**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      DC 20549**

----

**FORM      10-Q**

**x      QUARTERLY REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**For      the quarterly period ended September 30, 2007**

**o      TRANSITION REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**For      the transition period from ______ to ______.**

**Commission      file number: 001-33456**

**ORSUS      XELENT TECHNOLOGIES, INC. **

| **Delaware**                       |   | **20-11998142**                                |
|-----------------------------------------|--------|-----------------------------------------------------|
| (State                of incorporation) |   | (I.R.S.                Employer Identification No.) |

**12**
**th**

**      Floor, Tower B, Chaowai MEN Office Building**
**26      Chaowai Street, Chaoyang Disc.**
**Beijing,      People’s Republic Of China 100020**

**86-10-85653777**

**Indicate      by check mark whether the registrant: (1) has filed all reports required to      be      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during      the      preceding 12 months (or for such shorter period that the registrant was required      to file such reports), and (2) has been subject to such filing requirements      for      the past 90 days.**

**Yes      x            No      o**

**Indicate      by check mark whether the registrant is an accelerated filer (as defined in      Rule      12-b2 of the Exchange Act).**

**Yes            o      No       x**

**Indicate      by check mark whether the registrant is a shell Registrant (as defined in Rule      12-b2 of the Exchange Act).**

**Yes            o      No       x**

**Indicate      the number of shares outstanding of each of the issuer’s classes of common      stock, as of the latest practicable date.**

| **Class**                                                  |   | **Outstanding                at November 13, 2007** |
|------------------------------------------------------------|--------|-----------------------------------------------------|
| **Common                Stock, $.001 par value per share** |   | **29,756,000****shares**                            |

----

**PART      I – FINANCIAL      INFORMATION**

**Item      1.**
**Financial      Statements.**

**Orsus      Xelent Technologies, Inc.**

**Index      to Financial Statements**

|                                                                                       | Page   |
|--------------------------------------------------------------------------------------------|--------|
|                                                                                       |   |
| Condensed                Consolidated Statements of Operations (Unaudited)                 | 2      |
|                                                                                       |   |
| Condensed                Consolidated Balance Sheets (Unaudited)                           | 3      |
|                                                                                       |   |
| Condensed                Consolidated Statement of Cash Flows (Unaudited)                  | 4      |
|                                                                                       |   |
| Consolidated                Statement of Changes in Stockholders’ Equity (Unaudited) | 5      |
|                                                                                       |   |
| Notes                to Condensed Consolidated Financial Statements                        | 6      |

----

**Orsus      Xelent Technologies, Inc.**

**Condensed      Consolidated Statements of Operations (Unaudited)**

----

*(Dollars        in thousands except share data and per share amounts)*

|                                               |   |       |   | **(Unaudited)****Three months ended****September 30,** |   | **(Unaudited)****Nine months ended****September                30,** |   |
|----------------------------------------------------|--------|------------|--------|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                               |   |       |   | **2007**                                                              |   | **2006**                                                                       |   | **2007** |   | **2006** |   |
|                                               |   | ***Note*** |   | ***US$000***                                                          |   | *US$000*                                                                       |   | ***US$000*** |   | *US$000* |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |
| **Revenues**                                       |   |       |   |                                                                  |   | **22,046**                                                                     |   |   | 20,525 |   |   | **58,411** |   |   | 45,901 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Cost                of revenue**                 |   |       |   |                                                                  |   | **18,064**                                                                     |   |   | 16,716 |   |   | **47,586** |   |   | 37,879 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Gross                income**                    |   |       |   |                                                                  |   | **3,982**                                                                      |   |   | 3,809 |   |   | **10,825** |   |   | 8,022 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Operating                expenses:**             |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Sales                and marketing                 |   |       |   |                                                                  |   | **142**                                                                        |   |   | 140 |   |   | **389** |   |   | 926 |   |
| General                and administrative          |   |       |   |                                                                  |   | **262**                                                                        |   |   | 1,194 |   |   | **2,250** |   |   | 1,883 |   |
| Research                and development            |   |       |   |                                                                  |   | **23**                                                                         |   |   | 40 |   |   | **319** |   |   | 187 |   |
| Depreciation                                       |   |       |   |                                                                  |   | **26**                                                                         |   |   | 24 |   |   | **113** |   |   | 149 |   |
| Allowance                for obsolete inventories  |   |       |   |                                                                  |   | **108**                                                                        |   |   | - |   |   | **700** |   |   | - |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Total                operating expenses            |   |       |   |                                                                  |   | **561**                                                                        |   |   | 1,398 |   |   | **3,771** |   |   | 3,145 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Operating                income**                |   |       |   |                                                                  |   | **3,421**                                                                      |   |   | 2,411 |   |   | **7,054** |   |   | 4,877 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Finance                costs                       |   |       |   |                                                                  |   | **(443**                                                                       | **)**  |   | (41 | ) |   | **(747** | **)** |   | (70 | ) |
| Other                income                        |   |       |   |                                                                  |   | **14**                                                                         |   |   | (4 | ) |   | **21** |   |   | 1 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Income                before income taxes**      |   |       |   |                                                                  |   | **2,992**                                                                      |   |   | 2,366 |   |   | **6,328** |   |   | 4,808 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Income                taxes                        |   |       | *3*    |                                                                  |   | **(422**                                                                       | **)**  |   | - |   |   | **(1,062** | **)** |   | (160 | ) |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Net                income**                      |   |       |   |                                                                  |   | **2,570**                                                                      |   |   | 2,366 |   |   | **5,266** |   |   | 4,648 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income          |   |       |   |                                                                  |   | **-**                                                                          |   |   | - |   |   | **-** |   |   | - |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
|                                               |   |       |   |                                                                  |   | **2,570**                                                                      |   |   | 2,366 |   |   | **5,266** |   |   | 4,648 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| **Earnings                per share:**             |   |       | *2*    |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted                   |   |       |   |                                                                  |   | **0.09**                                                                       |   |   | 0.08 |   |   | **0.18** |   |   | 0.16 |   |
|                                               |   |       |   |                                                                  |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding |   |       |   |                                                                  |   | **29,756,000**                                                                 |   |   | 29,756,000 |   |   | **29,756,000** |   |   | 29,756,000 |   |

