Recent Developments

During the last half of 2004, our Wi-Fi (wireless fidelity) Internet access, or “hotspot”, business did not expand as we had expected. This lack of growth was in line with the rest of the hotspot industry. To date, Wi-Fi hotspot use by consumers has not met, by a wide margin, forecasts made during 2002 and 2003, with several well-known telecommunications companies abandoning their efforts to develop a hotspot business. Because of this circumstance, our management determined to change the direction of our company, to focus on the development of products that embody Wi-Fi technologies rather than on the provision of hotspot Internet access. In...