that of Skystar as adjusted to give effect to any difference in the par
        value
        of ours and Skystar&#8217;s stock with an offset to capital in excess of par value.
        The basis of the assets, liabilities and retained earnings of Skystar, the
        accounting acquirer, have been carried over in the recapitalization. Upon
        the
        closing of this transaction, we became a Chinese bio-pharmaceutical company
        that
        develops, manufactures and markets a wide range of bio-pharmaceutical and
        veterinary products. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
        incorporation, Skystar has not conducted any substantive operations of its
        own
        and conducts its primary business operations through its variable interest
        entity (&#8220;VIE&#8221;), Xian Tianxing Bio-Pharmaceutical Co., Ltd. (&#8220;Xian Tianxing&#8221;).
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Xian
        Tianxing was incorporated on July 3, 1997 in the &#8220;PRC&#8221; as a limited liability
        company without shares. On December 31, 2003, the Company restructured from
        a
        limited liability company without shares to a joint stock company limited
        by
        shares.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        paid-in capital of Xian Tianxing was funded by the majority shareholders
        of
        Skystar. PRC law currently has limits on foreign ownership of certain companies.
        To comply with these foreign ownership restrictions, on October 28, 2005,
        Skystar entered into certain exclusive agreements with Xian Tianxing and
        its
        shareholders. Xian Tianxing holds the licenses and approvals necessary to
        operate the bio-pharmaceutical business in China. Pursuant to these agreements,
        Skystar provides exclusive technology consulting and other general business
        operation services to Xian Tianxing in return of a consulting services fee
        which
        is equal to Xian Tianxing&#8217;s revenue. In addition, Xian Tianxing&#8217;s shareholders
        have pledged their equity interests in Xian Tianxing to Skystar, irrevocably
        granted Skystar an exclusive option to purchase, to the extent permitted
        under
        PRC law, all or part of the equity interests in Xian Tianxing and agreed
        to
        entrust all the rights to exercise their voting power to the person(s) appointed
        by Skystar. Through these contractual arrangements, Skystar has the ability
        to
        substantially influence Xian Tianxing&#8217;s daily operations and financial affairs,
        appoint its senior executives and approve all matters requiring shareholder
        approval. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of these contractual arrangements, which obligates Skystar to absorb
        a
        majority of the risk of loss from Xian Tianxing&#8217;s activities and enable Skystar
        to receive a majority of its expected residual returns, the Company believes
        Xian Tianxing is a VIE under FASB Interpretation No. 46R (&#8220;FIN 46R&#8221;),
&#8220;Consolidation of Variable Interest Entities, an Interpretation of ARB No.
        51&#8221;,
        because the equity investors in Xian Tianxing do not have the characteristics
        of
        a controlling financial interest and the Company should be considered the
        primary beneficiary of Xian Tianxing. Accordingly, the Company consolidates
        Xian
        Tianxing&#8217;s results, assets and liabilities in the accompanying financial
        statements. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>YEAR
        ENDED DECEMBER 31, 2004 COMPARED TO THE YEAR ENDED DECEMBER 31, 2003.
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REVENUES.
        During the year ended December 31, 2004, Xian Tianxing had revenues of
        $3,996,421 as compared to revenues of $1,181,746 during the year ended December
        31, 2003, an increase of approximately 238%. This increase is attributable
        to
        increased sales. We believe that our sales will continue to grow because
        we are
        strengthening our sales force and more new products will be launched.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GROSS
        PROFIT. Cost of goods sold, which consist of direct labor, overhead and product
        costs, were $2,155,050 for the year ended December 31, 2004 as compared to
        $630,984 for the year ended December 31, 2003. Gross profit was $1,841,371
        for
        the year ended December 31, 2004 as compared to $550,762 for the year ended
        December 31, 2003, representing gross margins of approximately</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46%
        and
        47%, respectively. The increase in our gross profits is attributable to
        increased sales. Skystar management believes that this trend will continue
        because sales will continue to grow while gross margin will remain at the
        current level.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SELLING
        EXPENSES. Selling expenses which consist of commission, advertising and
        promotion expenses, freight charges and salaries totaled $244,973 for the
        year
        ended December 31, 2004 as compared to $141,740 for the year ended December
        31,
        2003, an increase of approximately 73%. This increase is primarily attributable
        to our expanding sales team and activities which are in turn reflected in
        our
        increased sales. Skystar management believes that its selling expenses will
        continue to increase as sales continue to grow. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GENERAL
        AND ADMINISTRATIVE EXPENSES. General and administrative expenses totaled
        $259,997 for the year ended December 31, 2004, as compared to $225,949 for
        the
        year ended December 31, 2003, an increase of approximately 15%. This increase
        is
        primarily attributable to the expansion of our sales and operations.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RESEARCH
        AND DEVELOPMENT COSTS. Research and development costs which consist of salaries,
        professional and technical support fees, totaled $30,120 for the year ended
        December 31, 2004, as compared to $36,867 for the year ended December 31,
        2003,
        a decrease of approximately 18%. The decrease is because technical and technical
        support fees totaling $25,301 was paid to external consultants during the
        year
        ended December 31, 2003 whereas we conducted our research and development
        by our
        internal staff only during the year ended December 31, 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INVESTMENT
        GAIN. Investment gain of $24,096 for the year ended December 31, 2004
        represented the return on the investment fund of 432,530, which we placed
        with
        an investment agent. The investment agent had full discretion to invest the
        fund
        and guaranteed a minimum return of 5%.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NET
        INCOME. Skystar had a net income of $1,114,804 for the year ended December
        31,
        2004 as compared to $103,609 for the year ended December 31, 2003. The increase
        in net income is attributable to increase in sales. Skystar management believes
        that net income will increase as Skystar introduces new products and increase
        sales. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIX-MONTHS
        ENDED JUNE 30, 2005 COMPARED TO THE SIX-MONTHS ENDED JUNE 30, 2004.
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REVENUES.
        During the six months ended June 30, 2005, Skystar had revenues of $2,884,387
        as
        compared to revenues of $1,457,258 during the six months ended June 30, 2004,
        an
        increase of approximately 98%. This increase is attributable to our increase
        in
        sales, which in turn is attributable to our expanded sales force and new
        products introduced. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GROSS
        PROFIT. Cost of goods sold, which consist of direct labor, overhead and product
        costs, were $1,359,817 for the six months ended June 30, 2005 as compared
        to
        $774,734 for the six months ended June 30, 2004. Skystar had a Gross Profit
        of
        $1,524,570 for the six months ended June 30, 2005 as compared to a Gross
        Profit
        of $682,524 for the six months ended June 30, 2004, representing gross margins
        of approximately 53% and 47%. The increase in gross profits is attributable
        to
        increased sales and better margin.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SELLING
        EXPENSES. Selling expenses which consist of commission, advertising and
        promotion expenses, freight charges and salaries totaled $183,521 for the
        six
        months ended June 30, 2005 as compared to $132,818 for the six months ended
        June
        30, 2004, an increase of approximately 38%. This increase is primarily
        attributable to our expanding sales team and activities, which, in turn,
        are
        reflected in our increased sales. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GENERAL
        AND ADMINISTRATIVE EXPENSES. General and administrative expenses totaled
        $235,687 for the six months ended June 30, 2005, as compared to $114,496
        for the
        six months ended June 30, 2004, an increase of approximately 106%. This increase
        is primarily attributable to the expansion of our sales and operations.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RESEARCH
        AND DEVELOPMENT COSTS. Research and development costs which consist of salaries,
        professional and technical support fees, totaled $10,442 for the six months
        ended June 30, 2005, as compared to $6,747 for the six months ended June
        30,
        2004, an increase of approximately 55%. The increased research and development
        activities reflected the introduction of 21 new products during the six months
        ended June 30, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NET
        INCOME. We had a net income of $926,001 for the six months ended June 30,
        2005
        as compared to $345,101 for the six months ended June 30, 2004. The increase
        in
        net income is attributable to the increase in sales. Skystar management believes
        that net income will continue to increase as Skystar introduces new products
        and
        increase sales. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIQUIDITY
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        year ended December 31, 2004, we generated cash from operating activities
        of
        $1,811,828 and we used $2,196,120 in investing activities which, among others,
        consist of payment of $1,361,795 as deposits for the construction of our
        new
        plant and purchases of machinery and further advances of interest bearing
        loans
        of $820,438 to other entities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        December 31, 2004, the Company had cash and cash equivalents of $49,606.
        Our
        total current assets were $3,585,016 and our total current liabilities were
        $1,251,391, which resulted in a current ratio of 2.9. We had capital expenditure
        commitments outstanding as of December 31, 2004 in the amount of $2,004,531
        in
        relation to the construction of a new plant which will meet the Good
        Manufacturing Practices Standard and $356,627 in relation to the purchase
        of
        machinery. The new plant and machinery will enable us to consolidate our
        existing operations and to expand the production capacity for our
        bio-pharmaceutical business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CAPITAL
        RESOURCES </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that Skystar has adequate capital resources to continue its current
        operations. However, for the construction of the newest facility and acquisition
        of new equipment for this facility, the company will require approximately
        $3,000,000 to $6,000,000 in the next twelve months. Of the capital raised,
        we
        estimate that $3,000,000 will be spent on the construction of the new plant,
        $1,000,000 will be spent on research and development of the new products,
        $1,000,000 will be spent on marketing our products, and the remaining $1,000,000
        will be for working capital. We plan to seek additional funding through public
        or private equity or debt financing, strategic transactions and/or from other
        sources, although we expect that funding will come mainly from private
        placements. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PLAN
        OF OPERATIONS </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        next 12 months, we plan to continue to market and sell the company&#8217;s products
        and to develop new products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, as described more fully in the section titled &#8220;DESCRIPTION OF
        PROPERTY,&#8221; in 2003, the Company received approval from the State Council of
        China to expand its production facilities and construct a new Good Manufacturing
        Practice (&#8220;GMP&#8221;) standard plant. The entire expansion project will cost
        approximately RMB 69,410,000 (US$8,500,000). The Company&#8217;s total investment in
        this project includes approximately $7,000,000 for the facilities and $1,500,000
        for working capital. The construction work commenced in late 2004 and will
        be
        completed by the third quarter in 2005. The new plant will occupy 47 hectares
        and have a total area of about 14,100 sq. meters.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PRODUCT
        RESEARCH AND DEVELOPMENT </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        described more fully above, management believes that Xian Tianxing will be
        developing several products including new bio-pharmaceutical products for
        animal
        immunization, non-pathogenic micro-organisms for the cure and prevention
        of
        livestock disease, complex enzyme preparations as animal feed additives,
        and
        several new veterinary medicine products within the next 12 months.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OFF-BALANCE
        SHEET ARRANGEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        not entered into any financial guarantees or other commitments to guarantee
        the
        payment obligations of any third parties. We have not entered into any
        derivative contracts that are indexed to our shares and classified as
        shareholder&#8217;s equity or that are not reflected in our consolidated financial
        statements. Furthermore, we do not have any retained or contingent interest
        in
        assets transferred to an unconsolidated entity that serves as credit, liquidity
        or market risk support to such entity. We do not have any variable interest
        in
        any unconsolidated entity that provides financing, liquidity, market risk
        or
        credit support to us or engages in leasing, hedging or research and development
        services with us.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFLATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that inflation has not had a material effect on our operations to
        date.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>RISK
        FACTORS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>FACTORS
        THAT MAY AFFECT FUTURE PERFORMANCE</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Before
        investing in our common stock you should carefully consider the following
        risk
        factors, the other information included herein and the information included
        in
        our other reports and filings.&#160; Our business, financial condition,
        and the
        trading price of our common stock could be adversely affected by these and
        other
        risks.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        limited operating history makes it difficult to evaluate our future prospects
        and results of operations. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have a
        limited operating history. Xian Tianxing commenced operations in 1997 and
        first
        achieved profitability in the quarter ended 1999. Accordingly, you should
        consider our future prospects in light of the risks and uncertainties
        experienced by early stage companies in evolving industries such as the
        bio-pharmaceutical industry in China. Some of these risks and uncertainties
        relate to our ability to: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">maintain
        our position as one of the market leaders in China;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">offer
        new
        and innovative products to attract and retain a larger customer
        base;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">attract
        additional customers and increase spending per customer;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">increase
        awareness of our brand and continue to develop user and customer
        loyalty;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">respond
        to competitive market conditions;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">respond
        to changes in our regulatory environment;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">manage
        risks associated with intellectual property rights;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">maintain
        effective control of our costs and expenses;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">raise
        sufficient capital to sustain and expand our business;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">attract,
        retain and motivate qualified personnel; and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">upgrade
        our technology to support additional research and development of new
        products.&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        we are
        unsuccessful in addressing any of these risks and uncertainties, our business
        may be materially and adversely affected. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        Must Obtain Additional Financing to Execute Our Business
        Plan</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        revenues from the production and sale of bio-pharmaceutical products and
        the
        projected revenues from these products are not adequate to support our expansion
        and product development programs.&#160; We will need substantial additional
        funds to build our new production facilities, pursue further research and
        development, obtain regulatory approvals; file, prosecute, defend and enforce
        our intellectual property rights and market our products.&#160; We will
        seek
        additional funds through public or private equity or debt financing, strategic
        transactions and/or from other sources.&#160; We could enter into collaborative
        arrangements for the development of particular products that would lead to
        our
        relinquishing some or all rights to the related technology or
        products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        are
        no assurances that future funding will be available on favorable terms or
        at
        all.&#160; If additional funding is not obtained, we will need to reduce,
        defer
        or cancel development programs, planned initiatives or overhead expenditures,
        to
        the extent necessary.&#160; The failure to fund our capital requirements
        would
        have a material adverse effect on our business, financial condition and results
        of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Success Depends On Collaborative Partners, Licensees and Other Third Parties
        Over Whom We Have Limited Control</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due
        to
        the complexity of the process of developing bio-pharmaceuticals, our core
        business depends on arrangements with bio-pharmaceutical institutes, corporate
        and academic collaborators, licensors, licensees and others for the research,
        development, clinical testing, technology rights, manufacturing, marketing
        and
        commercialization of our products. We have various research collaborations
        and
        outsource other business functions.&#160; Our license agreements could
        obligate
        us to diligently bring potential products to market, make milestone payments
        and
        royalties that, in some instances, could be substantial, and incur the costs
        of
        filing and prosecuting patent applications.&#160; There are no assurances
        that
        we will be able to establish or maintain collaborations that are important
        to
        our business on favorable terms, or at all.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        number
        of risks arise from our dependence on collaborative agreements with third
        parties.&#160; Product development and commercialization efforts could
        be
        adversely affected if any collaborative partner:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">terminates
        or suspends its agreement with us</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">causes
        delays</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">fails
        to
        timely develop or manufacture in adequate quantities a substance needed in
        order
        to conduct clinical trials</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">fails
        to
        adequately perform clinical trials</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determines
        not to develop, manufacture or commercialize a product to which it has rights
        or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">otherwise
        fails to meet its contractual obligations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        collaborative partners could pursue other technologies or develop alternative
        products that could compete with the products we are developing.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        Profitability of Our Products Will Depend in Part on Our Ability to Protect
        Proprietary Rights and Operate Without Infringing the Proprietary Rights
        of
        Others</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        profitability of our products will depend in part on our ability to obtain
        and
        maintain patents and licenses and preserve trade secrets, and the period
        our
        intellectual property remains exclusive.&#160; We must also operate without
        infringing the proprietary rights of third parties and without third parties
        circumventing our rights. The patent positions of bio-pharmaceutical and
        biotechnology enterprises, including ours, are uncertain and involve complex
        legal and factual questions for which important legal principles are largely
        unresolved.&#160; For example, no consistent policy has emerged regarding
        the
        breadth of biotechnology patent claims that are granted by the U.S. Patent
        and
        Trademark Office or enforced by the U.S. federal courts.&#160; In addition,
        the
        scope of the originally claimed subject matter in a patent application can
        be
        significantly reduced before a patent is issued.&#160; The biotechnology
        patent
        situation outside the U.S. is even more uncertain, is currently undergoing
        review and revision in many countries, and may not protect our intellectual
        property rights to the same extent as the laws of the U.S.&#160; Because
        patent
        applications are maintained in secrecy in some cases, we cannot be certain
        that
        we or our licensors are the first creators of inventions described in our
        pending patent applications or patents or the first to file patent applications
        for such inventions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        companies may independently develop similar products and design around any
        patented products we develop.&#160; We cannot assure you that:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
        of
        our patent applications will result in the issuance of patents</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">we
        will
        develop additional patentable products</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        patents we have been issued will provide us with any competitive
        advantages</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        patents of others will not impede our ability to do business; or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">third
        parties will not be able to circumvent our patents.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        number
        of pharmaceutical, biotechnology, research and academic companies and
        institutions have developed technologies, filed patent applications or received
        patents on technologies that may relate to our business.&#160; If these
        technologies, applications or patents conflict with ours, the scope of our
        current or future patents could be limited or our patent applications could
        be
        denied.&#160; Our business may be adversely affected if competitors
        independently develop competing technologies, especially if we do not obtain,
        or
        obtain only narrow, patent protection.&#160; If patents that cover our
        activities are issued to other companies, we may not be able to obtain licenses
        at a reasonable cost, or at all; develop our technology; or introduce,
        manufacture or sell the products we have planned.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patent
        litigation is becoming widespread in the biotechnology industry.&#160;
        Such
        litigation may affect our efforts to form collaborations, to conduct research
        or
        development, to conduct clinical testing or to manufacture or market any
        products under development.&#160; There are no assurances that our patents
        would
        be held valid or enforceable by a court or that a competitor&#8217;s technology or
        product would be found to infringe our patents in the event of patent
        litigation.&#160; Our business could be materially affected by an adverse
        outcome to such litigation.&#160; Similarly, we may need to participate
        in
        interference proceedings declared by the U.S. Patent and Trademark Office
        or
        equivalent international authorities to determine priority of invention.&#160;
        We could incur substantial costs and devote significant management resources
        to
        defend our patent position or to seek a declaration that another company&#8217;s
        patents are invalid.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Much
        of
        our know-how and technology may not be patentable, though it may constitute
        trade secrets. There are no assurances that we will be able to meaningfully
        protect our trade secrets.&#160; We cannot assure you that any of our existing
        confidentiality agreements with employees, consultants, advisors or
        collaborators will provide meaningful protection for our trade secrets, know-how
        or other proprietary information in the event of any unauthorized use or
        disclosure.&#160; Collaborators, advisors or consultants may dispute the
        ownership of proprietary rights to our technology, for example by asserting
        that
        they developed the technology independently.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        May Encounter Difficulties in Manufacturing our
        Products</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Before
        our products can be profitable, they must be produced in commercial quantities
        in a cost-effective manufacturing process that complies with regulatory
        requirements, including GMP, production and quality control regulations.&#160;
        If we cannot arrange for or maintain commercial-scale manufacturing on
        acceptable terms, or if there are delays or difficulties in the manufacturing
        process, we may not be able to conduct clinical trials, obtain regulatory
        approval or meet demand for our products. Production of our products could
        require raw materials which are scarce or which can be obtained only from
        a
        limited number of sources.&#160; If we are unable to obtain adequate supplies
        of
        such raw materials, the development, regulatory approval and marketing of
        our
        products could be delayed.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        Could Need More Clinical Trials or Take More Time to Complete Our Clinical
        Trials Than We Have Planned </em></strong></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; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Clinical
        trials vary in design by factors including dosage, end points, length, and
        controls.&#160; We may need to conduct a series of trials to demonstrate
        the
        safety and efficacy of our products.&#160; The results of these trials
        may not
        demonstrate safety or efficacy sufficiently for regulatory authorities to
        approve our products. Further, the actual schedules for our clinical trials
        could vary dramatically from the forecasted schedules due to factors including
        changes in trial design, conflicts with the schedules of participating
        clinicians and clinical institutions, and changes affecting product supplies
        for
        clinical trials.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        rely
        on collaborators, including academic institutions, governmental agencies
        and
        clinical research organizations, to conduct, supervise, monitor and design
        some
        or all aspects of clinical trials involving our products.&#160; Since these
        trials depend on governmental participation and funding, we have less control
        over their timing and design than trials we sponsor.&#160; Delays in or
        failure
        to commence or complete any planned clinical trials could delay the ultimate
        timelines for our product releases.&#160; Such delays could reduce investors&#8217;
        confidence in our ability to develop products, likely causing our share price
        to
        decrease.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        May Not Be Able to Obtain the Regulatory Approvals or Clearances That Are
        Necessary to Commercialize Our Products</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        PRC
        and other countries impose significant statutory and regulatory obligations
        upon
        the manufacture and sale of bio-pharmaceutical products.&#160; Each regulatory
        authority typically has a lengthy approval process in which it examines
        pre-clinical and clinical data and the facilities in which the product is
        manufactured.&#160; Regulatory submissions must meet complex criteria to
        demonstrate the safety and efficacy of the ultimate products.&#160; Addressing
        these criteria requires considerable data collection, verification and
        analysis.&#160; We may spend time and money preparing regulatory submissions
        or
        applications without assurances as to whether they will be approved on a
        timely
        basis or at all.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        product candidates, some of which are currently in the early stages of
        development, will require significant additional development and pre-clinical
        and clinical testing prior to their commercialization. These steps and the
        process of obtaining required approvals and clearances can be costly and
        time-consuming.&#160; If our potential products are not successfully developed,
        cannot be proven to be safe and effective through clinical trials, or do
        not
        receive applicable regulatory approvals and clearances, or if there are delays
        in the process:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  commercialization of our products could be adversely
                  affected;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                  competitive advantages of the products could be diminished;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">revenues
                  or collaborative milestones from the products could be reduced
                  or
                  delayed.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Governmental
        and regulatory authorities may approve a product candidate for fewer indications
        or narrower circumstances than requested or may condition approval on the
        performance of post-marketing studies for a product candidate.&#160; Even
        if a
        product receives regulatory approval and clearance, it may later exhibit
        adverse
        side effects that limit or prevent its widespread use or that force us to
        withdraw the product from the market.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
        marketed product and its manufacturer will continue to be subject to strict
        regulation after approval.&#160; Results of post-marketing programs may
        limit or
        expand the further marketing of products.&#160; Unforeseen problems with
        an
        approved product or any violation of regulations could result in restrictions
        on
        the product, including its withdrawal from the market and possible civil
        actions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        manufacturing our products we will be required to comply with applicable
        good
        manufacturing practices regulations, which include requirements relating
        to
        quality control and quality assurance, as well as the maintenance of records
        and
        documentation.&#160; We cannot comply with regulatory requirements, including
        applicable good manufacturing practice requirements, we may not be allowed
        to
        develop or market the product candidates.&#160; If we or our manufacturers
        fail
        to comply with applicable regulatory requirements at any stage during the
        regulatory process, we may be subject to sanctions, including fines, product
        recalls or seizures, injunctions, refusal of regulatory agencies to review
        pending market approval applications or supplements to approve applications,
        total or partial suspension of production, civil penalties, withdrawals of
        previously approved marketing applications and criminal
        prosecution.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Competitors
        May Develop and Market Bio-pharmaceutical Products That Are Less Expensive,
        More
        Effective or Safer, Making Our Products Obsolete or
        Uncompetitive</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Some
        of
        our competitors and potential competitors have greater product development
        capabilities and financial, scientific, marketing and human resources than
        we
        do.&#160; Technological competition from biopharmaceutical companies and
        biotechnology companies is intense and is expected to increase.&#160; Other
        companies have developed technologies that could be the basis for competitive
        products.&#160; Some of these products have an entirely different approach
        or
        means of accomplishing the desired curative effect than products we are
        developing.&#160; Alternative products may be developed that are more effective,
        work faster and are less costly than our products.&#160; Competitors may
        succeed
        in developing products earlier than us, obtaining approvals and clearances
        for
        such products more rapidly than us, or developing products that are more
        effective than ours.&#160; In addition, other forms of treatment may be
        competitive with our products. Over time, our technology or products may
        become
        obsolete or uncompetitive.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Products May Not Gain Market Acceptance</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        products may not gain market acceptance in the agricultural community.&#160;
        The
        degree of market acceptance of any product depends on a number of factors,
        including establishment and demonstration of clinical efficacy and safety,
        cost-effectiveness, clinical advantages over alternative products, and marketing
        and distribution support for the products.&#160; Limited information regarding
        these factors is available in connection with our products or products that
        may
        compete with ours.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        directly market and distribute our bio-pharmaceutical products, we or our
        collaborators require a marketing and sales force with appropriate technical
        expertise and supporting distribution capabilities.&#160; We may not be
        able to
        further establish sales, marketing and distribution capabilities or enter
        into
        arrangements with third parties on acceptable terms.&#160; If we or our
        partners
        cannot successfully market and sell our products, our ability to generate
        revenue will be limited.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Operations and the Use of Our Products Could Subject Us to Damages Relating
        to
        Injuries or Accidental Contamination</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        research and development processes involve the controlled use of hazardous
        materials.&#160; We are subject to federal, provincial and local laws and
        regulations governing the use, manufacture, storage, handling and disposal
        of
        such materials and waste products.&#160; The risk of accidental contamination
        or
        injury from handling and disposing of such materials cannot be completely
        eliminated. In the event of an accident involving hazardous materials, we
        could
        be held liable for resulting damages.&#160; We are not insured with respect
        to
        this liability.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Such
        liability could exceed our resources.&#160; In the future we could incur
        significant costs to comply with environmental laws and
        regulations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
        we were successfully sued for product liability, we could face substantial
        liabilities that may exceed our resources. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        may be
        held liable if any product we develop, or any product which is made using
        our
        technologies, causes injury or is found unsuitable during product testing,
        manufacturing, marketing, sale or use. These risks are inherent in the
        development of agricultural and bio-pharmaceutical products. We currently
        do not
        have product liability insurance. We are not insured with respect to this
        liability. If we choose to obtain product liability insurance but cannot
        obtain
        sufficient insurance coverage at an acceptable cost or otherwise protect
        against
        potential product liability claims, the commercialization of products that
        we
        develop may be prevented or inhibited. If we are sued for any injury caused
        by
        our products, our liability could exceed our total assets. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        have limited business insurance coverage. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        insurance industry in China is still at an early stage of development. Insurance
        companies in China offer limited business insurance products. We do not have
        any
        business liability or disruption insurance coverage for our operations in
        China.
        Any business disruption, litigation or natural disaster may result in our
        incurring substantial costs and the diversion of our resources.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Success Depends On Attracting and Retaining Qualified
        Personnel</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        depend
        on a core management and scientific team.&#160; The loss of any of these
        individuals could prevent us from achieving our business objective of
        commercializing our product candidates.&#160; Our future success will depend
        in
        large part on our continued ability to attract and retain other highly qualified
        scientific, technical and management personnel, as well as personnel with
        expertise in clinical testing and government regulation.&#160; We face
        competition for personnel from other companies, universities, public and
        private
        research institutions, government entities and other organizations.&#160;
        If our
        recruitment and retention efforts are unsuccessful, our business operations
        could suffer.&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Risks
        Related to Our Corporate Structure </u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>PRC
        laws and regulations governing our businesses and the validity of certain
        of our
        contractual arrangements are uncertain. If we are found to be in violation,
        we
        could be subject to sanctions. In addition, changes in such PRC laws and
        regulations may materially and adversely affect our business.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        are
        substantial uncertainties regarding the interpretation and application of
        PRC
        laws and regulations, including, but not limited to, the laws and regulations
        governing our business, or the enforcement and performance of our contractual
        arrangements with our affiliated Chinese entity, Xian Tianxing, and its
        shareholders. We are considered a foreign person or foreign invested enterprise
        under PRC law. As a result, we are subject to PRC law limitations on foreign
        ownership of Chinese companies. These laws and regulations are relatively
        new
        and may be subject to change, and their official interpretation and enforcement
        may involve substantial uncertainty. The effectiveness of newly enacted laws,
        regulations or amendments may be delayed, resulting in detrimental reliance
        by
        foreign investors. New laws and regulations that affect existing and proposed
        future businesses may also be applied retroactively. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        PRC
        government has broad discretion in dealing with violations of laws and
        regulations, including levying fines, revoking business and other licenses
        and
        requiring actions necessary for compliance. In particular, licenses and permits
        issued or granted to us by relevant governmental bodies may be revoked at
        a
        later time by higher regulatory bodies. We cannot predict the effect of the
        interpretation of existing or new PRC laws or regulations on our businesses.