*The      accompanying notes are an integral part of these consolidated financial      statements. *

----

**Orsus      Xelent Technologies, Inc.**

**Condensed      Consolidated Balance Sheets (Unaudited)**

----

*(Dollars      in thousands except share data and per share amounts)*

|                                                                                                                                        |   |       |   | **As                of****September                30,****2007** |   | **As                of****December                31,****2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                                                                                                                                        |   | ***Note*** |   | ***US$000***                                                     |   | ***US$000***                                                    |   |
| **ASSETS**                                                                                                                                  |   |       |   |                                                             |   |                                                            |   |
| **Current                assets**                                                                                                           |   |       |   |                                                             |   |                                                            |   |
| Cash                and cash equivalents                                                                                                    |   |       |   |                                                             |   | **2,519**                                                       |   |   | 2,421 |   |
| Accounts                receivable, net of allowance for doubtful accounts                of US$Nil*(2006:US$230,000)*                      |   |       |   |                                                             |   | **46,741**                                                      |   |   | 31,425 |   |
| Inventories,                net                                                                                                             |   |       | *4*    |                                                             |   | **4**                                                           |   |   | 1,230 |   |
| Trade                deposit paid, net                                                                                                      |   |       |   |                                                             |   | **9,521**                                                       |   |   | 8,989 |   |
| Advance                to third party                                                                                                       |   |       |   |                                                             |   | **-**                                                           |   |   | 288 |   |
| Other                current assets                                                                                                         |   |       |   |                                                             |   | **106**                                                         |   |   | 86 |   |
| Pledged                deposit                                                                                                              |   |       | *5*    |                                                             |   | **1,128**                                                       |   |   | 1,128 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Total                current assets                                                                                                         |   |       |   |                                                             |   | **60,019**                                                      |   |   | 45,567 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Property,                plant and equipment, net                                                                                           |   |       | *6*    |                                                             |   | **393**                                                         |   |   | 320 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| **Total                assets**                                                                                                             |   |       |   |                                                             |   | **60,412**                                                      |   |   | 45,887 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                               |   |       |   |                                                             |   |                                                            |   |   |   |   |
| **Current                liabilities**                                                                                                      |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Short-term                bank loans                                                                                                        |   |       | *7*    |                                                             |   | **8,571**                                                       |   |   | 6,268 |   |
| Accounts                payable                                                                                                             |   |       |   |                                                             |   | **13,760**                                                      |   |   | 10,964 |   |
| Accrued                expenses and other accrued liabilities                                                                               |   |       |   |                                                             |   | **6,610**                                                       |   |   | 4,444 |   |
| Trade                deposits                received                                                                                       |   |       |   |                                                             |   | **1,000**                                                       |   |   | 251 |   |
| Due                to directors                                                                                                             |   |       | *10*   |                                                             |   | **325**                                                         |   |   | 330 |   |
| Due                to a stockholder                                                                                                         |   |       | *10*   |                                                             |   | **132**                                                         |   |   | - |   |
| Provision                for warranty                                                                                                       |   |       |   |                                                             |   | **115**                                                         |   |   | 53 |   |
| Tax                payables                                                                                                                 |   |       |   |                                                             |   | **2,350**                                                       |   |   | 1,294 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Total                current liabilities                                                                                                    |   |       |   |                                                             |   | **32,863**                                                      |   |   | 23,604 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| **Commitments                and contingencies**                                                                                            |   |       | *9*    |                                                             |   |                                                            |   |   |   |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| **Stockholders’                equity**                                                                                               |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Preferred                stock, US$0.001 par value:Authorized:                100,000,000 shares, no shares issued                          |   |       |   |                                                             |   | **-**                                                           |   |   | - |   |
| Common                stock and paid-in capital, US$0.001 par value:Authorized:                100,000,000 shares                           |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Issued                and outstanding: 29,756,000 shares as of September 30, 2007 and as                of                December 31, 2006 |   |       |   |                                                             |   | **30**                                                          |   |   | 30 |   |
| Additional                paid-in capital                                                                                                   |   |       |   |                                                             |   | **2,484**                                                       |   |   | 2,484 |   |
| Dedicated                reserves                                                                                                           |   |       |   |                                                             |   | **1,042**                                                       |   |   | 1,042 |   |
| Other                comprehensive income                                                                                                   |   |       |   |                                                             |   | **975**                                                         |   |   | 975 |   |
| Retained                earnings                                                                                                            |   |       |   |                                                             |   | **23,018**                                                      |   |   | 17,752 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| Total                stockholders’ equity                                                                                             |   |       |   |                                                             |   | **27,549**                                                      |   |   | 22,283 |   |
|                                                                                                                                        |   |       |   |                                                             |   |                                                            |   |   |   |   |
| **Total                liabilities and stockholders’ equity**                                                                         |   |       |   |                                                             |   | **60,412**                                                      |   |   | 45,887 |   |

*The      accompanying notes are an integral part of these consolidated financial      statements. *

