SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 20-F

ANNUAL REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR
THE FISCAL YEAR ENDED SEPTEMBER 30, 2001

                           Commission File No. 0-29320

                             EIGER TECHNOLOGY, INC.
             (Exact name of Registrant as specified in its charter)

                                 Ontario, Canada
                 (Jurisdiction of incorporation or organization)

                            330 Bay Street, Suite 602
                            Toronto, Ontario M5H 2S8
                    (Address of principal executive offices)

 Securities registered or to be registered pursuant to Section 12(b) of the Act:
                                      None

Securities registered or to be registered pursuant to Section 12(g) of the Act:

                        Common Shares, without par value
                                (Title of Class)

 Securities for which there is a reporting obligation pursuant to Section 15(d)
                                of the Act: None

Indicate the number of outstanding shares of each of the Issuer's classes of
capital or common stock as of the close of the period covered by the annual
report: 36,215,853 Commons Shares without par value.

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 |_|

Indicate by check mark which financial statement item the registrant has elected
to follow.

                             Item 17 |_| Item 18 |X|

                                                           The Index to Exhibits
                                                             is found at Page 40


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<PAGE>

FORWARD LOOKING STATEMENTS

Forward-Looking Information is Subject to Risk and Uncertainty. This report
contains certain "forward-looking statements" within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. When used in this report, the
words "estimate," "project," "intend," "expect," "anticipate" and similar
expressions are intended to identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this report. These statements are subject to risks
and uncertainties that could cause actual results to differ materially from
those contemplated in such forward-looking statements. Such risks and
uncertainties include, but are not limited to, those identified under the
subheading "Risk Factors" in Item 3 hereof.

                                    GLOSSARY

The following is a glossary of some terms that appear in the discussion of the
business of the Company as contained in this Annual Report.

"ADSL"                  ADSL is a variation of DSL that operates by way of two-
                        way or duplex bandwidth and is devoted to the downstream
                        transmission of data.

"bandwidth"             The maximum speed at which data can be transmitted
                        between computers in a network.

"bus"                   A device for transmitting data to and from the different
                        components of a PC.

"DSL"                   "Digital Subscriber Line" - a technology for bringing
                        high- bandwidth information to homes and businesses over
                        conventional copper telephone lines, permitting
                        continuous transmission of motion video, audio and 3-D
                        effects.

"electronic ballasts"   A component  that starts a fluorescent lamp.

"Ethernet"              A LAN, the different nodes of which are connected by
                        coaxial cable. This cable can be thin (which can connect
                        two nodes up to a distance of about 1000 feet) or thick
                        (which can connect two nodes up to a distance of about
                        3300 feet). The Ethernet standard has a provision to
                        transmit data at a rate of 10 megabits per second.

"kbps"                  "Kilobytes Per Second" - a measure of the rate at which
                        a modem can transmit data. This is measured in bits per
                        second (bps).

"LAN"                   "Local Area Network" is a group of PC's, computers and
                        peripheral devices that are linked together where each


                                       2
<PAGE>

                        device is located in close proximity to all the other
                        devices. LANs typically consist of a number of PC's,
                        shares printers, shared directories and files.

"PCMCIA"                "Personal Computer Memory Card International
                        Association" - a PCMCIA card as an expansion bus
                        designed for laptop computers, which allows modems and
                        other devices to be connected to the PC.

"PC"                    "Personal Computer".

"peripherals"           A peripheral is a device, which can be attached to a PC
                        and is controlled by its processor. Examples include
                        printers and modems.

"VOIP"                  Voice Over Internet Protocol is a term used in the
                        telecom world for a set of facilities for managing the
                        delivery of voice information using the Internet. A
                        major advantage of VOIP is that it avoids the tolls
                        charged by ordinary telephone service.

"Soft Switch            Software based telecommunications equipment as apposed
Technology"             to dedicated analog circuit switched technology.

"Analog Voice"          The traditional telephone technology in which sound
                        waves are converted into electrical impulses of varying
                        strength or amplitude.

"IP Packets"            A form of data transmission in which data is
                        broken into small binary packets that are transmitted
                        independently and reassembled at the destination. This
                        is in contrast with circuit-switching, traditionally
                        used for voice telephony, in which the transmission
                        occurs over a dedicated circuit.

"Advertising Based      Whereby a user listens to a 15 second advertisement
Calling"                prior to receiving a free long distance call.

"Technology Platform"   A chosen architecture for technology.

"Toll Quality"          The standard of quality on a traditional circuit
                        switched network.

"OEM"                   Original Equipment Manufacturer.


                                       3
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

                                     PART I

Item 1.  Identity of Directors, Senior Management and Advisors                 5
              Not Applicable
Item 2.  Offer Statistics and Expected Timetable -- Not Applicable             5
Item 3.  Key Information                                                       5
Item 4.  Information on the Company                                            9
Item 5.  Operating and Financial Review and Prospects                         19
Item 6.  Directors, Senior Management and Employees                           22
Item 7.  Major Shareholders and Related Party Transactions                    25
Item 8.  Financial Information                                                27
Item 9.  The Offer and Listing                                                28
Item 10. Additional Information                                               29
Item 11. Quantitative and Qualitative Disclosure about Market Risk
              Not Applicable                                                  37
Item 12. Description of Securities Other than Equity Securities
              Not Applicable                                                  37

                                     PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies
              Not Applicable                                                  38
Item 14. Material Modifications to the Rights of Security Holders and
         Use of Proceeds -- Not Applicable                                    38
Item 15. Reserved.                                                            38
Item 16. Reserved.                                                            38

                                    PART III

Item 17. Financial Statements -- Not Applicable                               39
Item 18. Financial Statements                                                 39
Item 19. Exhibits                                                             39

SIGNATURES


                                       4
<PAGE>

                                     PART I

Item 1. Identity of Directors, Senior Management and Advisers

      Not Applicable.

Item 2. Offer Statistics and Expected Timetable

      Not Applicable.

Item 3. Key Information

      A. Selected financial data.

The selected consolidated financial information set out below has been obtained
from financial statements which reflect the Company's business operations. The
financial statements have been prepared in accordance with accounting principles
generally accepted in Canada. For reconciliation to US GAAP refer to Note 15 of
the attached audited statements. The following table summarizes information
pertaining to operations of the Company for the last five years ended September
30, 2001.