        We
        cannot assure you that our current ownership and operating structure would
        not
        be found in violation of any current or future PRC laws or regulations. As
        a
        result, we may be subject to sanctions, including fines, and could be required
        to restructure our operations or cease to provide certain services. Any of
        these
        or similar actions could significantly disrupt our business operations or
        restrict us from conducting a substantial portion of our business operations,
        which could materially and adversely affect our business, financial condition
        and results of operations. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        may be adversely affected by complexity, uncertainties and changes in PRC
        regulation of bio-pharmaceutical business and companies, including limitations
        on our ability to own key assets. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        PRC
        government regulates the bio-pharmaceutical industry including foreign ownership
        of, and the licensing and permit requirements pertaining to, companies in
        the
        bio-pharmaceutical industry. These laws and regulations are relatively new
        and
        evolving, and their interpretation and enforcement involve significant
        uncertainty. As a result, in certain circumstances it may be difficult to
        determine what actions or omissions may be deemed to be a violation of
        applicable laws and regulations. Issues, risks and uncertainties relating
        to PRC
        government regulation of the bio-pharmaceutical industry include the following:
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <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">&#8226;</font></div>
              </td>
              <td>
                <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">we
                  only have contractual control over Xian Tianxing. We do not own
                  it due to
                  the restriction of foreign investment in Chinese businesses;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <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">&#8226;</font></div>
              </td>
              <td>
                <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">uncertainties
                  relating to the regulation of the bio-pharmaceutical business in
                  China,
                  including evolving licensing practices, means that permits, licenses
                  or
                  operations at our company may be subject to challenge. This may
                  disrupt
                  our business, or subject us to sanctions, requirements to increase
                  capital
                  or other conditions or enforcement, or compromise enforceability
                  of
                  related contractual arrangements, or have other harmful effects
                  on
                  us.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        interpretation and application of existing PRC laws, regulations and policies
        and possible new laws, regulations or policies have created substantial
        uncertainties regarding the legality of existing and future foreign investments
        in, and the businesses and activities of, bio-pharmaceutical businesses in
        China, including our business. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>In
        order to comply with PRC laws limiting foreign ownership of Chinese companies,
        we conduct our bio-pharmaceutical business through Xian Tianxing by means
        of
        contractual arrangements. If the PRC government determines that these
        contractual arrangements do not comply with applicable regulations, our business
        could be adversely affected. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        PRC
        government restricts foreign investment in bio-pharmaceutical businesses
        in
        China. Accordingly, we operate our business in China through Xian Tianxing,
        a&#160; Chinese joint stock company. Xian Tianxing holds the licenses and
        approvals necessary to operate our website and our online advertising business
        in China. We have contractual arrangements with Xian Tianxing and its
        shareholders that allow us to substantially control Xian Tianxing. We cannot
        assure you, however, that we will be able to enforce these contracts.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
        we believe we comply with current PRC regulations, we cannot assure you that
        the
        PRC government would agree that these operating arrangements comply with
        PRC
        licensing, registration or other regulatory requirements, with existing policies
        or with requirements or policies that may be adopted in the future. If the
        PRC
        government determines that we do not comply with applicable law, it could
        revoke
        our business and operating licenses, require us to discontinue or restrict
        our
        operations, restrict our right to collect revenues, require us to restructure
        our operations, impose additional conditions or requirements with which we
        may
        not be able to comply, impose restrictions on our business operations or
        on our
        customers, or take other regulatory or enforcement actions against us that
        could
        be harmful to our business. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        contractual arrangements with Xian Tianxing and its shareholders may not
        be as
        effective in providing control over these entities as direct ownership.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
        PRC
        law limits foreign equity ownership in Internet and advertising companies
        in
        China, we operate our ICP and advertising businesses through Xian Tianxing.
        We
        have no equity ownership interest in Xian Tianxing and rely on contractual
        arrangements to control and operate such businesses. These contractual
        arrangements may not be as effective in providing control over Xian Tianxing
        as
        direct ownership. For example, Xian Tianxing could fail to take actions required
        for our business despite its contractual obligation to do so. If Xian Tianxing
        fails to perform under their agreements with us, we may have to rely on legal
        remedies under PRC law, which may not be effective. In addition, we cannot
        assure you that either of Xian Tianxing&#8217;s shareholders would always act in our
        best interests. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        Chairman of the Board of Directors of Xian Tianxing has potential conflicts
        of
        interest with us, which may adversely affect our business.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weibing
        Lu, our Chief Executive Officer, is also the Chairman of the Board of Directors
        of Xian Tianxing. Conflicts of interests between his duties to our company
        and
        Xian Tianxing may arise. As Mr. Lu is a director and executive officer of
        our
        company, he has a duty of loyalty and care to us under Cayman Islands law
        when
        there are any potential conflicts of interests between our company and Xian
        Tianxing. We cannot assure you, however, that when conflicts of interest
        arise,
        Mr. Lu will act completely in our interests or that conflicts of interests
        will
        be resolved in our favor. In addition, Mr. Lu could violate his legal duties
        by
        diverting business opportunities from us to others. If we cannot resolve
        any
        conflicts of interest between us and Mr. Lu, we would have to rely on legal
        proceedings, which could result in the disruption of our business. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Risks
        Related to Doing Business in China </u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Adverse
        changes in economic and political policies of the PRC government could have
        a
        material adverse effect on the overall economic growth of China, which could
        adversely affect our business. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Substantially
        all of our business operations are conducted in China. Accordingly, our results
        of operations, financial condition and prospects are subject to a significant
        degree to economic, political and legal developments in China. China&#8217;s economy
        differs from the economies of most developed countries in many respects,
        including with respect to the amount of government involvement, level of
        development, growth rate, control of foreign exchange and allocation of
        resources. While the PRC economy has experienced significant growth in the
        past
        20 years, growth has been uneven across different regions and among various
        economic sectors of China. The PRC government has implemented various measures
        to encourage economic development and guide the allocation of resources.
        Some of
        these measures benefit the overall PRC economy, but may also have a negative
        effect on us. For example, our financial condition and results of operations
        may
        be adversely affected by government control over capital investments or changes
        in tax regulations that are applicable to us. Since early 2004, the PRC
        government has implemented certain measures to control the pace of economic
        growth. Such measures may cause a decrease in the level of economic activity
        in
        China, which in turn could adversely affect our results of operations and
        financial condition. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
        PRC law were to phase out the preferential tax benefits currently being extended
        to foreign invested enterprises and &#8220;new or high-technology enterprises&#8221; located
        in a high-tech zone, we would have to pay more taxes, which could have a
        material and adverse effect on our financial condition and results of
        operations. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        PRC
        laws and regulations, a foreign invested enterprise may enjoy preferential
        tax
        benefits if it is registered in a high-tech zone and also qualifies as &#8220;new or
        high-technology enterprise&#8221;. As a foreign invested enterprise as well as a
        certified &#8220;new or high-technology enterprise&#8221; located in a high-tech zone in
        Beijing, Skystar is entitled to a three-year exemption from enterprise income
        tax beginning from its first year of operation, a 7.5% enterprise income
        tax
        rate for another three years followed by a 15% tax rate so long as it continues
        to qualify as a &#8220;new or high-technology enterprise.&#8221; Skystar is currently
        subject to a 7.5% enterprise income tax rate and will become subject to a
        15%
        rate beginning in 2006 for so long as its status as a &#8220;new or high-technology
        enterprise&#8221; remains unchanged. Furthermore, Skystar may apply for a refund of
        the 5% business tax levied on its total revenues derived from its technology
        consulting services. If the PRC law were to phase out preferential tax benefits
        currently granted to &#8220;new or high-technology enterprises&#8221; and technology
        consulting services, we would be subject to the standard statutory tax rate,
        which currently is 33%, and we would be unable to obtain business tax refunds
        for our provision of technology consulting services. Loss of these preferential
        tax treatments could have a material and adverse effect on our financial
        condition and results of operations. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Xian
        Tianxing are subject to restrictions on making payments to us.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are a
        holding company incorporated in the Cayman Islands and do not have any assets
        or
        conduct any business operations other than our investments in our affiliated
        entity in China, Xian Tianxing. As a result of our holding company structure,
        we
        rely entirely on payments from Xian Tianxing under our contractual arrangements.
        The PRC government also imposes controls on the conversion of RMB into foreign
        currencies and the remittance of currencies out of China. We may experience
        difficulties in completing the administrative procedures necessary to obtain
        and
        remit foreign currency. See &#8220;&#8212;Government control of currency conversion may
        affect the value of your investment.&#8221; Furthermore, if our affiliated entity in
        China incurs debt on their own in the future, the instruments governing the
        debt
        may restrict their ability to make payments. If we are unable to receive
        all of
        the revenues from our operations through these contractual or dividend
        arrangements, we may be unable to pay dividends on our ordinary shares.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Uncertainties
        with respect to the PRC legal system could adversely affect us.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conduct our business primarily through our affiliated Chinese entity, Xian
        Tianxing. Our operations in China are governed by PRC laws and regulations.
        We
        are generally subject to laws and regulations applicable to foreign investments
        in China and, in particular, laws applicable to wholly foreign-owned
        enterprises. The PRC legal system is based on written statutes. Prior court
        decisions may be cited for reference but have limited precedential value.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
        1979, PRC legislation and regulations have significantly enhanced the
        protections afforded to various forms of foreign investments in China. However,
        China has not developed a fully integrated legal system and recently enacted
        laws and regulations may not sufficiently cover all aspects of economic
        activities in China. In particular, because these laws and regulations are
        relatively new, and because of the limited volume of published decisions
        and
        their nonbinding nature, the interpretation and enforcement of these laws
        and
        regulations involve uncertainties. In addition, the PRC legal system is based
        in
        part on government policies and internal rules (some of which are not published
        on a timely basis or at all) that may have a retroactive effect. As a result,
        we
        may not be aware of our violation of these policies and rules until some
        time
        after the violation. In addition, any litigation in China may be protracted
        and
        result in substantial costs and diversion of resources and management attention.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>You
        may experience difficulties in effecting service of legal process, enforcing
        foreign judgments or bringing original actions in China based on United States
        or other foreign laws against us, our management or the experts named in
        the
        prospectus. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conduct substantially all of our operations in China and substantially all
        of
        our assets are located in China. In addition, all of our senior executive
        officers reside within China. As a result, it may not be possible to effect
        service of process within the United States or elsewhere outside China upon
        our
        senior executive officers, including with respect to matters arising under
        U.S.
        federal securities laws or applicable state securities laws. Moreover, our
        PRC
        counsel has advised us that the PRC does not have treaties with the United
        States or many other countries providing for the reciprocal recognition and
        enforcement of judgment of courts.&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Governmental
        control of currency conversion may affect the value of your investment.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        PRC
        government imposes controls on the convertibility of RMB into foreign currencies
        and, in certain cases, the remittance of currency out of China. We receive
        substantially all of our revenues in RMB. Under our current structure, our
        income is primarily derived from payments from Xian Tianxing. Shortages in
        the
        availability of foreign currency may restrict the ability of our PRC
        subsidiaries and our affiliated entity to remit sufficient foreign currency
        to
        pay dividends or other payments to us, or otherwise satisfy their foreign
        currency denominated obligations. Under existing PRC foreign exchange
        regulations, payments of current account items, including profit distributions,
        interest payments and expenditures from trade-related transactions, can be
        made
        in foreign currencies without prior approval from the PRC State Administration
        of Foreign Exchange by complying with certain procedural requirements. However,
        approval from appropriate government authorities is required where RMB is
        to be
        converted into foreign currency and remitted out of China to pay capital
        expenses such as the repayment of bank loans denominated in foreign currencies.
        The PRC government may also at its discretion restrict access in the future
        to
        foreign currencies for current account transactions. If the foreign exchange
        control system prevents us from obtaining sufficient foreign currency to
        satisfy
        our currency demands, we may not be able to pay dividends in foreign currencies
        to our shareholders. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Fluctuation
        in the value of RMB may have a material adverse effect on your investment.
        </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        value
        of RMB against the U.S. dollar and other currencies may fluctuate and is
        affected by, among other things, changes in political and economic conditions.
        Our revenues and costs are mostly denominated in RMB, while a significant
        portion of our financial assets are denominated in U.S. dollars. We rely
        entirely on fees paid to us by our affiliated entity in China. Any significant
        fluctuation in value of RMB may materially and adversely affect our cash
        flows,
        revenues, earnings and financial position, and the value of, and any dividends
        payable on, our stock in U.S. dollars. For example, an appreciation of RMB
        against the U.S. dollar would make any new RMB denominated investments or
        expenditures more costly to us, to the extent that we need to convert U.S.
        dollars into RMB for such purposes. An appreciation of RMB against the U.S.
        dollar would also result in foreign currency translation losses for financial
        reporting purposes when we translate our U.S. dollar denominated financial
        assets into RMB, as RMB is our reporting currency. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        face risks related to health epidemics and other outbreaks.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        business could be adversely affected by the effects of SARS or another epidemic
        or outbreak. China reported a number of cases of SARS in April 2004. Any
        prolonged recurrence of SARS or other adverse public health developments
        in
        China may have a material adverse effect on our business operations. For
        instance, health or other government regulations adopted in response may
        require
        temporary closure of our production facilities or of our offices. Such closures
        would severely disrupt our business operations and adversely affect our results
        of operations. We have not adopted any written preventive measures or
        contingency plans to combat any future outbreak of SARS or any other epidemic.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Risks
        Related to an Investment in Our Securities</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>To
        Date, We Have Not Paid Any Cash Dividends and No Cash Dividends Will be Paid
        in
        the Foreseeable Future. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        anticipate paying cash dividends on our common stock in the foreseeable future
        and we may not have sufficient funds legally available to pay dividends.
        Even if
        the funds are legally available for distribution, we may nevertheless decide
        not
        to pay any dividends. We intend to retain all earnings for the company's
        operations. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        Application of the "Penny Stock" Rules Could Adversely Affect the Market
        Price
        of Our Common Stock and Increase Your Transaction Costs to Sell Those Shares.
        </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        long
        as the trading price of our common shares is below $5 per share, the open-market
        trading of our common shares will be subject to the "penny stock" rules.
        The
        "penny stock" rules impose additional sales practice requirements on
        broker-dealers who sell securities to persons other than established customers
        and accredited investors (generally those with assets in excess of $1,000,000
        or
        annual income exceeding $200,000 or $300,000 together with their spouse).
        For
        transactions covered by these rules, the broker-dealer must make a special
        suitability determination for the purchase of securities and have received
        the
        purchaser's written consent to the transaction before the purchase.
        Additionally, for any transaction involving a penny stock, unless exempt,
        the
        broker-dealer must deliver, before the transaction, a disclosure schedule
        prescribed by the Securities and Exchange Commission relating to the penny
        stock
        market. The broker-dealer also must disclose the commissions payable to both
        the
        broker-dealer and the registered representative and current quotations for
        the
        securities. Finally, monthly statements must be sent disclosing recent price
        information on the limited market in penny stocks. These additional burdens
        imposed on broker-dealers may restrict the ability or decrease the willingness
        of broker-dealers to sell our common shares, and may result in decreased
        liquidity for our common shares and increased transaction costs for sales
        and
        purchases of our common shares as compared to other securities. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Common Shares are Thinly Traded and, You May be Unable to Sell at or Near
        Ask
        Prices or at All if You Need to Sell Your Shares to Raise Money or Otherwise
        Desire to Liquidate Your Shares.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company cannot predict the extent to which an active public market for its
        common stock will develop or be sustained. However, the Company does not
        rule
        out the possibility of applying for listing on the Nasdaq National Market
        or
        other exchanges.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        common shares have historically been sporadically or "thinly-traded" on the
        &#8220;Over-the-Counter Bulletin Board&#8221;, meaning that the number of persons interested
        in purchasing our common shares at or near bid prices at any given time may
        be
        relatively small or non-existent. This situation is attributable to a number
        of
        factors, including the fact that we are a small company which is relatively
        unknown to stock analysts, stock brokers, institutional investors and others
        in
        the investment community that generate or influence sales volume, and that
        even
        if we came to the attention of such persons, they tend to be risk-averse
        and
        would be reluctant to follow an unproven company such as ours or purchase
        or
        recommend the purchase of our shares until such time as we became more seasoned
        and viable. As a consequence, there may be periods of several days or more
        when
        trading activity in our shares is minimal or non-existent, as compared to
        a
        seasoned issuer which has a large and steady volume of trading activity that
        will generally support continuous sales without an adverse effect on share
        price. We cannot give you any assurance that a broader or more active public
        trading market for our common stock will develop or be sustained, or that
        current trading levels will be sustained. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        market price for our common stock is particularly volatile given our status
        as a
        relatively small company with a small and thinly traded &#8220;float&#8221; and lack of
        current revenues that could lead to wide fluctuations in our share price.
        The
        price at which you purchase our common stock may not be indicative of the
        price
        that will prevail in the trading market. You may be unable to sell your common
        stock at or above your purchase price if at all, which may result in substantial
        losses to you. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        market for our common shares is characterized by significant price volatility
        when compared to seasoned issuers, and we expect that our share price will
        continue to be more volatile than a seasoned issuer for the indefinite future.
        The volatility in our share price is attributable to a number of factors.
        First,
        as noted above, our common shares are sporadically and/or thinly traded.
        As a
        consequence of this lack of liquidity, the trading of relatively small
        quantities of shares by our shareholders may disproportionately influence
        the
        price of those shares in either direction. The price for our shares could,
        for
        example, decline precipitously in the event that a large number of our common
        shares are sold on the market without commensurate demand, as compared to
        a
        seasoned issuer which could better absorb those sales without adverse impact
        on
        its share price. Secondly, we are a speculative or "risky" investment due
        to our
        lack of revenues or profits to date and uncertainty of future market acceptance
        for our current and potential products. As a consequence of this enhanced
        risk,
        more risk-adverse investors may, under the fear of losing all or most of
        their
        investment in the event of negative news or lack of progress, be more inclined
        to sell their shares on the market more quickly and at greater discounts
        than
        would be the case with the stock of a seasoned issuer. The following factors
        may
        add to the volatility in the price of our common shares: actual or anticipated
        variations in our quarterly or annual operating results; adverse outcomes;
        the
        termination of our contractual agreements with Xian Tianxing; and additions
        or
        departures of our key personnel, as well as other items discussed under this
        "Risk Factors" section, as well as elsewhere in this Current Report. Many
        of
        these factors are beyond our control and may decrease the market price of
        our
        common shares, regardless of our operating performance. We cannot make any
        predictions or projections as to what the prevailing market price for our
        common
        shares will be at any time, including as to whether our common shares will
        sustain their current market prices, or as to what effect that the sale of
        shares or the availability of common shares for sale at any time will have
        on
        the prevailing market price. However, the Company does not rule out the
        possibility of applying for listing on the Nasdaq National Market or other
        exchanges.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders
        should be aware that, according to SEC Release No. 34-29093, the market for
        penny stocks has suffered in recent years from patterns of fraud and abuse.
        Such
        patterns include (1) control of the market for the security by one or a few
        broker-dealers that are often related to the promoter or issuer; (2)
        manipulation of prices through prearranged matching of purchases and sales
        and
        false and misleading press releases; (3) boiler room practices involving
        high-pressure sales tactics and unrealistic price projections by inexperienced
        sales persons; (4) excessive and undisclosed bid-ask differential and markups
        by
        selling broker-dealers; and (5) the wholesale dumping of the same securities
        by
        promoters and broker-dealers after prices have been manipulated to a desired
        level, along with the resulting inevitable collapse of those prices and with
        consequent investor losses. Our management is aware of the abuses that have
        occurred historically in the penny stock market. Although we do not expect
        to be
        in a position to dictate the behavior of the market or of broker-dealers
        who
        participate in the market, management will strive within the confines of
        practical limitations to prevent the described patterns from being established
        with respect to our securities. The occurrence of these patterns or practices
        could increase the volatility of our share price. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Volatility
        in Our Common Share Price May Subject Us to Securities Litigation.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        market for our common stock is characterized by significant price volatility
        when compared to seasoned issuers, and we expect that our share price will
        continue to be more volatile than a seasoned issuer for the indefinite future.
        In the past, plaintiffs have often initiated securities class action litigation
        against a company following periods of volatility in the market price of
        its
        securities. We may, in the future, be the target of similar litigation.
        Securities litigation could result in substantial costs and liabilities and
        could divert management's attention and resources. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        corporate actions are substantially controlled by our principal shareholders
        and
        affiliated entities. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        principal shareholders and their affiliated entities will own approximately
        89.5% of our outstanding ordinary shares, representing approximately 89.5%
        of
        our voting power. These shareholders, acting individually or as a group,
        could
        exert substantial influence over matters such as electing directors and
        approving mergers or other business combination transactions. In addition,
        because of the percentage of ownership and voting concentration in these
        principal shareholders and their affiliated entities, elections of our board
        of
        directors will generally be within the control of these shareholders and
        their
        affiliated entities. While all of our shareholders are entitled to vote on
        matters submitted to our shareholders for approval, the concentration of
        shares
        and voting control presently lies with these principal shareholders and their
        affiliated entities. As such, it would be difficult for shareholders to propose
        and have approved proposals not supported by management. There can be no
        assurances that matters voted upon by our officers and directors in their
        capacity as shareholders will be viewed favorably by all shareholders of
        the
        company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        Elimination of Monetary Liability Against our Directors, Officers and Employees
        under Nevada law and the Existence of Indemnification Rights to our Directors,
        Officers and Employees may Result in Substantial Expenditures by our Company
        and
        may Discourage Lawsuits Against our Directors, Officers and Employees.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        articles of incorporation do not contain any specific provisions that eliminate
        the liability of our directors for monetary damages to our company and
        shareholders, however we are prepared to give such indemnification to our
        directors and officers to the extent provided by Nevada law. We may also
        have
        contractual indemnification obligations under our employment agreements with
        our
        officers. The foregoing indemnification obligations could result in our company
        incurring substantial expenditures to cover the cost of settlement or damage
        awards against directors and officers, which we may be unable to recoup.
        These
        provisions and resultant costs may also discourage our company from bringing
        a
        lawsuit against directors and officers for breaches of their fiduciary duties,
        and may similarly discourage the filing of derivative litigation by our
        shareholders against our directors and officers even though such actions,
        if
        successful, might otherwise benefit our company and shareholders. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Legislative
        Actions, Higher Insurance Costs and Potential New Accounting Pronouncements
        may
        Impact our Future Financial Position and Results of
        Operations.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        have been regulatory changes, including the Sarbanes-Oxley Act of 2002, and
        there may potentially be new accounting pronouncements or additional regulatory
        rulings that will have an impact on our future financial position and results
        of
        operations. The Sarbanes-Oxley Act of 2002 and other rule changes as well
        as
        proposed legislative initiatives following the Enron bankruptcy are likely
        to
        increase general and administrative costs and expenses. In addition, insurers
        are likely to increase premiums as a result of high claims rates over the
        past
        several years, which we expect will increase our premiums for insurance
        policies. Further, there could be changes in certain accounting rules. These
        and
        other potential changes could materially increase the expenses we report
        under
        generally accepted accounting principles, and adversely affect our operating
        results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Past
        Activities Of The Company And Its Affiliates May Lead To Future Liability
        For
        The Company.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        our entry into the contractual arrangements with Xian Tianxing on October
        28,
        2005, the Company engaged in businesses unrelated to its current operations.
        Although the CGPN Shareholders are providing certain indemnifications against
        any loss, liability, claim, damage or expense arising out of or based on
        any
        breach of or inaccuracy in any of their representations and warranties made
        regarding such acquisition, any liabilities relating to such prior business
        against which Skystar is not completely indemnified may have a material adverse
        effect on the Company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        market price for our stock may be volatile. </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        market price for our stock may be volatile and subject to wide fluctuations
        in
        response to factors including the following: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">actual
        or
        anticipated fluctuations in our quarterly operating results;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
        in financial estimates by securities research analysts;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">conditions
        in bio-pharmaceutical and agricultural markets;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
        in the economic performance or market valuations of other bio-pharmaceutical
        companies;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">announcements
        by us or our competitors of new products, acquisitions, strategic partnerships,
        joint ventures or capital commitments;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">addition
        or departure of key personnel;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">fluctuations
        of exchange rates between RMB and the U.S. dollar;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">intellectual
        property litigation;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8226;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">general
        economic or political conditions in China.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, the securities market has from time to time experienced significant
        price and volume fluctuations that are not related to the operating performance
        of particular companies. These market fluctuations may also materially and
        adversely affect the market price of our stock. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        may need additional capital, and the sale of additional shares or other equity
        securities could result in additional dilution to our shareholders.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that our current cash and cash equivalents, anticipated cash flow
        from
        operations and the net proceeds from this offering will be sufficient to
        meet
        our anticipated cash needs for the near future. We may, however, require
        additional cash resources due to changed business conditions or other future
        developments, including any investments or acquisitions we may decide to
        pursue.
        If our resources are insufficient to satisfy our cash requirements, we may
        seek
        to sell additional equity or debt securities or obtain a credit facility.
        The
        sale of additional equity securities could result in additional dilution
        to our
        shareholders. The incurrence of indebtedness would result in increased debt
        service obligations and could result in operating and financing covenants
        that
        would restrict our operations. We cannot assure you that financing will be
        available in amounts or on terms acceptable to us, if at all. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">

      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
        we fail to maintain an effective system of internal controls, we may not
        be able
        to accurately report our financial results or prevent fraud.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        will
        be subject to reporting obligations under the U.S. securities laws. The
        Securities and Exchange Commission, or the SEC, as required by Section 404
        of
        the Sarbanes-Oxley Act of 2002, adopted rules requiring every public company
        to
        include a management report on such company&#8217;s internal controls over financial
        reporting in its annual report, which contains management&#8217;s assessment of the
        effectiveness of the company&#8217;s internal controls over financial reporting. In
        addition, an independent registered public accounting firm must attest to
        and
        report on management&#8217;s assessment of the effectiveness of the company&#8217;s internal
        controls over financial reporting. Our management may conclude that our internal
        controls over our financial reporting are not effective. Moreover, even if
        our
        management concludes that our internal controls over financial reporting
        are
        effective, our independent registered public accounting firm may still decline
        to attest to our management&#8217;s assessment or may issue a report that is qualified
        if it is not satisfied with our controls or the level at which our controls
        are
        documented, designed, operated or reviewed, or if it interprets the relevant
        requirements differently from us. Our reporting obligations as a public company
        will place a significant strain on our management, operational and financial
        resources and systems for the foreseeable future. Effective internal controls,
        particularly those related to revenue recognition, are necessary for us to
        produce reliable financial reports and are important to help prevent fraud.
        As a
        result, our failure to achieve and maintain effective internal controls over
        financial reporting could result in the loss of investor confidence in the
        reliability of our financial statements, which in turn could harm our business
        and negatively impact the trading price of our stock. Furthermore, we anticipate
        that we will incur considerable costs and use significant management time
        and
        other resources in an effort to comply with Section 404 and other requirements
        of the Sarbanes-Oxley Act. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        will incur increased costs as a result of being a public company.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        public company, we will incur significant legal, accounting and other expenses
        that we did not incur as a private company. In addition, the Sarbanes-Oxley
        Act,
        as well as new rules subsequently implemented by SEC have required changes
        in
        corporate governance practices of public companies. We expect these new rules
        and regulations to increase our legal, accounting and financial compliance
        costs
        and to make certain corporate activities more time-consuming and costly.
        In
        addition, we will incur additional costs associated with our public company
        reporting requirements. We are currently evaluating and monitoring developments
        with respect to these new rules, and we cannot predict or estimate the amount
        of
        additional costs we may incur or the timing of such costs. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>DESCRIPTION
        OF PROPERTY</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s headquarters is currently located in approximately 345 square meters
        of office space at Rm. 10601, Jiezuo Plaza, No.4, Fenghui Road South, Gaoxin
        District, Xian Province, PRC. This property belongs to the Xian Tianxing
        and is
        where our Xian Tianxing&#8217;s multiple business divisions are located.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Existing
        Production Facilities</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Currently,
        the Xian Tianxing has four plants that are located at San Qiao, Xi&#8217;an city,
        Shanxi Province, PRC. The Company owns these 4 plants and has obtained a
        prepaid
        land use right to acquire a long-term interest to utilize the land underlying
        the property facility. In addition, Xian Tianxing entered into a tenancy
        agreement for the lease of factory premises for a period of ten years from
        October 1, 2004 to September 30, 2014. The annual rent for the factory premises
        is $10,361 and is also subject to a 10% increase every four subsequent years.
        The Company&#8217;s production facilities are described as follows: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">1.</font></div>
              </td>
              <td>
                <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"><u>Bio-pharmaceutical
                  plant</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  Constructed according to national Good Manufacturing Practice (&#8220;GMP&#8221;)
                  standards, this plant occupies an of area of approximately 2,000
                  square
                  meters and has an annual production capacity of vaccines for approximately
                  2 billion livestock and poultry.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">2.</font></div>
              </td>
              <td>
                <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"><u>Veterinary
                  medicine plant</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  Also constructed according to national GMP standards, this plant
                  occupies
                  an area of approximately 1,000 square meters and has a production
                  capacity
                  of approximately 2 billion bottles of liquid preparations and 300
                  tons of
                  powder preparations.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">3.</font></div>
              </td>
              <td>
                <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"><u>Microorganism
                  plant</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  Occupying an area of approximately 380 square meters, this production
                  plant is run in cooperation with experts from Japan Kato Microbiology
                  Institute, Microbiology Institute of Shanxi Province and Northwest
                  Agro-Forestry Sci-tech University.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">4.</font></div>
              </td>
              <td>
                <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"><u>Feed
                  additive plant</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  This production facility occupies an area of approximately 380
                  square
                  meters.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that the general physical condition of the plants and production
        facilities of the company can completely satisfy our current production needs
        of
        the company in terms of quantity and production quality</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Expansion
        of Production Facilities</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        2003,
        the Xian Tianxing received approval from the State Council of China to expand
        its production facilities and construct a new Good Manufacturing Practice
        (&#8220;GMP&#8221;) standard plant. The entire expansion project will cost approximately RMB
        69,410,000 (US$8,500,000). The Company&#8217;s total investment in this project
        includes approximately $7,000,000 for the facilities and $1,500,000 for working
        capital. Xian Tianxing has been accredited as a high-tech enterprise, and
        the
        Company&#8217;s expansion project has gained full support of both Shanxi provincial
        government and Xian municipal government. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        construction work commenced in late 2004 and will be completed by the third
        quarter in 2005. The new plant will occupy 47 hectares and have a total area
        of
        about 14,100 sq. meters, comprising:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">1.</font></div>
              </td>
              <td>
                <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">a
                  factory that will produce veterinary medicines will occupy an area
                  of
                  approximately 4,200 square meters;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">2.</font></div>
              </td>
              <td>
                <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">a
                  microorganism factory for probiotic production will occupy an area
                  of
                  approximately 1,000 square meters;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">3.</font></div>
              </td>
              <td>
                <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">a
                  building for quality control, research and development, and administration
                  will occupy an area of approximately 3,400 square
                  meters;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">4.</font></div>
              </td>
              <td>
                <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">a
                  GMP standard bio-pharmaceutical factory with a total area of about
                  4,500
                  square meters and three production lines for active bacteria, inactivated
                  vaccines, and coccidiosis vaccines;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">5.</font></div>
              </td>
              <td>
                <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">an
                  animal laboratory complying ABSL-2 requirements will occupy an
                  area of
                  approximately about 1,000 sq.
                  meters.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Xian
        Tianxing&#8217;s administration building, as well as the first phase of the
        microorganism and veterinary medicine factories have already been completed.
