MERGER AND ACQUISITION - Note 3

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

MERGER AND ACQUISITION - Note 3

NOTE 3 — MERGER AND ACQUISITION

The Company acquired 100% equity in Silver Tech on May 31, 2010. As of May 31, 2010, the net assets of Silver Tech were $2,564,160. The purchase consideration was $10,960,000 which resulted in goodwill of $8,395,840.

Silver Tech's subsidiary Nollec Wireless primarily focuses on R&D for mobile phones, and hardware and software solutions for domestic Chinese and overseas customers. Its design team includes experienced engineers in the core technologies of wireless communication and mobile phone development. Nollec provides state of the art industrial, user inter-phase, mechanical and engineering designs and software and hardware integration.

The Company acquired 100% ownership of CDE on January 4, 2011. As of January 4, 2011, the net assets of CDE were $(43,409).The purchase consideration was $1,818,000 which resulted in goodwill of $1,861,410.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed from CDE as of the date of acquisition on January 4, 2011.

Cash	$	235,112
Other receivables	5,895
Prepaid expenses	3,259
Accounts receivable	8,413
Fixed assets	6,565
Goodwill	1,861,409
Short-term loan	(20,075)
Accounts payable	(990)
MPF payable	(1,758)
Due to related party	(277,774)
Accrued expenses	(2,056)
Purchase price	$	1,818,000

No proforma information is presented as acquisition of CDE at the beginning of January 1, 2011 did not result in any significant fluctuation in our net revenue and net income.

The following table summarizes goodwill as of June 30, 2011 resulting from the acquisitions of Jiangsu Leimone, Silver Tech and CDE:

Jiangsu Leimone	$	103,057
Silver Tech	8,395,840
CDE	1,861,409
Total goodwill	$	10,360,306

There was no impairment of goodwill as at June 30, 2011 and December 31, 2010.