----

**Orsus      Xelent Technologies, Inc.**

**Condensed      Consolidated Statements of Cash Flows (Unaudited)**

----

*(Dollars      in thousands except share data and per share amounts)*

|                                                                                                         |   | **(Unaudited)**                                                 |         |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------------|
|                                                                                                         |   | **Nine months ended****September                30,** |         |
|                                                                                                         |   | **2007**                                                        |         | **2006** |   |
|                                                                                                         |   |                                                            | ***US$000*** |   | *US$000* |   |
| **Cash                flows from operating activities**                                                      |   |                                                            |         |   |   |   |   |
| **Net                income**                                                                                |   |                                                            | **5,266**    |   |   | 4,648 |   |
| Adjustments                to reconcile net income to net cash used for operating                activities: |   |                                                            |         |   |   |   |   |
| Depreciation                                                                                                 |   |                                                            | **113**      |   |   | 149 |   |
| Allowance                for obsolete inventory                                                              |   |                                                            | **700**      |   |   | - |   |
| Allowance                for doubtful account                                                                |   |                                                            | **1,487**    |   |   | - |   |
| Changes                in assets and liabilities:                                                            |   |                                                            |         |   |   |   |   |
| Accounts                receivable                                                                           |   |                                                            | **(15,086**  | **)** |   | (19,493 | ) |
| Inventories,                net                                                                              |   |                                                            | **526**      |   |   | 2,099 |   |
| Trade                deposits paid                                                                           |   |                                                            | **(2,249**   | **)** |   | 7,468 |   |
| Other                current assets                                                                          |   |                                                            | **(20**      | **)** |   | 57 |   |
| Trade                deposits received                                                                       |   |                                                            | **749**      |   |   | (5,172 | ) |
| Accounts                payable                                                                              |   |                                                            | **2,796**    |   |   | 3,825 |   |
| Due                to directors                                                                              |   |                                                            | **(132**     | **)** |   | - |   |
| Due                to a stockholder                                                                          |   |                                                            | **132**      |   |   | - |   |
| Provision                for warranty                                                                        |   |                                                            | **62**       |   |   | (65 | ) |
| Accrued                expenses and other accrued liabilities                                                |   |                                                            | **2,166**    |   |   | 1,236 |   |
| Tax                payables                                                                                  |   |                                                            | **1,056**    |   |   | 160 |   |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Net                cash used for operating activities**                                                    |   |                                                            | **(2,434**   | **)** |   | (5,088 | ) |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Cash                flows from investing activities**                                                      |   |                                                            |         |   |   |   |   |
| Purchase                of property, plant and equipment                                                     |   |                                                            | **(186**     | **)** |   | (150 | ) |
| Advance                from directors                                                                        |   |                                                            | **127**      |   |   | - |   |
| Repayment                from (Loan to) third parties                                                        |   |                                                            | **288**      |   |   | (125 | ) |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Net                cash provided by (used for) investing activities**                                      |   |                                                            | **229**      |   |   | (275 | ) |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Cash                flows from financing activities**                                                      |   |                                                            |         |   |   |   |   |
| New                loan from banks                                                                           |   |                                                            | **4,861**    |   |   | 2,477 |   |
| Repayment                of bank loans                                                                       |   |                                                            | **(2,558**   | **)** |   | - |   |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Net                cash provided by financing activities**                                                 |   |                                                            | **2,303**    |   |   | 2,477 |   |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Net                change in cash and cash equivalents**                                                   |   |                                                            | **98**       |   |   | (2,886 | ) |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Cash                and cash equivalents, beginning of the period**                                        |   |                                                            | **2,421**    |   |   | 2,974 |   |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Cash                and cash equivalents, end of the period**                                              |   |                                                            | **2,519**    |   |   | 88 |   |
|                                                                                                         |   |                                                            |         |   |   |   |   |
| **Supplemental                disclosure information**                                                       |   |                                                            |         |   |   |   |   |
| Interest                expenses                                                                             |   |                                                            | **496**      |   |   | 70 |   |
| Income                taxes                                                                                  |   |                                                            | **4**        |   |   | - |   |

*The      accompanying notes are an integral part of these consolidated financial      statements. *

----

**Orsus      Xelent Technologies, Inc.**

**Consolidated      Statements of Changes in Stockholders’ Equity (Unaudited)**

----

*(Dollars      in thousands except share data and per share amounts)*

|                                                                              |   | **Common                stock issued** |           |             |   |                                 |   |                      |      |                                      |   |                     |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------------|----------------|------------------|--------|--------------------------------------|--------|---------------------------|-----------|-------------------------------------------|--------|--------------------------|--------|
|                                                                              |   | **No.                of****shares**    |           |  **Amount** |   | **Additional****paid-in****capital** |   | **Dedicated****reserves** |      | **Other****compre-****hensive****income** |   | **Retained****earnings** |   |  **Total** |   |
|                                                                              |   |                                   |           | *US$000*         |   | *US$000*                             |   | *US$000*                  |      | *US$000*                                  |   | *US$000*                 |   | *US$000* |   |
|                                                                              |   |                                   |           |             |   |                                 |   |                      |      |                                      |   |                     |   |   |   |
| Balance                as of January 1, 2006                                      |   |                                   | 29,756,000     |             |   | 30                                   |   |                      | 2,484     |                                      |   | 1,042                    |   |   | 349 |   |   | 11,034 |   |   | 14,939 |   |
|                                                                              |   |                                   |           |             |   |                                 |   |                      |      |                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                         |   |                                   | -              |             |   | -                                    |   |                      | -         |                                      |   | -                        |   |   | - |   |   | 6,718 |   |   | 6,718 |   |
|                                                                              |   |                                   |           |             |   |                                 |   |                      |      |                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment                            |   |                                   | -              |             |   | -                                    |   |                      | -         |                                      |   | -                        |   |   | 626 |   |   | - |   |   | 626 |   |
|                                                                              |   |                                   |           |             |   |                                 |   |                      |      |                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance                as of December 31, 2006                                    |   |                                   | 29,756,000     |             |   | 30                                   |   |                      | 2,484     |                                      |   | 1,042                    |   |   | 975 |   |   | 17,752 |   |   | 22,283 |   |
|                                                                              |   |                                   |           |             |   |                                 |   |                      |      |                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                         |   |                                   | -              |             |   | -                                    |   |                      | -         |                                      |   | -                        |   |   | - |   |   | 5,266 |   |   | 5,266 |   |
|                                                                              |   |                                   |           |             |   |                                 |   |                      |      |                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| **Balance                as at****September                30, 2007 (Unaudited)** |   |                                   | **29,756,000** |             |   | **30**                               |   |                      | **2,484** |                                      |   | **1,042**                |   |   | **975** |   |   | **13,018** |   |   | **27,549** |   |