        Upon completion, the microorganism and veterinary medicine factories will
        be
        submitted to PRC Ministry of Agriculture&#8217;s Veterinary Drugs GMP Inspection
        Committee for inspection and approval. The three remaining bio-pharmaceutical
        production lines are expected to be completed in March 2006 and will also
        be
        submitted to Ministry of Agriculture for GMP inspection upon
        completion.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>SECURITY
        OWNERSHIP OF CERTAIN</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>BENEFICIAL
        OWNERS AND MANAGEMENT</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
        OWNERSHIP OF BENEFICIAL OWNERSHIP AND MANAGEMENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PRIOR
        TO THE SHARE EXCHANGE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth, as of November 7, 2005, certain information
        regarding the ownership of the Company&#8217;s capital stock by the following persons
        on such date: each of the directors and executive officers, each person who
        is
        known to be a beneficial owner of more than 5% of any class of our voting
        stock,
        and all of our officers and directors as a group. Unless otherwise indicated
        below, to our knowledge, all persons listed below had sole voting and investing
        power with respect to their shares of capital stock, except to the extent
        authority was shared by spouses under applicable community property
        laws.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
        ownership is determined in accordance with the rules of the Securities and
        Exchange Commission and generally includes voting or investment power with
        respect to securities. Shares of our common stock subject to options, warrants
        or convertible securities exercisable or convertible within 60 days of November
        7, 2005 were deemed outstanding for computing the percentage of the person
        or
        entity holding such options, warrants or convertible securities but are not
        deemed outstanding for computing the percentage of any other person, and
        was
        based on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">500,000,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        shares
        of the Common Stock issued and outstanding on a fully diluted basis, as of
        November 7, 2005. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table border="1" bordercolor="#000000" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="16%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title
                  of </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class</font></div>
              </td>
              <td valign="bottom" width="33%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name
                  and Address</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
                  Owners (1)</font></div>
              </td>
              <td valign="bottom" width="16%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                  and Nature</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  Beneficial Ownership</font></div>
              </td>
              <td valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percent</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
              </td>
              <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
                  Scott Cramer, </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1012
                  Lewis Dr.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Winter
                  Park, FL 32789</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">231,144,289</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
              </td>
              <td valign="top" width="12%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
              </td>
              <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                  Lowe</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1012
                  Lewis Dr.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Winter
                  Park, FL 32789</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">74,798,819
                  </font></div>
              </td>
              <td valign="top" width="12%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David
                  Wassung</font></div>
              </td>
              <td valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">51,611,364
                  </font></div>
              </td>
              <td valign="top" width="12%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="16%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  officers and directors as a group (3 persons)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="16%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">357,554,472
                  </font></div>
              </td>
              <td valign="top" width="12%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">72%</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="left" noshade size="1" width="10%">
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font></div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
                  otherwise noted, the address for each of the named beneficial owners
                  and
                  directors and officers is Post Office Box 948264, Maitland, FL
                  32794-8264.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
                  Scott Cramer is Chairman, Chief Executive Officer and Chief Financial
                  Officer of The Cyber Group. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                  Lowe is President and a Director of The Cyber
                  Group.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David
                  Wassung is a Director of The Cyber
                  Group.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
        OWNERSHIP OF BENEFICIAL OWNERSHIP AND MANAGEMENT</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AFTER
        THE SHARE EXCHANGE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth information as of November 7, 2005 with respect
        to
        the beneficial ownership of the outstanding shares of Company&#8217;s capital stock
        immediately following the Share Exchange by (i) each person known by Registrant
        who will beneficially own five percent (5%) or more of the outstanding shares;
        (ii) the officers and directors who will take office as of the effective
        date of
        the Share Exchange; and (iii) all the aforementioned officers and directors
        as a
        group. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table border="1" bordercolor="#000000" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title
                  of </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class</font></div>
              </td>
              <td valign="bottom" width="28%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name
                  and Address</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
                  Owners (1)</font></div>
              </td>
              <td valign="bottom" width="18%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                  and Nature</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  Beneficial Ownership</font></div>
              </td>
              <td valign="bottom" width="19%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percent</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                  (2)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                  &#8220;B&#8221; Convertible Preferred Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upform
                  Group Limited (3)</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,627,192</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47.14%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                  &#8220;B&#8221; Convertible Preferred Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Clever
                  Mind International Limited (4)</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,009,679</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41.69%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                  &#8220;B&#8221; Convertible Preferred Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weibing
                  Lu, Director and Chief Executive Officer (3)</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,627,192
                  </font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47.14%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                  &#8220;B&#8221; Convertible Preferred Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Wei
                  Wen, Director (4)</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,009,679</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41.69%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                  &#8220;B&#8221; Convertible Preferred Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Xinya
                  Zhang, Director (3)&#160;</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,627,192</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47.14%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Erna
                  Gao, Director and Chief Financial Officer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
                  Scott Cramer, Director (5)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">231,144,289
                  (5) </font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
              </td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                  Lowe, Director (6)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">74,798,819
                  (6)</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  officers and directors as a group (6persons) - Ownership of Series
                  B
                  Convertible Preferred Stock</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,636,871</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88.83%</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="15%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  officers and directors as a group (6 persons) - Ownership of Common
                  Stock</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">305,943,108</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61%</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="left" noshade size="1" width="10%">
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="LINE-HEIGHT: 1">
                <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
                <td align="left">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
                    otherwise noted, the address for each of the named beneficial
                    owners is:
                    Rm. 10601, Jiezuo Plaza, No.4, Fenghui Road South, Gaoxin District,
                    Xian
                    Province, PRC.</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  number of outstanding shares of common stock of Skystar is based
                  upon
                  500,000,000 shares. The number of outstanding shares of Series
                  B
                  Convertible Preferred Stock is based upon 48,000,000
                  shares.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upform
                  Group Limited&#8217;s address is Sea Meadow House, Blackburne Highway, P.O. Box
                  116, Road Town, Tortola, British Virgin Islands. Weibing Lu is
                  and Xinya
                  Zhang are directors of the Upform Group. Weibing Lu is the majority
                  shareholder and the Chairman of the Board of Directors of Upform
                  Group
                  Limited, which in turn is the record owner of 22,627,192 shares
                  of the
                  Company&#8217;s Series &#8220;B&#8221; Convertible Preferred Stock (&#8220;Series B Preferred
                  Stock&#8221;). For description of the Series B Preferred Stock&#8217;s conversion and
                  voting rights, see section titled &#8220;Description of Securities&#8221; below.
                  Weibing Lu indirectly owns 22,627,192 through his majority ownership
                  of
                  Upform Group. Because Xinya Zhang is a director of Upform Group,
                  she might
                  be deemed to have or share investment control over Upform Group's
                  portfolio. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Clever
                  Mind International Limited&#8217;s (&#8220;Clever Mind&#8221;) address is: Sea Meadow House,
                  Blackburne Highway, P.O. Box 116, Road Town, Tortola, British Virgin
                  Islands. Wei Wen is Chairman of the Board of Directors of Clever
                  Mind and
                  owns approximately . Mr. Wen also owns approximately 2.3% of the
                  issued
                  and outstanding shares of Clever Mind. Clever Mind owns 20,009,679
                  shares
                  of the Company's Series B Convertible Preferred Stock (&#8220;Series B Preferred
                  Stock&#8221;) as a result of the Share Exchange Transaction. See Item 2.01,
                  "Description of Business.&#8221; Because Mr. Wen is a director of Clever Mind,
                  he might be deemed to have or share investment control over Clever
                  Mind's
                  portfolio.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
                  the Share Exchange, R. Scott Cramer remains as a Director of the
                  Company.
                  His address is: 1012 Lewis Dr., Winter Park, FL
                  32789.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 9pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
                  the Share Exchange, Steve Lowe also remains as a Director of the
                  Company.
                  His address is: 1012 Lewis Dr., Winter Park, FL
                  32789.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>DIRECTORS
        AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>APPOINTMENT
        OF NEW OFFICERS AND DIRECTORS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the Exchange Transaction, effective November 7, 2005, Mr.
        Cramer
        resigned as Chief Executive Officer and Chief Financial Officer of the Company,
        Mr. Lowe resigned as President of the Company, and Mr. Wassung resigned as
        a
        Director of the Company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 7, 2005, The Board of Directors, appointed Weibing Lu as Chief
        Executive Officer and a Director, and Erna Gao as Chief Financial Officer
        and a
        Director, and Wei Wen as Secretary and a Director. The Board of Directors
        also
        appointed Wei Wen and Xinya Zhang as new Directors on the Board.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following tables summarizes the Company's current executive officers and
        directors and the proposed executive officers and directors of the Company:
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table border="1" bordercolor="#000000" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="16%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="bottom" width="8%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Age</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="44%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weibing
                  Lu</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="44%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Executive Officer and Chairman of the Board</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Erna
                  Gao</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="44%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Financial Officer and Director</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Xinya
                  Zhang</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">56</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="44%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Wei
                  Wen </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="44%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secretary
                  and Director</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
                  Scott Cramer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="44%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="16%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                  Lowe</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="44%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Weibing
        Lu, Chief Executive Officer and Director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Weibing Lu, Chairman of the Board and Chief Executive Officer, is 42 years
        old.
        Mr. Lu received his bachelor&#8217;s degree in science from Wuhan University of
        Mapping Science and Technology (now known as Wuhan University) in 1985. In
        1986,
        he was a teacher of College of Xian Geology. Mr. Lu received his Master&#8217;s degree
        in Business Administration in 1999 from Xian University of. Mr. Lu has vast
        experience in the biotechnology field and in enterprise management. In 1992,
        he
        set up the Xian Xingji Electronic Engineering Company and served as its Chairman
        and President until 1997. In 2002, he was awarded as the title of &#8220;Outstanding
        Enterpriser of Xian Feed Industry&#8221; and appointed as a director of Xian Institute
        of Feed Industry. In July of 1997, he set up Xian Tianxing Science and
        Technology Development Co., Ltd. In December of 2003, Xian Tianxing Science
        and
        Technology Development Co., Ltd. was reorganized and became Xian Tianxing
        Bio-pharmaceutical Co., Ltd. Since December 2003, Mr. Lu has served as Chairman
        of the Board and President of Xian Tianxing Bio-Pharmaceutical Co.,
        Ltd.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Erna
        Gao, Chief Financial Officer and Director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
        Erna
        Gao, Chief Financial Officer, is 48 years old. Ms. Gao graduated from Xi'an
        TB
        University in Accountancy in 1986. From 1982 to 2001, she was an accountant,
        senior accountant and accountant manager at the Kunlun Electrical Engineering
        Company. From 2001 to 2004, she was chief accountant at Dongda Petroleum
        Company. Since March 2004, she has been the Chief Financial Officer of Xian
        Tianxing Bio-Pharmaceutical Co., Ltd. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Wei
        Wen, Director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Wei
        Wen, Director, is 39 years old. Mr. Wen graduated from Xian University of
        Science and Industry in 1986. From 1990 to 1994, Mr. Wen was the manager
        of
        Sales Department of Xian Zhongtian Science and Technology Development Co.,
        Ltd.
        Then, from 1994 to 1997, Mr. Wen served as Vice General Manager &amp; Manager of
        Sales Department of Xian Xingji Electronic Engineering Company. In 1997,
        Mr. Wen
        was appointed as the Vice General Manager of Xian Tianxing Science and
        Technology Development Co., Ltd. in 1997. After the reorganization of the
        company in December of 2003, Mr. Wen was appointed and continues to serve
        as
        Vice General Manager and the Secretary of the Board of Directors of Xian
        Tianxing Bio-Pharmaceutical Co., Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Xinya
        Zhang, Director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Xinya
        Zhang, Director, is 56 years old. Mr. Zhang graduated from Northwest
        Agricultural University in Shanxi, China. From 1990 to 1997, he was the Factory
        Director and General Engineer of Xian Hua&#8217;an Livestock Group Company Feed
        Factory. In July of 1997, he joined Xian Tianxing Science and Technology
        Development Co., Ltd. and was appointed as the company&#8217;s Vice General Manager.
        Since the company&#8217;s reorganization in December of 2003, Mr. Zhang has served as
        Vice General Manager of Xian Tianxing Bio-Pharmaceutical Co., Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>R.
        Scott Cramer, Director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        R.
        Scott Cramer, Director, is 42 years old. Mr. Cramer was previously the Chairman,
        Chief Executive Officer and Chief Financial Officer of The Cyber Group and
        remains on our Board of Directors. Mr. Cramer is currently the President
        of
        Cramer &amp; Associates, a firm specializing in retirement management, estate
        planning and investments. Mr. Cramer has held this position for many years
        and
        has built a solid standing in the investment field.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Steve
        Lowe, Director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Steve
        Lowe, Director, is 37 years old. He&#160;was employed by R R Donnelley,
        North
        America's largest printer, where he held positions from entry-level to
        manufacturing supervision during his eighteen-year employment. During the
        year
        of 2005 Mr. Lowe accepted a Manager's position with Cadmus Professional
        Communications. Cadmus provides global, end-to-end, innovative publisher
        and
        packaging solutions designed to meet the unique needs of professional
        publishers, not-for-profit societies and corporations. Mr. Lowe is actively
        pursuing a degree in business management through the Penn State
        University.&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>EXECUTIVE
        COMPENSATION</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
        of
        our executive officers received compensation in excess of $120,000 for the
        fiscal years ended December 31, 2004, 2003 or 2002, respectively. The following
        table summarizes all compensation received by our previous Chief Executive
        Officer, President and Chief Financial Officer in fiscal years 2004, 2003
        and
        2002.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SUMMARY
        COMPENSATION TABLE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="11" valign="bottom" width="27%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LONG
                  TERM COMPENSATION</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" colspan="9" valign="bottom" width="21%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ANNUAL
                  COMPENSATION</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="5" valign="bottom" width="13%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AWARDS</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="5" valign="bottom" width="13%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PAYOUTS</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name
                  and Principal Position</strong></font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff solid"><strong>&#160;</strong></td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid"><strong>&#160;</strong></td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Salary</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bonus</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Annual
                  Compensation</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restricted</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock
                  Awards</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
                  Underlying Options/SARs</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LTIP
                  Payout</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>All
                  Other Compen-sation</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Scott
                  Cramer,</font></div>
              </td>
              <td width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><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: #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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,000
                  </font></div>
              </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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Former
                  CEO </font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  CFO</font></div>
              </td>
              <td width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2002</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49,360</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                  Lowe</font></div>
              </td>
              <td width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><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: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Former
                  President (2)</font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2002</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Richard
                  Serrano (3)</font></div>
              </td>
              <td width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><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: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">45,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Former</font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President</font></div>
              </td>
              <td width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2002</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" 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="5%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; 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: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of December 31, 2004, Mr. Cramer was the Chief Executive Officer
                  of the
                  Company. Mr. Cramer has not received any payment for his position
                  and as a
                  result his salary has been accrued as an
                  expense.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of October 1, 2004, Mr. Lowe was President of the Company. Mr.
                  Lowe has
                  not received any payment for his position and as a result his salary
                  has
                  been accrued as an expense.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of October 1, 2004, Mr. Serrano resigned as the President of the
                  Company.
                  Mr. Serrano has not received any payment for his position and as
                  a result
                  of his resignation Mr. Serrano's total salary due has been negotiated
                  to
                  $45,000 and has been accrued as an
                  expense.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STOCK
        OPTION GRANTS AND EXERCISES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        fiscal year ended 2004, and for each prior fiscal year, the Company did not
        issue any options or Stock Appreciation Rights to any officers, employees
        or
        directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EMPLOYMENT
        AGREEMENTS, TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL ARRANGEMENTS
        FOR
        SKYSTAR</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        currently have no employment agreements with any of our executive officers,
        nor
        any compensatory plans or arrangements resulting from the resignation,
        retirement or any other termination of any of our executive officers, from
        a
        change-in-control, or from a change in any executive officer's responsibilities
        following a change-in-control. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMPENSATION
        OF DIRECTORS </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        the most recent fiscal year, our directors were to be compensated as follows:
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
        Scott
        Cramer was appointed to the Board on November 8, 2001 and accepted the Chief
        Executive Officer position on March 8, 2002. As a Chairman of the Board,
        Mr.
        Cramer was to be paid $60,000 per year in cash, stock, stock options or a
        combination, thereof. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
        Lowe was appointed to the Board on January 27, 2003. As a member of the Board
        of
        Directors, Mr. Lowe was to be paid $50,000 per year in cash, stock, stock
        options or a combination, thereof.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David
        Wassung was appointed to the Board on October 1, 2004 and resigned effective
        as
        of November 7, 2005. As a member of the Board of Directors, Mr. Wassung was
        paid
        $50,000 per year in cash, stock, stock options or a combination,
        thereof.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>CERTAIN
        RELATIONSHIPS AND RELATED TRANSACTIONS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SKYSTAR&#8217;S
        CONTRACTUAL ARRANGEMENTS WITH XIAN TIANXING AND ITS SHAREHOLDERS
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PRC
        law
        currently limits foreign equity ownership of Chinese companies. To comply
        with
        these foreign ownership restrictions, we operate our business in China through
        a
        series of contractual arrangements with Xian Tianxing and its majority
        shareholders that were executed on October 28, 2005. For a description of
        these
        contractual arrangements, see &#8220;Contractual Arrangements with Xian Tianxing and
        Its Shareholders.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RELATED
        PARTY TRANSACTIONS OF XIAN TIANXING</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Set
        forth
        below are the related party transactions between Xian Tianxing&#8217;s shareholders,
        officers and/or directors, and Xian Tianxing, with whom Skystar has contractual
        arrangements which give Skystar the ability to substantially influence Xian
        Tianxing&#8217;s daily operations and financial affairs, appoint its senior executives
        and approve all matters requiring shareholder approval.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(a)
          </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Related
          party receivables and payables</em></strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amounts
        receivable from and payable to related parties are summarized as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                  30, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2003</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" 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="left" 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="57%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amounts
                  due to Xian Tianxing from shareholders:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                  Wen Wei (also a director of Xian Tianxing and is also a director
                  of
                  Skystar)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,182</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,995</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,814</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                  Lu Weibing (also a director of the Xian Tianxing and the Chief
                  Executive
                  Officer and a director of Skystar)</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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">292,414</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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">597,656</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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">44,427</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
                  Wang Aixia </font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,904</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71,687</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,446</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                  Wang Chongxin</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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,651</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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,651</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; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,651</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Xian
                  Investment Company</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36,145</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36,144</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36,144</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" 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">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">&#160;</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">&#160;</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">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">415,296</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">745,133</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">115,482</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" 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">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">&#160;</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">&#160;</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">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                  due to a Xian Tianxing shareholder:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ccffcc solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
                  Wang Guanming</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ccffcc solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,096</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,096</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,096</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc solid">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                  due to a related company:</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">&#160;</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">&#160;</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">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 9.45pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Xian
                  Tian Xing Digital Sci-Tech Co., Ltd. - a company owned by Weibing
                  Lu (see
                  (c) below)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,084</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,084</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
        with shareholders and the related company represent advances to or loans
        from
        the respective shareholders or related company, except for Mr. Weibing Lu,
        the
        receivable due from whom also includes the amount arising from the consideration
        for the sale of a subsidiary to him (see (c) below). These balances are interest
        free and unsecured and have no fixed repayment date. It is expected that
        the
        balances will be received or repaid within one year.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(b)
        </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em><u>Investment
        agreement with a shareholder</u></em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2004, Xian Tianxing entered into an agreement with Xian Investment
        Company (&#8220;Xian Investment&#8221;), which is a shareholder of the Xian Tianxing and
        engages in investment activities, whereby the Xian Tianxing placed a fund
        of
        $240,964 with Xian Investment. Xian Investment has full discretion to invest
        the
        fund for a period of one year and guarantees that the fund will be repaid
        and
        that no loss will be incurred by the Xian Tianxing. Gain on investment of
        the
        fund will be shared between the Xian Tianxing and Xian Investment on the
        ratio
        of 60 to 40. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(c)
        </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Disposal
        of subsidiary to a director</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 20, 2004, the Xian Tianxing sold its 90% equity interest in Xian
        Tian
        Xing Digital Sci-Tech Co., Ltd., a subsidiary of the Xian Tianxing, to Mr.
        Weibing Lu, a director of the Xian Tianxing and Chief Executive Officer and
        Director of Skystar, for a cash consideration of $216,867 and recognized
        a gain
        of $6,045 thereon. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OTHER
        RELATED PARTY TRANSACTIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        the years ended December 31, 2004 and 2003, the Company had loans from officers,
        its former Chief Executive Officer, and other related individuals. As of
        December 31, 2004 and 2003, the total net loans due to these related parties
        recorded in due to officers on the balance sheet totaled $636,994 and $574,380,
        respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        December 31, 2004, the former President of the Company, Richard Serrano,
        resigned. As a result of his resignation, the loan amount due to him of
        approximately $220,000 was negotiated to $45,000 and $175,214 was recorded
        as
        other income from debt forgiveness.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        December 31, 2004 and 2003, the Company also had a loan payable to a related
        party totaling $52,210.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>DESCRIPTION
        OF SECURITIES</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GENERAL</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        Company&#8217;s Articles of Incorporation provide for authority to issue 500,000,000
        shares of Common Stock, and 50,000,000 shares of Preferred Stock, all with
        par
        value of $0.001 per Share. As of November 7, 2005, the capitalization of
        The
        Cyber Group consists of 500,000,000 outstanding shares of Common Stock and
        50,000,000 shares of Preferred Stock outstanding.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMON
        STOCK </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        holders of the Common Stock are entitled to receive dividends when and as
        declared by the Board of Directors, out of funds legally available therefore,
        subject to the rights of the holders of any shares of Preferred Stock that
        may
        or have been issued by the Company. The Company has not paid cash dividends
        in
        the past and does not expect to pay any within the foreseeable future since
        any
        earnings are expected to be reinvested in the Company. In the event of
        liquidation, dissolution or winding up of the Company, either voluntarily
        or
        involuntarily, each outstanding share of the Common Stock is entitled to
        share
        equally in the Company's assets, subject to any preferential liquidation
        rights
        of the holders of shares of Preferred Stock which may then be outstanding.
        Each
        outstanding share of the Common Stock is entitled to equal voting rights,
        consisting of one vote per share.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PREFERRED
        STOCK </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        currently authorized to issue 50,000,000 Shares of Preferred Stock. As of
        November 6, 2005, 2,000,000 shares of Preferred Stock had been issued. The
        Board
        of Directors is authorized, subject to any limitation prescribed by the laws
        of
        the State of Nevada, but without further action by the Company&#8217;s shareholders,
        to provide for the issuance of Preferred Stock in one or more series, to
        establish from time to time the number of shares of each such series and
        any
        qualifications, limitations or restrictions thereof, and to increase or decrease
        the number of shares of any such series without any further vote or action
        by
        shareholders. The Board of Directors may authorize and issue Preferred Stock
        with voting or conversion rights that could adversely affect the voting power
        or
        other rights of the holders of Common Stock. In addition, the issuance of
        Preferred Stock may have the effect of delaying, deferring or preventing
        a
        change in control of our Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        October 31, 2005, the Board authorized the approval and issuance of its Series
        &#8220;B&#8221; Convertible Preferred Stock (&#8220;Series B Preferred&#8221;). The Certificate of
        Designation of the Series B Preferred stock was filed on November 2, 2005.
        On
        November 7, 2005, the Company issued 48,000,000 shares of the Series B Preferred
        stock as part of the Exchange Transaction. Upon the effective date of the
        Company&#8217;s filing of an amendment to its Articles of Incorporation increasing the
        number of shares of Common Stock, the Company is authorized to issue sufficient
        common stock to permit full conversion of all Series B Preferred shares into
        shares of common stock (&#8220;Conversion Event&#8221;), each share of Series B Preferred
        outstanding shall automatically convert. The Total Aggregate Number of Series
        B
        Preferred outstanding shall be converted upon the Conversion Event into an
        amount of shares of the Company&#8217;s common stock equal to 89.5% of the total
        outstanding shares of the Company&#8217;s common stock at the time of conversion; each
        holder of the Series B Preferred shall receive their share of the Company&#8217;s
        common stock, as converted, pro-rata, in proportion to their ownership of
        shares
        of the Series B Preferred. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        voting rights for the Series B Preferred Stock are as follows: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">(a)
                  </font></div>
              </td>
              <td>
                <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">Except
                  as otherwise provided herein or by law, each holder of shares of
                  Series B
                  Preferred shall be entitled to the number of votes equal to the
                  number of
                  shares of Common Stock into which such shares of Series B Preferred
                  will
                  be converted (with any fractional share determined on an aggregate
                  conversion basis being rounded to the nearest whole share), at
                  each
                  meeting of the stockholders of the Company (and for purposes of
                  written
                  actions of stockholders in lieu of meetings) with respect to any
                  and all
                  matters presented to the stockholders of the Company for their
                  action or
                  consideration, and shall be entitled notwithstanding any provision
                  hereof,
                  to notice of any shareholders&#8217; meeting in accordance with the bylaws of
                  the Company, and except as provided in Section (b), shall be entitled
                  to
                  vote, together with holders of Common Stock as a single class,
                  with
                  respect to any matter upon which holders of Common Stock have the
                  right to
                  vote; </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">(b)
                  </font></div>
              </td>
              <td>
                <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">for
                  so long as any shares of Series B Preferred remains outstanding,
                  in
                  addition to any other vote or consent required herein or by law,
                  the vote
                  or written consent of the holders of at least a majority in interest
                  of
                  the outstanding Series B Preferred voting as a separate class shall
                  be
                  necessary for any amendment, alteration, or repeal of any provision
                  of the
                  Company&#8217;s Articles of Incorporation (including this Certificate of
                  Designation) or any other corporate action that requires shareholder
                  vote
                  or consent, including but not limited to corporate action that
                  alters or
                  changes the voting powers, preferences, or other special rights
                  or
                  privileges, or restrictions of the Series B Preferred so as to
                  affect them
                  adversely; and </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td style="WIDTH: 36pt">
                <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">(c)</font></div>
              </td>
              <td>
                <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">for
                  so long as any shares of Series B Preferred remains outstanding,
                  the
                  authorized number of the Board of Directors of the Company shall
                  consist
                  of six (6) members and the holders of Series B Preferred, voting
                  together
                  as a separate class, shall be entitled to elect four (4) members
                  of the
                  Board of Directors (the &#8220;Preferred Stock Director-Designee&#8221;), the holders
                  of Common Stock, voting together as a separate class, shall be
                  entitled to
                  elect two (2) members of the Board of Directors. In the event of
                  a vacancy
                  in the office of any director elected by the holders of any class,
                  a
                  successor shall be elected to hold office for the unexpired term
                  of such
                  director by the holders of shares of such separate class.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        complete terms of the conversion, voting rights and provisions regarding
        adjustments for dividends are contained in the Certificate of Designation,
        which
        is attached as an exhibit to this Current Report on Form 8-K and incorporated
        in
        this report in its entirety.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>MARKET
        PRICE OF AND DIVIDENDS ON COMMON EQUITY AND RELATED STOCKHOLDER
        MATTERS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        common stock is not listed on any stock exchange. The common stock is traded
        over-the-counter on the Over-the-Counter Electronic Bulletin Board under
        the
        symbol "CGPN.OB". There was no active trading market for our common stock
        before
        May 22, 2000. The following table sets forth the high and low bid information
        for the common stock for each quarter within the last two fiscal years, as
        reported by the Over-the-Counter Electronic Bulletin Board. The bid prices
        reflect inter-dealer quotations, do not include retail markups, markdowns
        or
        commissions and do not necessarily reflect actual transactions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="left">
        <table border="1" bordercolor="#000000" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LOW</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">HIGH</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0012</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0001</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0037</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0002</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0075</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0015</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0078</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0020</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0080</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0021</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0120</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0047</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0075</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0045</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="justify" valign="top" width="22%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
                  Quarter</font></div>
              </td>
              <td align="justify" valign="top" width="21%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0080</font></div>
              </td>
              <td align="justify" valign="top" width="24%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.0040</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        November 7, 2005, there were approximately 166 stockholders of record of
        our
        common stock and 11 stockholders of record of our Preferred Stock.
</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><a name="fis_dividend_policy"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DIVIDENDS
        </strong></font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        never paid any dividends on the Common Stock or the Preferred Stock. We
        currently anticipate that any future earnings will be retained for the
        development of our business and do not anticipate paying any dividends on
        the
        Common Stock or the Preferred Stock in the foreseeable future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TRANSFER
        AGENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        transfer agent is Pacific Stock Transfer Company and their address
        is</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        500 E.
