"M World" Project - Press Conference and Contract Signing Ceremony

Hong Kong's Top Business and Academic Professionals
Tap Booming PRC Internet Market
Sunny Multimedia and Hong Kong Polytechnic University Together Launch
3D Community Products - "M World"
(HONG KONG, 8th October, 2007) Sunny Multimedia (HK) Co., Ltd. ("Sunny Multimedia")
and The School of Design of The Hong Kong Polytechnic University ("Hong Kong Polytechnic
University") jointly announce today their collaboration on the development of "M World" -
a new 3D internet product based on the "Lucid Platform", a cutting-edge 3D game engine
developed and owned by the Multimedia Entrepreneurial Research, Education and
Creativity Laboratory (MERECL) of The Hong Kong Polytechnic University. A press
conference and signing ceremony was held at the House of Innovation of The Hong Kong
Polytechnic University today to commemorate this special occasion. The event was
attended by representatives from both organisations including Mr. Frank Chen, CEO of
Sunny Multimedia Co. Ltd., Professor Jose Rueda, Chief Executive Producer of MERECL and
Dr. Gino Yu, Chairman of the HK Digital Entertainment Association and creator of MERECL.
The internet market in China is currently robust and continue to grow. As at the end of the
second quarter in 2007, the number of internet users and broadband internet users in China
has reached 130 million and 40 million, respectively and are estimated to grow at a CAGR of
10.9% and 15.6%, respectively in the next 5 years. Against this background, the online game
market has also witnessed significant growth with online game users reaching 32.6 million
by the second quarter of 2007, and estimated to grow at a CAGR of 14.2% in the next 5
years. Sales from online game market has reached an astonishing RMB11 billion and
estimated to grow at CAGR of 30.2% in the next 5 years. It is evident that the fast growing
internet market has laid a solid foundation for the development of the online game market
in China; in addition, online game has also grown to become one of the most important
internet applications.
Since its establishment in 2002, Sunny Multimedia has laid its eyes on the fast growing
internet market in China. Since 2005, the company has been dedicated in the research and
development of innovative internet products and in 2007, Sunny Multimedia has
successfully completed the design for all major prototypes. Its management team, having
worked for various leading internet companies in China, has accumulated extensive
experiences in product development and operation over the years. As a result of ongoing
discussion and negotiation for over a year, the collaboration between Sunny Multimedia and
MERECL to apply its proprietary Lucid Platform in the development of "M World" was finally
confirmed today. "M World" is a revolutionary online interactive recreational product
developed based on a powerful and sophisticated 3D game engine. A pioneering product in
Hong Kong, "M World" will replace the current internet browser with a 3D virtual world in
which internet users can enjoy virtual entertainment while visualising and interacting with
complex and multi-faceted data simultaneously in 3D.
Mr. Frank Chen, CEO of Sunny Multimedia and also previously a senior management of Sega
(China) and a reputable German corporation, commented today: "We are very pleased with
this opportunity to cooperate with The Hong Kong Polytechnic University. After numerous
discussions with many leading engine companies and research institutes in Asia, we have
chosen to work with MERECL to develop the Lucid Platform because of its highly
experienced and technologically advanced team whose members were recruited from
leading institutes all over the world. With continuous resources and support from the
Government of the Hong Kong Special Administrative Region, MERECL has successfully
developed the platform into one of the most advanced products as compared to other
similar products in Asia. This collaboration is especially meaningful not only because "M
World" is the first 3D internet product that is developed based on the Lucid Platform; it is
also the first such project to be commercialised and widely introduced in the China market.
As such, I am extremely confident with the future prospects of our products."
In view of the high growth potential in the China internet market, it is likely that the "M
World" products will create a new Web 3.0 frenzy across Asia, setting a new milestone in
the development history of internet applications.