*The      accompanying notes are an integral part of these consolidated financial      statements. *

----

**Orsus      Xelent Technologies, Inc.**

**Notes      to Condensed Consolidated Financial Statements**

----

| **1.** | **BASIS                OF PRESENTATION AND                CONSOLIDATION** |
|--------|---------------------------------------------------------------------------|

**Basis      of presentations**

**Basis      of consolidation**

| **2.** | **EARNINGS                PER SHARE** |
|--------|---------------------------------------|

| **3.** | **INCOME                TAXES** |
|--------|---------------------------------|

----

**Orsus      Xelent Technologies, Inc.**

**Notes        to Condensed Consolidated Financial Statements**

----

| 3. | **INCOME                TAXES (CONTINUED)** |
|----|---------------------------------------------|

----

**Orsus        Xelent Technologies, Inc.**

**Notes          to Condensed Consolidated Financial Statements**

----

| **3.** | **INCOME                TAXES (CONTINUED)** |
|--------|---------------------------------------------|

|                             |   | **(Unaudited)**                        |      |
|----------------------------------|--------|----------------------------------------|-----------|
|                             |   | **Nine                  months ended** |      |
|                             |   | **September                  30,**     |      |
|                             |   | **2007**                               |      | 2006 |   |
|                             |   | ***US$’000***                    |      | *US$’000* |   |
|                             |   |                                   |      |   |   |
| **Current                  tax** |   |                                   |      |   |   |
| **Hong                  Kong**   |   |                                   | **-**     |   |   | 160 |   |
| **PRC**                          |   |                                   | **1,062** |   |   | - |   |
|                             |   |                                   |      |   |   |   |   |
|                             |   |                                   | **1,062** |   |   | 160 |   |

*(2005:      24%)*

|                                                                                                         |   | **(Unaudited)**                          |      |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                                                                         |   | **Nine                    months ended** |      |
|                                                                                                         |   | **September                    30,**     |      |
|                                                                                                         |   | **2006**                                 |      | 2005 |   |
|                                                                                                         |   | ** %**                              |      |  % |   |
|                                                                                                         |   |                                     |      |   |   |
| **Statutory                    rate –                    PRC**                                         |   |                                     | **24.0**  |   |   | 24.0 |   |
| **Difference                    in tax rates in the countries that the Company                    operates** |   |                                     | **-**     |   |   | (1.0 | ) |
| **Tax                    exemption**                                                                         |   |                                     | **(16.8** | **)** |   | (22.3 | ) |
| **Non-deductible                    expenses**                                                               |   |                                     | **4.7**   |   |   | 2.6 |   |
| **Unrecognized                    tax losses**                                                               |   |                                     | **1.3**   |   |   | - |   |
|                                                                                                         |   |                                     |      |   |   |   |   |
| **Effective                    tax rate**                                                                    |   |                                     | **13.2**  |   |   | 3.3 |   |

----

**Orsus      Xelent Technologies, Inc.**

**Notes        to        Condensed Consolidated Financial Statements **

----

| **4.** | **INVENTORIES,                  NET** |
|--------|---------------------------------------|

|                                             |   | **(Unaudited)**                                                  |   |                                                |   |
|--------------------------------------------------|--------|------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                             |   | **As                of****September                30,****2007** |   | As                ofDecember                31,2006 |   |
|                                             |   | ***US$’000***                                              |   | *US$’000*                                     |   |
|                                             |   |                                                             |   |                                                |   |
| Finished                goods                    |   |                                                             | **4**  |                                                |   | 1,115 |   |
| Raw                materials and work in process |   |                                                             | **-**  |                                                |   | 115 |   |
|                                             |   |                                                             |   |                                                |   |   |   |
|                                             |   |                                                             | **4**  |                                                |   | 1,230 |   |

|   | The                Company has changed its policy from keeping inventories for resale                to                making indent sale during the period ended September 30, 2007 and                resulting in significant decrease in inventories at the balance sheet                date. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.** | **PLEDGED                DEPOSIT** |
|--------|------------------------------------|

| **6.** | **PROPERTY,                PLANT AND EQUIPMENT, NET** |
|--------|-------------------------------------------------------|

|                                    |   | **(Unaudited)**                                                  |     |                                                |   |
|-----------------------------------------|--------|------------------------------------------------------------------|----------|-----------------------------------------------------|--------|
|                                    |   | **As                of****September                30,****2007** |     | As                ofDecember                31,2006 |   |
|                                    |   | ***US$’000***                                              |     | *US$’000*                                     |   |
|                                    |   |                                                             |     |                                                |   |
| Moulds                                  |   |                                                             | **115**  |                                                |   | 107 |   |
| Leasehold                improvements   |   |                                                             | **115**  |                                                |   | 115 |   |
| Plant                and machinery      |   |                                                             | **18**   |                                                |   | 18 |   |
| Office                equipment         |   |                                                             | **266**  |                                                |   | 266 |   |
| Motor                vehicles           |   |                                                             | **266**  |                                                |   | 89 |   |
|                                    |   |                                                             |     |                                                |   |   |   |
|                                    |   |                                                             | **780**  |                                                |   | 595 |   |
|                                    |   |                                                             |     |                                                |   |   |   |
| Accumulated                depreciation |   |                                                             | **(387** | **)**                                               |   | (275 | ) |
|                                    |   |                                                             |     |                                                |   |   |   |
|                                    |   |                                                             | **393**  |                                                |   | 320 |   |