<TABLE>
<CAPTION>
                              2001           2000           1999          1998         1997
-------------------------------------------------------------------------------------------------
<S>                          <C>             <C>            <C>           <C>          <C>
Working Capital               12,815,000     23,404,000      4,765,000     1,169,000    1,228,000

Revenue                       30,070,000     57,068,000      8,433,000     4,796,000    3,734,000

Income (loss) from
Operation:                   (20,327,000)      (693,000)      (742,000)      508,000      138,000

Income (loss) from
Continuing operation:        (20,327,000)      (629,000)    (1,287,000)      508,000      138,000

Net Income (loss):           (20,327,000)      (693,000)      (742,000)      508,000      138,000

Earnings (loss) per Share:         (0.61)         (0.03)         (0.05)          .01          .01

Total Assets:                 30,721,000     57,145,000     17,018,000     9,221,000    5,385,000

Net Assets:                   21,127,000     38,348,000      8,337,000     3,064,000    2,556,000

Long Term debt:                1,014,000      1,488,000      1,111,000     1,477,000    1,326,000

Total Liabilities:            10,265,000     15,501,000      6,727,000     5,689,000    2,760,000

Share Capital:                42,001,000     38,895,000      8,191,000     2,176,000    2,176,000

Retained Earnings
(Deficit):                   (21,091,000)      (764,000)       (71,000)      671,000      163,000

Number of Shares:             36,215,853     33,945,858     20,457,429    13,815,001   13,815,001
</TABLE>


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<PAGE>

Currency Exchange Information

The Company's accounts are maintained in Canadian dollars. In this Registration
Statement, all dollar amounts are expressed in Canadian dollars except where
otherwise indicated.

The following table sets forth, for the periods indicated, the high and low
rates of exchange of Canadian dollars into United States dollars, the average of
such exchange rates on the last day of each month during the periods, and the
end of period rates. Such rates are shown as, or are derived from, the
reciprocals of the noon buying rates in New York City for cable transfers
payable in Canadian dollars, as certified for customs purposes by the Federal
Reserve Bank of New York.

--------------------------------------------------------------------------------
                                Fiscal Year Ended
                                  September 30
--------------------------------------------------------------------------------

                          2001        2000        1999        1998        1997

High                      0.6669      0.6903      0.6913      0.7300      0.7513

Low                       0.6330      0.6686      0.6362      0.6330      0.7145

Average                   0.6513      0.6793      0.6637      0.6840      0.7300

Period                    0.6330      0.6636      0.6813      0.6540      0.7234

On March 4, 2002 the exchange rate of Canadian dollars into United States
dollars, based upon the noon buying rate in New York City for cable transfers
payable in Canadian dollars as certified for customs purposes by the Federal
Reserve Bank of New York City, was Cdn. $1.00 equals U.S. $0.6289.

The following table sets forth, for the most recent previous six months, the
high and low rates of exchange of Canadian dollars into United States dollars.
The latest practicable date for March was noon buying rate on March 20, 2002.

                             MAR      FEB      JAN      DEC      NOV      OCT
                             2002     2002     2002     2001     2001     2001

High                         0.6332   0.6295   0.6290   0.6396   0.6363   0.6416
Low                          0.6268   0.6206   0.6201   0.6254   0.6241   0.6287

B. Capitalization and indebtedness.

      Not Applicable.


                                     - 6 -
<PAGE>

C. Reasons for the offer and use of proceeds.

      Not Applicable.

D. Risk factors.

The Company's operations are subject to a variety of risks and uncertainties.
The following factors are considered a list of known material risk factors
associated with the Company's operations.

Foreign Operations

The Company derives 58% of its revenue from international sales outside of North
America and 34% from the United States. International sales are subject to
certain risks, including unexpected changes in legal and regulatory requirements
and policy changes affecting the Company's markets; changes in tariffs, currency
exchange rates and other barriers; political and economic instability;
difficulties in accounts receivable collection; difficulties in managing
distributors and representatives; difficulties in protecting the Company's
intellectual property; and potentially adverse tax consequences. See also
"Foreign Exchange Rate" below.

Management of the Growth of the Company

The implementation of the Company's business strategy could result in a period
of rapid growth. This growth could place a strain on the Company's managerial,
operational and financial resources and information systems. Future operating
results will depend on the ability of senior management to manage rapidly
changing business conditions, and to implement and improve the Company's
technical, administrative, financial control and reporting systems. No assurance
can be given that the Company will succeed in these efforts. The failure to
effectively manage and improve these systems could increase the Company's costs
and adversely affect its ability to sell and deliver its products and services.

Competition

The Company faces competition in each of its markets and has competitors, many
of which are larger and have greater financial resources than the Company. There
can be no assurance that the Company will be able to continue to compete
successfully in its markets. Because the Company competes, in part, on the
technical advantages and cost of its products, significant technical advances by
competitors or the achievement by such competitors of improved operating
effectiveness that enable them to reduce prices could reduce the Company's
competitive advantage in these products and thereby adversely affect the
Company's business and financial results.

New Products and Technological Change

The market for the Company's products is characterized by rapidly changing
technology, evolving industry standards and frequent new product introductions
which may be comparable or superior to the Company's products. The Company's
success will depend upon market acceptance of its existing products and its
ability to enhance its existing products and to introduce new products and
features to meet changing customer requirements. There can be no assurance that
the Company will be successful in


                                     - 7 -
<PAGE>

identifying, manufacturing and marketing new products or enhancing its existing
products on a timely and cost-effective basis or that such new products will
achieve market acceptance. In addition, there can be no assurance that products
or technologies developed by others will not render the Company's products or
technologies non-competitive or obsolete.

New Market Development

There can be no assurance that the Company will be able to identify, develop and
export to countries or geographic areas in which it is not presently selling.

Intellectual Property

The Company has not obtained patent protection for its proprietary technology or
products and has not registered any trademarks or copyrights. As the Company has
not protected its intellectual property, its business may be adversely affected
by competitors copying or otherwise exploiting the features of the Company's
technology, products, information or services.

Dependence on Key Personnel and Skilled Employees

The success of the Company is dependent, in large part, on certain key personnel
and on the ability to motivate, retain and attract highly skilled persons. The
employment market for skilled technology employees is extremely tight. There can
be no assurance that the Company will be able to attract and retain employees
with the necessary technical and technological skills given the highly
competitive state of the employment market for these individuals. The loss of
such services or the failure by the Company to continue to attract and retain
other key personnel may have a material adverse effect on the Company, including
its ability to develop new products, grow earnings and accelerate revenue
growth.

Risks of International Business

Currently two of the Company's production facilities are based in South Korea
while the other facility is located in Canada. As well, the Company distributes,
markets and sells its products in numerous foreign countries. Accordingly, the
Company is subject to the risks associated with producing and selling in
international markets. These risks include the imposition of tariff and
non-tariff barriers to trade requirements for export licenses and local business
regulation, including the imposition of taxes.

Relationship with Production Employees

Although the employees of the Company are not unionized, there can be no
assurance that this will not occur. Management of the Company is of the opinion
that the unionization of its operations would have a detrimental effect on the
Company's ability to remain competitive.

Uncertain Operating Results

The Company's operating results have varied and may continue to vary
significantly depending on such factors as the timing of new product
announcements, increases in the cost of raw materials and changes in pricing
policies of the Company and its competitors. The market price of the Shares may
be highly volatile in response to such fluctuations.


