Pursuant to a memorandum of understanding signed in October 2001, Digital China Holdings, the publicly traded sales and distribution branch of China's Legend Holdings, has recently concluded and signed the related agreement with Data Systems Consulting.

Under the agreement, Digital China has 40 percent of the shareholding in the joint venture while Data Systems holds 60 percent. The total amount of investment is RMB50 million ($6 million).

Under the agreement, the joint venture will tap into the ERP market in the PRC through its wholly-owned subsidiary, Digital China Management Systems Limited, which was a company incorporated in China. Digital China will be responsible for sourcing clients and sales channels, expansion of product lines and establishing foothold in the PRC; whereas Data Systems will provide relevant product and design, as well as a full range of Enterprise Resources Planning ("ERP") products. Together, Digital China and Data Systems will be able to provide ERP solution, systems integration, implementation, consultancy, management, and training services to their clients. The joint venture will focus on self-developed software business and related value-added services in the next 3 to 5 years.

Founded in 1982, Data Systems is a top-ranked and leading ERP product provider in Taiwan with a clientele of 12,000 companies. Its series of self-developed ERP products took up more than 50% market shares in the respective market. According to a survey by Taiwan's Business Weekly Magazine in 2001, 373 out of the largest 1,000 Taiwan manufacturing companies are clients of Data Systems. Data Systems recorded a turnover of NT1.593 billion in 2001.