        Warm Springs Road, Suite 240, Las Vegas, Nevada 89119.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        Their
        telephone number is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(702)
        361-3033</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EQUITY
        COMPENSATION PLAN INFORMATION </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        currently do not have any equity compensation plans.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>LEGAL
        PROCEEDINGS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
        time
        to time, we may be involved in litigation or other business disputes including
        patent infringement, defamation and unfair competition. The Company&#8217;s management
        is not aware of any material legal proceedings pending against the Company.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>CHANGES
        IN AND DISAGREEMENTS WITH ACCOUNTANTS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        have been no changes in or disagreements with the Company&#8217;s independent
        auditors. The Company engaged its independent auditors, Weinberg &amp; Co. on
        August 30, 2002. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>RECENT
        SALES OF UNREGISTERED SECURITIES</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the Share Exchange Agreement entered by and among shareholders of Skystar
        Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman Island Company
        (&#8220;Skystar&#8221;) Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu, holders of 100% of common stock of Skystar&#8217;s common stock
        (the &#8220;Skystar Shareholders&#8221;), on the one hand, and R. Scott Cramer, Steve Lowe,
        David Wassung (all hereinafter collectively referred to as the &#8220;CGPN
        Shareholders&#8221;), and the Company on the other hand, the Company issued shares of
        the Company&#8217;s Series B Preferred Stock (the &#8220;CGPN Shares&#8221;) to the Skystar
        Shareholders in exchange for 100% of the common stock of Skystar. The CGPN
        Shares issued are convertible, in the aggregate, into a number of shares
        of the
        Registrant&#8217;s common stock that would equal 89.5% of the outstanding shares of
        the Registrant&#8217;s common stock, if the shares were to be converted on the Closing
        Date. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        issuance of the CGPN Shares to the Skystar Shareholders pursuant to the Exchange
        Agreement was exempt from registration under the Securities Act pursuant
        to
        Section 4(2) and/or Regulation S thereof. We made this determination based
        on
        the representations of the Skystar Shareholders which included, in pertinent
        part, that such shareholders were either (a) "accredited investors" within
        the
        meaning of Rule 501 of Regulation D promulgated under the Securities Act,
        or (b)
        not a "U.S. person" as that term is defined in Rule 902(k) of Regulation
        S under
        the Act, and that such shareholders were acquiring our common stock, for
        investment purposes for their own respective accounts and not as nominees
        or
        agents, and not with a view to the resale or distribution thereof, and that
        each
        member understood that the shares of our common stock may not be sold or
        otherwise disposed of without registration under the Securities Act or an
        applicable exemption therefrom.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>INDEMNIFICATION
        OF DIRECTORS AND OFFICERS</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
        officer or Director of the Company shall be liable to the Company or its
        shareholders for the damages for the breach of a fiduciary duty as a Director
        or
        officer other than: (a) acts or omissions which involve intentional misconduct,
        fraud or a known violation of the law; or (b) the payment of dividends in
        violation of NRS 78.300.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company may purchase or maintain insurance or make other financial arrangements
        on behalf of any person who is or was a Director, officer, employee, or agent
        of
        the Company, or is or was serving at the request of the Company as a Director,
        officer, employee or agent of another corporation, partnership, joint venture,
        trust or other enterprise asserted against him in his capacity as Director,
        officer, employee or agent, or arising of his status as such, whether or
        not the
        Company has the authority to indemnify him against such liability or
        expense.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company shall indemnify all of its officers and Directors, past, present,
        and
        future against any and all expenses incurred by them, and each of them,
        including but not limited to, legal fees, judgments and penalties which may
        be
        incurred, rendered or levied in any legal action or administrative proceeding
        brought against them for any act or omission alleged to have been committed
        while acting within the scope of their duties as officers or Directors of
        the
        Company. The expenses of officers and Directors incurred and in advance of
        final
        disposition of the action or proceeding upon receipt of an undertaking by
        or on
        behalf of the officer or Director to repay the amount if it is ultimately
        determined by a court of competent jurisdiction that he/she is not entitled
        to
        be indemnified by the Company. Such right of indemnification shall not be
        exclusive of any other rights of indemnification, which the officers and
        Directors may have or hereafter acquire. Without limitation of the foregoing,
        the Board of Directors may adopt by-laws from time to time to provide the
        fullest indemnification permitted by the laws of the State of
        Nevada.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        3.02</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>UNREGISTERED
        SALES OF EQUITY SECURITIES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the Share Exchange Agreement entered by and among shareholders of Skystar
        Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman Island Company
        (&#8220;Skystar&#8221;) Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu, holders of 100% of common stock of Skystar&#8217;s common stock
        (the &#8220;Skystar Shareholders&#8221;), on the one hand, and R. Scott Cramer, Steve Lowe,
        David Wassung (all hereinafter collectively referred to as the &#8220;CGPN
        Shareholders&#8221;), and the Company on the other hand, the Company issued shares of
        the Company&#8217;s Series B Preferred Stock (the &#8220;CGPN Shares&#8221;) to the Skystar
        Shareholders in exchange for 100% of the common stock of Skystar. The CGPN
        Shares issued are convertible, in the aggregate, into a number of shares
        of the
        Registrant&#8217;s common stock that would equal 89.5% of the outstanding shares of
        the Registrant&#8217;s common stock, if the shares were to be converted on the Closing
        Date. The issuance of the CGPN Shares to the Skystar Shareholders pursuant
        to
        the Exchange Agreement was exempt from registration under the Securities
        Act
        pursuant to Section 4(2) and/or Regulation S thereof. We made this determination
        based on the representations of the Skystar Shareholders which included,
        in
        pertinent part, that such shareholders were either (a) "accredited investors"
        within the meaning of Rule 501 of Regulation D promulgated under the Securities
        Act, or (b) not a "U.S. person" as that term is defined in Rule 902(k) of
        Regulation S under the Act, and that such shareholders were acquiring our
        common
        stock, for investment purposes for their own respective accounts and not
        as
        nominees or agents, and not with a view to the resale or distribution thereof,
        and that each member understood that the shares of our common stock may not
        be
        sold or otherwise disposed of without registration under the Securities Act
        or
        an applicable exemption therefrom. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.01</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>CHANGES
        IN CONTROL OF REGISTRANT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 20, 2005, The Cyber Group Network Corporation (the &#8220;Registrant&#8221; or
&#8220;CGPN&#8221;) executed a Share Exchange Agreement (&#8220;Exchange Agreement&#8221;) by and among
        Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu (the &#8220;Skystar Shareholders), who own 100% of the common
        stock of Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman
        Island
        Company (&#8220;Skystar&#8221;), on the one hand, and R. Scott Cramer, Steve Lowe, David
        Wassung (all hereinafter collectively referred to as the &#8220;CGPN Shareholders&#8221;),
        and the Company on the other hand. The closing of this transaction (the
&#8220;Closing&#8221;) occurred on November 7, 2005 (the &#8220;Closing Date&#8221;). Under the terms of
        the Exchange Agreement, on the Closing Date, the Company issued shares of
        the
        Registrant&#8217;s Series B Convertible Preferred Stock (the &#8220;Series B Preferred&#8221;) to
        the Skystar Shareholders in exchange for 100% of the common stock of Skystar.
        The Series B Preferred shares issued are convertible, in the aggregate, into
        a
        number of shares of the Registrant&#8217;s common stock that would equal 89.5% of the
        outstanding shares of the Registrant&#8217;s common stock, if the shares were to be
        converted on the Closing Date. In addition, on the Closing Date, Skystar
        paid
        the Company $120,000, which will be used to pay Company&#8217;s liabilities.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of this transaction, the Skystar Shareholders acquired control of
        the
        Company because the CGPN Shares entitle the Skystar Shareholders to voting
        rights with respect to any and all matters presented to Stockholders of the
        Company for their action or consideration that is equal to the number of
        shares
        of the Company&#8217;s outstanding shares of common stock in which such shares are
        convertible. The Series B Preferred Shares acquired by the Skystar Shareholders
        are convertible to 89.5% of the outstanding shares of the Company&#8217;s common
        stock. Each share of the Company&#8217;s outstanding common stock entitles them to one
        vote. Thus the Skystar Shareholders hold 89.5% or the majority number of
        voting
        shares of the Company. As a result of this change in change in control, R.
        Scott
        Cramer agreed to resign as the Company&#8217;s Chief Executive Officer and Chief
        Financial Officer. In addition, Steve Lowe agreed to resign as the Company&#8217;s
        President and David Wassung agreed to resign as member of the Company&#8217;s Board of
        Directors. Further, on the Closing Date, R. Scott Cramer and Steve Lowe,
        the
        Company&#8217;s remaining members of the Board of Directors (the &#8220;Board&#8221;), agreed to
        appoint Weibing Lu (Chairman of Upform Group Limited) as the Company&#8217;s new Chief
        Executive Officer, and Erna Gao as the Company&#8217;s new Chief Financial Officer. In
        addition, the Board also appointed Weibing Lu, Wei Wen, Xinya Zhang and Erna
        Gao
        as Directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div align="left">
        <table bgcolor="#ffffff" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#ffffff">
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                5.02</strong>&#160;</font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><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>&#160;</div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(a)</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>Resignation
        Of Director</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        November 7, 2005, David Wassung (&#8220;Mr. Wassung&#8221;) resigned as a member of the
        board of directors of the Registrant. There were no disagreements between
        Mr.
        Wassung and any officer or director of the Registrant. The Registrant provided
        a
        copy of the disclosures it is making in response to this Item 5.02 to Mr.
        Wassung and informed him that he may furnish the Registrant as promptly as
        possible with a letter stating whether he agrees or disagrees with the
        disclosures made in response to this Item 5.02, and that if he disagrees,
        then
        the Registrant requests that he provide the respects in which he does not
        agree
        with the disclosures. The Registrant will file any letter received by the
        Registrant from Mr. Wassung as an exhibit to an amendment to this current
        report
        on Form 8-K within two business days after receipt by the
        Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(b)</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>Resignation
        Of Officers</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        November 7, 2005, Mr. R. Scott Cramer resigned as the Chief Executive Officer
        and Chief Financial Officer of the Registrant</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        November 7, 2005, Mr. Steve Lowe resigned as President of the
        Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(c)</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 Directors</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        November 7, 2005, Mr. Weibing Lu, Ms. Erna Gao, Mr. Wei Wen, and Mr. Xinya
        Zhang
        were appointed as a members of the Registrant&#8217;s Board of Directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Descriptions
        of the newly appointed directors and officers can be found in Item 2.01 above,
        in the section titled &#8220;DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
        PERSONS.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><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 Chief Executive Officer and Chief Financial Officer</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
          November 7, 2005, Mr. Weibing Lu was appointed as Chief Executive Officer
          of the
          Registrant.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        November 7, 2005, Ms. Erna Gao was appointed as the Chief Financial Officer
        of
        the Registrant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
        Gao
        and Mr. Lu have no family relationships with any of the Company&#8217;s other
        executive officers or directors. No transactions occurred in the last two
        years
        to which the Company was a party in which Ms. Gao had or is to have a direct
        or
        indirect material interest. Related party transactions involving Mr. Lu are
        described in Item 2.01 above.&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.03</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>AMENDMENTS
        TO ARTICLES OF INCORPORATION OR BYLAWS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the Share Exchange Agreement and as more fully described
        above
        Item 2.01, in the section titled &#8220;Description of Securities&#8221;, on November 2,
        2005, the Company filed a Certificate of Designation establishing its Series
        B
        Convertible Preferred Stock (&#8220;Series B Preferred&#8221;) and setting forth the rights,
        designation, number, powers, preferences, limitations, restrictions, and
        relative rights and other matters relating to such shares of Series B
        Preferred.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        complete terms of our Series B Preferred stock, including conversion rights,
        voting rights, provisions regarding adjustments for dividends are described
        in
        the Certificate of Designation, which is attached as an exhibit to this Current
        Report on Form 8-K and incorporated in this report in its entirety.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.06</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 SHELL COMPANY STATUS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 20, 2005, The Cyber Group Network Corporation (the &#8220;Registrant&#8221; or
&#8220;CGPN&#8221;) executed a Share Exchange Agreement (&#8220;Exchange Agreement&#8221;) by and among
        Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu (the &#8220;Skystar Shareholders), who own 100% of the common
        stock of Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman
        Island
        Company (&#8220;Skystar&#8221;), on the one hand, and R. Scott Cramer, Steve Lowe, David
        Wassung (all hereinafter collectively referred to as the &#8220;CGPN Shareholders&#8221;),
        and the Company on the other hand. Under the terms of the Exchange Agreement,
        on
        the Closing Date, the Company will issue shares of the Registrant&#8217;s Series B
        Preferred Stock (the &#8220;CGPN Shares&#8221;) to the Skystar Shareholders in exchange for
        100% of the common stock of Skystar. The CGPN Shares issued are convertible,
        in
        the aggregate, into a number of shares of the Registrant&#8217;s common stock that
        would equal 89.5% of the outstanding shares of the Registrant&#8217;s common stock, if
        the shares were to be converted on the Closing Date. In addition, on the
        Closing
        Date, Skystar will pay the Company $120,000, to be used to pay Company&#8217;s
        liabilities. The closing of this transaction (the &#8220;Closing&#8221;) occurred on
        November 7, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        the transaction, the Registrant was a development stage computer security
        company that developed and marketed its computer security hardware and software
        devices. The Registrant was in the process of developing two products, computer
        security software and a computer hardware device for tracking missing or
        stolen
        computers. However, in the past two years, both the development of the hardware
        product and the sales of the software product generated minimal revenue for
        the
        Registrant. From and after the Closing Date, the Registrant&#8217;s primary operations
        will now consist of the operations of Skystar.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01&#160;&#160;&#160;&#160;FINANCIAL STATEMENT AND EXHIBITS.
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>a)
        </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
        Statements Of Businesses Acquired </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        financial statements of Skystar for the six months ended June 30, 2005 and
        2004
        (unaudited) and for the years ended December 31, 2004 and December 31, 2003
        are
        incorporated herein by reference to Exhibits 99.9 and 99.10 to this Current
        Report. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(b)
        </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>Pro
        Forma Financial Statements</strong></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; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        unaudited pro forma combined financial statements as of and for the six months
        ended June 30, 2005, and pro forma combined statement of operations (unaudited)
        for the year ended December 31, 2004 are incorporated herein by reference
        to
        Exhibit 99.11 to this Current Report. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        unaudited pro forma combined balance sheet as of June 30, 2005 and our unaudited
        pro forma combined statement of operations for the six months ended June
        30,
        2005 and the year ended December 31, 2004 are incorporated herein by reference
        to Exhibit 99.11 to this Current Report, and are based on the historical
        financial statements of us and Skystar after giving effect to the Exchange
        Transaction. In accordance with Statement of Financial Accounting Standards
        No.
        141, "Business Combinations" (SFAS 141), and the assumptions and adjustments
        described in the accompanying notes to the unaudited pro forma combined
        condensed financial statements, Skystar is considered the accounting acquiror.
        The Exchange Transaction was completed on November 7, 2005. Because Skystar's
        owners as a group retained or received the larger portion of the voting rights
        in the combined entity and Skystar's senior management represents a majority
        of
        the senior management of the combined entity, Skystar was considered the
        acquiror for accounting purposes and will account for the Exchange Transaction
        as a reverse acquisition. The acquisition will be accounted for as the
        recapitalization of Skystar since, at the time of the acquisition, the
        development of our hardware product and the sales of our software product
        generated minimal revenues. Our fiscal year will end on December
        31.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        unaudited pro forma combined balance sheet as of June 30, 2005 is presented
        to
        give effect to the Exchange Transaction as if it occurred on January 1, 2005
        and
        combines the historical balance sheet of Skystar at June 30, 2005 and the
        historical balance sheet of The Cyber Group Network Corporation at June 30,
        2005. The unaudited pro forma combined statement of operations of Skystar
        and
        The Cyber Group Network Corporation for the six months ended June 30, 2005
        and
        year ended December 31, 2004 are presented as if the combination had taken
        place
        on January 1, 2005. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reclassifications
        have been made to The Cyber Group's historical financial statements to conform
        to Skystar's historical financial statement presentation. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        unaudited pro forma combined condensed financial statements should be read
        in
        conjunction with "Management's Discussion and Analysis of Financial Condition
        and Results of Operations" and the historical consolidated financial statements
        and accompanying notes of Skystar&#8217;s and The Cyber Group Network Corporation. The
        unaudited pro forma combined condensed financial statements are not intended
        to
        represent or be indicative of our consolidated results of operations or
        financial condition that would have been reported had the Exchange Transaction
        been completed as of the dates presented, and should not be taken as
        representative of the future consolidated results of operations or financial
        condition of the Registrant. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(c)</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>INDEX
        TO EXHIBITS.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="7%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                  Number</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
              </td>
              <td align="left" valign="bottom" width="69%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Share
                  Purchase Agreement by and between The Cyber Group Network, Inc.
                  and Howard
                  L. Allen and Donald G. Jackson (shareholders of Hollywood Entertainment
                  Network, Inc.) dated May 12, 2000 (1)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.2</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan
                  of Merger Agreement between The Cyber Group Network Corp. and CGN
                  Acquisitions Corporation dated December 7, 2000 (2)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.3</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Share
                  Exchange Agreement between They Cyber Group Network Corporation,
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R.
                  Scott Cramer, Steve Lowe, David Wassung and Skystar Bio-Pharmaceutical,
                  and the Skystar Shareholders dated September 20, 2005</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  (3)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.4</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                  Amendment to Share Exchange Agreement dated October 14, 2005
                  (4)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.5</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third
                  Amendment to Share Exchange Agreement dated November 6,
                  2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charter
                  of The Cyber Group Network Corporation as filed with the State
                  of
                  Nevada</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.2</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
                  Bylaws (5)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
                  of Designation of Series B Convertible Preferred Stock of The Cyber
                  Group
                  Network Corporation</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consulting
                  Services Agreement between Skystar Bio-Pharmaceutical (Cayman)
                  Holdings,
                  Co., Ltd., Xian Tianxing Bio-Pharmaceutical Co., Ltd. dated October
                  28,
                  2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                  Pledge Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd. and Xian Tianxing Bio-Pharmaceutical Co., Ltd. (&#8220;Xian Tianxing&#8221;)
                  and Xian Tianxing&#8217;s Majority Shareholders dated October 28,
                  2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.3</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                  Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd.,
                  and Xian Tianxing Bio-Pharmaceutical Co. (&#8220;Xian Tianxing&#8221;), Xian
                  Tianxing&#8217;s Majority Shareholders, Ltd. and Weibing Lu dated October 28,
                  2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.4</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proxy
                  Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd.
                  and Xian Tianxing Bio-Pharmaceutical Co. (&#8220;Xian Tianxing&#8221;), Xian
                  Tianxing&#8217;s Majority Shareholders and Weibing Lu dated October 28,
                  2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.5</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
                  Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd.
                  and Xian Tianxing Bio-Pharmaceutical Co., Ltd. (&#8220;Xian Tianxing&#8221;), Xian
                  Tianxing Majority Shareholders and Weibing Lu dated October 28,
                  2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.6</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director&#8217;s
                  Letter of Resignation by Mr. David Wassung to the Board of Directors
                  of
                  The Cyber Group Network Corporation</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.7</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Officer&#8217;s
                  Letter of Resignation by Mr. Scott Cramer to the Board of Directors
                  of The
                  Cyber Group Network Corporation</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.8</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Officer&#8217;s
                  Letter of Resignation by Mr. Steve Lowe to the Board of Directors
                  of The
                  Cyber Group Network Corporation</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.9</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Financial statements of Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co.,
                  Ltd. for the years ended December 31, 2004 and December 31,
                  2003.</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.10</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Financial statements of Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co.,
                  Ltd. for the six months ended June 30, 2005 and 2004
                  (unaudited).</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.11</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="69%">
                <div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  pro forma condensed financial statements of The Cyber Group Network
                  Corporation, as of and for the six months ended June 30, 2005 and
                  unaudited pro forma Statement of Operations for the six months
                  ended June
                  30, 2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="left" noshade size="1" width="15%">
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
                  by reference from the Registrant&#8217;s Current Report on Form 8-K/A filed on
                  June 1, 2000.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
                  by reference from the Registrant&#8217;s Current Report on Form 8-K/A filed on
                  January 12, 2001.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
                  by reference from the Registrant&#8217;s Current Report on Form 8-K filed on
                  September 26, 2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
                  by reference from the Registrant&#8217;s Current Report on Form 8-K filed on
                  October 20, 2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1">
              <td align="left" style="WIDTH: 6pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)<font id="TAB2" style="LETTER-SPACING: 6pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
                  by reference from the Registrant&#8217;s Registration Statement on Form 10-SB
                  filed on November 16, 1999.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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 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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                  November 10, 2005</font></div>
              </td>
              <td colspan="2">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
                  Cyber Group Network Corporation</strong></font></div>
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>&#160;</td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Weibing Lu</font></div>
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weibing
                  Lu</font></div>
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Executive Officer</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; 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">
          <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; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
  </body>
</html>
{"company-data": {"conformed-name": "CYBER GROUP NETWORK CORP", "cik": "0001076939", "assigned-sic": "7372", "irs-number": "330901534", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28153", "film-number": "051195274"}, "business-address": {"street1": "720 EAST CARNEGIE DRIVE STE 200", "city": "SAN BERNADINO", "state": "CA", "zip": "92408", "phone": "8187625970"}, "mail-address": {"street1": "720 EAST CARNEIGIE DR STE 200", "city": "SAN BERNADINO", "state": "CA", "zip": "92408"}}
Unassociated Document
UNITED
        STATES
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): November 10, 2005 (November
        7,
        2005)
THE
        CYBER GROUP NETWORK CORPORATION
(Exact
        name of registrant as specified in Charter)
Nevada
000-28153
33-0901534
(State
                  or other jurisdiction of
incorporation
                  or organization)
(Commission
                  File No.)
(IRS
                  Employee Identification
                  No.)
Post
        Office Box 948264, Maitland, FL 32794-8264
(Address
        of Principal Executive Offices)
(407)
        645-4433
(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(b) under the Exchange Act (17
        CFR
        240.14a-12(b))
[ 
        ]
        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.
Item
        1.01 Entry into a Material Definitive Agreement.
As
        more
        fully described in Item 2.01 below, on September 20, 2005, The Cyber Group
        Network Corporation (the "Registrant" or "CGPN") executed a Share Exchange
        Agreement ("Exchange Agreement") by and among R. Scott Cramer, Steve Lowe, David
        Wassung (all hereinafter collectively referred to as the "CGPN Shareholders")
        and the Registrant on the one hand, and Skystar Bio-Pharmaceutical (Cayman)
        Holdings Co., Ltd., a Cayman Island Company ("Skystar"), and the shareholders of
        100% of Skystar's common stock (the "Skystar Shareholders"), on the other hand.
        Under the Exchange Agreement, on the Closing Date, the Registrant will issue
        shares of the Registrant's Series B Preferred Stock (the "CGPN Shares") to the
        Skystar Shareholders in exchange for 100% of the common stock of Skystar.
        The
        CGPN Shares issued shall be convertible, in the aggregate, into a number
        of
        shares of the Registrant's common stock that would equal 89.5% of the
        outstanding shares of the Registrant's common stock, if the shares were to be
        converted on the Closing Date. In addition, on the Closing Date, Skystar
        will
        pay the Registrant an amount equal to $120,000, which shall be used to pay
        liabilities of the Registrant. On November 6, 2005 the parties to the Share
        Exchange Agreement entered into a Third Amendment to the Exchange Agreement
        whereby Skystar will hold CGPN Shareholders harmless for any payment of up
        to
        US$50,000 made by CGPN in connection with the settlement of any claims
        ("Claims") and up to US$10,000 in attorney's fees incurred in defense of any
        such Claims. Any amount paid by CGPN in excess of US$50,000 plus US$10,000
        in
        attorney's fees incurred in connection with the Claims shall be the
        responsibility of the CGPN Shareholders and shall be paid in cash within
        30 days
        after written notification is delivered to CGPN Shareholders.
The
        closing of this transaction (the "Closing") occurred on November 7, 2005 (the
"Closing Date").
Item
        2.01 Acquisition or Disposition of Assets
On
        September 20, 2005, The Cyber Group Network Corporation (the "Registrant" or
"CGPN") executed a Share Exchange Agreement ("Exchange Agreement") by and among
        R. Scott Cramer, Steve Lowe, David Wassung (all hereinafter collectively
        referred to as the "CGPN Shareholders") and the Registrant on the one hand, and
        Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman Island Company
        ("Skystar"), and the shareholders of 100% of Skystar's common stock (the
"Skystar Shareholders"), on the other hand. Under the Exchange Agreement, on the
        Closing Date, the Registrant will issue shares of the Registrant's Series B
        Preferred Stock (the "CGPN Shares") to the Skystar Shareholders in exchange for
        100% of the common stock of Skystar. The CGPN Shares issued shall be
        convertible, in the aggregate, into a number of shares of the Registrant's
        common stock that would equal 89.5% of the outstanding shares of the
        Registrant's common stock, if the shares were to be converted on the Closing
        Date. In addition, on the Closing Date, Skystar will pay the Registrant an
        amount equal to $120,000, which shall be used to pay liabilities of the
        Registrant.
The
        parties' completion of the transactions contemplated under the Exchange
        Agreement (the "Closing") were subject to the satisfaction of certain
        contingencies including, without limitation, Skystar's delivery of contracts
        or
        a series of related contracts with Xian Tianxing Bio-Pharmaceutical Co.,
        Ltd., a
        Chinese Company, to the Registrant, and also the Registrant's delivery to
        Skystar of a release without prejudice from any claims against CGPN, whether
        actual or contingent, that is satisfactory to Skystar legal counsel, at his
        sole
        discretion
.
The
        directors of the Registrant and the CGPN Shareholders have approved the Exchange
        Agreement and the transactions contemplated thereunder. Skystar's directors and
        the Skystar Shareholders have approved the Exchange Agreement and the
        transactions contemplated thereunder (the "Exchange Transaction").
On
        November 6, 2005 the parties to the Share Exchange Agreement entered into
        a
        Third Amendment to the Exchange Agreement whereby Skystar will hold CGPN
        Shareholders harmless for any payment of up to US$50,000 made by CGPN in
        connection with the settlement of any claims ("Claims") and up to US$10,000 in
        attorney's fees incurred in defense of any such Claims. Any amount paid by CGPN
        in excess of US$50,000 plus US$10,000 in attorney's fees incurred in connection
        with the Claims shall be the responsibility of the CGPN Shareholders and
        shall
        be paid in cash within 30 days after written notification is delivered to
        CGPN
        Shareholders.
The
        closing of this transaction (the "Closing") occurred on November 7, 2005 (the
"Closing Date").
Prior
        to
        the transaction, the Registrant was a development stage computer security
        company that developed and marketed its computer security hardware and software
        devices. The Registrant was in the process of developing two products, computer
        security software and a computer hardware device for tracking missing or
        stolen
        computers. However, in the past two years, both the development of the hardware
        product and the sales of the software product generated minimal revenue for
        the
        Registrant. From and after the Closing Date, the Registrant's primary operations
        will now consist of the operations of Skystar.
In
        this report, when we use phrases such as "we,"
        "our," "company," "us," we are referring to Cyber Group Network Corporation,
        Skystar and Xian Tianxing Bio-Pharmaceutical Co., Ltd, as a combined
        entity.
DESCRIPTION
        OF BUSINESS
Skystar
        was incorporated under the laws of the Cayman Islands on January 24, 2005.
        The
        People's Republic of China (PRC),  PRC law currently have limits on
        foreign
        ownership of certain companies. To comply with these foreign ownership
        restrictions, we operate our bio-pharmaceutical business in China through
        Xian
        Tianxing Bio-Pharmaceutical Co., Ltd., a PRC joint stock company. Xian Tianxing
        holds the licenses and approvals necessary to operate our bio-pharmaceutical
        business in China. We have contractual arrangements with Xian Tianxing and
        its
        shareholders pursuant to which we provide technology consulting and other
        general business operation services to Xian Tianxing. Through these contractual
        arrangements, we also have the ability to substantially influence Xian
        Tianxing's daily operations and financial affairs, appoint its senior executives
        and approve all matters requiring shareholder approval. As a result of these
        contractual arrangements, which enable us to control Xian Tianxing, we are
        considered the primary beneficiary of Xian Tianxing. Accordingly, we consolidate
        Xian Tianxing's results, assets and liabilities in our financial statements. For
        a description of these contractual arrangements, see "Contractual Arrangements
        with Xian Tianxing and its Shareholders."
CONTRACTUAL
        ARRANGEMENTS WITH XIAN TIANXING AND ITS SHAREHOLDERS
Our
        relationships with Xian Tianxing and its shareholders are governed by a series
        of contractual arrangements. Under PRC laws, each of Skystar and Xian Tianxing
        is an independent legal person and neither of them is exposed to liabilities
        incurred by the other party. Other than pursuant to the contractual arrangements
        between Skystar and Xian Tianxing, Xian Tianxing does not transfer any other
        funds generated from its operations to Skystar. On October 28, 2005, we entered
        into the following contractual arrangements:
Consulting
        Services Agreement
.
        Pursuant to the exclusive consulting services agreement between Skystar and
        Xian
        Tianxing, Skystar has the exclusive right to provide to Xian Tianxing general
        bio-pharmaceutical business operations services as well as consulting services
        related to the technological research, development, design and manufacturing
        of
        bio-pharmaceutical products (the "Services"). Skystar also seconds employees to
        Xian Tianxing for whom Xian Tianxing bears the costs and expenses. Under
        this
        agreement, Skystar owns the intellectual property rights developed or discovered
        through research and development providing the Services for Xian Tianxing.
        Xian
        Tianxing pays a quarterly consulting service fees in Renminbi ("RMB") to Skystar
        that is equal to all of Xian Tianxing's revenue for such quarter.
Operating
        Agreement
.
        Pursuant to the operating agreement among Skystar, Xian Tianxing and the
        shareholders of Xian Tianxing who collectively hold the majority of the
        outstanding shares of Xian Tianxing (collectively "Xian's Majority
        Shareholders"), Skystar provides guidance and instructions on Xian Tianxing's
        daily operations, financial management and employment issues. The shareholders
        of Xian Tianxing must designate the candidates recommended by Skystar as
        their
        representatives on Xian Tianxing's board of directors. Skystar has the right to
        appoint senior executives of Xian Tianxing. In addition, Skystar agrees to
        guarantee Xian Tianxing's performance under any agreements or arrangements
        relating to Xian Tianxing's business arrangements with any third party. Xian
        Tianxing, in return, agrees to pledge its accounts receivable and all of
        its
        assets to Skystar. Moreover, Xian Tianxing agrees that without the prior
        consent
        of Skystar, Xian Tianxing will not engage in any transactions that could
        materially affect the assets, liabilities, rights or operations of Xian
        Tianxing, including, without limitation, incurrence or assumption of any
        indebtedness, sale or purchase of any assets or rights, incurrence of any
        encumbrance on any of its assets or intellectual property rights in favor
        of a
        third party or transfer of any agreements relating to its business operation
        to
        any third party. The term of this agreement is ten (10) years from October
        28,
        2005 and may be extended only upon Skystar's written confirmation prior to the
        expiration of the this agreement, with the extended term to be mutually agreed
        upon by the parties.
Equity
        Pledge Agreement
.