                                     - 8 -
<PAGE>

Foreign Exchange Rate

Material appreciation of the Canadian dollar against the US dollar would reduce
the profitability of the Company's US sales. The Company is also exposed to
exchange rate fluctuations in the US and Canadian dollar against the Korean Won.

Political Climate in South Korea

Political instability in South Korea may negatively affect the Company's ability
to manufacture its products on a timely basis, resulting in product shortages.
Management is unaware of any present evidence of political instability of this
magnitude in South Korea.

Item 4. Information on the Company

      A. History and development of the company.

Eiger Technology, Inc. (the "Company") was incorporated under the name "Alexa
Ventures Inc." under the Company Act (British Columbia) on September 8, 1986.
The memorandum of the Company was amended on November 26, 1999 to change the
name of the Company from Alexa Ventures Inc. to "Eiger Technology, Inc." In
November 2000 the Company changed its jurisdiction of incorporation from British
Columbia to Ontario.

The Company's registered head office and executive office is located at 330 Bay
Street, Suite 602, Toronto, Ontario M5H 2S8. The telephone number of the
registered office is (416) 216-8659.

The Company entered the energy efficient lighting business in 1991. The
Company's two main operating subsidiaries in this business are K-Tronik and ADH.
ADH operates from the Company's 55,000 square foot manufacturing and engineering
facility located in Stratford, Ontario. ADH manufactures and distributes
transformer housings, switch housings and electronic data racks, as well as
fluorescent light fixtures and reflectors.

On April 1, 1998, the Company purchased 53% of the common stock of K-Tronik for
$275,000, plus options entitling the holders to acquire up to 250,000 common
shares of the Company. In addition to its US distribution capabilities, K-Tronik
also possesses a South Korean manufacturing facility through its subsidiary,
K-Tronik Asia, Inc. The Company's management does not intend to divest the
Company of its interest in K-Tronik until the public and capital markets
improve.

Also, on September 15, 2000, the Company sold its 60% interest in Lexatec VR
Systems, Inc.

During fiscal 1998, the Company consolidated two of its South Korean
subsidiaries, Energy Products, Inc. (a manufacturer of electronic ballasts) and
its South Korean energy saving products sales arm, which were eventually
combined under the name "K-Tronik Asia, Inc."


                                     - 9 -
<PAGE>

The Company entered the computer peripheral business following a series of
transactions in September 1999 which resulted in the Company owning a 64%
interest in Eiger Labs Group, Inc. ("Eiger Labs") and its Eiger Labs' wholly
owned manufacturing subsidiary, Eiger Net, Inc. ("Eiger Net"). Based in Newark,
California (Silicon Valley), Eiger Labs distributes a wide variety of PC card
and desktop peripherals including storage, multimedia, connectivity and
communications products such as MP3 players and ADSL modems. Based in South
Korea, Eiger Net is a manufacturer of fax modems, Ethernet and PCMCIA products
and MP3 players for both the South Korean and United States markets. Eiger Net
manufactures electronic communication products for a number of OEMs and PC
companies as well as for Eiger Labs.

The Company caused its subsidiary Alexa (USA) Inc. to incorporate Eiger Labs as
a 100% owned California subsidiary on August 18, 1999. On August 18, 2000 Eiger
Labs acquired all of the assets of Eiger Labs, Inc. for consideration of US
$500,000. Also on August 18, 1999, each of Seung Bae Lim, Yong Kook Kim, Tae Jin
Lee and Rae Myung Cha (collectively, the "Eiger Net Vendors") subscribed for
shares which, when issued, left the Company (through Alexa (USA) Inc.) holding
64% of Eiger Labs. The Company and the Eiger Net Vendors also entered into a
shareholders' agreement with the Eiger Net Vendors providing, among other
things, for the appointment of directors and officers, the nature of the
business to be carried out by Eiger Labs, allocation of profits, dividends and
distributions, and restrictions on sales of the parties' shares in Eiger Labs.

The acquisition of the Company's 64% interest in Eiger Net was effected through
payment of a combination of cash and stock with a combined aggregate value of US
$1,500,000. US $1,000,000 cash consideration was paid and 500,000 common shares
of the Company were issued. The Company further agreed to issue common shares to
the Eiger Net Vendors in equal amounts, with performance earn out consideration
contingent upon achieving the criteria tabled below for the combined results of
Eiger Labs and Eiger Net:

                                                                   COMMON SHARES
               COMBINED GROSS              COMBINED NET           OF THE COMPANY
YEAR                SALES                     INCOME               TO BE ISSUED
--------------------------------------------------------------------------------
1999           US $27 million             US $1.0 million            600,000

2000           US $70 million             US $2.5 million            750,000

2001           US $80 million             US $3.5 million            750,000

2002           US $90 million             US $4.0 million            900,000

2003           US $110 million            US $4.5 million          1,000,000

Under the formula in the agreements, if any of the above targets is not met in
any of the above noted years, any gross sales or net income earned or achieved
in that year is added to the targets of subsequent years. The common shares of
the Company to be issued in


                                     - 10 -
<PAGE>

respect of those targets are to be considered cumulative and can be achieved in
any subsequent year in respect of the terms of the agreement.

600,000 common shares of the Company were issued on February 29, 2000 pursuant
to this agreement. The Company's common shares were trading at $8.00 Cdn. on
that date. No shares will be issued during 2002 for the fiscal 2001 year, and
therefore may be issued during subsequent years provided combined gross sales
and net income targets are achieved on a cumulative basis.

The Company moved its Eiger Net manufacturing facility to a 35,000 sq. ft.
facility in Seoul, South Korea. This facility includes equipment capable of
manufacturing high quality, technologically complex printed circuit board
assemblies and electronic technical products. Eiger Net also received QS 9000
certification during the 2000 fiscal year. Eiger Labs and Eiger Net have
experienced a significant decrease in sales and earnings as a result of the
global recession and a downturn in the computer peripheral sector.

Eiger has acquired 100% of the shares of Onlinetel through a Share Exchange
agreement under the provisions of Chapter 92a of the NGCL (Nevada General
Corporate Law). Upon receipt of the share exchange documents, Eiger has issued
1,800,000 shares on a pro rata basis for 100% of the shares of Onlinetel.

As consideration for the acquisition of Onlinetel, Eiger will issue a maximum of
9,000,000 common shares which shall be comprised of 1,800,000 shares to the
former shareholders of Onlinetel and up to an additional 7,200,000 shares
pursuant to an earn out provision totalling 1,800,000 shares per year, over a
period of four years, with extension provisions for an additional period of four
years, based on Onlinetel's ability to meet the following operating benchmarks:

                     -----------------------------------------------------------
                     2002            2003            2004            2005
--------------------------------------------------------------------------------
Revenue              $19,083,488     $37,347,766     $50,849,180     $59,867,184
--------------------------------------------------------------------------------
Net
Income               $ 2,442,015     $ 6,212,532     $ 9,352,747     $13,848,741
--------------------------------------------------------------------------------

Under the formula in the agreements, if any of the above targets is not met in
any of the above noted years, any gross sales or net income earned or achieved
in that year is added the targets of subsequent years. The common shares of the
company to be issued in respect of those targets are to be considered cumulative
and can be achieved in any subsequent year in respect of the terms of the
agreement.

