SMS@ctive Technologies Corp. announces that it is preparing a plan to open an office in Beijing, People's Republic of China, during the second quarter of 2006.

Currently, SMS@ctive is being represented by our resident Vice President (Operations) in Beijing and it will be the primary task of our Vice President to be the head of the technical team in conjunction with other lead technical personnel to oversee the entire carrier grade implementation. The new team will be the focusing on SMS@ctive's participation in the joint venture company (under negotiation) which will commercially implement and market a suite of VOIP and wireless products including the SMS T-Bar.



In China, broadband IP phone (VOIP) has become a new major means for operators to share in voice market especially the distant call (long distance) market. It's estimated that by 2007 VOIP calls will amount to 210.11 billion minutes with revenues of RMB 52.53 billion Yuan.

Low cost is the direct reason that has produced the rapid development of distant IP call. In terms of distant calls, 2003 and 2004 saw a growth rate of 5.9% and 26.3% respectively in traditional distant calls, 24.4% and 11.4% in mobile phone distant calls, 40.7% and 39.0% in distant IP calls. VOIP calls account for 46% of total telephone calls, which were 37.2% and 42.2% in 2002 and 2003 respectively.