Under
        the
        equity pledge agreement between the shareholders of Xian Tianxing and Skystar,
        the shareholders of Xian Tianxing pledged all of their equity interests in
        Xian
        Tianxing to Skystar to guarantee Xian Tianxing's performance of its obligations
        under the technology consulting agreement. If Xian Tianxing or Xian's Majority
        Shareholders breaches its respective contractual obligations, Skystar, as
        pledgee, will be entitled to certain rights, including the right to sell
        the
        pledged equity interests. The Xian Majority Shareholders also agreed that
        upon
        occurrence of any event of default, Skystar shall be granted an exclusive,
        irrevocable power of attorney to take actions in the place and stead of the
        Xian
        Shareholders to carry out the security provisions of the equity pledge agreement
        and take any action and execute any instrument that Skystar may deem necessary
        or advisable to accomplish the purposes of the equity pledge agreement. The
        shareholders of Xian Tianxing agreed not to dispose of the pledged equity
        interests or take any actions that would prejudice Skystar's interest. The
        equity pledge agreement will expire two (2) years after Xian Tianxing
        obligations under the exclusive consulting services agreement have been
        fulfilled.
Option
        Agreement
.
Under
        the
        option agreement between the shareholders of Xian Tianxing and Skystar, the
        shareholders of Xian Tianxing irrevocably granted Skystar or its designated
        person an exclusive option to purchase, to the extent permitted under PRC
        law,
        all or part of the equity interests in Xian Tianxing for the cost of the
        initial
        contributions to the registered capital or the minimum amount of consideration
        permitted by applicable PRC law. Skystar or its designated person has sole
        discretion to decide when to exercise the option, whether in part or in full.
        The term of this agreement is ten (10) years from October 28, 2005 and may
        be
        extended prior to its expiration by written agreement of the
        parties.
Proxy
        Agreement
.
Pursuant
        to the proxy agreement among Skystar, Xian's Majority Shareholders, and Xian
        Tianxing, Xian's Majority Shareholders agreed to entrust all the rights to
        exercise their voting power to the person(s) appointed by Skystar. The parties
        entered into a proxy agreement where Xian's Majority Shareholders have agreed to
        irrevocably grant a person to be designated by Skystar with the right to
        exercise Xian's Majority Shareholders' voting rights and their other rights
        including the attendance at and the voting of Xian's Majority Shareholders'
        shares at the shareholder's meetings (or by written consent in lieu of meetings)
        in accordance with applicable laws and its Article of Association, including
        but
        not limited to the rights to sell or transfer all or any of his equity interests
        of the Company, and appoint and vote for the directors and Chairman as the
        authorized representative of the shareholders of Company. The term of this
        Proxy
        Agreement is ten (10) years from the October 28, 2005 and may be extended
        prior
        to its expiration by written agreement of the parties.
XIAN
        TIANXING BIO-PHARMACEUTICAL CO., LTD.
As
        discussed above, our operations are conducted through Xian Tianxing
        Bio-Pharmaceutical Co., Ltd. (hereafter "Xian Tianxing") (formerly Xian Tianxing
        Science and Technology Development Co., Ltd.) is a joint stock company
        incorporated in Xi'an, China in July 1997. After eight (8) years of development,
        we have become a high-tech enterprise with registered capital of RMB 42,000,000,
        and are engaged in research, development, production, marketing and sales
        of
        bio-pharmaceutical and veterinary products. Our business divisions include
        a
        bio-pharmaceutical products division, a veterinary drugs division, a fodder
        or
        feed additive division, and a microorganism preparation division.
PRINCIPAL
        PRODUCTS OR SERVICES AND THEIR MARKETS
Currently,
        we have four major lines of products:
1.
Our
                      Bio-pharmaceutical veterinary vaccine line currently includes
                      over 10
                      different products;
2.
Our
                      Veterinary Medicine line for poultry and livestock currently
                      includes over
                      40 products;
3.
Our
                  Feed Additives line currently includes over 10 products;
                  and
4.
Our
                  Micro-organism products line currently includes over 10
                  products.
Among
        the
        Company's prominent products is DLV chicken vaccine for prevention of avian
        coccidiosis disease. DLV chicken vaccine has won a number of accreditation
        and
        awards from PRC national authorities. It is safe, effective and easy to
        administer, and has proved to save costs by 60% as compared to using chemical
        medicines.
With
        ongoing research and development, management expects that the Company will
        continue to introduce new products to the market.
DISTRIBUTION
        METHODS OF THE PRODUCTS OR SERVICES AND OUR CUSTOMERS
The
        Company has a distribution network covering 27 provinces in the PRC. Currently,
        we have approximately two hundred and eighty (280) distribution agents
        throughout the PRC. The Company will continue to establish more representative
        offices and engage additional distribution agents in order to strengthen
        its
        distribution network.
We
        have
        also started to distribute our products in markets outside of the PRC. In
        particular, some of the Company's bio-pharmaceutical products are now being
        exported to Vietnam and Taiwan.
The
        Company recognizes the importance of branding as well as packaging. All of
        our
        Company's products bear a uniform brand but we also brand and package our
        products with specialized designs to differentiate the different categories
        of
        the Company's products.
We
        conduct promotional marketing activities to publicize and enhance the Company's
        image as well as to reinforce the recognition of the Company's brand name
        include:
1.
publishing
                  advertisements and articles in national as well as specialized
                  and
                  provincial newspapers, magazines, and in other media, including
                  the
                  Internet;
2.
participation
                  in national meetings, seminars, symposiums, exhibitions for
                  bio-pharmaceutical and other related
                  industries;
3.
organizing
                  cooperative promotional activities with distributors;
                  and
4.
sending
                  direct mail to major farms.
Our
        Company currently has over four hundred (400) customers, including over seventy
        (70) major direct customers in twenty seven (27) provinces in the
        PRC.
STATUS
        OF ANY PUBLICLY ANNOUNCED NEW PRODUCT OR SERVICE
COMPETITION
We
        have
        three major competitors in the PRC: Jielin Bio-Tech Production Co., Ltd.,
        Qilu
        Animal Health Production Co., Ltd., and Zhongmu Industrial Joint Stock Co.,
        Ltd.
        These companies have more assets and have a larger market share. The Company
        is
        able to compete with these competitors because of its location in Northwest
        China, its unique products and its lower prices. Other than these three
        competitors, most of other competitors produce only one or two products.
        The
        Company produces a complete series of forage additive products and veterinary
        medicine products.
SOURCES
        AND AVAILABILITY OF RAW MATERIALS AND THE PRINCIPAL SUPPLIERS
Shanghai
        Yino Technology Development, Zhejiang Shenghua Baike BioTech Co., Ltd., Shan'xi
        Yongfeng Shuye Technology Co., Ltd., Shan'xi Guosi Packaging Co., Ltd., and
        Huxian Tianyuan Co., Ltd., supplied over fifty percent (50%) of the raw
        materials we used to manufacture our products. The Company designs, creates
        prototypes and manufactures its products at its manufacturing facilities
        located
        at Xi'an city, Shang'xi province, PRC. Our principal raw materials include
        Chinese herbs, such as Huoxiang, Huanglian, and Zhang Red Flowers. The prices
        for these raw materials are subject to market forces largely beyond our control,
        including energy costs, organic chemical feedstocks, market demand, and freight
        costs. The prices for these raw materials have varied significantly in the
        past
        and may vary significantly in the future.
PATENTS,
        TRADEMARKS, LICENSES, FRANCHISES, CONCESSIONS, ROYALTY AGREEMENTS OR LABOR
        CONTRACTS
We
        rely
        on a combination of trademark, copyright and trade secret protection laws
        in
        China and other jurisdictions, as well as confidentiality procedures and
        contractual provisions to protect our intellectual property and our brand.
        We
        have one issued patented special technology in China, valid for 10 years
        and we
        intend to apply for more patents to protect our core technologies. We also
        enter
        into confidentiality, non-compete and invention assignment agreements with
        our
        employees and consultants and nondisclosure agreements with third parties.
        "Jiateng Jun" and "Star Pigeon" are our registered trademarks in the PRC.
Bio-pharmaceutical
        companies are at times involved in litigation based on allegations of
        infringement or other violations of intellectual property rights. Furthermore,
        the application of laws governing intellectual property rights in the PRC
        and
        abroad is uncertain and evolving and could involve substantial risks to us.
GOVERNMENT
        APPROVAL AND REGULATION OF THE COMPANY'S PRINCIPAL PRODUCTS OR
        SERVICES
Government
        approval is required for the production of bio-pharmaceutical products. The
        Chinese Ministry of Agriculture has granted the Company three government
        permits
        to produce the following products: Forage Additive Products, Additive and
        Mixed
        Forage Products and Veterinary Medicine Products. For the production of the
        veterinary medicine, there is a national standard known as the Good
        Manufacturing Practice ("GMP") standard. A company must establish its facility
        according to GMP standards, including both the facility and the production
        process. After establishing such facility, the Company files an application
        to
        operate the facility with the Ministry of Agriculture of the PRC government,
        which then sends a team of specialists to conduct an on-site inspection of
        the
        facility. A company cannot start production at the facility until it receives
        approval from the Ministry of Agriculture to begin operations. The Company
        currently has obtained the requisite approval and licenses from the Ministry
        of
        Agriculture in order to operate our production facilities.
RESEARCH
        AND DEVELOPMENT
We
        place
        great emphasis on product research and development. In cooperation with Shanghai
        Poultry Verminosis and Institution and Shanxi Microbial Institute, the Company
        has established two research and development centers. Major projects currently
        being undertaken at these centers focus on the following:
1.
Development
                  of new bio-pharmaceutical products for animal immunization by employing
                  new technologies in microorganism and bacterium
.
                  We will be placing greater resources into the research and development
                  of
                  toxoid, mixed vaccines of toxoid and thalli, genetic vaccines and
                  complex
                  titanium vaccines, which we believe will gradually replace traditional
                  chemical drugs and which will greatly impact the animal vaccination
                  industry.
2.
Development
                  of protein technology and enzyme mechanism
.
                  Introducing the technology in polypeptides, the Company is cooperating
                  with relevant research institutes to develop new products to cure
                  piglet
                  diarrhea. The products will stimulate the release of growth hormones
                  in
                  piglets, improve their ability to produce antibody and excrete
                  stomach
                  acidity, enhance the activity of albumen enzyme and adjust the
                  activity of
                  T.B. cells, thereby improving their all-around disease-resistance
                  ability.
                  We expect these new products will greatly reduce the use of traditional
                  chemical drugs and lead to more environmentally friendly livestock
                  raising. These products are now in the interim stage of development.
                  The
                  Company is also developing complex enzyme preparations as new feed
                  additives and aims to use anti-inflammatory enzyme, polyase, and
                  cellulose
                  to form the best combination that will effectively dissolve and
                  cause the
                  additive to be absorbed in the feed. This will greatly improve
                  the
                  absorption rate of the feed, thereby reducing the ratio of usage
                  of feed
                  versus meat, while concurrently reducing the incidence of disease
                  in
                  livestock and poultry. We believe that we will be able to introduce
                  these
                  complex enzyme mechanism products to the market by the end of
                  2005.
4.
Development
                  of non-pathogenic micro-organisms
.
                  The Company is also developing non-pathogenic micro-organisms and,
                  based
                  upon current products of microbe preparations, lactobacillus, bacillus,
                  bifid bacterium baceroid, and combined with the most appropriate
                  oligosaccharide preparations to produce living bacterium which
                  will be
                  applied to cure gastrointestinal tract diseases resulting from
                  the
                  maladjustment of flora. Microorganism preparations will prove to
                  be
                  effective cure and prevention for livestock disease, and will greatly
                  reduce the use of antibiotic and other
                  drugs.
5.
Development
                  of veterinary medicines for pets
.
                  We believe that the pet markets have been fast growing along with
                  the
                  growing economy in the PRC. We believe that this niche is being
                  overlooked
                  by local manufacturers. To take advantage of this opportunity,
                  we have
                  over 20 products of veterinary medicines for pets are in the course
                  of
                  development. The Company expects to start introducing these new
                  products
                  for the pet market in 2006.
In
        2003,
        we spent approximately $50,000 or approximately 2.7% of the Company's 2003
        revenue, on research and development of various bio-pharmaceutical products.
        In
        2004, the Company spent approximately $70,000 or approximately 1.5% of the
        Company's 2004 revenue on research and development of products. For the first 6
        months of 2005, the Company has spent approximately $70,000 research and
        development projects, which is approximately 2.4% of its revenue.
COSTS
        AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS
In
        compliance with PRC environmental regulations, the Company spent approximately
        $10,000 in 2003, $15,000 in 2005, and approximately $30,000.00 for the first
        6
        months of 2005, mainly for the wastewater treatment in connection with our
        production facilities.
EMPLOYEES
In
        2003,
        the Company had 66 employees, of which 62 worked as full time employees.
        In
        2004, the Company had 136 employees, of which 130 worked as full time employees.
        Currently, the Company has 163 employees, 158 of which are full time employees.
MANAGEMENT'S
        DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
We
        were
        originally incorporated in Nevada under the name "Hollywood Entertainment
        Network, Inc." (the "Company") on September 24, 1998 with a principal business
        objective to operate as an independent film company in the business of motion
        picture production and distribution. On May 23, 2000, we underwent a reverse
        merger and abandoned this enterprise to become a developer of computer security
        software and hardware and changed our name to The Cyber Group Network
        Corporation to reflect this change in business. On November 7, 2005, we acquired
        Skystar pursuant to the terms of the Exchange Agreement. This transaction
        was
        accounted for as a reverse merger (recapitalization) with Skystar deemed
        to be
        the accounting acquirer, and us as the legal acquirer. Accordingly, the
        historical financial information presented in future financial statements
        will
        be that of Skystar as adjusted to give effect to any difference in the par
        value
        of ours and Skystar's stock with an offset to capital in excess of par value.
        The basis of the assets, liabilities and retained earnings of Skystar, the
        accounting acquirer, have been carried over in the recapitalization. Upon
        the
        closing of this transaction, we became a Chinese bio-pharmaceutical company
        that
        develops, manufactures and markets a wide range of bio-pharmaceutical and
        veterinary products.
Since
        incorporation, Skystar has not conducted any substantive operations of its
        own
        and conducts its primary business operations through its variable interest
        entity ("VIE"), Xian Tianxing Bio-Pharmaceutical Co., Ltd. ("Xian Tianxing").
Xian
        Tianxing was incorporated on July 3, 1997 in the "PRC" as a limited liability
        company without shares. On December 31, 2003, the Company restructured from
        a
        limited liability company without shares to a joint stock company limited
        by
        shares.
The
        paid-in capital of Xian Tianxing was funded by the majority shareholders
        of
        Skystar. PRC law currently has limits on foreign ownership of certain companies.
        To comply with these foreign ownership restrictions, on October 28, 2005,
        Skystar entered into certain exclusive agreements with Xian Tianxing and
        its
        shareholders. Xian Tianxing holds the licenses and approvals necessary to
        operate the bio-pharmaceutical business in China. Pursuant to these agreements,
        Skystar provides exclusive technology consulting and other general business
        operation services to Xian Tianxing in return of a consulting services fee
        which
        is equal to Xian Tianxing's revenue. In addition, Xian Tianxing's shareholders
        have pledged their equity interests in Xian Tianxing to Skystar, irrevocably
        granted Skystar an exclusive option to purchase, to the extent permitted
        under
        PRC law, all or part of the equity interests in Xian Tianxing and agreed
        to
        entrust all the rights to exercise their voting power to the person(s) appointed
        by Skystar. Through these contractual arrangements, Skystar has the ability
        to
        substantially influence Xian Tianxing's daily operations and financial affairs,
        appoint its senior executives and approve all matters requiring shareholder
        approval.
As
        a
        result of these contractual arrangements, which obligates Skystar to absorb
        a
        majority of the risk of loss from Xian Tianxing's activities and enable Skystar
        to receive a majority of its expected residual returns, the Company believes
        Xian Tianxing is a VIE under FASB Interpretation No. 46R ("FIN 46R"),
"Consolidation of Variable Interest Entities, an Interpretation of ARB No.
        51",
        because the equity investors in Xian Tianxing do not have the characteristics
        of
        a controlling financial interest and the Company should be considered the
        primary beneficiary of Xian Tianxing. Accordingly, the Company consolidates
        Xian
        Tianxing's results, assets and liabilities in the accompanying financial
        statements.
YEAR
        ENDED DECEMBER 31, 2004 COMPARED TO THE YEAR ENDED DECEMBER 31, 2003.
REVENUES.
        During the year ended December 31, 2004, Xian Tianxing had revenues of
        $3,996,421 as compared to revenues of $1,181,746 during the year ended December
        31, 2003, an increase of approximately 238%. This increase is attributable
        to
        increased sales. We believe that our sales will continue to grow because
        we are
        strengthening our sales force and more new products will be launched.
GROSS
        PROFIT. Cost of goods sold, which consist of direct labor, overhead and product
        costs, were $2,155,050 for the year ended December 31, 2004 as compared to
        $630,984 for the year ended December 31, 2003. Gross profit was $1,841,371
        for
        the year ended December 31, 2004 as compared to $550,762 for the year ended
        December 31, 2003, representing gross margins of approximately
46%
        and
        47%, respectively. The increase in our gross profits is attributable to
        increased sales. Skystar management believes that this trend will continue
        because sales will continue to grow while gross margin will remain at the
        current level.
SELLING
        EXPENSES. Selling expenses which consist of commission, advertising and
        promotion expenses, freight charges and salaries totaled $244,973 for the
        year
        ended December 31, 2004 as compared to $141,740 for the year ended December
        31,
        2003, an increase of approximately 73%. This increase is primarily attributable
        to our expanding sales team and activities which are in turn reflected in
        our
        increased sales. Skystar management believes that its selling expenses will
        continue to increase as sales continue to grow.
GENERAL
        AND ADMINISTRATIVE EXPENSES. General and administrative expenses totaled
        $259,997 for the year ended December 31, 2004, as compared to $225,949 for
        the
        year ended December 31, 2003, an increase of approximately 15%. This increase
        is
        primarily attributable to the expansion of our sales and operations.
RESEARCH
        AND DEVELOPMENT COSTS. Research and development costs which consist of salaries,
        professional and technical support fees, totaled $30,120 for the year ended
        December 31, 2004, as compared to $36,867 for the year ended December 31,
        2003,
        a decrease of approximately 18%. The decrease is because technical and technical
        support fees totaling $25,301 was paid to external consultants during the
        year
        ended December 31, 2003 whereas we conducted our research and development
        by our
        internal staff only during the year ended December 31, 2004.
INVESTMENT
        GAIN. Investment gain of $24,096 for the year ended December 31, 2004
        represented the return on the investment fund of 432,530, which we placed
        with
        an investment agent. The investment agent had full discretion to invest the
        fund
        and guaranteed a minimum return of 5%.
NET
        INCOME. Skystar had a net income of $1,114,804 for the year ended December
        31,
        2004 as compared to $103,609 for the year ended December 31, 2003. The increase
        in net income is attributable to increase in sales. Skystar management believes
        that net income will increase as Skystar introduces new products and increase
        sales.
SIX-MONTHS
        ENDED JUNE 30, 2005 COMPARED TO THE SIX-MONTHS ENDED JUNE 30, 2004.
REVENUES.
        During the six months ended June 30, 2005, Skystar had revenues of $2,884,387
        as
        compared to revenues of $1,457,258 during the six months ended June 30, 2004,
        an
        increase of approximately 98%. This increase is attributable to our increase
        in
        sales, which in turn is attributable to our expanded sales force and new
        products introduced.
GROSS
        PROFIT. Cost of goods sold, which consist of direct labor, overhead and product
        costs, were $1,359,817 for the six months ended June 30, 2005 as compared
        to
        $774,734 for the six months ended June 30, 2004. Skystar had a Gross Profit
        of
        $1,524,570 for the six months ended June 30, 2005 as compared to a Gross
        Profit
        of $682,524 for the six months ended June 30, 2004, representing gross margins
        of approximately 53% and 47%. The increase in gross profits is attributable
        to
        increased sales and better margin.
SELLING
        EXPENSES. Selling expenses which consist of commission, advertising and
        promotion expenses, freight charges and salaries totaled $183,521 for the
        six
        months ended June 30, 2005 as compared to $132,818 for the six months ended
        June
        30, 2004, an increase of approximately 38%. This increase is primarily
        attributable to our expanding sales team and activities, which, in turn,
        are
        reflected in our increased sales.
GENERAL
        AND ADMINISTRATIVE EXPENSES. General and administrative expenses totaled
        $235,687 for the six months ended June 30, 2005, as compared to $114,496
        for the
        six months ended June 30, 2004, an increase of approximately 106%. This increase
        is primarily attributable to the expansion of our sales and operations.
RESEARCH
        AND DEVELOPMENT COSTS. Research and development costs which consist of salaries,
        professional and technical support fees, totaled $10,442 for the six months
        ended June 30, 2005, as compared to $6,747 for the six months ended June
        30,
        2004, an increase of approximately 55%. The increased research and development
        activities reflected the introduction of 21 new products during the six months
        ended June 30, 2005.
NET
        INCOME. We had a net income of $926,001 for the six months ended June 30,
        2005
        as compared to $345,101 for the six months ended June 30, 2004. The increase
        in
        net income is attributable to the increase in sales. Skystar management believes
        that net income will continue to increase as Skystar introduces new products
        and
        increase sales.
LIQUIDITY
For
        the
        year ended December 31, 2004, we generated cash from operating activities
        of
        $1,811,828 and we used $2,196,120 in investing activities which, among others,
        consist of payment of $1,361,795 as deposits for the construction of our
        new
        plant and purchases of machinery and further advances of interest bearing
        loans
        of $820,438 to other entities.
As
        of
        December 31, 2004, the Company had cash and cash equivalents of $49,606.
        Our
        total current assets were $3,585,016 and our total current liabilities were
        $1,251,391, which resulted in a current ratio of 2.9. We had capital expenditure
        commitments outstanding as of December 31, 2004 in the amount of $2,004,531
        in
        relation to the construction of a new plant which will meet the Good
        Manufacturing Practices Standard and $356,627 in relation to the purchase
        of
        machinery. The new plant and machinery will enable us to consolidate our
        existing operations and to expand the production capacity for our
        bio-pharmaceutical business.
CAPITAL
        RESOURCES
We
        believe that Skystar has adequate capital resources to continue its current
        operations. However, for the construction of the newest facility and acquisition
        of new equipment for this facility, the company will require approximately
        $3,000,000 to $6,000,000 in the next twelve months. Of the capital raised,
        we
        estimate that $3,000,000 will be spent on the construction of the new plant,
        $1,000,000 will be spent on research and development of the new products,
        $1,000,000 will be spent on marketing our products, and the remaining $1,000,000
        will be for working capital. We plan to seek additional funding through public
        or private equity or debt financing, strategic transactions and/or from other
        sources, although we expect that funding will come mainly from private
        placements.
PLAN
        OF OPERATIONS
For
        the
        next 12 months, we plan to continue to market and sell the company's products
        and to develop new products.
In
        addition, as described more fully in the section titled "DESCRIPTION OF
        PROPERTY," in 2003, the Company received approval from the State Council of
        China to expand its production facilities and construct a new Good Manufacturing
        Practice ("GMP") standard plant. The entire expansion project will cost
        approximately RMB 69,410,000 (US$8,500,000). The Company's total investment in
        this project includes approximately $7,000,000 for the facilities and $1,500,000
        for working capital. The construction work commenced in late 2004 and will
        be
        completed by the third quarter in 2005. The new plant will occupy 47 hectares
        and have a total area of about 14,100 sq. meters.
PRODUCT
        RESEARCH AND DEVELOPMENT
As
        described more fully above, management believes that Xian Tianxing will be
        developing several products including new bio-pharmaceutical products for
        animal
        immunization, non-pathogenic micro-organisms for the cure and prevention
        of
        livestock disease, complex enzyme preparations as animal feed additives,
        and
        several new veterinary medicine products within the next 12 months.
OFF-BALANCE
        SHEET ARRANGEMENTS
We
        have
        not entered into any financial guarantees or other commitments to guarantee
        the
        payment obligations of any third parties. We have not entered into any
        derivative contracts that are indexed to our shares and classified as
        shareholder's equity or that are not reflected in our consolidated financial
        statements. Furthermore, we do not have any retained or contingent interest
        in
        assets transferred to an unconsolidated entity that serves as credit, liquidity
        or market risk support to such entity. We do not have any variable interest
        in
        any unconsolidated entity that provides financing, liquidity, market risk
        or
        credit support to us or engages in leasing, hedging or research and development
        services with us.
INFLATION
We
        believe that inflation has not had a material effect on our operations to
        date.
RISK
        FACTORS
FACTORS
        THAT MAY AFFECT FUTURE PERFORMANCE
Before
        investing in our common stock you should carefully consider the following
        risk
        factors, the other information included herein and the information included
        in
        our other reports and filings.  Our business, financial condition,
        and the
        trading price of our common stock could be adversely affected by these and
        other
        risks.
Our
        limited operating history makes it difficult to evaluate our future prospects
        and results of operations.
We
        have a
        limited operating history. Xian Tianxing commenced operations in 1997 and
        first
        achieved profitability in the quarter ended 1999. Accordingly, you should
        consider our future prospects in light of the risks and uncertainties
        experienced by early stage companies in evolving industries such as the
        bio-pharmaceutical industry in China. Some of these risks and uncertainties
        relate to our ability to:
•
maintain
        our position as one of the market leaders in China;
•
offer
        new
        and innovative products to attract and retain a larger customer
        base;
•
attract
        additional customers and increase spending per customer;
•
increase
        awareness of our brand and continue to develop user and customer
        loyalty;
•
respond
        to competitive market conditions;
•
respond
        to changes in our regulatory environment;
•
manage
        risks associated with intellectual property rights;
•
maintain
        effective control of our costs and expenses;
•
raise
        sufficient capital to sustain and expand our business;
•
attract,
        retain and motivate qualified personnel; and
•
upgrade
        our technology to support additional research and development of new
        products.
If
        we are
        unsuccessful in addressing any of these risks and uncertainties, our business
        may be materially and adversely affected.
We
        Must Obtain Additional Financing to Execute Our Business
        Plan
The
        revenues from the production and sale of bio-pharmaceutical products and
        the
        projected revenues from these products are not adequate to support our expansion
        and product development programs.  We will need substantial additional
        funds to build our new production facilities, pursue further research and
        development, obtain regulatory approvals; file, prosecute, defend and enforce
        our intellectual property rights and market our products.  We will
        seek
        additional funds through public or private equity or debt financing, strategic
        transactions and/or from other sources.  We could enter into collaborative
        arrangements for the development of particular products that would lead to
        our
        relinquishing some or all rights to the related technology or
        products.
There
        are
        no assurances that future funding will be available on favorable terms or
        at
        all.  If additional funding is not obtained, we will need to reduce,
        defer
        or cancel development programs, planned initiatives or overhead expenditures,
        to
        the extent necessary.  The failure to fund our capital requirements
        would
        have a material adverse effect on our business, financial condition and results
        of operations.
Our
        Success Depends On Collaborative Partners, Licensees and Other Third Parties
        Over Whom We Have Limited Control
Due
        to
        the complexity of the process of developing bio-pharmaceuticals, our core
        business depends on arrangements with bio-pharmaceutical institutes, corporate
        and academic collaborators, licensors, licensees and others for the research,
        development, clinical testing, technology rights, manufacturing, marketing
        and
        commercialization of our products. We have various research collaborations
        and
        outsource other business functions.  Our license agreements could
        obligate
        us to diligently bring potential products to market, make milestone payments
        and
        royalties that, in some instances, could be substantial, and incur the costs
        of
        filing and prosecuting patent applications.  There are no assurances
        that
        we will be able to establish or maintain collaborations that are important
        to
        our business on favorable terms, or at all.
A
        number
        of risks arise from our dependence on collaborative agreements with third
        parties.  Product development and commercialization efforts could
        be
        adversely affected if any collaborative partner:
•
terminates
        or suspends its agreement with us
•
causes
        delays
•
fails
        to
        timely develop or manufacture in adequate quantities a substance needed in
        order
        to conduct clinical trials
•
fails
        to
        adequately perform clinical trials
•
determines
        not to develop, manufacture or commercialize a product to which it has rights
        or
•
otherwise
        fails to meet its contractual obligations.
Our
        collaborative partners could pursue other technologies or develop alternative
        products that could compete with the products we are developing.
The
        Profitability of Our Products Will Depend in Part on Our Ability to Protect
        Proprietary Rights and Operate Without Infringing the Proprietary Rights
        of
        Others
The
        profitability of our products will depend in part on our ability to obtain
        and
        maintain patents and licenses and preserve trade secrets, and the period
        our
        intellectual property remains exclusive.  We must also operate without
        infringing the proprietary rights of third parties and without third parties
        circumventing our rights. The patent positions of bio-pharmaceutical and
        biotechnology enterprises, including ours, are uncertain and involve complex
        legal and factual questions for which important legal principles are largely
        unresolved.  For example, no consistent policy has emerged regarding
        the
        breadth of biotechnology patent claims that are granted by the U.S. Patent
        and
        Trademark Office or enforced by the U.S. federal courts.  In addition,
        the
        scope of the originally claimed subject matter in a patent application can
        be
        significantly reduced before a patent is issued.  The biotechnology
        patent
        situation outside the U.S. is even more uncertain, is currently undergoing
        review and revision in many countries, and may not protect our intellectual
        property rights to the same extent as the laws of the U.S.  Because
        patent
        applications are maintained in secrecy in some cases, we cannot be certain
        that
        we or our licensors are the first creators of inventions described in our
        pending patent applications or patents or the first to file patent applications
        for such inventions.
Other
        companies may independently develop similar products and design around any
        patented products we develop.  We cannot assure you that:
•
any
        of
        our patent applications will result in the issuance of patents
•
we
        will
        develop additional patentable products
•
the
        patents we have been issued will provide us with any competitive
        advantages
•
the
        patents of others will not impede our ability to do business; or
•
third
        parties will not be able to circumvent our patents.