Recent Financings

2000 Special Warrant Financing


                                     - 11 -
<PAGE>

Pursuant to an underwriting agreement dated March 7, 2000 (the "Underwriting
Agreement") between the Company and Dundee Securities Corporation, Canaccord
Capital Corporation and BMO Nesbitt Burns Inc. (collectively, the
"Underwriters"), the Company issued by way of private placement a total of
4,400,000 special warrants ("Special Warrants") at a purchase price of $5.00 per
Special Warrant. Each Special Warrant entitles the holder to acquire 1.1 common
shares in the capital of the Company without payment of additional consideration
on or before 5:00pm (Toronto time) on the earlier of (a) the third business day
after a final receipt for the Company's prospectus is issued by the last of the
Securities Commissions of Ontario, British Columbia and Alberta, and (b) March
7, 2001 (the "Expiry Time"). The 1.1 common share conversion factor includes a
10% penalty regarding the Company not clearing a final prospectus within 120
days of March 7, 2000. The Company did not receive clearance of a final
prospectus and as such the 10% penalty was included.

In consideration for services performed in relation to this offering, the
Underwriters received a commission equal to 7% of the aggregate purchase price
for the Special Warrants. As well, the Underwriters also received that number of
special compensation options (the "Special Compensation Options") equal to 7% of
the number of Common Shares issuable on the exchange of the Special Warrants, or
a total of 308,000 Special Compensation Options. Each Special Compensation
Option is non-transferable and entitles the Underwriters to receive one
compensation option (the "Compensation Option") without additional payment. Each
Compensation Option is non-transferable and entitles the Underwriters to acquire
one Common Share at any time prior to 5:00 p.m. (Toronto time) on March 7, 2002,
at a price of $5.00 per Common Share.

December 1999 Private Placement

On December 13, 1999, the Company sold by way of private placement 700,000 units
at a price of $1.128 per unit. Each unit consists of one common share of the
Company and one warrant exercisable for one common share of the Company at a
price of $1.41 per common share. The warrants have been exercised.

Other Recent Developments

Eiger takes K-Tronik Public

Eiger Technology announced on December 6, 2001 it signed an agreement to take
its subsidiary, K-Tronik International Corp. public in the first quarter of 2002
by way of a reverse acquisition with LMC Capital Corp., a US reporting issuer.
Eiger Technology owns 53% of K-Tronik through its US subsidiary ETIFF Holdings,
Inc.

K-Tronik's strategy moving forward is to increase market share through acquiring
ESCO's (General Contractors that specialize in conducting energy efficiency
audits of multiple tenant commercial buildings and retrofitting them with high
efficiency lighting ballasts) and various other component manufacturers that
supply the Electronic Ballast Industry. Integrating both the manufacturing and
distribution of ballasts will increase gross margin substantially and will
create operating efficiencies overall.


                                     - 12 -
<PAGE>

Eiger is to receive 7,571,428 shares of LMC for its 53% stake in K-Tronik. Eiger
will also receive 7,071,000 shares at an average price of US $0.58 per share in
part because of its agreement to convert debt owed to it by K-Tronik totaling US
$4,071,000. The total consideration that Eiger is to receive in the transaction
is 14,642,428 shares, which represents 64% of the shares of LMC. Mr. Robert Kim,
President and founder of K-Tronik will receive a total of 6,714,286 shares of
K-Tronik for his 47% stake in the company.

Eiger takes ADH Public

Eiger Technology, Inc. announced on December 20, 2001 it signed an agreement to
take its subsidiary ADH Custom Metal Fabricators Inc., public, by way of a
reverse acquisition with Newlook Capital Corp., a CDNX listed company (Ticker
Symbol - NLK). Eiger Technology currently owns 100% of ADH through its
subsidiary Vision Unlimited Equipment Inc.

The announcement is in keeping with Eiger's strategy to monetize its technology
holdings by way of outright sale or public offering. This strategy will raise
additional working capital for Eiger without further dilution to shareholders
and provide management a more defined focus on its technology assets.

The terms of the transaction are as follows:

In exchange for the issuance to it of 4,800,000 common shares of Newlook at a
deemed price of $0.50 per common share (for a total purchase price of
$2,400,000), Eiger agrees to sell to Newlook all of the issued and outstanding
shares of Vision Unlimited Equipment Inc. (the "Vision Shares") and through the
sale of the Vision Shares, all of the issued and outstanding shares of Vision's
subsidiary, ADH Custom Metal Fabricators Inc.

The resignation of the previous board of directors and officers of Newlook and
the subsequent appointment of Mr. Gerry Racicot, Mr. Keith Attoe and Mr. John
Ramsbottom to the board of directors of Newlook took place in accordance with
the Vision/ADH agreement These persons were also appointed as the officers of
Newlook.

ADH has recently hired Mr. John Ramsbottom as President. Mr. Ramsbottom brings
23 years of management, manufacturing and engineering strength from
Westinghouse, Emerson Electric and most recently Taylor Pipe Supports. He has
held the titles of Facilities and Development Manager, Engineering Manager, and
Director of Manufacturing and Engineering.

Closing of the Vision/ADH Agreement is conditional as follows:

The purchase by Eiger Technology, Inc. of 880,000 of the now outstanding
1,000,000 escrow shares for $88,000;

The consolidation of the existing 1,000,000 common shares and the 1,000,000
escrowed common shares of Newlook on a 1 for 2 basis; and


                                     - 13 -
<PAGE>

Newlook's regulatory bodies and minority shareholder approval of the
transaction.

A finder's fee of 240,000 post-consolidated common shares is payable by Newlook
in connection with the transaction.

      B. Business overview.

The Company has four principal subsidiaries, namely, Onlinetel Corp., K-Tronik
International Corporation, Eiger Net Inc. and ADH Custom Metal Fabricators, Inc.

ONLINETEL CORP.

Onlinetel Corp. is a next generation telecommunications software and services
company, which uses soft-switch technology to deliver Voice over Internet
Protocol (VoIP) communication services to individuals, businesses and carriers.
Utilizing soft switch technology, Onlinetel converts analog voice conversation
to digital I.P. packets and routes voice calls, phone-to-phone, over the
Internet from any wireless or landline connection. VoIP and the integration of
voice and data networks is a competitive threat to providers of traditional
telecom services because of the substantial increase in communication cost
efficiencies of both running voice and data over a single integrated
infrastructure and the ability to bypass per minute usage rates.

