The global markets for technology-based products and services have been characterized by constant change. As reported in a January 2005 article appearing in The Wall Street Journal, the historical trend of each industry sector (e.g., telecommunications, television and media, computers and networking) developing and marketing distinct products and services has been replaced in recent years, by a trend towards the merging of technologies from these different sectors. The articles go on to state that this “convergence” of technologies has resulted in an increased number of integrated product and service offerings, such as cable companies offering phone and high speed internet connections, telephone companies offering television services, computers that also serve as music servers and video game systems and “smart” appliances that are linked into home networks.

It is believed that the origins of this convergence first began in the late 1960’s and throughout the 1970’s as a result of the move from analog technology, which stores and processes data as a variation of an electronic signal (e.g., a music record or a traditional television screen), to digital technology, which stores and processes data as either a 1 or a 0 (e.g., a compact music disk, personal computers and plasma screen televisions). Further this convergence continued in the 1980’s and 1990’s with the development of mixed signal technology, which combines digital and analog technology. Finally, in the 1990’s, with the development of the Internet came the broad adoption of the Internet Protocol (“IP”) standard which provides a uniform format for the transmission of digital information.

While the Company may seek to effect a business combination with more than one target business, its initial business acquisition must be with one or more operating businesses whose fair market value is, either individually or collectively, at least equal to 80% of its net assets at the time of such acquisition. Consequently, if the Company cannot identify and acquire multiple operating businesses contemporaneously, it will need to identify and acquire a larger single operating business.