A
        number
        of pharmaceutical, biotechnology, research and academic companies and
        institutions have developed technologies, filed patent applications or received
        patents on technologies that may relate to our business.  If these
        technologies, applications or patents conflict with ours, the scope of our
        current or future patents could be limited or our patent applications could
        be
        denied.  Our business may be adversely affected if competitors
        independently develop competing technologies, especially if we do not obtain,
        or
        obtain only narrow, patent protection.  If patents that cover our
        activities are issued to other companies, we may not be able to obtain licenses
        at a reasonable cost, or at all; develop our technology; or introduce,
        manufacture or sell the products we have planned.
Patent
        litigation is becoming widespread in the biotechnology industry. 
        Such
        litigation may affect our efforts to form collaborations, to conduct research
        or
        development, to conduct clinical testing or to manufacture or market any
        products under development.  There are no assurances that our patents
        would
        be held valid or enforceable by a court or that a competitor's technology or
        product would be found to infringe our patents in the event of patent
        litigation.  Our business could be materially affected by an adverse
        outcome to such litigation.  Similarly, we may need to participate
        in
        interference proceedings declared by the U.S. Patent and Trademark Office
        or
        equivalent international authorities to determine priority of invention. 
        We could incur substantial costs and devote significant management resources
        to
        defend our patent position or to seek a declaration that another company's
        patents are invalid.
Much
        of
        our know-how and technology may not be patentable, though it may constitute
        trade secrets. There are no assurances that we will be able to meaningfully
        protect our trade secrets.  We cannot assure you that any of our existing
        confidentiality agreements with employees, consultants, advisors or
        collaborators will provide meaningful protection for our trade secrets, know-how
        or other proprietary information in the event of any unauthorized use or
        disclosure.  Collaborators, advisors or consultants may dispute the
        ownership of proprietary rights to our technology, for example by asserting
        that
        they developed the technology independently.
We
        May Encounter Difficulties in Manufacturing our
        Products
Before
        our products can be profitable, they must be produced in commercial quantities
        in a cost-effective manufacturing process that complies with regulatory
        requirements, including GMP, production and quality control regulations. 
        If we cannot arrange for or maintain commercial-scale manufacturing on
        acceptable terms, or if there are delays or difficulties in the manufacturing
        process, we may not be able to conduct clinical trials, obtain regulatory
        approval or meet demand for our products. Production of our products could
        require raw materials which are scarce or which can be obtained only from
        a
        limited number of sources.  If we are unable to obtain adequate supplies
        of
        such raw materials, the development, regulatory approval and marketing of
        our
        products could be delayed.
We
        Could Need More Clinical Trials or Take More Time to Complete Our Clinical
        Trials Than We Have Planned
Clinical
        trials vary in design by factors including dosage, end points, length, and
        controls.  We may need to conduct a series of trials to demonstrate
        the
        safety and efficacy of our products.  The results of these trials
        may not
        demonstrate safety or efficacy sufficiently for regulatory authorities to
        approve our products. Further, the actual schedules for our clinical trials
        could vary dramatically from the forecasted schedules due to factors including
        changes in trial design, conflicts with the schedules of participating
        clinicians and clinical institutions, and changes affecting product supplies
        for
        clinical trials.
We
        rely
        on collaborators, including academic institutions, governmental agencies
        and
        clinical research organizations, to conduct, supervise, monitor and design
        some
        or all aspects of clinical trials involving our products.  Since these
        trials depend on governmental participation and funding, we have less control
        over their timing and design than trials we sponsor.  Delays in or
        failure
        to commence or complete any planned clinical trials could delay the ultimate
        timelines for our product releases.  Such delays could reduce investors'
        confidence in our ability to develop products, likely causing our share price
        to
        decrease.
We
        May Not Be Able to Obtain the Regulatory Approvals or Clearances That Are
        Necessary to Commercialize Our Products
The
        PRC
        and other countries impose significant statutory and regulatory obligations
        upon
        the manufacture and sale of bio-pharmaceutical products.  Each regulatory
        authority typically has a lengthy approval process in which it examines
        pre-clinical and clinical data and the facilities in which the product is
        manufactured.  Regulatory submissions must meet complex criteria to
        demonstrate the safety and efficacy of the ultimate products.  Addressing
        these criteria requires considerable data collection, verification and
        analysis.  We may spend time and money preparing regulatory submissions
        or
        applications without assurances as to whether they will be approved on a
        timely
        basis or at all.
Our
        product candidates, some of which are currently in the early stages of
        development, will require significant additional development and pre-clinical
        and clinical testing prior to their commercialization. These steps and the
        process of obtaining required approvals and clearances can be costly and
        time-consuming.  If our potential products are not successfully developed,
        cannot be proven to be safe and effective through clinical trials, or do
        not
        receive applicable regulatory approvals and clearances, or if there are delays
        in the process:
•
the
                  commercialization of our products could be adversely
                  affected;
•
any
                  competitive advantages of the products could be diminished;
                  and
•
revenues
                  or collaborative milestones from the products could be reduced
                  or
                  delayed.
Governmental
        and regulatory authorities may approve a product candidate for fewer indications
        or narrower circumstances than requested or may condition approval on the
        performance of post-marketing studies for a product candidate.  Even
        if a
        product receives regulatory approval and clearance, it may later exhibit
        adverse
        side effects that limit or prevent its widespread use or that force us to
        withdraw the product from the market.
Any
        marketed product and its manufacturer will continue to be subject to strict
        regulation after approval.  Results of post-marketing programs may
        limit or
        expand the further marketing of products.  Unforeseen problems with
        an
        approved product or any violation of regulations could result in restrictions
        on
        the product, including its withdrawal from the market and possible civil
        actions.
In
        manufacturing our products we will be required to comply with applicable
        good
        manufacturing practices regulations, which include requirements relating
        to
        quality control and quality assurance, as well as the maintenance of records
        and
        documentation.  We cannot comply with regulatory requirements, including
        applicable good manufacturing practice requirements, we may not be allowed
        to
        develop or market the product candidates.  If we or our manufacturers
        fail
        to comply with applicable regulatory requirements at any stage during the
        regulatory process, we may be subject to sanctions, including fines, product
        recalls or seizures, injunctions, refusal of regulatory agencies to review
        pending market approval applications or supplements to approve applications,
        total or partial suspension of production, civil penalties, withdrawals of
        previously approved marketing applications and criminal
        prosecution.
Competitors
        May Develop and Market Bio-pharmaceutical Products That Are Less Expensive,
        More
        Effective or Safer, Making Our Products Obsolete or
        Uncompetitive
Some
        of
        our competitors and potential competitors have greater product development
        capabilities and financial, scientific, marketing and human resources than
        we
        do.  Technological competition from biopharmaceutical companies and
        biotechnology companies is intense and is expected to increase.  Other
        companies have developed technologies that could be the basis for competitive
        products.  Some of these products have an entirely different approach
        or
        means of accomplishing the desired curative effect than products we are
        developing.  Alternative products may be developed that are more effective,
        work faster and are less costly than our products.  Competitors may
        succeed
        in developing products earlier than us, obtaining approvals and clearances
        for
        such products more rapidly than us, or developing products that are more
        effective than ours.  In addition, other forms of treatment may be
        competitive with our products. Over time, our technology or products may
        become
        obsolete or uncompetitive.
Our
        Products May Not Gain Market Acceptance
Our
        products may not gain market acceptance in the agricultural community. 
        The
        degree of market acceptance of any product depends on a number of factors,
        including establishment and demonstration of clinical efficacy and safety,
        cost-effectiveness, clinical advantages over alternative products, and marketing
        and distribution support for the products.  Limited information regarding
        these factors is available in connection with our products or products that
        may
        compete with ours.
To
        directly market and distribute our bio-pharmaceutical products, we or our
        collaborators require a marketing and sales force with appropriate technical
        expertise and supporting distribution capabilities.  We may not be
        able to
        further establish sales, marketing and distribution capabilities or enter
        into
        arrangements with third parties on acceptable terms.  If we or our
        partners
        cannot successfully market and sell our products, our ability to generate
        revenue will be limited.
Our
        Operations and the Use of Our Products Could Subject Us to Damages Relating
        to
        Injuries or Accidental Contamination
Our
        research and development processes involve the controlled use of hazardous
        materials.  We are subject to federal, provincial and local laws and
        regulations governing the use, manufacture, storage, handling and disposal
        of
        such materials and waste products.  The risk of accidental contamination
        or
        injury from handling and disposing of such materials cannot be completely
        eliminated. In the event of an accident involving hazardous materials, we
        could
        be held liable for resulting damages.  We are not insured with respect
        to
        this liability.
Such
        liability could exceed our resources.  In the future we could incur
        significant costs to comply with environmental laws and
        regulations.
If
        we were successfully sued for product liability, we could face substantial
        liabilities that may exceed our resources.
We
        may be
        held liable if any product we develop, or any product which is made using
        our
        technologies, causes injury or is found unsuitable during product testing,
        manufacturing, marketing, sale or use. These risks are inherent in the
        development of agricultural and bio-pharmaceutical products. We currently
        do not
        have product liability insurance. We are not insured with respect to this
        liability. If we choose to obtain product liability insurance but cannot
        obtain
        sufficient insurance coverage at an acceptable cost or otherwise protect
        against
        potential product liability claims, the commercialization of products that
        we
        develop may be prevented or inhibited. If we are sued for any injury caused
        by
        our products, our liability could exceed our total assets.
We
        have limited business insurance coverage.
The
        insurance industry in China is still at an early stage of development. Insurance
        companies in China offer limited business insurance products. We do not have
        any
        business liability or disruption insurance coverage for our operations in
        China.
        Any business disruption, litigation or natural disaster may result in our
        incurring substantial costs and the diversion of our resources.
Our
        Success Depends On Attracting and Retaining Qualified
        Personnel
We
        depend
        on a core management and scientific team.  The loss of any of these
        individuals could prevent us from achieving our business objective of
        commercializing our product candidates.  Our future success will depend
        in
        large part on our continued ability to attract and retain other highly qualified
        scientific, technical and management personnel, as well as personnel with
        expertise in clinical testing and government regulation.  We face
        competition for personnel from other companies, universities, public and
        private
        research institutions, government entities and other organizations. 
        If our
        recruitment and retention efforts are unsuccessful, our business operations
        could suffer.
Risks
        Related to Our Corporate Structure
PRC
        laws and regulations governing our businesses and the validity of certain
        of our
        contractual arrangements are uncertain. If we are found to be in violation,
        we
        could be subject to sanctions. In addition, changes in such PRC laws and
        regulations may materially and adversely affect our business.
There
        are
        substantial uncertainties regarding the interpretation and application of
        PRC
        laws and regulations, including, but not limited to, the laws and regulations
        governing our business, or the enforcement and performance of our contractual
        arrangements with our affiliated Chinese entity, Xian Tianxing, and its
        shareholders. We are considered a foreign person or foreign invested enterprise
        under PRC law. As a result, we are subject to PRC law limitations on foreign
        ownership of Chinese companies. These laws and regulations are relatively
        new
        and may be subject to change, and their official interpretation and enforcement
        may involve substantial uncertainty. The effectiveness of newly enacted laws,
        regulations or amendments may be delayed, resulting in detrimental reliance
        by
        foreign investors. New laws and regulations that affect existing and proposed
        future businesses may also be applied retroactively.
The
        PRC
        government has broad discretion in dealing with violations of laws and
        regulations, including levying fines, revoking business and other licenses
        and
        requiring actions necessary for compliance. In particular, licenses and permits
        issued or granted to us by relevant governmental bodies may be revoked at
        a
        later time by higher regulatory bodies. We cannot predict the effect of the
        interpretation of existing or new PRC laws or regulations on our businesses.
        We
        cannot assure you that our current ownership and operating structure would
        not
        be found in violation of any current or future PRC laws or regulations. As
        a
        result, we may be subject to sanctions, including fines, and could be required
        to restructure our operations or cease to provide certain services. Any of
        these
        or similar actions could significantly disrupt our business operations or
        restrict us from conducting a substantial portion of our business operations,
        which could materially and adversely affect our business, financial condition
        and results of operations.
We
        may be adversely affected by complexity, uncertainties and changes in PRC
        regulation of bio-pharmaceutical business and companies, including limitations
        on our ability to own key assets.
The
        PRC
        government regulates the bio-pharmaceutical industry including foreign ownership
        of, and the licensing and permit requirements pertaining to, companies in
        the
        bio-pharmaceutical industry. These laws and regulations are relatively new
        and
        evolving, and their interpretation and enforcement involve significant
        uncertainty. As a result, in certain circumstances it may be difficult to
        determine what actions or omissions may be deemed to be a violation of
        applicable laws and regulations. Issues, risks and uncertainties relating
        to PRC
        government regulation of the bio-pharmaceutical industry include the following:
•
we
                  only have contractual control over Xian Tianxing. We do not own
                  it due to
                  the restriction of foreign investment in Chinese businesses;
                  and
•
uncertainties
                  relating to the regulation of the bio-pharmaceutical business in
                  China,
                  including evolving licensing practices, means that permits, licenses
                  or
                  operations at our company may be subject to challenge. This may
                  disrupt
                  our business, or subject us to sanctions, requirements to increase
                  capital
                  or other conditions or enforcement, or compromise enforceability
                  of
                  related contractual arrangements, or have other harmful effects
                  on
                  us.
The
        interpretation and application of existing PRC laws, regulations and policies
        and possible new laws, regulations or policies have created substantial
        uncertainties regarding the legality of existing and future foreign investments
        in, and the businesses and activities of, bio-pharmaceutical businesses in
        China, including our business.
In
        order to comply with PRC laws limiting foreign ownership of Chinese companies,
        we conduct our bio-pharmaceutical business through Xian Tianxing by means
        of
        contractual arrangements. If the PRC government determines that these
        contractual arrangements do not comply with applicable regulations, our business
        could be adversely affected.
The
        PRC
        government restricts foreign investment in bio-pharmaceutical businesses
        in
        China. Accordingly, we operate our business in China through Xian Tianxing,
        a  Chinese joint stock company. Xian Tianxing holds the licenses and
        approvals necessary to operate our website and our online advertising business
        in China. We have contractual arrangements with Xian Tianxing and its
        shareholders that allow us to substantially control Xian Tianxing. We cannot
        assure you, however, that we will be able to enforce these contracts.
Although
        we believe we comply with current PRC regulations, we cannot assure you that
        the
        PRC government would agree that these operating arrangements comply with
        PRC
        licensing, registration or other regulatory requirements, with existing policies
        or with requirements or policies that may be adopted in the future. If the
        PRC
        government determines that we do not comply with applicable law, it could
        revoke
        our business and operating licenses, require us to discontinue or restrict
        our
        operations, restrict our right to collect revenues, require us to restructure
        our operations, impose additional conditions or requirements with which we
        may
        not be able to comply, impose restrictions on our business operations or
        on our
        customers, or take other regulatory or enforcement actions against us that
        could
        be harmful to our business.
Our
        contractual arrangements with Xian Tianxing and its shareholders may not
        be as
        effective in providing control over these entities as direct ownership.
Since
        PRC
        law limits foreign equity ownership in Internet and advertising companies
        in
        China, we operate our ICP and advertising businesses through Xian Tianxing.
        We
        have no equity ownership interest in Xian Tianxing and rely on contractual
        arrangements to control and operate such businesses. These contractual
        arrangements may not be as effective in providing control over Xian Tianxing
        as
        direct ownership. For example, Xian Tianxing could fail to take actions required
        for our business despite its contractual obligation to do so. If Xian Tianxing
        fails to perform under their agreements with us, we may have to rely on legal
        remedies under PRC law, which may not be effective. In addition, we cannot
        assure you that either of Xian Tianxing's shareholders would always act in our
        best interests.
The
        Chairman of the Board of Directors of Xian Tianxing has potential conflicts
        of
        interest with us, which may adversely affect our business.
Weibing
        Lu, our Chief Executive Officer, is also the Chairman of the Board of Directors
        of Xian Tianxing. Conflicts of interests between his duties to our company
        and
        Xian Tianxing may arise. As Mr. Lu is a director and executive officer of
        our
        company, he has a duty of loyalty and care to us under Cayman Islands law
        when
        there are any potential conflicts of interests between our company and Xian
        Tianxing. We cannot assure you, however, that when conflicts of interest
        arise,
        Mr. Lu will act completely in our interests or that conflicts of interests
        will
        be resolved in our favor. In addition, Mr. Lu could violate his legal duties
        by
        diverting business opportunities from us to others. If we cannot resolve
        any
        conflicts of interest between us and Mr. Lu, we would have to rely on legal
        proceedings, which could result in the disruption of our business.
Risks
        Related to Doing Business in China
Adverse
        changes in economic and political policies of the PRC government could have
        a
        material adverse effect on the overall economic growth of China, which could
        adversely affect our business.
Substantially
        all of our business operations are conducted in China. Accordingly, our results
        of operations, financial condition and prospects are subject to a significant
        degree to economic, political and legal developments in China. China's economy
        differs from the economies of most developed countries in many respects,
        including with respect to the amount of government involvement, level of
        development, growth rate, control of foreign exchange and allocation of
        resources. While the PRC economy has experienced significant growth in the
        past
        20 years, growth has been uneven across different regions and among various
        economic sectors of China. The PRC government has implemented various measures
        to encourage economic development and guide the allocation of resources.
        Some of
        these measures benefit the overall PRC economy, but may also have a negative
        effect on us. For example, our financial condition and results of operations
        may
        be adversely affected by government control over capital investments or changes
        in tax regulations that are applicable to us. Since early 2004, the PRC
        government has implemented certain measures to control the pace of economic
        growth. Such measures may cause a decrease in the level of economic activity
        in
        China, which in turn could adversely affect our results of operations and
        financial condition.
If
        PRC law were to phase out the preferential tax benefits currently being extended
        to foreign invested enterprises and "new or high-technology enterprises" located
        in a high-tech zone, we would have to pay more taxes, which could have a
        material and adverse effect on our financial condition and results of
        operations.
Under
        PRC
        laws and regulations, a foreign invested enterprise may enjoy preferential
        tax
        benefits if it is registered in a high-tech zone and also qualifies as "new or
        high-technology enterprise". As a foreign invested enterprise as well as a
        certified "new or high-technology enterprise" located in a high-tech zone in
        Beijing, Skystar is entitled to a three-year exemption from enterprise income
        tax beginning from its first year of operation, a 7.5% enterprise income
        tax
        rate for another three years followed by a 15% tax rate so long as it continues
        to qualify as a "new or high-technology enterprise." Skystar is currently
        subject to a 7.5% enterprise income tax rate and will become subject to a
        15%
        rate beginning in 2006 for so long as its status as a "new or high-technology
        enterprise" remains unchanged. Furthermore, Skystar may apply for a refund of
        the 5% business tax levied on its total revenues derived from its technology
        consulting services. If the PRC law were to phase out preferential tax benefits
        currently granted to "new or high-technology enterprises" and technology
        consulting services, we would be subject to the standard statutory tax rate,
        which currently is 33%, and we would be unable to obtain business tax refunds
        for our provision of technology consulting services. Loss of these preferential
        tax treatments could have a material and adverse effect on our financial
        condition and results of operations.
Xian
        Tianxing are subject to restrictions on making payments to us.
We
        are a
        holding company incorporated in the Cayman Islands and do not have any assets
        or
        conduct any business operations other than our investments in our affiliated
        entity in China, Xian Tianxing. As a result of our holding company structure,
        we
        rely entirely on payments from Xian Tianxing under our contractual arrangements.
        The PRC government also imposes controls on the conversion of RMB into foreign
        currencies and the remittance of currencies out of China. We may experience
        difficulties in completing the administrative procedures necessary to obtain
        and
        remit foreign currency. See "—Government control of currency conversion may
        affect the value of your investment." Furthermore, if our affiliated entity in
        China incurs debt on their own in the future, the instruments governing the
        debt
        may restrict their ability to make payments. If we are unable to receive
        all of
        the revenues from our operations through these contractual or dividend
        arrangements, we may be unable to pay dividends on our ordinary shares.
Uncertainties
        with respect to the PRC legal system could adversely affect us.
We
        conduct our business primarily through our affiliated Chinese entity, Xian
        Tianxing. Our operations in China are governed by PRC laws and regulations.
        We
        are generally subject to laws and regulations applicable to foreign investments
        in China and, in particular, laws applicable to wholly foreign-owned
        enterprises. The PRC legal system is based on written statutes. Prior court
        decisions may be cited for reference but have limited precedential value.
Since
        1979, PRC legislation and regulations have significantly enhanced the
        protections afforded to various forms of foreign investments in China. However,
        China has not developed a fully integrated legal system and recently enacted
        laws and regulations may not sufficiently cover all aspects of economic
        activities in China. In particular, because these laws and regulations are
        relatively new, and because of the limited volume of published decisions
        and
        their nonbinding nature, the interpretation and enforcement of these laws
        and
        regulations involve uncertainties. In addition, the PRC legal system is based
        in
        part on government policies and internal rules (some of which are not published
        on a timely basis or at all) that may have a retroactive effect. As a result,
        we
        may not be aware of our violation of these policies and rules until some
        time
        after the violation. In addition, any litigation in China may be protracted
        and
        result in substantial costs and diversion of resources and management attention.
You
        may experience difficulties in effecting service of legal process, enforcing
        foreign judgments or bringing original actions in China based on United States
        or other foreign laws against us, our management or the experts named in
        the
        prospectus.
We
        conduct substantially all of our operations in China and substantially all
        of
        our assets are located in China. In addition, all of our senior executive
        officers reside within China. As a result, it may not be possible to effect
        service of process within the United States or elsewhere outside China upon
        our
        senior executive officers, including with respect to matters arising under
        U.S.
        federal securities laws or applicable state securities laws. Moreover, our
        PRC
        counsel has advised us that the PRC does not have treaties with the United
        States or many other countries providing for the reciprocal recognition and
        enforcement of judgment of courts.
Governmental
        control of currency conversion may affect the value of your investment.
The
        PRC
        government imposes controls on the convertibility of RMB into foreign currencies
        and, in certain cases, the remittance of currency out of China. We receive
        substantially all of our revenues in RMB. Under our current structure, our
        income is primarily derived from payments from Xian Tianxing. Shortages in
        the
        availability of foreign currency may restrict the ability of our PRC
        subsidiaries and our affiliated entity to remit sufficient foreign currency
        to
        pay dividends or other payments to us, or otherwise satisfy their foreign
        currency denominated obligations. Under existing PRC foreign exchange
        regulations, payments of current account items, including profit distributions,
        interest payments and expenditures from trade-related transactions, can be
        made
        in foreign currencies without prior approval from the PRC State Administration
        of Foreign Exchange by complying with certain procedural requirements. However,
        approval from appropriate government authorities is required where RMB is
        to be
        converted into foreign currency and remitted out of China to pay capital
        expenses such as the repayment of bank loans denominated in foreign currencies.
        The PRC government may also at its discretion restrict access in the future
        to
        foreign currencies for current account transactions. If the foreign exchange
        control system prevents us from obtaining sufficient foreign currency to
        satisfy
        our currency demands, we may not be able to pay dividends in foreign currencies
        to our shareholders.
Fluctuation
        in the value of RMB may have a material adverse effect on your investment.
The
        value
        of RMB against the U.S. dollar and other currencies may fluctuate and is
        affected by, among other things, changes in political and economic conditions.
        Our revenues and costs are mostly denominated in RMB, while a significant
        portion of our financial assets are denominated in U.S. dollars. We rely
        entirely on fees paid to us by our affiliated entity in China. Any significant
        fluctuation in value of RMB may materially and adversely affect our cash
        flows,
        revenues, earnings and financial position, and the value of, and any dividends
        payable on, our stock in U.S. dollars. For example, an appreciation of RMB
        against the U.S. dollar would make any new RMB denominated investments or
        expenditures more costly to us, to the extent that we need to convert U.S.
        dollars into RMB for such purposes. An appreciation of RMB against the U.S.
        dollar would also result in foreign currency translation losses for financial
        reporting purposes when we translate our U.S. dollar denominated financial
        assets into RMB, as RMB is our reporting currency.
We
        face risks related to health epidemics and other outbreaks.
Our
        business could be adversely affected by the effects of SARS or another epidemic
        or outbreak. China reported a number of cases of SARS in April 2004. Any
        prolonged recurrence of SARS or other adverse public health developments
        in
        China may have a material adverse effect on our business operations. For
        instance, health or other government regulations adopted in response may
        require
        temporary closure of our production facilities or of our offices. Such closures
        would severely disrupt our business operations and adversely affect our results
        of operations. We have not adopted any written preventive measures or
        contingency plans to combat any future outbreak of SARS or any other epidemic.
Risks
        Related to an Investment in Our Securities
To
        Date, We Have Not Paid Any Cash Dividends and No Cash Dividends Will be Paid
        in
        the Foreseeable Future.
We
        do not
        anticipate paying cash dividends on our common stock in the foreseeable future
        and we may not have sufficient funds legally available to pay dividends.
        Even if
        the funds are legally available for distribution, we may nevertheless decide
        not
        to pay any dividends. We intend to retain all earnings for the company's
        operations.
The
        Application of the "Penny Stock" Rules Could Adversely Affect the Market
        Price
        of Our Common Stock and Increase Your Transaction Costs to Sell Those Shares.
As
        long
        as the trading price of our common shares is below $5 per share, the open-market
        trading of our common shares will be subject to the "penny stock" rules.
        The
        "penny stock" rules impose additional sales practice requirements on
        broker-dealers who sell securities to persons other than established customers
        and accredited investors (generally those with assets in excess of $1,000,000
        or
        annual income exceeding $200,000 or $300,000 together with their spouse).
        For
        transactions covered by these rules, the broker-dealer must make a special
        suitability determination for the purchase of securities and have received
        the
        purchaser's written consent to the transaction before the purchase.
        Additionally, for any transaction involving a penny stock, unless exempt,
        the
        broker-dealer must deliver, before the transaction, a disclosure schedule
        prescribed by the Securities and Exchange Commission relating to the penny
        stock
        market. The broker-dealer also must disclose the commissions payable to both
        the
        broker-dealer and the registered representative and current quotations for
        the
        securities. Finally, monthly statements must be sent disclosing recent price
        information on the limited market in penny stocks. These additional burdens
        imposed on broker-dealers may restrict the ability or decrease the willingness
        of broker-dealers to sell our common shares, and may result in decreased
        liquidity for our common shares and increased transaction costs for sales
        and
        purchases of our common shares as compared to other securities.
Our
        Common Shares are Thinly Traded and, You May be Unable to Sell at or Near
        Ask
        Prices or at All if You Need to Sell Your Shares to Raise Money or Otherwise
        Desire to Liquidate Your Shares.
The
        Company cannot predict the extent to which an active public market for its
        common stock will develop or be sustained. However, the Company does not
        rule
        out the possibility of applying for listing on the Nasdaq National Market
        or
        other exchanges.
Our
        common shares have historically been sporadically or "thinly-traded" on the
        "Over-the-Counter Bulletin Board", meaning that the number of persons interested
        in purchasing our common shares at or near bid prices at any given time may
        be
        relatively small or non-existent. This situation is attributable to a number
        of
        factors, including the fact that we are a small company which is relatively
        unknown to stock analysts, stock brokers, institutional investors and others
        in
        the investment community that generate or influence sales volume, and that
        even
        if we came to the attention of such persons, they tend to be risk-averse
        and
        would be reluctant to follow an unproven company such as ours or purchase
        or
        recommend the purchase of our shares until such time as we became more seasoned
        and viable. As a consequence, there may be periods of several days or more
        when
        trading activity in our shares is minimal or non-existent, as compared to
        a
        seasoned issuer which has a large and steady volume of trading activity that
        will generally support continuous sales without an adverse effect on share
        price. We cannot give you any assurance that a broader or more active public
        trading market for our common stock will develop or be sustained, or that
        current trading levels will be sustained.
The
        market price for our common stock is particularly volatile given our status
        as a
        relatively small company with a small and thinly traded "float" and lack of
        current revenues that could lead to wide fluctuations in our share price.
        The
        price at which you purchase our common stock may not be indicative of the
        price
        that will prevail in the trading market. You may be unable to sell your common
        stock at or above your purchase price if at all, which may result in substantial
        losses to you.
The
        market for our common shares is characterized by significant price volatility
        when compared to seasoned issuers, and we expect that our share price will
        continue to be more volatile than a seasoned issuer for the indefinite future.
        The volatility in our share price is attributable to a number of factors.
        First,
        as noted above, our common shares are sporadically and/or thinly traded.
        As a
        consequence of this lack of liquidity, the trading of relatively small
        quantities of shares by our shareholders may disproportionately influence
        the
        price of those shares in either direction. The price for our shares could,
        for
        example, decline precipitously in the event that a large number of our common
        shares are sold on the market without commensurate demand, as compared to
        a
        seasoned issuer which could better absorb those sales without adverse impact
        on
        its share price. Secondly, we are a speculative or "risky" investment due
        to our
        lack of revenues or profits to date and uncertainty of future market acceptance
        for our current and potential products. As a consequence of this enhanced
        risk,
        more risk-adverse investors may, under the fear of losing all or most of
        their
        investment in the event of negative news or lack of progress, be more inclined
        to sell their shares on the market more quickly and at greater discounts
        than
        would be the case with the stock of a seasoned issuer. The following factors
        may
        add to the volatility in the price of our common shares: actual or anticipated
        variations in our quarterly or annual operating results; adverse outcomes;
        the
        termination of our contractual agreements with Xian Tianxing; and additions
        or
        departures of our key personnel, as well as other items discussed under this
        "Risk Factors" section, as well as elsewhere in this Current Report. Many
        of
        these factors are beyond our control and may decrease the market price of
        our
        common shares, regardless of our operating performance. We cannot make any
        predictions or projections as to what the prevailing market price for our
        common
        shares will be at any time, including as to whether our common shares will
        sustain their current market prices, or as to what effect that the sale of
        shares or the availability of common shares for sale at any time will have
        on
        the prevailing market price. However, the Company does not rule out the
        possibility of applying for listing on the Nasdaq National Market or other
        exchanges.