Using its Intelliswitch application, Onlinetel pioneered and developed a new
media for advertisers, enabling individuals and businesses to benefit from free
long distance calling in exchange for listening to a 15 second paid
advertisement, and enabling sponsors to benefit from one-to-one advertisements
to callers. The first commercial application of this advertisement based calling
network was launched in the Greater Toronto Area (GTA) 905 area code. In 2001,
Onlinetel experienced dramatic growth in advertising revenue as its user base in
the GTA 905 area code grew to over 200,000 households, or just under 20% of the
market. Additionally, Onlinetel is currently processing over 15 million minutes
of traffic per month in this market.

In 2002, Onlinetel anticipates launching advertising based calling networks in
additional area codes nationally in order to significantly expand its user base
and advertising revenue. As well, by leveraging its technology platform and
scalable network infrastructure, Onlinetel has identified several potentially
lucrative product offerings targeted to its growing user base; lowest cost 10-10
based international calling, residential and corporate flat rate subscription
plans for unlimited calling between major centers nationally, flat rate
unlimited internet access services, and customized prepaid phone card plans.

Onlinetel delivers toll-quality communications at the lowest long distance rates
available. With reduced investment cost burdens, Onlinetel's soft-switch
technology reliably scales to service millions of callers. Onlinetel's continued
expansion of its own national network along with seamless and virtual
connections worldwide with leading carriers will extend Onlinetel's reach to the
global community in 2002 and beyond.


                                     - 14 -
<PAGE>

K-TRONIK INTERNATIONAL CORPORATION

K-Tronik is a North American manufacturer of energy efficient electronic
ballasts for fluorescent lighting. K-Tronik supplies ballasts worldwide to OEMs
such as Lightolier, Fontana, Edison, Visioneering, Peerless and others. With a
broad product line, low cost production and one of the lowest product defect
rates in the industry (less than 0.04%), K-Tronik has developed a solid
reputation in the rapidly growing energy technology industry.

K-Tronik had sales of CDN$10,107,000 in 2001, and has experienced 119% annual
revenue growth over the past two years. This rapid growth is due in part to the
United States Department of Energy's mandate that all fluorescent lamp ballasts
produced after April 1, 2005 be energy efficient electronic ballasts, as opposed
to less efficient electromagnetic ballasts. Currently, electronic ballasts
represent 40% of the annual US $1 Billion North American ballast market. The
strong brand recognition and market share built by K-Tronik over the past three
years has also contributed significantly to its growth and has positioned it for
sales momentum in the future.

Based on this growth, Eiger announced its plans to take K-Tronik public in the
first quarter of 2002 by way of a reverse acquisition with LMC Capital Corp., a
US reporting issuer. Eiger will own 51.25% of K-Tronik upon its public listing.

The decision to take K- Tronik public was also based on maximizing Eiger's
return on shareholder equity that is currently not reflected in Eiger's share
price. For example, utilizing a conservative price to sales ratio of two times,
based on historical numbers, K-Tronik as a stand-alone public company represents
value of CDN $0.48 per Eiger share. The public listing of K-Tronik will
potentially enable Eiger to realize this value and raise working capital without
dilution to Shareholders through the sale of its K-Tronik shares to the public.

EIGER NET INC.

Eiger Net is involved in the R&D, engineering and manufacturing of multimedia
and data communication cards such as 56K and DSL modem cards, Home PNA cards,
LAN cards, MP3 modules and other Internet access devices for OEM consumer
electronics companies worldwide.

In 2000 Eiger Net invested in new manufacturing capacity and obtained a QS 9000
certification in order to able to compete for large volume OEM consumer
electronics contracts. As a result of those initiatives, Eiger experienced
dramatic revenue growth in 2000 and was cash flow positive.

However, the global economic downturn that began last year resulted in a
difficult year for Eiger Net in 2001. The cost of new investments coupled with
much lower production volumes than anticipated substantially increased unit
production costs thereby eliminating operating margins.


                                     - 15 -
<PAGE>

With continued growth of the Internet and the convergence of voice and data
networks, demand for multimedia and data communication cards that enable
consumer electronic devices to access those networks will grow. As such, Eiger
Net is positioned in growth areas of the computer components industry. However,
until there is evidence of an overall economic recovery, Eiger Net will
experience weaker than average operating results.

ADH Custom Metal Fabricators Inc.

ADH Custom Metal Fabricators is a fully integrated custom sheet metal
manufacturer that specializes in low volume custom enclosures and cabinets.
Products are custom engineered using the latest CAD technology and CNC
manufacturing equipment. Products are all built to NEMA specifications and can
range in size from a mailbox to a small house. In addition to its focus on
enclosures and cabinetry, ADH contract manufactures for nationwide distribution
of data and relay racks, custom control enclosures, fluorescent light fixtures
and store display fixtures. ADH fabricates using a wide variety of metals and
finishes including mild steels, aluminum, and stainless steel. ADH is located in
Stratford, Ontario, in a 55,000 square foot manufacturing facility on 35 acres
of land that is wholly owned by Eiger.

ADH went through significant restructuring in 2001 and, in November 2001 hired
John Ramsbottom as President. ADH identified certain high growth segments in the
electrical cabinetry and enclosure market that will fuel internal growth, and
also developed an acquisition strategy to consolidate a highly fragmented North
American manufacturing industry. As part of this consolidation strategy, Eiger
announced in December 2001 that it is taking ADH public by way of reverse
acquisition of CDNX listed Newlook Capital Corp. in order to utilize capital
markets to facilitate its acquisition strategy.

Description of Principal Products

The Onlinetel subsidiary serves the retail and business market segments of the
long distance industry in Ontario with the rest of Canada being expanded into
within the next year. Currently, Onlinetel offers fee based long distance
service, advertising based long distance service, and ISP services.

The K-Tronik subsidiary serves the retro fit and new building electronic
fluorescent light ballast market in the USA, Canada, South America and Korea.
The K-Tronik energy efficient electronic ballast is manufactured in its factory
in Seoul, Korea with research and development facilities in both Seoul and New
Jersey.

The Company serves the major peripheral market segments of the computing
industry, being the communications, connectivity and storage segments, and has
designed its product line around providing solutions to customers in each of
these market segments. The Company manufactures computer peripherals such as
PCMCIA card data/fax modems, desktop PC modems, data storage and networking
devices and data storage cards for use in digital cameras (collectively, the
"Peripheral Products").


                                     - 16 -
<PAGE>

The ADH subsidiary serves the custom metal fabrication market in Southwestern
Ontario. ADH's principal products include data and relay racks, custom control
enclosures, fluorescent light fixtures and store display fixtures.