----

**Orsus        Xelent Technologies, Inc.**

**Notes        to Condensed Consolidated Financial Statements **

----

| **7.** | **S****HORT-TERM                  BANK LOANS** |
|--------|------------------------------------------------|

|   | All                bank loans are secured by guarantee provided by the director, Mr.                Liu Yu.                Bank loans of US$6,268,000 are further secured by guarantees provided                by a                guaranty company as set out in note 5 to the financial statements.                The                bank loans are repayable within one year at interest rates ranging                from                7.344% to 7.956% per annum. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.** | **SEGMENT                INFORMATION** |
|--------|----------------------------------------|

| **9.** | **COMMITMENTS                AND CONTINGENCIES** |
|--------|--------------------------------------------------|

| **10.** | **RELATED                PARTY TRANSACTION** |
|---------|----------------------------------------------|

**a.**
**Name      and relationship of related parties**

| **Related                party** |   | **Relationship                with the Company during the period ended September 30,                2007** |
|----------------------------------|--------|------------------------------------------------------------------------------------------------------------|
|                             |   |                                                                                                       |
| Mr.                Wang Xin      |   | Director                and stockholder of the Company                                                     |
| Mr.                Liu Yu        |   | Director                and stockholder of the Company                                                     |
| Mr.                Wang Zhibin   |   | Stockholder                of the Company #                                                                |

----

**Orsus        Xelent Technologies, Inc.**

**Notes        to Condensed Consolidated Financial Statements **

----

| **9.** | **RELATED                  PARTY TRANSACTION                  (CONTINUED)** |
|--------|-----------------------------------------------------------------------------|

**b.**
**Summary      of related party balances**

|                                                            |   |        |   | **(Unaudited)**                                                          |    |                                                                    |   |
|-----------------------------------------------------------------|--------|-------------|--------|--------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|
|                                                            |   |        |   | **As                    of****September                    30,****2007** |    | **As                    of****December                    31,****2006** |   |
|                                                            |   | ***Note***  |   | ***US$000***                                                             |    | ***US$000***                                                            |   |
|                                                            |   |        |   |                                                                     |    |                                                                    |   |
| **Due                    to directors**                         |   |        |   |                                                                     |    |                                                                    |   |
| Mr.                    Wang Xin, Mr. Liu Yu and Mr. Wang Zhibin |   |        |   | **-**                                                                    |    | 330                                                                     |   |
| Mr.                    Wang Xin and Mr. Liu Yu                  |   |  *(i)* |   |                                                                     | **325** |                                                                    |   | - |   |

|                                      |   |        |   | **(Unaudited)**                                                      |    |                                                                |   |
|-------------------------------------------|--------|-------------|--------|----------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|
|                                      |   |        |   | **As                  of****September                  30,****2007** |    | **As                  of****December                  31,****2006** |   |
|                                      |   | ***Note***  |   | ***US$000***                                                         |    | ***US$000***                                                        |   |
|                                      |   |        |   |                                                                 |    |                                                                |   |
| **Due                  to a stockholder** |   |        |   |                                                                 |    |                                                                |   |
| Mr.                  Wang Zhibin          |   |  *(i)* |   |                                                                 | **132** |                                                                |   | - |   |

|                                                     |   | **(Unaudited)**                                                      |   |                                                                |
|----------------------------------------------------------|--------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|                                                     |   | **As                  of****September                  30,****2007** |   | **As                  of****December                  31,****2006** |
|                                                     |   | ***US$000***                                                         |   | ***US$000***                                                        |
|                                                     |   |                                                                 |   |                                                                |
| **Bank                  loans guaranteed by a director** |   |                                                                 |   |                                                                |
| Mr.                  Liu Yu                              |   | **8,571**                                                            |   | 6,268                                                               |

----

| **Item                2.** |  **Management                  Discussion and Analysis of Financial Conditions and Results of                  Operations** |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------|