Shareholders
        should be aware that, according to SEC Release No. 34-29093, the market for
        penny stocks has suffered in recent years from patterns of fraud and abuse.
        Such
        patterns include (1) control of the market for the security by one or a few
        broker-dealers that are often related to the promoter or issuer; (2)
        manipulation of prices through prearranged matching of purchases and sales
        and
        false and misleading press releases; (3) boiler room practices involving
        high-pressure sales tactics and unrealistic price projections by inexperienced
        sales persons; (4) excessive and undisclosed bid-ask differential and markups
        by
        selling broker-dealers; and (5) the wholesale dumping of the same securities
        by
        promoters and broker-dealers after prices have been manipulated to a desired
        level, along with the resulting inevitable collapse of those prices and with
        consequent investor losses. Our management is aware of the abuses that have
        occurred historically in the penny stock market. Although we do not expect
        to be
        in a position to dictate the behavior of the market or of broker-dealers
        who
        participate in the market, management will strive within the confines of
        practical limitations to prevent the described patterns from being established
        with respect to our securities. The occurrence of these patterns or practices
        could increase the volatility of our share price.
Volatility
        in Our Common Share Price May Subject Us to Securities Litigation.
The
        market for our common stock is characterized by significant price volatility
        when compared to seasoned issuers, and we expect that our share price will
        continue to be more volatile than a seasoned issuer for the indefinite future.
        In the past, plaintiffs have often initiated securities class action litigation
        against a company following periods of volatility in the market price of
        its
        securities. We may, in the future, be the target of similar litigation.
        Securities litigation could result in substantial costs and liabilities and
        could divert management's attention and resources.
Our
        corporate actions are substantially controlled by our principal shareholders
        and
        affiliated entities.
Our
        principal shareholders and their affiliated entities will own approximately
        89.5% of our outstanding ordinary shares, representing approximately 89.5%
        of
        our voting power. These shareholders, acting individually or as a group,
        could
        exert substantial influence over matters such as electing directors and
        approving mergers or other business combination transactions. In addition,
        because of the percentage of ownership and voting concentration in these
        principal shareholders and their affiliated entities, elections of our board
        of
        directors will generally be within the control of these shareholders and
        their
        affiliated entities. While all of our shareholders are entitled to vote on
        matters submitted to our shareholders for approval, the concentration of
        shares
        and voting control presently lies with these principal shareholders and their
        affiliated entities. As such, it would be difficult for shareholders to propose
        and have approved proposals not supported by management. There can be no
        assurances that matters voted upon by our officers and directors in their
        capacity as shareholders will be viewed favorably by all shareholders of
        the
        company.
The
        Elimination of Monetary Liability Against our Directors, Officers and Employees
        under Nevada law and the Existence of Indemnification Rights to our Directors,
        Officers and Employees may Result in Substantial Expenditures by our Company
        and
        may Discourage Lawsuits Against our Directors, Officers and Employees.
Our
        articles of incorporation do not contain any specific provisions that eliminate
        the liability of our directors for monetary damages to our company and
        shareholders, however we are prepared to give such indemnification to our
        directors and officers to the extent provided by Nevada law. We may also
        have
        contractual indemnification obligations under our employment agreements with
        our
        officers. The foregoing indemnification obligations could result in our company
        incurring substantial expenditures to cover the cost of settlement or damage
        awards against directors and officers, which we may be unable to recoup.
        These
        provisions and resultant costs may also discourage our company from bringing
        a
        lawsuit against directors and officers for breaches of their fiduciary duties,
        and may similarly discourage the filing of derivative litigation by our
        shareholders against our directors and officers even though such actions,
        if
        successful, might otherwise benefit our company and shareholders.
Legislative
        Actions, Higher Insurance Costs and Potential New Accounting Pronouncements
        may
        Impact our Future Financial Position and Results of
        Operations.
There
        have been regulatory changes, including the Sarbanes-Oxley Act of 2002, and
        there may potentially be new accounting pronouncements or additional regulatory
        rulings that will have an impact on our future financial position and results
        of
        operations. The Sarbanes-Oxley Act of 2002 and other rule changes as well
        as
        proposed legislative initiatives following the Enron bankruptcy are likely
        to
        increase general and administrative costs and expenses. In addition, insurers
        are likely to increase premiums as a result of high claims rates over the
        past
        several years, which we expect will increase our premiums for insurance
        policies. Further, there could be changes in certain accounting rules. These
        and
        other potential changes could materially increase the expenses we report
        under
        generally accepted accounting principles, and adversely affect our operating
        results.
Past
        Activities Of The Company And Its Affiliates May Lead To Future Liability
        For
        The Company.
Prior
        to
        our entry into the contractual arrangements with Xian Tianxing on October
        28,
        2005, the Company engaged in businesses unrelated to its current operations.
        Although the CGPN Shareholders are providing certain indemnifications against
        any loss, liability, claim, damage or expense arising out of or based on
        any
        breach of or inaccuracy in any of their representations and warranties made
        regarding such acquisition, any liabilities relating to such prior business
        against which Skystar is not completely indemnified may have a material adverse
        effect on the Company.
The
        market price for our stock may be volatile.
The
        market price for our stock may be volatile and subject to wide fluctuations
        in
        response to factors including the following:
•
actual
        or
        anticipated fluctuations in our quarterly operating results;
•
changes
        in financial estimates by securities research analysts;
•
conditions
        in bio-pharmaceutical and agricultural markets;
•
changes
        in the economic performance or market valuations of other bio-pharmaceutical
        companies;
•
announcements
        by us or our competitors of new products, acquisitions, strategic partnerships,
        joint ventures or capital commitments;
•
addition
        or departure of key personnel;
•
fluctuations
        of exchange rates between RMB and the U.S. dollar;
•
intellectual
        property litigation;
•
general
        economic or political conditions in China.
In
        addition, the securities market has from time to time experienced significant
        price and volume fluctuations that are not related to the operating performance
        of particular companies. These market fluctuations may also materially and
        adversely affect the market price of our stock.
We
        may need additional capital, and the sale of additional shares or other equity
        securities could result in additional dilution to our shareholders.
We
        believe that our current cash and cash equivalents, anticipated cash flow
        from
        operations and the net proceeds from this offering will be sufficient to
        meet
        our anticipated cash needs for the near future. We may, however, require
        additional cash resources due to changed business conditions or other future
        developments, including any investments or acquisitions we may decide to
        pursue.
        If our resources are insufficient to satisfy our cash requirements, we may
        seek
        to sell additional equity or debt securities or obtain a credit facility.
        The
        sale of additional equity securities could result in additional dilution
        to our
        shareholders. The incurrence of indebtedness would result in increased debt
        service obligations and could result in operating and financing covenants
        that
        would restrict our operations. We cannot assure you that financing will be
        available in amounts or on terms acceptable to us, if at all.
If
        we fail to maintain an effective system of internal controls, we may not
        be able
        to accurately report our financial results or prevent fraud.
We
        will
        be subject to reporting obligations under the U.S. securities laws. The
        Securities and Exchange Commission, or the SEC, as required by Section 404
        of
        the Sarbanes-Oxley Act of 2002, adopted rules requiring every public company
        to
        include a management report on such company's internal controls over financial
        reporting in its annual report, which contains management's assessment of the
        effectiveness of the company's internal controls over financial reporting. In
        addition, an independent registered public accounting firm must attest to
        and
        report on management's assessment of the effectiveness of the company's internal
        controls over financial reporting. Our management may conclude that our internal
        controls over our financial reporting are not effective. Moreover, even if
        our
        management concludes that our internal controls over financial reporting
        are
        effective, our independent registered public accounting firm may still decline
        to attest to our management's assessment or may issue a report that is qualified
        if it is not satisfied with our controls or the level at which our controls
        are
        documented, designed, operated or reviewed, or if it interprets the relevant
        requirements differently from us. Our reporting obligations as a public company
        will place a significant strain on our management, operational and financial
        resources and systems for the foreseeable future. Effective internal controls,
        particularly those related to revenue recognition, are necessary for us to
        produce reliable financial reports and are important to help prevent fraud.
        As a
        result, our failure to achieve and maintain effective internal controls over
        financial reporting could result in the loss of investor confidence in the
        reliability of our financial statements, which in turn could harm our business
        and negatively impact the trading price of our stock. Furthermore, we anticipate
        that we will incur considerable costs and use significant management time
        and
        other resources in an effort to comply with Section 404 and other requirements
        of the Sarbanes-Oxley Act.
We
        will incur increased costs as a result of being a public company.
As
        a
        public company, we will incur significant legal, accounting and other expenses
        that we did not incur as a private company. In addition, the Sarbanes-Oxley
        Act,
        as well as new rules subsequently implemented by SEC have required changes
        in
        corporate governance practices of public companies. We expect these new rules
        and regulations to increase our legal, accounting and financial compliance
        costs
        and to make certain corporate activities more time-consuming and costly.
        In
        addition, we will incur additional costs associated with our public company
        reporting requirements. We are currently evaluating and monitoring developments
        with respect to these new rules, and we cannot predict or estimate the amount
        of
        additional costs we may incur or the timing of such costs.
DESCRIPTION
        OF PROPERTY
The
        Company's headquarters is currently located in approximately 345 square meters
        of office space at Rm. 10601, Jiezuo Plaza, No.4, Fenghui Road South, Gaoxin
        District, Xian Province, PRC. This property belongs to the Xian Tianxing
        and is
        where our Xian Tianxing's multiple business divisions are located.
Existing
        Production Facilities
Currently,
        the Xian Tianxing has four plants that are located at San Qiao, Xi'an city,
        Shanxi Province, PRC. The Company owns these 4 plants and has obtained a
        prepaid
        land use right to acquire a long-term interest to utilize the land underlying
        the property facility. In addition, Xian Tianxing entered into a tenancy
        agreement for the lease of factory premises for a period of ten years from
        October 1, 2004 to September 30, 2014. The annual rent for the factory premises
        is $10,361 and is also subject to a 10% increase every four subsequent years.
        The Company's production facilities are described as follows:
1.
Bio-pharmaceutical
                  plant
.
                  Constructed according to national Good Manufacturing Practice ("GMP")
                  standards, this plant occupies an of area of approximately 2,000
                  square
                  meters and has an annual production capacity of vaccines for approximately
                  2 billion livestock and poultry.
2.
Veterinary
                  medicine plant
.
                  Also constructed according to national GMP standards, this plant
                  occupies
                  an area of approximately 1,000 square meters and has a production
                  capacity
                  of approximately 2 billion bottles of liquid preparations and 300
                  tons of
                  powder preparations.
3.
Microorganism
                  plant
.
                  Occupying an area of approximately 380 square meters, this production
                  plant is run in cooperation with experts from Japan Kato Microbiology
                  Institute, Microbiology Institute of Shanxi Province and Northwest
                  Agro-Forestry Sci-tech University.
4.
Feed
                  additive plant
.
                  This production facility occupies an area of approximately 380
                  square
                  meters.
We
        believe that the general physical condition of the plants and production
        facilities of the company can completely satisfy our current production needs
        of
        the company in terms of quantity and production quality
.
Expansion
        of Production Facilities
In
        2003,
        the Xian Tianxing received approval from the State Council of China to expand
        its production facilities and construct a new Good Manufacturing Practice
        ("GMP") standard plant. The entire expansion project will cost approximately RMB
        69,410,000 (US$8,500,000). The Company's total investment in this project
        includes approximately $7,000,000 for the facilities and $1,500,000 for working
        capital. Xian Tianxing has been accredited as a high-tech enterprise, and
        the
        Company's expansion project has gained full support of both Shanxi provincial
        government and Xian municipal government.
The
        construction work commenced in late 2004 and will be completed by the third
        quarter in 2005. The new plant will occupy 47 hectares and have a total area
        of
        about 14,100 sq. meters, comprising:
1.
a
                  factory that will produce veterinary medicines will occupy an area
                  of
                  approximately 4,200 square meters;
2.
a
                  microorganism factory for probiotic production will occupy an area
                  of
                  approximately 1,000 square meters;
3.
a
                  building for quality control, research and development, and administration
                  will occupy an area of approximately 3,400 square
                  meters;
4.
a
                  GMP standard bio-pharmaceutical factory with a total area of about
                  4,500
                  square meters and three production lines for active bacteria, inactivated
                  vaccines, and coccidiosis vaccines;
                  and
5.
an
                  animal laboratory complying ABSL-2 requirements will occupy an
                  area of
                  approximately about 1,000 sq.
                  meters.
Xian
        Tianxing's administration building, as well as the first phase of the
        microorganism and veterinary medicine factories have already been completed.
        Upon completion, the microorganism and veterinary medicine factories will
        be
        submitted to PRC Ministry of Agriculture's Veterinary Drugs GMP Inspection
        Committee for inspection and approval. The three remaining bio-pharmaceutical
        production lines are expected to be completed in March 2006 and will also
        be
        submitted to Ministry of Agriculture for GMP inspection upon
        completion.
SECURITY
        OWNERSHIP OF CERTAIN
BENEFICIAL
        OWNERS AND MANAGEMENT
SECURITY
        OWNERSHIP OF BENEFICIAL OWNERSHIP AND MANAGEMENT
PRIOR
        TO THE SHARE EXCHANGE
The
        following table sets forth, as of November 7, 2005, certain information
        regarding the ownership of the Company's capital stock by the following persons
        on such date: each of the directors and executive officers, each person who
        is
        known to be a beneficial owner of more than 5% of any class of our voting
        stock,
        and all of our officers and directors as a group. Unless otherwise indicated
        below, to our knowledge, all persons listed below had sole voting and investing
        power with respect to their shares of capital stock, except to the extent
        authority was shared by spouses under applicable community property
        laws.
Beneficial
        ownership is determined in accordance with the rules of the Securities and
        Exchange Commission and generally includes voting or investment power with
        respect to securities. Shares of our common stock subject to options, warrants
        or convertible securities exercisable or convertible within 60 days of November
        7, 2005 were deemed outstanding for computing the percentage of the person
        or
        entity holding such options, warrants or convertible securities but are not
        deemed outstanding for computing the percentage of any other person, and
        was
        based on
500,000,000
shares
        of the Common Stock issued and outstanding on a fully diluted basis, as of
        November 7, 2005.
Title
                  of
Class
Name
                  and Address
Of
Beneficial
                  Owners (1)
Amount
                  and Nature
Of
                  Beneficial Ownership
Percent
Of
Class
Common
                  Stock
R.
                  Scott Cramer,
1012
                  Lewis Dr.
Winter
                  Park, FL 32789
231,144,289
(2)
46%
Common
                  Stock
Steve
                  Lowe
1012
                  Lewis Dr.
Winter
                  Park, FL 32789
74,798,819
15%
Common
                  Stock
David
                  Wassung
51,611,364
10%
All
                  officers and directors as a group (3 persons)
357,554,472
72%
(1)
Unless
                  otherwise noted, the address for each of the named beneficial owners
                  and
                  directors and officers is Post Office Box 948264, Maitland, FL
                  32794-8264.
(2)
R.
                  Scott Cramer is Chairman, Chief Executive Officer and Chief Financial
                  Officer of The Cyber Group.
(3)
Steve
                  Lowe is President and a Director of The Cyber
                  Group.
(4)
David
                  Wassung is a Director of The Cyber
                  Group.
SECURITY
        OWNERSHIP OF BENEFICIAL OWNERSHIP AND MANAGEMENT
AFTER
        THE SHARE EXCHANGE
The
        following table sets forth information as of November 7, 2005 with respect
        to
        the beneficial ownership of the outstanding shares of Company's capital stock
        immediately following the Share Exchange by (i) each person known by Registrant
        who will beneficially own five percent (5%) or more of the outstanding shares;
        (ii) the officers and directors who will take office as of the effective
        date of
        the Share Exchange; and (iii) all the aforementioned officers and directors
        as a
        group.
Title
                  of
Class
Name
                  and Address
Of
Beneficial
                  Owners (1)
Amount
                  and Nature
Of
                  Beneficial Ownership
Percent
Of
Class
                  (2)
Series
                  "B" Convertible Preferred Stock
Upform
                  Group Limited (3)
22,627,192
47.14%
Series
                  "B" Convertible Preferred Stock
Clever
                  Mind International Limited (4)
20,009,679
41.69%
Series
                  "B" Convertible Preferred Stock
Weibing
                  Lu, Director and Chief Executive Officer (3)
22,627,192
47.14%
Series
                  "B" Convertible Preferred Stock
Wei
                  Wen, Director (4)
20,009,679
41.69%
Series
                  "B" Convertible Preferred Stock
Xinya
                  Zhang, Director (3)
22,627,192
47.14%
Common
                  Stock
Erna
                  Gao, Director and Chief Financial Officer
0
0%
Common
                  Stock
R.
                  Scott Cramer, Director (5)
231,144,289
                  (5)
46%
Common
                  Stock
Steve
                  Lowe, Director (6)
74,798,819
                  (6)
15%
All
                  officers and directors as a group (6persons) - Ownership of Series
                  B
                  Convertible Preferred Stock
42,636,871
88.83%
All
                  officers and directors as a group (6 persons) - Ownership of Common
                  Stock
305,943,108
61%
(1)
Unless
                    otherwise noted, the address for each of the named beneficial
                    owners is:
                    Rm. 10601, Jiezuo Plaza, No.4, Fenghui Road South, Gaoxin District,
                    Xian
                    Province, PRC.
(2)
The
                  number of outstanding shares of common stock of Skystar is based
                  upon
                  500,000,000 shares. The number of outstanding shares of Series
                  B
                  Convertible Preferred Stock is based upon 48,000,000
                  shares.
(3)
Upform
                  Group Limited's address is Sea Meadow House, Blackburne Highway, P.O. Box
                  116, Road Town, Tortola, British Virgin Islands. Weibing Lu is
                  and Xinya
                  Zhang are directors of the Upform Group. Weibing Lu is the majority
                  shareholder and the Chairman of the Board of Directors of Upform
                  Group
                  Limited, which in turn is the record owner of 22,627,192 shares
                  of the
                  Company's Series "B" Convertible Preferred Stock ("Series B Preferred
                  Stock"). For description of the Series B Preferred Stock's conversion and
                  voting rights, see section titled "Description of Securities" below.
                  Weibing Lu indirectly owns 22,627,192 through his majority ownership
                  of
                  Upform Group. Because Xinya Zhang is a director of Upform Group,
                  she might
                  be deemed to have or share investment control over Upform Group's
                  portfolio.
(4)
Clever
                  Mind International Limited's ("Clever Mind") address is: Sea Meadow House,
                  Blackburne Highway, P.O. Box 116, Road Town, Tortola, British Virgin
                  Islands. Wei Wen is Chairman of the Board of Directors of Clever
                  Mind and
                  owns approximately . Mr. Wen also owns approximately 2.3% of the
                  issued
                  and outstanding shares of Clever Mind. Clever Mind owns 20,009,679
                  shares
                  of the Company's Series B Convertible Preferred Stock ("Series B Preferred
                  Stock") as a result of the Share Exchange Transaction. See Item 2.01,
                  "Description of Business." Because Mr. Wen is a director of Clever Mind,
                  he might be deemed to have or share investment control over Clever
                  Mind's
                  portfolio.
(5)
After
                  the Share Exchange, R. Scott Cramer remains as a Director of the
                  Company.
                  His address is: 1012 Lewis Dr., Winter Park, FL
                  32789.
(6)
After
                  the Share Exchange, Steve Lowe also remains as a Director of the
                  Company.
                  His address is: 1012 Lewis Dr., Winter Park, FL
                  32789.
DIRECTORS
        AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
APPOINTMENT
        OF NEW OFFICERS AND DIRECTORS
In
        connection with the Exchange Transaction, effective November 7, 2005, Mr.
        Cramer
        resigned as Chief Executive Officer and Chief Financial Officer of the Company,
        Mr. Lowe resigned as President of the Company, and Mr. Wassung resigned as
        a
        Director of the Company.
On
        November 7, 2005, The Board of Directors, appointed Weibing Lu as Chief
        Executive Officer and a Director, and Erna Gao as Chief Financial Officer
        and a
        Director, and Wei Wen as Secretary and a Director. The Board of Directors
        also
        appointed Wei Wen and Xinya Zhang as new Directors on the Board.
The
        following tables summarizes the Company's current executive officers and
        directors and the proposed executive officers and directors of the Company:
Name
Age
Position
Weibing
                  Lu
42
Chief
                  Executive Officer and Chairman of the Board
Erna
                  Gao
48
Chief
                  Financial Officer and Director
Xinya
                  Zhang
56
Director
Wei
                  Wen
39
Secretary
                  and Director
R.
                  Scott Cramer
42
Director
Steve
                  Lowe
37
Director
Weibing
        Lu, Chief Executive Officer and Director
Mr.
        Weibing Lu, Chairman of the Board and Chief Executive Officer, is 42 years
        old.
        Mr. Lu received his bachelor's degree in science from Wuhan University of
        Mapping Science and Technology (now known as Wuhan University) in 1985. In
        1986,
        he was a teacher of College of Xian Geology. Mr. Lu received his Master's degree
        in Business Administration in 1999 from Xian University of. Mr. Lu has vast
        experience in the biotechnology field and in enterprise management. In 1992,
        he
        set up the Xian Xingji Electronic Engineering Company and served as its Chairman
        and President until 1997. In 2002, he was awarded as the title of "Outstanding
        Enterpriser of Xian Feed Industry" and appointed as a director of Xian Institute
        of Feed Industry. In July of 1997, he set up Xian Tianxing Science and
        Technology Development Co., Ltd. In December of 2003, Xian Tianxing Science
        and
        Technology Development Co., Ltd. was reorganized and became Xian Tianxing
        Bio-pharmaceutical Co., Ltd. Since December 2003, Mr. Lu has served as Chairman
        of the Board and President of Xian Tianxing Bio-Pharmaceutical Co.,
        Ltd.
Erna
        Gao, Chief Financial Officer and Director
Ms.
        Erna
        Gao, Chief Financial Officer, is 48 years old. Ms. Gao graduated from Xi'an
        TB
        University in Accountancy in 1986. From 1982 to 2001, she was an accountant,
        senior accountant and accountant manager at the Kunlun Electrical Engineering
        Company. From 2001 to 2004, she was chief accountant at Dongda Petroleum
        Company. Since March 2004, she has been the Chief Financial Officer of Xian
        Tianxing Bio-Pharmaceutical Co., Ltd.
Wei
        Wen, Director
Mr.
        Wei
        Wen, Director, is 39 years old. Mr. Wen graduated from Xian University of
        Science and Industry in 1986. From 1990 to 1994, Mr. Wen was the manager
        of
        Sales Department of Xian Zhongtian Science and Technology Development Co.,
        Ltd.
        Then, from 1994 to 1997, Mr. Wen served as Vice General Manager & Manager of
        Sales Department of Xian Xingji Electronic Engineering Company. In 1997,
        Mr. Wen
        was appointed as the Vice General Manager of Xian Tianxing Science and
        Technology Development Co., Ltd. in 1997. After the reorganization of the
        company in December of 2003, Mr. Wen was appointed and continues to serve
        as
        Vice General Manager and the Secretary of the Board of Directors of Xian
        Tianxing Bio-Pharmaceutical Co., Inc.
Xinya
        Zhang, Director
Mr.
        Xinya
        Zhang, Director, is 56 years old. Mr. Zhang graduated from Northwest
        Agricultural University in Shanxi, China. From 1990 to 1997, he was the Factory
        Director and General Engineer of Xian Hua'an Livestock Group Company Feed
        Factory. In July of 1997, he joined Xian Tianxing Science and Technology
        Development Co., Ltd. and was appointed as the company's Vice General Manager.
        Since the company's reorganization in December of 2003, Mr. Zhang has served as
        Vice General Manager of Xian Tianxing Bio-Pharmaceutical Co., Inc.
R.
        Scott Cramer, Director
Mr.
        R.
        Scott Cramer, Director, is 42 years old. Mr. Cramer was previously the Chairman,
        Chief Executive Officer and Chief Financial Officer of The Cyber Group and
        remains on our Board of Directors. Mr. Cramer is currently the President
        of
        Cramer & Associates, a firm specializing in retirement management, estate
        planning and investments. Mr. Cramer has held this position for many years
        and
        has built a solid standing in the investment field.
Steve
        Lowe, Director
Mr.
        Steve
        Lowe, Director, is 37 years old. He was employed by R R Donnelley,
        North
        America's largest printer, where he held positions from entry-level to
        manufacturing supervision during his eighteen-year employment. During the
        year
        of 2005 Mr. Lowe accepted a Manager's position with Cadmus Professional
        Communications. Cadmus provides global, end-to-end, innovative publisher
        and
        packaging solutions designed to meet the unique needs of professional
        publishers, not-for-profit societies and corporations. Mr. Lowe is actively
        pursuing a degree in business management through the Penn State
        University.
EXECUTIVE
        COMPENSATION
None
        of
        our executive officers received compensation in excess of $120,000 for the
        fiscal years ended December 31, 2004, 2003 or 2002, respectively. The following
        table summarizes all compensation received by our previous Chief Executive
        Officer, President and Chief Financial Officer in fiscal years 2004, 2003
        and
        2002.
SUMMARY
        COMPENSATION TABLE
LONG
                  TERM COMPENSATION
ANNUAL
                  COMPENSATION
AWARDS
PAYOUTS
Name
                  and Principal Position
Year
Salary
($)
Bonus
($)
Other
Annual
                  Compensation
($)
Restricted
Stock
                  Awards
($)
Securities
                  Underlying Options/SARs
LTIP
                  Payout
($)
All
                  Other Compen-sation
($)
Scott
                  Cramer,
2004
$
60,000
(1)
Former
                  CEO
2003
$
60,000
and
                  CFO
2002
$
49,360
Steve
                  Lowe
2004
50,000
Former
                  President (2)
2003
N/A
2002
N/A
Richard
                  Serrano (3)
2004
45,000
Former
2003
50,000
President
2002
50,000
_______________
(1)
As
                  of December 31, 2004, Mr. Cramer was the Chief Executive Officer
                  of the
                  Company. Mr. Cramer has not received any payment for his position
                  and as a
                  result his salary has been accrued as an
                  expense.
(2)
As
                  of October 1, 2004, Mr. Lowe was President of the Company. Mr.
                  Lowe has
                  not received any payment for his position and as a result his salary
                  has
                  been accrued as an expense.
(3)
As
                  of October 1, 2004, Mr. Serrano resigned as the President of the
                  Company.
                  Mr. Serrano has not received any payment for his position and as
                  a result
                  of his resignation Mr. Serrano's total salary due has been negotiated
                  to
                  $45,000 and has been accrued as an
                  expense.
STOCK
        OPTION GRANTS AND EXERCISES
For
        the
        fiscal year ended 2004, and for each prior fiscal year, the Company did not
        issue any options or Stock Appreciation Rights to any officers, employees
        or
        directors.
EMPLOYMENT
        AGREEMENTS, TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL ARRANGEMENTS
        FOR
        SKYSTAR
We
        currently have no employment agreements with any of our executive officers,
        nor
        any compensatory plans or arrangements resulting from the resignation,
        retirement or any other termination of any of our executive officers, from
        a
        change-in-control, or from a change in any executive officer's responsibilities
        following a change-in-control.
COMPENSATION
        OF DIRECTORS
During
        the most recent fiscal year, our directors were to be compensated as follows:
R.
        Scott
        Cramer was appointed to the Board on November 8, 2001 and accepted the Chief
        Executive Officer position on March 8, 2002. As a Chairman of the Board,
        Mr.
        Cramer was to be paid $60,000 per year in cash, stock, stock options or a
        combination, thereof.
Steve
        Lowe was appointed to the Board on January 27, 2003. As a member of the Board
        of
        Directors, Mr. Lowe was to be paid $50,000 per year in cash, stock, stock
        options or a combination, thereof.
David
        Wassung was appointed to the Board on October 1, 2004 and resigned effective
        as
        of November 7, 2005. As a member of the Board of Directors, Mr. Wassung was
        paid
        $50,000 per year in cash, stock, stock options or a combination,
        thereof.
CERTAIN
        RELATIONSHIPS AND RELATED TRANSACTIONS
SKYSTAR'S
        CONTRACTUAL ARRANGEMENTS WITH XIAN TIANXING AND ITS SHAREHOLDERS
PRC
        law
        currently limits foreign equity ownership of Chinese companies. To comply
        with
        these foreign ownership restrictions, we operate our business in China through
        a
        series of contractual arrangements with Xian Tianxing and its majority
        shareholders that were executed on October 28, 2005. For a description of
        these
        contractual arrangements, see "Contractual Arrangements with Xian Tianxing and
        Its Shareholders."
RELATED
        PARTY TRANSACTIONS OF XIAN TIANXING
Set
        forth
        below are the related party transactions between Xian Tianxing's shareholders,
        officers and/or directors, and Xian Tianxing, with whom Skystar has contractual
        arrangements which give Skystar the ability to substantially influence Xian
        Tianxing's daily operations and financial affairs, appoint its senior executives
        and approve all matters requiring shareholder approval.
(a)
Related
          party receivables and payables
Amounts
        receivable from and payable to related parties are summarized as
        follows:
June
                  30, 2005
December
                  31, 2004
December
                  31, 2003
(Unaudited)
Amounts
                  due to Xian Tianxing from shareholders:
Mr.
                  Wen Wei (also a director of Xian Tianxing and is also a director
                  of
                  Skystar)
$
13,182
$
26,995
$
10,814
Mr.
                  Lu Weibing (also a director of the Xian Tianxing and the Chief
                  Executive
                  Officer and a director of Skystar)
292,414
597,656
44,427
Ms.
                  Wang Aixia
60,904
71,687
11,446
Mr.
                  Wang Chongxin
12,651
12,651
12,651
Xian
                  Investment Company
36,145
36,144
36,144
415,296
745,133
115,482
Amount
                  due to a Xian Tianxing shareholder:
Ms.