Sales and Revenue Analysis

Sales                                Fiscal 2001     Fiscal 2000     Fiscal 1999
--------------------------------------------------------------------------------

Computer Peripherals                 $17,428,000     $47,513,000     $2,467,000

Electronic Ballasts                  $10,107,000     $ 6,718,000     $2,950,000

Fabricated Products                  $ 2,301,000     $ 2,839,000     $2,933,000

VoIP Communication Services          $   234,000             Nil            Nil

The computer peripheral products are distributed internationally, while the
electronic ballasts are distributed in the United States and the fabricated
products are distributed primarily in Canada (with a small amount, less than 3%,
being distributed in the U.S).

The component parts for various circuit boards used in the computer peripheral
and lighting ballast products are sourced from various large electronic
suppliers and are available from many sources. The Company's main business is
not seasonal.

Marketing and Distribution Channels

The Company's Onlinetel subsidiary markets its fee based long distance service
through offering the initial service free and allowing word of mouth to increase
the subscription base. When a critical mass is accomplished, the service is
turned over to a fee based service with a 15% retention rate. The advertising
based long distance service is marketed by an internal sales staff that market
Onlinetel services directly to advertising agencies and large advertisers.

The K-Tronik subsidiary has an extensive distribution network that includes a
head office sales force coupled with regional sales representatives. This has
allowed K-Tronik to sell to a broad base of customers in the construction and
retrofit sector of the U.S.A.

Key to the Eiger Net's distribution network is its ability to market its product
line effectively to major OEM's in Korea such as Samsung and LG.

ADH's distribution is performed by an internal sales force directly to
manufacturers in Southwestern Ontario.

      C. Organizational structure.

The following is a list of each material subsidiary of the Company and the
jurisdiction of incorporation and the direct or indirect percentage ownership by
the Company of each subsidiary:


                                     - 17 -
<PAGE>

                                                           Percentage of Voting
                                         Jurisdiction of   Securities Owned of
Name of Subsidiary                        Organization          Controlled
--------------------------------------------------------------------------------
Onlinetel Corp.                              Ontario               100%

Eiger Net, Inc. ("Eiger Net")(1)           South Korea              58%

K-Tronik International Corp.                 Nevada                 53%
("K-Tronik")

ADH Custom Metal Fabricators Inc.            Ontario               100%
"ADH")

Eiger Labs Group, Inc. ("Eiger Labs")      California               64%
--------------------------------------------------------------------------------

(1)   Formerly Point Multimedia Systems Inc. - name changed February 20, 2000.

The following is an organizational chart showing the Company's material
subsidiaries:

<TABLE>
<S>                      <C>                           <C>                       <C>
                                         ----------------------
                                         Eiger Technology, Inc.
                                         ----------------------
                                                 |
                                                 |
                                                 |
       -----------------------------------------------------------------------------------
       |                           |                            |                        |
       |                           |                            |                        |
       |      100%                 |       58%                  |                        |     100%
------------------       ----------------------        -------------------       -----------------
  Onlinetel Corp.           Eiger Net, Inc.                 K-Tronik              ADH Custom Metal
(an Ontario corp.)       (a South Korean corp.)        International Corp.       Fabricators, Inc.
                                                        (a Nevada corp.)         (an Ontario corp.)
------------------       ----------------------        -------------------       -----------------
</TABLE>

      D. Property, plants and equipment.

The Company's industrial facility is 55,000 square feet of mixed office,
manufacturing and engineering space located in an industrial designated area in
Stratford, Ontario. The factory capacity currently utilizes 40% with presently
one work shift. This facility is situated on 31.8 acres of land of which 26
acres is available for development or resale, although there are no current
plans for either.

The land and property are subject to a first mortgage of $1,213,000, with a
balance of $745,000 at September 30, 2001.


                                     - 18 -
<PAGE>

The factory is a light gauge fabrication facility that produces energy efficient
fluorescent lighting fixtures and reflectors, electronic data racks and oversize
custom enclosures for the electrical industry.

The Company recently moved its Eiger Net manufacturing facility to a 35,000 sq.
ft. facility in Seoul, South Korea. This facility includes equipment capable of
manufacturing high quality, technologically complex printed circuit board
assemblies and electronic technical products. A second facility of approximately
the same size is also located in Seoul for the manufacturing of electronic
ballasts. Both facilities are leased.

Item 5. Operating and Financial Review and Prospects

      A. Operating results.

The Company generated sales of $30.1 million in fiscal 2001 compared to 57.1
million in fiscal 2000, the decrease mainly due to a reduction in Eiger Net
Inc.'s sales of $30.1 million reflecting a weakness in the global economy
particularly in the computer peripheral sector. During the fiscal 2001 year, the
Company wrote off goodwill, investments, development and other costs amounting
to $16,366,000 and acquired a 100% interest in Onlinetel, Inc., a
Kitchener/Waterloo based Voice over Internet Protocol (VoIP) long distance and
ISP services company. Revenue from ongoing operations were as follows:

($'000's)                           2001              2000             Increase
                                                                      (Decrease)

Onlinetel                             234                --                234
Eiger                              17,428            47,513            (30,085)
K-Tronik                           10,107             6,718              3,389
ADH                                 2,301             2,837               (536)
                                   ------            ------            -------
                                   30,070            57,068            (26,998)
                                   ======            ======            =======

Management of the Company have written off $ 16,366,000 of goodwill,
investments, long term loans receivable, impairment in value of inventory and
deferred product development costs during fiscal 2001 reflecting the downturn in
the worldwide computer peripheral business and global economic recession.

Management is of the opinion that the economic recession will continue for the
remainder of 2002. Management also believes that cost savings businesses such as
energy saving electronic ballasts (K-Tronik) and VoIP (Onlinetel) should benefit
from a cost conscious marketplace.

K-Tronik sales increased due to a broadening of product offerings and continued
increase in brand recognition. ADH sales decreased due to the reduction in
outsourcing needed by


                                     - 19 -
<PAGE>

its primary customers in Southwestern Ontario. The percent decrease in gross
margin at K-Tronik from 33% to 22% reflects K-Tronik continuing to add lower
margin volume business to previous niche markets of specialty electronic
ballasts.

The decrease in sales by Eiger Labs and Eiger Net subsidiaries reflect the
downturn in the overall computer peripheral OEM manufacturing sector. Expenses
increased approximately 30% during the year ended September 30, 2001 to
$9,947,000 from $7,076,000 for the year ended September 30, 2000. Operations and
administrative expenses increased by approximately 63% (2001: $ 7,769,000; 2000:
$ 5,514,000). These operations and administrative expenses consisted principally
of salaries and benefits and the operating costs of the Company's Eiger Labs and
Eiger Net and K-Tronik Group sales, R&D Design Engineering and Manufacturing
facility, as well as, strengthening infrastructure at head office to ensure
compliance with regulatory and governance matters.

While interest on long-term debt also remained steady (September 30, 2001:
$98,000; September 30, 2000: $92,000), other interest and bank charges decreased
(September 30, 2001: $480,000; September 30, 2000: $552,000). This was due to a
reduction in long-term debt at Eiger Group of Companies.