**OVERVIEW**

----

----

**Business      Review**

----

|                                                    |   | **Nine months ended****September 30, 2007** |   | **Nine months ended****September 30, 2006** |   | **Comparison** |   |
|---------------------------------------------------------|--------|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|----------------|--------|
|                                                    |   | **$000**                                                        |   | **% of****Revenue**                                        |   | **$000**       |   | **% of Revenue** |   | **$000** |   | **%** |   |
| Revenue                                                 |   |                                                            | 58,411 |                                                            |   | -              |   |   | 45,901 |   |   | - |   |   | 12,510 |   |   | 27.25 | % |
| Cost                of sales                            |   |                                                            | 47,586 |                                                            |   | 81.47          | %      |   | 37,879 |   |   | 82.52 | % |   | 9,707 |   |   | 25.63 | % |
| Sales                & marketing expenses           |   |                                                            | 389    |                                                            |   | 0.67           | %      |   | 926 |   |   | 2.02 | % |   | -537 |   |   | -57.99 | % |
| General                & admin. expenses            |   |                                                            | 763    |                                                            |   | 1.31           | %      |   | 519 |   |   | 1.13 | % |   | 244 |   |   | 47.01 | % |
| R&D                expenses                         |   |                                                            | 319    |                                                            |   | 0.55           | %      |   | 187 |   |   | 0.41 | % |   | 132 |   |   | 70.59 | % |
| Depreciation                                            |   |                                                            | 113    |                                                            |   | 0.19           | %      |   | 149 |   |   | 0.32 | % |   | -36 |   |   | -24.16 | % |
| Allowance                for obsolete inventories       |   |                                                            | 700    |                                                            |   | 1.20           | %      |   | -  |   |   | - |   |   | 700 |   |   | 100.00 | % |
| Allowance                for trading deposit receivable |   |                                                            | 1,487  |                                                            |   | 2.55           | %      |   | 1,364 |   |   | 2.97 | % |   | 123 |   |   | 9.02 | % |
| Interest                expenses                        |   |                                                            | 747    |                                                            |   | 1.28           | %      |   | 70 |   |   | 0.15 | % |   | 677 |   |   | 967.14 | % |
| Other                net income                         |   |                                                            | 21     |                                                            |   | 0.04           | %      |   | 1 |   |   | 0.00 | % |   | 20 |   |   | 2000.00 | % |
| Pre-tax                profit                           |   |                                                            | 6,328  |                                                            |   | 10.83          | %      |   | 4,808 |   |   | 10.47 | % |   | 1,520 |   |   | 31.61 | % |
| Income                tax                               |   |                                                            | 1,062  |                                                            |   | 1.82           | %      |   | 160 |   |   | 0.35 | % |   | 902 |   |   | 563.75 | % |
| Profit                (Loss)                            |   |                                                            | 5,266  |                                                            |   | 9.02           | %      |   | 4,648 |   |   | 10.13 | % |   | 618 |   |   | 13.30 | % |

|                                                    |   | **Three months ended****September 30,2007** |   | **Three months ended****September 30,2006** |   | **Comparison** |   |
|---------------------------------------------------------|--------|------------------------------------------------------------|--------|------------------------------------------------------------|--------|----------------|--------|
|                                                    |   | **$000**                                                   |   | **% of Revenue**                                 |   | **$000**       |   | **% of Revenue** |   | **$000** |   | **%** |   |
| Revenue                                                 |   |                                                       | 22,046 |                                                       |   | -              |   |   | 20,525 |   |   | - |   |   | 1,521 |   |   | 7.41 | % |
| Cost                of sales                            |   |                                                       | 18,064 |                                                       |   | 81.94          | %      |   | 16,716 |   |   | 81.44 | % |   | 1,348 |   |   | 8.06 | % |
| Sales                & marketing expenses           |   |                                                       | 142    |                                                       |   | 0.64           | %      |   | 140 |   |   | 0.68 | % |   | 2 |   |   | 1.41 | % |
| General                & admin. expenses            |   |                                                       | 184    |                                                       |   | 0.83           | %      |   | 140 |   |   | 0.68 | % |   | 44 |   |   | 31.43 | % |
| R&D                expenses                         |   |                                                       | 23     |                                                       |   | 0.10           | %      |   | 40 |   |   | 0.19 | % |   | (17 | ) |   | (42.50 | %) |
| Depreciation                                            |   |                                                       | 26     |                                                       |   | 0.12           | %      |   | 24 |   |   | 0.12 | % |   | 2 |   |   | 8.33 | % |
| Allowance                for obsolete inventories       |   |                                                       | 108    |                                                       |   | 0.49           | %      |   | - |   |   | - |   |   | 108 |   |   | 100.00 | % |
| Allowance                for trading deposit receivable |   |                                                       | 78     |                                                       |   | 0.35           | %      |   | 1,054 |   |   | 5.14 | % |   | (976 | ) |   | (92.60 | %) |
| Interest                expenses                        |   |                                                       | 443    |                                                       |   | 2.01           | %      |   | 41 |   |   | 0.20 | % |   | 402 |   |   | 980.49 | % |
| Other                net income                         |   |                                                       | 14     |                                                       |   | 0.06           | %      |   | (4 | ) |   | (0.02 | %) |   | 18 |   |   | 450.00 | % |
| Pre-tax                profit                           |   |                                                       | 2,992  |                                                       |   | 13.57          | %      |   | 2,366 |   |   | 11.53 | % |   | 626 |   |   | 26.46 | % |
| Income                tax                               |   |                                                       | 422    |                                                       |   | 1.91           | %      |   | - |   |   | - |   |   | 422 |   |   | 100.00 | % |
| Profit                (Loss)                            |   |                                                       | 2,570  |                                                       |   | 11.66          | %      |   | 2,366 |   |   | 11.53 | % |   | 204 |   |   | 8.62 | % |