                  Wang Guanming
$
24,096
$
24,096
$
24,096
Amount
                  due to a related company:
Xian
                  Tian Xing Digital Sci-Tech Co., Ltd. - a company owned by Weibing
                  Lu (see
                  (c) below)
$
11,084
$
11,084
$
—
Balances
        with shareholders and the related company represent advances to or loans
        from
        the respective shareholders or related company, except for Mr. Weibing Lu,
        the
        receivable due from whom also includes the amount arising from the consideration
        for the sale of a subsidiary to him (see (c) below). These balances are interest
        free and unsecured and have no fixed repayment date. It is expected that
        the
        balances will be received or repaid within one year.
(b)
Investment
        agreement with a shareholder
In
        September 2004, Xian Tianxing entered into an agreement with Xian Investment
        Company ("Xian Investment"), which is a shareholder of the Xian Tianxing and
        engages in investment activities, whereby the Xian Tianxing placed a fund
        of
        $240,964 with Xian Investment. Xian Investment has full discretion to invest
        the
        fund for a period of one year and guarantees that the fund will be repaid
        and
        that no loss will be incurred by the Xian Tianxing. Gain on investment of
        the
        fund will be shared between the Xian Tianxing and Xian Investment on the
        ratio
        of 60 to 40.
(c)
Disposal
        of subsidiary to a director
On
        December 20, 2004, the Xian Tianxing sold its 90% equity interest in Xian
        Tian
        Xing Digital Sci-Tech Co., Ltd., a subsidiary of the Xian Tianxing, to Mr.
        Weibing Lu, a director of the Xian Tianxing and Chief Executive Officer and
        Director of Skystar, for a cash consideration of $216,867 and recognized
        a gain
        of $6,045 thereon.
OTHER
        RELATED PARTY TRANSACTIONS
During
        the years ended December 31, 2004 and 2003, the Company had loans from officers,
        its former Chief Executive Officer, and other related individuals. As of
        December 31, 2004 and 2003, the total net loans due to these related parties
        recorded in due to officers on the balance sheet totaled $636,994 and $574,380,
        respectively.
As
        of
        December 31, 2004, the former President of the Company, Richard Serrano,
        resigned. As a result of his resignation, the loan amount due to him of
        approximately $220,000 was negotiated to $45,000 and $175,214 was recorded
        as
        other income from debt forgiveness.
As
        of
        December 31, 2004 and 2003, the Company also had a loan payable to a related
        party totaling $52,210.
DESCRIPTION
        OF SECURITIES
GENERAL
Our
        Company's Articles of Incorporation provide for authority to issue 500,000,000
        shares of Common Stock, and 50,000,000 shares of Preferred Stock, all with
        par
        value of $0.001 per Share. As of November 7, 2005, the capitalization of
        The
        Cyber Group consists of 500,000,000 outstanding shares of Common Stock and
        50,000,000 shares of Preferred Stock outstanding.
COMMON
        STOCK
The
        holders of the Common Stock are entitled to receive dividends when and as
        declared by the Board of Directors, out of funds legally available therefore,
        subject to the rights of the holders of any shares of Preferred Stock that
        may
        or have been issued by the Company. The Company has not paid cash dividends
        in
        the past and does not expect to pay any within the foreseeable future since
        any
        earnings are expected to be reinvested in the Company. In the event of
        liquidation, dissolution or winding up of the Company, either voluntarily
        or
        involuntarily, each outstanding share of the Common Stock is entitled to
        share
        equally in the Company's assets, subject to any preferential liquidation
        rights
        of the holders of shares of Preferred Stock which may then be outstanding.
        Each
        outstanding share of the Common Stock is entitled to equal voting rights,
        consisting of one vote per share.
PREFERRED
        STOCK
We
        are
        currently authorized to issue 50,000,000 Shares of Preferred Stock. As of
        November 6, 2005, 2,000,000 shares of Preferred Stock had been issued. The
        Board
        of Directors is authorized, subject to any limitation prescribed by the laws
        of
        the State of Nevada, but without further action by the Company's shareholders,
        to provide for the issuance of Preferred Stock in one or more series, to
        establish from time to time the number of shares of each such series and
        any
        qualifications, limitations or restrictions thereof, and to increase or decrease
        the number of shares of any such series without any further vote or action
        by
        shareholders. The Board of Directors may authorize and issue Preferred Stock
        with voting or conversion rights that could adversely affect the voting power
        or
        other rights of the holders of Common Stock. In addition, the issuance of
        Preferred Stock may have the effect of delaying, deferring or preventing
        a
        change in control of our Company.
On
        October 31, 2005, the Board authorized the approval and issuance of its Series
        "B" Convertible Preferred Stock ("Series B Preferred"). The Certificate of
        Designation of the Series B Preferred stock was filed on November 2, 2005.
        On
        November 7, 2005, the Company issued 48,000,000 shares of the Series B Preferred
        stock as part of the Exchange Transaction. Upon the effective date of the
        Company's filing of an amendment to its Articles of Incorporation increasing the
        number of shares of Common Stock, the Company is authorized to issue sufficient
        common stock to permit full conversion of all Series B Preferred shares into
        shares of common stock ("Conversion Event"), each share of Series B Preferred
        outstanding shall automatically convert. The Total Aggregate Number of Series
        B
        Preferred outstanding shall be converted upon the Conversion Event into an
        amount of shares of the Company's common stock equal to 89.5% of the total
        outstanding shares of the Company's common stock at the time of conversion; each
        holder of the Series B Preferred shall receive their share of the Company's
        common stock, as converted, pro-rata, in proportion to their ownership of
        shares
        of the Series B Preferred.
The
        voting rights for the Series B Preferred Stock are as follows:
(a)
Except
                  as otherwise provided herein or by law, each holder of shares of
                  Series B
                  Preferred shall be entitled to the number of votes equal to the
                  number of
                  shares of Common Stock into which such shares of Series B Preferred
                  will
                  be converted (with any fractional share determined on an aggregate
                  conversion basis being rounded to the nearest whole share), at
                  each
                  meeting of the stockholders of the Company (and for purposes of
                  written
                  actions of stockholders in lieu of meetings) with respect to any
                  and all
                  matters presented to the stockholders of the Company for their
                  action or
                  consideration, and shall be entitled notwithstanding any provision
                  hereof,
                  to notice of any shareholders' meeting in accordance with the bylaws of
                  the Company, and except as provided in Section (b), shall be entitled
                  to
                  vote, together with holders of Common Stock as a single class,
                  with
                  respect to any matter upon which holders of Common Stock have the
                  right to
                  vote;
(b)
for
                  so long as any shares of Series B Preferred remains outstanding,
                  in
                  addition to any other vote or consent required herein or by law,
                  the vote
                  or written consent of the holders of at least a majority in interest
                  of
                  the outstanding Series B Preferred voting as a separate class shall
                  be
                  necessary for any amendment, alteration, or repeal of any provision
                  of the
                  Company's Articles of Incorporation (including this Certificate of
                  Designation) or any other corporate action that requires shareholder
                  vote
                  or consent, including but not limited to corporate action that
                  alters or
                  changes the voting powers, preferences, or other special rights
                  or
                  privileges, or restrictions of the Series B Preferred so as to
                  affect them
                  adversely; and
(c)
for
                  so long as any shares of Series B Preferred remains outstanding,
                  the
                  authorized number of the Board of Directors of the Company shall
                  consist
                  of six (6) members and the holders of Series B Preferred, voting
                  together
                  as a separate class, shall be entitled to elect four (4) members
                  of the
                  Board of Directors (the "Preferred Stock Director-Designee"), the holders
                  of Common Stock, voting together as a separate class, shall be
                  entitled to
                  elect two (2) members of the Board of Directors. In the event of
                  a vacancy
                  in the office of any director elected by the holders of any class,
                  a
                  successor shall be elected to hold office for the unexpired term
                  of such
                  director by the holders of shares of such separate class.
The
        complete terms of the conversion, voting rights and provisions regarding
        adjustments for dividends are contained in the Certificate of Designation,
        which
        is attached as an exhibit to this Current Report on Form 8-K and incorporated
        in
        this report in its entirety.
MARKET
        PRICE OF AND DIVIDENDS ON COMMON EQUITY AND RELATED STOCKHOLDER
        MATTERS
Our
        common stock is not listed on any stock exchange. The common stock is traded
        over-the-counter on the Over-the-Counter Electronic Bulletin Board under
        the
        symbol "CGPN.OB". There was no active trading market for our common stock
        before
        May 22, 2000. The following table sets forth the high and low bid information
        for the common stock for each quarter within the last two fiscal years, as
        reported by the Over-the-Counter Electronic Bulletin Board. The bid prices
        reflect inter-dealer quotations, do not include retail markups, markdowns
        or
        commissions and do not necessarily reflect actual transactions.
LOW
HIGH
2004
Fourth
                  Quarter
$0.0012
$0.0001
Third
                  Quarter
$0.0037
$0.0002
Second
                  Quarter
$0.0075
$0.0015
First
                  Quarter
$0.0078
$0.0020
2003
Fourth
                  Quarter
$0.0080
$0.0021
Third
                  Quarter
$0.0120
$0.0047
Second
                  Quarter
$0.0075
$0.0045
First
                  Quarter
$0.0080
$0.0040
As
        of
        November 7, 2005, there were approximately 166 stockholders of record of
        our
        common stock and 11 stockholders of record of our Preferred Stock.
DIVIDENDS
We
        have
        never paid any dividends on the Common Stock or the Preferred Stock. We
        currently anticipate that any future earnings will be retained for the
        development of our business and do not anticipate paying any dividends on
        the
        Common Stock or the Preferred Stock in the foreseeable future.
TRANSFER
        AGENT
Our
        transfer agent is Pacific Stock Transfer Company and their address
        is
500 E.
        Warm Springs Road, Suite 240, Las Vegas, Nevada 89119.
Their
        telephone number is
(702)
        361-3033
.
EQUITY
        COMPENSATION PLAN INFORMATION
We
        currently do not have any equity compensation plans.
LEGAL
        PROCEEDINGS
From
        time
        to time, we may be involved in litigation or other business disputes including
        patent infringement, defamation and unfair competition. The Company's management
        is not aware of any material legal proceedings pending against the Company.
CHANGES
        IN AND DISAGREEMENTS WITH ACCOUNTANTS
There
        have been no changes in or disagreements with the Company's independent
        auditors. The Company engaged its independent auditors, Weinberg & Co. on
        August 30, 2002.
RECENT
        SALES OF UNREGISTERED SECURITIES
Pursuant
        to the Share Exchange Agreement entered by and among shareholders of Skystar
        Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman Island Company
        ("Skystar") Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu, holders of 100% of common stock of Skystar's common stock
        (the "Skystar Shareholders"), on the one hand, and R. Scott Cramer, Steve Lowe,
        David Wassung (all hereinafter collectively referred to as the "CGPN
        Shareholders"), and the Company on the other hand, the Company issued shares of
        the Company's Series B Preferred Stock (the "CGPN Shares") to the Skystar
        Shareholders in exchange for 100% of the common stock of Skystar. The CGPN
        Shares issued are convertible, in the aggregate, into a number of shares
        of the
        Registrant's common stock that would equal 89.5% of the outstanding shares of
        the Registrant's common stock, if the shares were to be converted on the Closing
        Date.
The
        issuance of the CGPN Shares to the Skystar Shareholders pursuant to the Exchange
        Agreement was exempt from registration under the Securities Act pursuant
        to
        Section 4(2) and/or Regulation S thereof. We made this determination based
        on
        the representations of the Skystar Shareholders which included, in pertinent
        part, that such shareholders were either (a) "accredited investors" within
        the
        meaning of Rule 501 of Regulation D promulgated under the Securities Act,
        or (b)
        not a "U.S. person" as that term is defined in Rule 902(k) of Regulation
        S under
        the Act, and that such shareholders were acquiring our common stock, for
        investment purposes for their own respective accounts and not as nominees
        or
        agents, and not with a view to the resale or distribution thereof, and that
        each
        member understood that the shares of our common stock may not be sold or
        otherwise disposed of without registration under the Securities Act or an
        applicable exemption therefrom.
INDEMNIFICATION
        OF DIRECTORS AND OFFICERS
No
        officer or Director of the Company shall be liable to the Company or its
        shareholders for the damages for the breach of a fiduciary duty as a Director
        or
        officer other than: (a) acts or omissions which involve intentional misconduct,
        fraud or a known violation of the law; or (b) the payment of dividends in
        violation of NRS 78.300.
The
        Company may purchase or maintain insurance or make other financial arrangements
        on behalf of any person who is or was a Director, officer, employee, or agent
        of
        the Company, or is or was serving at the request of the Company as a Director,
        officer, employee or agent of another corporation, partnership, joint venture,
        trust or other enterprise asserted against him in his capacity as Director,
        officer, employee or agent, or arising of his status as such, whether or
        not the
        Company has the authority to indemnify him against such liability or
        expense.
The
        Company shall indemnify all of its officers and Directors, past, present,
        and
        future against any and all expenses incurred by them, and each of them,
        including but not limited to, legal fees, judgments and penalties which may
        be
        incurred, rendered or levied in any legal action or administrative proceeding
        brought against them for any act or omission alleged to have been committed
        while acting within the scope of their duties as officers or Directors of
        the
        Company. The expenses of officers and Directors incurred and in advance of
        final
        disposition of the action or proceeding upon receipt of an undertaking by
        or on
        behalf of the officer or Director to repay the amount if it is ultimately
        determined by a court of competent jurisdiction that he/she is not entitled
        to
        be indemnified by the Company. Such right of indemnification shall not be
        exclusive of any other rights of indemnification, which the officers and
        Directors may have or hereafter acquire. Without limitation of the foregoing,
        the Board of Directors may adopt by-laws from time to time to provide the
        fullest indemnification permitted by the laws of the State of
        Nevada.
Item
        3.02
UNREGISTERED
        SALES OF EQUITY SECURITIES
Pursuant
        to the Share Exchange Agreement entered by and among shareholders of Skystar
        Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman Island Company
        ("Skystar") Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu, holders of 100% of common stock of Skystar's common stock
        (the "Skystar Shareholders"), on the one hand, and R. Scott Cramer, Steve Lowe,
        David Wassung (all hereinafter collectively referred to as the "CGPN
        Shareholders"), and the Company on the other hand, the Company issued shares of
        the Company's Series B Preferred Stock (the "CGPN Shares") to the Skystar
        Shareholders in exchange for 100% of the common stock of Skystar. The CGPN
        Shares issued are convertible, in the aggregate, into a number of shares
        of the
        Registrant's common stock that would equal 89.5% of the outstanding shares of
        the Registrant's common stock, if the shares were to be converted on the Closing
        Date. The issuance of the CGPN Shares to the Skystar Shareholders pursuant
        to
        the Exchange Agreement was exempt from registration under the Securities
        Act
        pursuant to Section 4(2) and/or Regulation S thereof. We made this determination
        based on the representations of the Skystar Shareholders which included,
        in
        pertinent part, that such shareholders were either (a) "accredited investors"
        within the meaning of Rule 501 of Regulation D promulgated under the Securities
        Act, or (b) not a "U.S. person" as that term is defined in Rule 902(k) of
        Regulation S under the Act, and that such shareholders were acquiring our
        common
        stock, for investment purposes for their own respective accounts and not
        as
        nominees or agents, and not with a view to the resale or distribution thereof,
        and that each member understood that the shares of our common stock may not
        be
        sold or otherwise disposed of without registration under the Securities Act
        or
        an applicable exemption therefrom.
Item
        5.01
CHANGES
        IN CONTROL OF REGISTRANT
On
        September 20, 2005, The Cyber Group Network Corporation (the "Registrant" or
"CGPN") executed a Share Exchange Agreement ("Exchange Agreement") by and among
        Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu (the "Skystar Shareholders), who own 100% of the common
        stock of Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman
        Island
        Company ("Skystar"), on the one hand, and R. Scott Cramer, Steve Lowe, David
        Wassung (all hereinafter collectively referred to as the "CGPN Shareholders"),
        and the Company on the other hand. The closing of this transaction (the
"Closing") occurred on November 7, 2005 (the "Closing Date"). Under the terms of
        the Exchange Agreement, on the Closing Date, the Company issued shares of
        the
        Registrant's Series B Convertible Preferred Stock (the "Series B Preferred") to
        the Skystar Shareholders in exchange for 100% of the common stock of Skystar.
        The Series B Preferred shares issued are convertible, in the aggregate, into
        a
        number of shares of the Registrant's common stock that would equal 89.5% of the
        outstanding shares of the Registrant's common stock, if the shares were to be
        converted on the Closing Date. In addition, on the Closing Date, Skystar
        paid
        the Company $120,000, which will be used to pay Company's liabilities.
As
        a
        result of this transaction, the Skystar Shareholders acquired control of
        the
        Company because the CGPN Shares entitle the Skystar Shareholders to voting
        rights with respect to any and all matters presented to Stockholders of the
        Company for their action or consideration that is equal to the number of
        shares
        of the Company's outstanding shares of common stock in which such shares are
        convertible. The Series B Preferred Shares acquired by the Skystar Shareholders
        are convertible to 89.5% of the outstanding shares of the Company's common
        stock. Each share of the Company's outstanding common stock entitles them to one
        vote. Thus the Skystar Shareholders hold 89.5% or the majority number of
        voting
        shares of the Company. As a result of this change in change in control, R.
        Scott
        Cramer agreed to resign as the Company's Chief Executive Officer and Chief
        Financial Officer. In addition, Steve Lowe agreed to resign as the Company's
        President and David Wassung agreed to resign as member of the Company's Board of
        Directors. Further, on the Closing Date, R. Scott Cramer and Steve Lowe,
        the
        Company's remaining members of the Board of Directors (the "Board"), agreed to
        appoint Weibing Lu (Chairman of Upform Group Limited) as the Company's new Chief
        Executive Officer, and Erna Gao as the Company's new Chief Financial Officer. In
        addition, the Board also appointed Weibing Lu, Wei Wen, Xinya Zhang and Erna
        Gao
        as Directors.
Item
                5.02
DEPARTURE
                  OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT
                  OF
                  PRINCIPAL OFFICERS.
(a)
Resignation
        Of Director
Effective
        November 7, 2005, David Wassung ("Mr. Wassung") resigned as a member of the
        board of directors of the Registrant. There were no disagreements between
        Mr.
        Wassung and any officer or director of the Registrant. The Registrant provided
        a
        copy of the disclosures it is making in response to this Item 5.02 to Mr.
        Wassung and informed him that he may furnish the Registrant as promptly as
        possible with a letter stating whether he agrees or disagrees with the
        disclosures made in response to this Item 5.02, and that if he disagrees,
        then
        the Registrant requests that he provide the respects in which he does not
        agree
        with the disclosures. The Registrant will file any letter received by the
        Registrant from Mr. Wassung as an exhibit to an amendment to this current
        report
        on Form 8-K within two business days after receipt by the
        Registrant.
(b)
Resignation
        Of Officers
Effective
        November 7, 2005, Mr. R. Scott Cramer resigned as the Chief Executive Officer
        and Chief Financial Officer of the Registrant
.
Effective
        November 7, 2005, Mr. Steve Lowe resigned as President of the
        Registrant.
(c)
Appointment
        Of Directors
Effective
        November 7, 2005, Mr. Weibing Lu, Ms. Erna Gao, Mr. Wei Wen, and Mr. Xinya
        Zhang
        were appointed as a members of the Registrant's Board of Directors.
Descriptions
        of the newly appointed directors and officers can be found in Item 2.01 above,
        in the section titled "DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
        PERSONS."
(d)
Appointment
        Of Chief Executive Officer and Chief Financial Officer
Effective
          November 7, 2005, Mr. Weibing Lu was appointed as Chief Executive Officer
          of the
          Registrant.
Effective
        November 7, 2005, Ms. Erna Gao was appointed as the Chief Financial Officer
        of
        the Registrant.
Ms.
        Gao
        and Mr. Lu have no family relationships with any of the Company's other
        executive officers or directors. No transactions occurred in the last two
        years
        to which the Company was a party in which Ms. Gao had or is to have a direct
        or
        indirect material interest. Related party transactions involving Mr. Lu are
        described in Item 2.01 above.
Item
        5.03
AMENDMENTS
        TO ARTICLES OF INCORPORATION OR BYLAWS
In
        connection with the Share Exchange Agreement and as more fully described
        above
        Item 2.01, in the section titled "Description of Securities", on November 2,
        2005, the Company filed a Certificate of Designation establishing its Series
        B
        Convertible Preferred Stock ("Series B Preferred") and setting forth the rights,
        designation, number, powers, preferences, limitations, restrictions, and
        relative rights and other matters relating to such shares of Series B
        Preferred.
The
        complete terms of our Series B Preferred stock, including conversion rights,
        voting rights, provisions regarding adjustments for dividends are described
        in
        the Certificate of Designation, which is attached as an exhibit to this Current
        Report on Form 8-K and incorporated in this report in its entirety.
Item
        5.06
CHANGE
        IN SHELL COMPANY STATUS
On
        September 20, 2005, The Cyber Group Network Corporation (the "Registrant" or
"CGPN") executed a Share Exchange Agreement ("Exchange Agreement") by and among
        Upform Group Limited, a British Virgin Islands company, Clever Mind
        International Limited, a British Virgin Islands company, Yuantai Wang, Xuejian
        Yuan, and Sidong Zhu (the "Skystar Shareholders), who own 100% of the common
        stock of Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd., a Cayman
        Island
        Company ("Skystar"), on the one hand, and R. Scott Cramer, Steve Lowe, David
        Wassung (all hereinafter collectively referred to as the "CGPN Shareholders"),
        and the Company on the other hand. Under the terms of the Exchange Agreement,
        on
        the Closing Date, the Company will issue shares of the Registrant's Series B
        Preferred Stock (the "CGPN Shares") to the Skystar Shareholders in exchange for
        100% of the common stock of Skystar. The CGPN Shares issued are convertible,
        in
        the aggregate, into a number of shares of the Registrant's common stock that
        would equal 89.5% of the outstanding shares of the Registrant's common stock, if
        the shares were to be converted on the Closing Date. In addition, on the
        Closing
        Date, Skystar will pay the Company $120,000, to be used to pay Company's
        liabilities. The closing of this transaction (the "Closing") occurred on
        November 7, 2005.
Prior
        to
        the transaction, the Registrant was a development stage computer security
        company that developed and marketed its computer security hardware and software
        devices. The Registrant was in the process of developing two products, computer
        security software and a computer hardware device for tracking missing or
        stolen
        computers. However, in the past two years, both the development of the hardware
        product and the sales of the software product generated minimal revenue for
        the
        Registrant. From and after the Closing Date, the Registrant's primary operations
        will now consist of the operations of Skystar.
Item
        9.01    FINANCIAL STATEMENT AND EXHIBITS.
(
a)
Financial
        Statements Of Businesses Acquired
The
        financial statements of Skystar for the six months ended June 30, 2005 and
        2004
        (unaudited) and for the years ended December 31, 2004 and December 31, 2003
        are
        incorporated herein by reference to Exhibits 99.9 and 99.10 to this Current
        Report.
(b)
Pro
        Forma Financial Statements
Our
        unaudited pro forma combined financial statements as of and for the six months
        ended June 30, 2005, and pro forma combined statement of operations (unaudited)
        for the year ended December 31, 2004 are incorporated herein by reference
        to
        Exhibit 99.11 to this Current Report.
Our
        unaudited pro forma combined balance sheet as of June 30, 2005 and our unaudited
        pro forma combined statement of operations for the six months ended June
        30,
        2005 and the year ended December 31, 2004 are incorporated herein by reference
        to Exhibit 99.11 to this Current Report, and are based on the historical
        financial statements of us and Skystar after giving effect to the Exchange
        Transaction. In accordance with Statement of Financial Accounting Standards
        No.
        141, "Business Combinations" (SFAS 141), and the assumptions and adjustments
        described in the accompanying notes to the unaudited pro forma combined
        condensed financial statements, Skystar is considered the accounting acquiror.
        The Exchange Transaction was completed on November 7, 2005. Because Skystar's
        owners as a group retained or received the larger portion of the voting rights
        in the combined entity and Skystar's senior management represents a majority
        of
        the senior management of the combined entity, Skystar was considered the
        acquiror for accounting purposes and will account for the Exchange Transaction
        as a reverse acquisition. The acquisition will be accounted for as the
        recapitalization of Skystar since, at the time of the acquisition, the
        development of our hardware product and the sales of our software product
        generated minimal revenues. Our fiscal year will end on December
        31.
The
        unaudited pro forma combined balance sheet as of June 30, 2005 is presented
        to
        give effect to the Exchange Transaction as if it occurred on January 1, 2005
        and
        combines the historical balance sheet of Skystar at June 30, 2005 and the
        historical balance sheet of The Cyber Group Network Corporation at June 30,
        2005. The unaudited pro forma combined statement of operations of Skystar
        and
        The Cyber Group Network Corporation for the six months ended June 30, 2005
        and
        year ended December 31, 2004 are presented as if the combination had taken
        place
        on January 1, 2005.
Reclassifications
        have been made to The Cyber Group's historical financial statements to conform
        to Skystar's historical financial statement presentation.
The
        unaudited pro forma combined condensed financial statements should be read
        in
        conjunction with "Management's Discussion and Analysis of Financial Condition
        and Results of Operations" and the historical consolidated financial statements
        and accompanying notes of Skystar's and The Cyber Group Network Corporation. The
        unaudited pro forma combined condensed financial statements are not intended
        to
        represent or be indicative of our consolidated results of operations or
        financial condition that would have been reported had the Exchange Transaction
        been completed as of the dates presented, and should not be taken as
        representative of the future consolidated results of operations or financial
        condition of the Registrant.
(c)
INDEX
        TO EXHIBITS.
Exhibit
                  Number
Description
2.1
Share
                  Purchase Agreement by and between The Cyber Group Network, Inc.
                  and Howard
                  L. Allen and Donald G. Jackson (shareholders of Hollywood Entertainment
                  Network, Inc.) dated May 12, 2000 (1)
2.2
Plan
                  of Merger Agreement between The Cyber Group Network Corp. and CGN
                  Acquisitions Corporation dated December 7, 2000 (2)
2.3
Share
                  Exchange Agreement between They Cyber Group Network Corporation,
R.
                  Scott Cramer, Steve Lowe, David Wassung and Skystar Bio-Pharmaceutical,
                  and the Skystar Shareholders dated September 20, 2005
(3)
2.4
Second
                  Amendment to Share Exchange Agreement dated October 14, 2005
                  (4)
2.5
Third
                  Amendment to Share Exchange Agreement dated November 6,
                  2005
3.1
Charter
                  of The Cyber Group Network Corporation as filed with the State
                  of
                  Nevada
3.2
Company
                  Bylaws (5)
4.1
Certificate
                  of Designation of Series B Convertible Preferred Stock of The Cyber
                  Group
                  Network Corporation
99.1
Consulting
                  Services Agreement between Skystar Bio-Pharmaceutical (Cayman)
                  Holdings,
                  Co., Ltd., Xian Tianxing Bio-Pharmaceutical Co., Ltd. dated October
                  28,
                  2005
99.2
Equity
                  Pledge Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd. and Xian Tianxing Bio-Pharmaceutical Co., Ltd. ("Xian Tianxing")
                  and Xian Tianxing's Majority Shareholders dated October 28,
                  2005
99.3
Operating
                  Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd.,
                  and Xian Tianxing Bio-Pharmaceutical Co. ("Xian Tianxing"), Xian
                  Tianxing's Majority Shareholders, Ltd. and Weibing Lu dated October 28,
                  2005
99.4
Proxy
                  Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd.
                  and Xian Tianxing Bio-Pharmaceutical Co. ("Xian Tianxing"), Xian
                  Tianxing's Majority Shareholders and Weibing Lu dated October 28,
                  2005
99.5
Option
                  Agreement between Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co., Ltd.
                  and Xian Tianxing Bio-Pharmaceutical Co., Ltd. ("Xian Tianxing"), Xian
                  Tianxing Majority Shareholders and Weibing Lu dated October 28,
                  2005
99.6
Director's
                  Letter of Resignation by Mr. David Wassung to the Board of Directors
                  of
                  The Cyber Group Network Corporation
99.7
Officer's
                  Letter of Resignation by Mr. Scott Cramer to the Board of Directors
                  of The
                  Cyber Group Network Corporation
99.8
Officer's
                  Letter of Resignation by Mr. Steve Lowe to the Board of Directors
                  of The
                  Cyber Group Network Corporation
99.9
Consolidated
                  Financial statements of Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co.,
                  Ltd. for the years ended December 31, 2004 and December 31,
                  2003.
99.10
Consolidated
                  Financial statements of Skystar Bio-Pharmaceutical (Cayman) Holdings,
                  Co.,
                  Ltd. for the six months ended June 30, 2005 and 2004
                  (unaudited).
99.11
Unaudited
                  pro forma condensed financial statements of The Cyber Group Network
                  Corporation, as of and for the six months ended June 30, 2005 and
                  unaudited pro forma Statement of Operations for the six months
                  ended June
                  30, 2005.
(1)
Incorporated
                  by reference from the Registrant's Current Report on Form 8-K/A filed on
                  June 1, 2000.
(2)
Incorporated
                  by reference from the Registrant's Current Report on Form 8-K/A filed on
                  January 12, 2001.
(3)
Incorporated
                  by reference from the Registrant's Current Report on Form 8-K filed on
                  September 26, 2005.
(4)
Incorporated
                  by reference from the Registrant's Current Report on Form 8-K filed on
                  October 20, 2005.
(5)
Incorporated
                  by reference from the Registrant's Registration Statement on Form 10-SB
                  filed on November 16, 1999.
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this Report to be signed on its behalf by the undersigned hereunto
        duly authorized.
Date:
                  November 10, 2005
The
                  Cyber Group Network Corporation
By:
/s/
                  Weibing Lu
Weibing
                  Lu
Chief
                  Executive Officer