Amortization of goodwill and other assets increased from $871,000 in fiscal 2000
to $1,032,000 in fiscal 2001.

In the Company's view, at no time during any of the last five fiscal years have
inflation or changing prices had a material impact on the Company's sales,
earnings or losses from operations or net income.

The Company has not been materially impacted by foreign currency fluctuations
and net investments are not hedged.

The Company's operations have not been materially affected by any governmental
policies or factors.

      B. Liquidity and capital resources.

At September 30, 2001, the Company's cash position has decreased to $5,993,000
from $13,814,000 at the end of September 30, 2000 and its working capital
decreased by $10,589,000 to $12,815,000 at September 30, 2001, $ 6,580,000
principally as a result of investment commitments funded during the year. The
Company increased its share capital from $38,895,000 at September 30, 2000 to
$42,001,000 at September 30, 2001, through the issuance of 2,269,995 shares at
an average price of $ 1.37.

The decrease in the Company's accounts receivable to $ 8,759,000 at September
30, 2001 from $12,039,000 at September 30, 2000 is due to the decrease in the
volume of business at Eiger Net, off set partially by an increase in business at
K-Tronik.


                                     - 20 -
<PAGE>

Inventory decreased to $6,545,000 September 30, 2001 from $10,878,000 as a
result in the decrease in the volume of business at Eiger Net offset by
K-Tronik.

The Company does not foresee any demands, commitments, events or uncertainties
that will result in a significant change in its liquidity in the near term.

The Company does not have any material commitments for capital expenditures as
of the end of the last fiscal period or at any subsequent interim period except
for capital funding of Onlinetel, Corp amounting to $1,500,000 over the next
eighteen months.

The Company does not foresee any material change in the mix between equity, debt
or off balance sheet financing arrangements. The Company expects to arrange
financing prior to any future acquisitions.

      C. Research and development, patents and licenses, etc.

Research and development expenses were $20,000 ($987,000: 2000; $725,000: 1999)
for the year ended September 30, 2001 as a result of a cost cutting program in
place until the economy improves.

Research and development is important to the Company's success and the ability
of the Company to maintain a competitive advantage over its competitors.

The Company employs trained professionals to perform its research and
development work, most of whom have work experience in the field of computer
technology and product development for established corporations such as Samsung
and Garnet Systems. Approximately 8% of the Company's 162 employees are engaged
in research and development activities.

Management believes that the Company has a competitive advantage over many of
its competitors in terms of product development and market rollout as it
currently conducts all of its own research and development, which management
believes many of its competitors do not. This enables management to monitor both
the timely development of products with a view to current technology and market
demand as well as controlling the cost-effectiveness of research and development
activities, thereby reducing overhead costs and the risk of timing delays that
could lead to introduction of obsolete products into the rapidly changing
marketplace in which the Company operates.

      D. Trend information.

The Company is currently affected by several industry trends. One trend is that
of the expansion of Voice over Internet Protocol (VoIP) usage in North America.
VoIP is expected to be one of the highest growth markets over the next few
years. For example, revenue from VoIP services is expected to be $32 Billion in
2005, up from $1.8 Billion in 2000 according to iLocus. Frost & Sullivan also
commented that the compounded annual growth rate of VoIP services from 1999-2006
will be 182%. The impetus for this growth is the competitive threat that VoIP
poses to providers of traditional telecom services.


                                     - 21 -
<PAGE>

Essentially, VoIP substantially increases communication cost efficiencies by
running voice and data over a single integrated infrastructure and bypassing
traditional per minute telco usage rates.

Through its wholly owned subsidiary, Onlinetel Corp., Eiger is positioned to
dominate the Canadian VoIP services market. Through its advertising based
calling network, Onlinetel currently has a user base of over 250,000 households
in the Greater Toronto Area (GTA) 905 area code and processes over 15 million
minutes of traffic per month in this market. In 2002, Onlinetel anticipates
launching additional advertising based calling networks nationally in order to
significantly expand its user base and introducing several potentially lucrative
VoIP products to its growing user base: lowest cost 10-10 based international
calling, residential and corporate flat rate subscription plans for unlimited
calling between major centers nationally, flat rate unlimited internet access
services, and customized prepaid phone card plans.

The second less significant trend is that of cyclical oversupply in the PC
industry which affects Eiger's core operating revenue. Currently, the majority
of Eiger's revenue is derived from the OEM manufacture of conventional modem and
modem related computer products such as 56K modems and modem/LAN cards. The
current cyclical trend of oversupply in the PC industry, coupled with reduced
consumer spending and overall economic activity, has the effect of a reduction
in orders for components. This trend began in the first fiscal quarter of 2000
and, although this oversupply of inventory has been worked down somewhat by
major computer companies, it is likely to persist for at least the next two
quarters, resulting in a reduction of orders for Eiger's manufacturing facility
in Korea.

Item 6. Directors, Senior Management and Employees

      A. Directors and senior management.

The following is a list of the current directors and senior officers of the
Company, their municipalities of residence, their current position with the
Company and their principal occupations:

Gerry A. Racicot          Norwich ON             President, C.E.O., and Director

Director since August 21, 1992.

Mr. Racicot has a long career in administration, management and self-employment.
The majority of these years were spent as an Investment Account Executive at a
major Canadian brokerage house (Burns Fry), import/export wholesale distribution
and retail business (Red Mountain Holdings Inc. - Stedmans).

Keith Attoe               Toronto ON             C.F.O. and Director

Director since February 23, 1996.

Mr. Attoe is a Chartered Accountant who practiced in the City of Toronto for 11
years prior to joining the Company. His experience includes corporate financing,
project


                                     - 22 -
<PAGE>

financing, portfolio management, US/CDA tax planning, investment strategy and
treasury management. Mr. Attoe's clients have included CN, Deloitte Touche and
Mondev group of companies, a major real estate developer in Montreal.

Sidney S. Harkema         Orillia ON             Director

Director since August 22, 1992.

Mr. Harkema founded and built one of Canada's largest privately owned transport
and express companies (Harkema Trucking Group). He served as President and
Chairman of the Board for 27 years. He has since sold the entire trucking
operation, cartage equipment and all 18 terminals located throughout the country
and has devoted his time to public service organizations (principally as
Chairman of the Huntley St. Group of Ministries).

Robert Hoegler            Richmond BC            Director

Director since February 23, 1996.

Mr. Hoegler is an independent businessman who operates a public relations firm
in the junior industrial sector group of companies under his own name. He is
also a director of MCA Equities Ltd, a private management company.

There are no arrangements or understandings between any of the officers or
directors of the Company as to their election or employment, nor are there any
family relationships.

      B. Compensation.

For the year ended September 30, 2001 Gerry Racicot was compensated $213,000 for
his role as President of the Company. For the same period Keith Attoe received
$153,000 for his role as C.F.O. of the Company.