**CRITICAL      ACCOUNTING POLICIES AND MANAGEMENT ESTIMATES **

----

**RESULTS      OF OPERATIONS**

**Revenues**

**Products      Segment**

----

|          |   | **Nine months ended September 30, 2007** |     |
|---------------|--------|-------------------------------------------------------------------|----------|
|          |   |                                                              | **$000** |   |   | **% of Revenue** |   |
| **C8100**     |   |                                                              | 8,801    |   |   | 15.07 | % |
| **CECTA2000** |   |                                                              | 7,762    |   |   | 13.29 | % |
| **C8000**     |   |                                                              | 6,735    |   |   | 11.53 | % |
| **D8110**     |   |                                                              | 6,287    |   |   | 10.76 | % |
| **OBEE007**   |   |                                                              | 4,373    |   |   | 7.49 | % |
| **D907**      |   |                                                              | 4,073    |   |   | 6.97 | % |
| **X180**      |   |                                                              | 3,914    |   |   | 6.70 | % |
| **M5**        |   |                                                              | 3,991    |   |   | 6.83 | % |
| **H8801**     |   |                                                              | 3,389    |   |   | 5.80 | % |
| **M6**        |   |                                                              | 2,908    |   |   | 4.98 | % |
| **M85**       |   |                                                              | 2,449    |   |   | 4.19 | % |
| **N808**      |   |                                                              | 2,230    |   |   | 3.82 | % |
| **N3200**     |   |                                                              | 629      |   |   | 1.08 | % |
| **N3201**     |   |                                                              | 672      |   |   | 1.15 | % |
| Other         |   |                                                              | 198      |   |   | 0.34 | % |
| **Total**     |   |                                                              | 58,411   |   |   | 100 | % |

----

|          |   | **Three months ended September****30, 2007** |   |
|---------------|--------|------------------------------------------------------------------|--------|
|               |   | **$000**                                                         |   | **% of Revenue** |   |
| **CECTA2000** |   |                                                             | 7,762  |   |   | 35.21 | % |
| **OBEE007**   |   |                                                             | 4,373  |   |   | 19.84 | % |
| **D907**      |   |                                                             | 4,073  |   |   | 18.48 | % |
| **H8801**     |   |                                                             | 3,389  |   |   | 15.37 | % |
| **M85**       |   |                                                             | 2,449  |   |   | 11.10 | % |
| **Total**     |   |                                                             | 22,046 |   |   | 100.00 | % |

***Customer      Segments***

|                                                                |   | **Nine months ended September 30, 2007** |   |
|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                |   | **$000**                                                          |   | **% of Revenue** |   |
| Beijing                Xingwang Shidai Tech & Trading Co., Ltd. |   |                                                              | 54,497 |   |   | 93.30 | % |
| China                Electronic Appliance Corporation               |   |                                                              | 3,914  |   |   | 6.70 | % |
| Total                                                               |   |                                                              | 58,411 |   |   | 100.00 | % |

|                                                                |   | **Three months ended September 30,****2007** |   |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|
|                                                                |   | **$000**                                                         |   | **% of Revenue** |   |
| Beijing                Xingwang Shidai Tech & Trading Co., Ltd. |   |                                                             | 22,046 |   |   | 100.00 | % |
| **TOTAL**                                                           |   |                                                             | 22,046 |   |   | 100.00 | % |

----

**Other      net income**

**Operating      expenses**

|                                                    |   | **Nine months ended****September 30, 2007** |   | **Nine months ended****September 30, 2006** |   | **Comparison** |   |
|---------------------------------------------------------|--------|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|----------------|--------|
|                                                    |   | **$000**                                                        |   | **% of Revenue**                                      |   | **$000**       |   | **% of Revenue** |   | **$000** |   | **%** |   |
| Cost                of sales                            |   |                                                            | 47,586 |                                                            |   | 81.47          | %      |   | 37,879 |   |   | 82.52 | % |   | 9,707 |   |   | 25.63 | % |
| Sales                & marketing expenses           |   |                                                            | 389    |                                                            |   | 0.67           | %      |   | 926 |   |   | 2.02 | % |   | (537 | ) |   | (57.99 | %) |
| General                & Admin. expenses            |   |                                                            | 763    |                                                            |   | 1.31           | %      |   | 519 |   |   | 1.13 | % |   | 244 |   |   | 47.01 | % |
| R&D                expenses                         |   |                                                            | 319    |                                                            |   | 0.55           | %      |   | 187 |   |   | 0.41 | % |   | 132 |   |   | 70.59 | % |
| Depreciation                                            |   |                                                            | 113    |                                                            |   | 0.19           | %      |   | 149 |   |   | 0.32 | % |   | (36 | ) |   | (24.16 | %) |
| Allowance                for obsolete inventories       |   |                                                            | 700    |                                                            |   | 1.20           | %      |   | - |   |   | - |   |   | 700 |   |   | 100.00 | % |
| Allowance                for trading deposit receivable |   |                                                            | 1,487  |                                                            |   | 2.55           | %      |   | 1,364 |   |   | 2.97 | % |   | 123 |   |   | 9.02 | % |
| Total                                                   |   |                                                            | 51,357 |                                                            |   | 87.92          | %      |   | 41,024 |   |   | 89.37 | % |   | 10,333 |   |   | 25.19 | % |

|                                                    |   | **Three months ended****September 30, 2007** |   | **Three months ended****September 30, 2006** |   | **Comparison** |   |
|---------------------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------|--------|
|                                                    |   | **$000**                                                         |   | **% of Revenue**                                       |   | **$000**       |   | **% of Revenue** |   | **$000** |   | **%** |   |
| Cost                of sales                            |   |                                                             | 18,064 |                                                             |   | 81.94          | %      |   | 16,716 |   |   | 81.44 | % |   | 1,348 |   |   | 8.06 | % |
| Sales                & marketing expenses           |   |                                                             | 142    |                                                             |   | 0.64           | %      |   | 140 |   |   | 0.68 | % |   | 2 |   |   | 1.41 | % |
| General                & Admin. expenses            |   |                                                             | 184    |                                                             |   | 0.83           | %      |   | 140 |   |   | 0.68 | % |   | 44 |   |   | 31.43 | % |
| R&D                expenses                         |   |                                                             | 23     |                                                             |   | 0.10           | %      |   | 40 |   |   | 0.19 | % |   | (17 | ) |   | (42.50 | %) |
| Depreciation                                            |   |                                                             | 26     |                                                             |   | 0.12           | %      |   | 24 |   |   | 0.12 | % |   | 2 |   |   | 8.33 | % |
| Allowance                for obsolete inventories       |   |                                                             | 108    |                                                             |   | 0.49           | %      |   | - |   |   | - |   |   | 108 |   |   | 100.00 | % |
| Allowance                for trading deposit receivable |   |                                                             | 78     |                                                             |   | 0.35           | %      |   | 1,054 |   |   | 5.14 | % |   | (976 | ) |   | (92.60 | %) |
| Total                                                   |   |                                                             | 18,625 |                                                             |   | 84.48          | %      |   | 18,114 |   |   | 88.25 | % |   | 511 |   |   | 2.82 | % |

----

**Cost      of sales**

**Sales      and marketing expenses**

**R&D      expenses**

----

**General      and administrative expenses**

**Allowance      for obsolete inventories**

**Gross      Profit and Gross Profit Margin**

|   | 1. | the                27.25% increase of revenues for nine months ended September 30,2007,                as                compared to the same period last year; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | the                company’s increased efforts to develop and distribute more highly                profitable products; and |
|--|----|------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | for                nine months ended September 30,2007, the products which yielded a                profit                margin of over 18% accounted for 56.89% of                revenues. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Net      income**

----

|  | 1. | In                2007, we paid the income tax at the rate of 12% of the aggregated                profit. |
|--|----|------------------------------------------------------------------------------------------------------------|

|   | 2. | In                2007, the allowance for obsolete inventories and doubtful accounts                amounted to $2,187,000 by the end of third quarter. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

**LIQUIDITY      AND SOURCE OF CAPITAL**

----

**CASH      FLOWS**

**CONTINGENT      LIABILITIES **

**OFF      BALANCE SHEET ARRANGEMENTS**

----

**CONTRACTUAL        COMMITMENTS**

|                                                                                                                           |   | **Payments due by period** |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|
| **Contractual Obligations**                                                                                               |   | **Total**                                 |    | **Less than****1 year** |   | **1-3 years** |   | **3-5 years** |   | **More than****5 years** |   |
|                                                                                                                                |   | $                                         | 000     |   | $ | 000 |   | $ | 000 |   | $ | 000 |   | $ | 000 |   |
|                                                                                                                           |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                    Debt Obligations                                                                                  |   |                                      | 8,571   |   |   | 8,571 |   |   | - |   |   | - |   |   | - |   |
| Capital                    Lease Obligations                                                                                   |   |                                      | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Operating                    Lease Obligations                                                                                 |   |                                      | 19      |   |   | 19 |   |   | - |   |   | - |   |   | - |   |
| Purchase                    Obligations                                                                                        |   |                                      | 3,136   |   |   | 3,136 |   |   | - |   |   | - |   |   | - |   |
| Other                    long-term liabilities reflected on the registrant’s balance sheet under                    GAAP |   |                                      | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
|                                                                                                                           |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                          |   |                                      | 11,726  |   |   | 11,726 |   |   | — |   |   | — |   |   | — |   |

**Item 3.        **
**Quantitative        and Qualitative Disclosures About Market Risk.**

----

**Item 4.**
**Controls        and Procedures.**

**PART        II – OTHER INFORMATION**

**Item        1.**
**Legal        Proceedings.**

**Item        1A.**
**Risk        Factors.**

**Item        2.**
**Unregistered        Sales of Equity Securities and Use of Proceeds.**

**Item        3.**
**Defaults        Upon Senior Securities.**

**Item        4.**
**Submission        of Matters to a Vote of Security Holders.**

**Item        5.**
**Other        Information.**

----

**Item        6.**
**Exhibits.**

| **Exhibit** |   |                                                                                                                                                |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| **Number**  |   |  **Exhibit                  Description**                                                                                                      |
|        |   |                                                                                                                                                |
| 31.1        |   | Certification                  of Principal Executive Officer under Section 302 of the Sarbanes-Oxley                  Act                  of 2002 |
|        |   |                                                                                                                                                |
| 31.2        |   | Certification                  of Principal Accounting Officer under Section 302 of the Sarbanes-Oxley                  Act of 2002                 |
|        |   |                                                                                                                                                |
| 32.1        |   | Certification                  of Principal Executive Officer under Section 906 of the Sarbanes-Oxley                  Act                  of 2002 |
|        |   |                                                                                                                                                |
| 32.2        |   | Certification                  of Principal Accounting Officer under Section 906 of the Sarbanes-Oxley                  Act of 2002                 |

----

**SIGNATURES**

| **ORSUS                    XELENT TECHNOLOGIES, INC.** |
|--------------------------------------------------------|
|                                                   |
|                                                   |
| By:                                                    | /s/                    Wang Xin |
|                                                   | Wang                    Xin |
|                                                   | Chief                    Executive Officer |

----

**INDEX        TO EXHIBITS**

| **Exhibit** |        |                                                                                                                                                     |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| **Number**  |        | **Exhibit                  Description**                                                                                                            |
|        |   |                                                                                                                                                |
| 31.1        |   | Certification                  of Principal Executive Officer under Section 302 of the Sarbanes-Oxley                  Act                  of 2002 |
|        |   |                                                                                                                                                |
| 31.2        |   | Certification                  of Principal Financial Officer under Section 302 of the Sarbanes-Oxley                  Act                  of 2002 |
|        |   |                                                                                                                                                |
| 32.1        |   | Certification                  of Principal Executive Officer under Section 906 of the Sarbanes-Oxley                  Act                  of 2002 |
|        |   |                                                                                                                                                |
| 32.2        |   | Certification                  of Principal Fincial Officer under Section 906 of the Sarbanes-Oxley                  Act                  of 2002   |

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