A total of 25 persons served as members of the administrative, supervisory or
management bodies of the subsidiaries of the Company during fiscal 2001. The
aggregate remuneration paid to such persons was approximately $2.4 million.

      The following it a list of stock options granted during the last full
financial year to members of the Company's executive.

Name                               Quantity     Exercise price    Expiry
--------------------------------------------------------------------------------

Gerry Racicot                      375,000      $.75              April 20, 2006
Keith Attoe                        375,000      $.75              April 20, 2006
Sidney Harkema                      75,000      $.75              April 20, 2006
Rob Hoegler                         75,000      $.75              April 20, 2006

None of the above options were exercised during the Company's most recently
completed financial year.


                                     - 23 -
<PAGE>

There are no other arrangements under which directors or members of the
Company's administrative, supervisory or management bodies were compensated by
the Company during the most recently completed financial year for their
services.

No plan exists, and no amount has been set aside or accrued by the Company or
any of its subsidiaries, to provide pension, retirement or similar benefits for
directors or officers of the Company, or any of its subsidiaries.

      C. Board practices.

The directors of the Company are elected annually and hold office until the next
annual general meeting of the Company's shareholders or until their successors
in office are duly elected or appointed. All of the Company's directors were
elected at the Company's most recent annual general meeting, which took place on
April 12, 2001. Under the Company Act (Ontario) the Company is required to hold
an annual general meeting no more than 15 months after its most recent annual
general meeting.

There are no service contracts with the Company or any of it subsidiaries for
the directors providing benefits upon termination of their service.

The Company does not have an executive committee. The audit committee is
comprised of Keith Attoe, Sidney Harkema and Robert Hoegler. The committee
operates within the guidelines of the Toronto Stock Exchange.

      D. Employees.

The Company and its subsidiaries employ approximately 162 employees worldwide.
The following is a breakdown of persons employed by main category of activity
and geographic location for the last full financial year:

                           Administrative/     Sales/
Location                   Clerical            Marketing     Manufacturing   R&D
--------------------------------------------------------------------------------

Canada                     12                   8            27
United States               3                   4             2
Korea                      10                  14            69              13

The most significant change in the number of employees was the result of the
addition of Onlinetel. The acquisition added 20 people mostly concentrated in
the areas of sales, clerical and technical.

The Company and its subsidiaries have no involvement with labour unions. The
Company and its subsidiaries do not employ a significant number of temporary
employees.


                                     - 24 -
<PAGE>

      E. Share ownership.

<TABLE>
<CAPTION>
                                                                          Number of Voting Shares
                                                                           Beneficially Owned or        Number of
                                                                           Controlled Directly or       Options to
Name and Address                 Occupation             Director Since           Indirectly           Purchase Held
-------------------------------------------------------------------------------------------------------------------
<S>                     <C>                               <C>                    <C>                     <C>
Gerry A. Racicot        President, Chief Executive        August 21,             1,556,530               925,000
Norwich, ON             Officer and Director                 1992

Keith Attoe             Chief Financial Officer and      February 23,                3,200               625,000
Toronto, ON             Director of the Company              1996

Sidney S. Harkema       Director of the Company;          August 21,             1,509,100               125,000
Orillia, ON             retired                              1992

Robert Hoegler          Director of the Company;         February 23,                  Nil               125,000
Richmond, BC            director of MCA Equities Ltd.,       1996
                        (a private management
                        company)
-------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
                                            Number of Shares
                                          Beneficially Owned or    Percentage of Total
                                         Controlled Directly or           Shares
Name                                           Indirectly               Issued(1)
--------------------------------------------------------------------------------------
<S>                                             <C>                        <C>
Directors and Officers as a Group               3,068,830                  8.5%
--------------------------------------------------------------------------------------
</TABLE>

(1)   Based on a total of 36,215,853 Common shares issued and outstanding as at
      February 28, 2002.

At the discretion of the Board, the stock option plan may be exercised in
consideration of services rendered and to be rendered by key personnel and
consultants to the Company, its subsidiaries and affiliates.

Item 7. Major Shareholders and Related Party Transactions

      A. Major shareholders.

To the Company's knowledge no person holds five percent or more of the Company's
common shares. There has been no significant change in percentage ownership held
by any major shareholder.

All common shareholders have identical voting rights.


                                     - 25 -
<PAGE>

There is no trading market for the common shares in the United States. The
following table indicates the approximate number of record holders of common
shares with U.S. addresses and portion and percentage of common shares so held
in the U.S. The calculation is based on the total issued and outstanding as
stated in item 6.E.

                                               % of Common
Number of U.S.    Number of Common             shares held in
Holders           shares held in the U.S.      the U.S.
================================================================================
    44                  2,671,296                  7.37%

The computation of the number and percentage of common shares held in the United
States is based upon the number of common shares held by record holders with
United States addresses and by trusts, estates or accounts with United States
addresses as disclosed to the Company following inquiry to all record holders
known to the trustees, executors, guardians, custodians or the fiduciaries
holding common shares for one or more trusts, estates, or accounts. United
States residents may beneficially own common shares held of record by non-United
States residents.

A substantial number of common shares are held in "Street Name" by trustees,
executors, guardians, custodians or other fiduciaries, including depositories,
brokerage firms and financial institutions. Management is unable to determine
the total number of individual shareholders that this represents.

To the Company's knowledge, the Company is not directly or indirectly owned or
controlled by any other corporation(s) or by any foreign government.

The Management does not anticipate any change in the control of the Company.

      B. Related party transactions.

No director, executive officer nor any of their associates or affiliates has or
has had an interest in material transactions of the Company.

All transactions within the corporate group are in the normal course of
business, are transacted at fair market value, are recorded at the carrying
value at the time and are eliminated upon consolidation.

      C. Interests of experts and counsel.

            Not Applicable


                                     - 26 -
<PAGE>

Item 8. Financial Information

      A. Consolidated Statements and Other Financial Information.

The document contains consolidated financial statements, audited by an
independent auditor and accompanied by an audit report, comprised of:

      (a) balance sheet;

      (b) income statement;

      (c) statement showing changes in equity

      (d) cash flow statement;

      (e) related notes and schedules required by the comprehensive body of
accounting standards pursuant to which the financial statements are prepared;
and

      (f) a note analyzing the changes in each caption of shareholders' equity
presented in the balance sheet.

The document includes comparative financial statements that cover the latest
three financial years, audited in accordance with a comprehensive body of
auditing standards.

Export Sales

Total Sales Volume         Export Sales         Export Sales as % of Total Sales
--------------------------------------------------------------------------------
$30,070,000                $27,535,000                        91.57%

Legal Proceedings

There are no material pending legal proceedings to which the Company is a party
or of which any of its subsidiaries or properties are subject. Management is not
aware of any material proceedings in which any director, any member of senior
management, or any of the Company's affiliates are a party adverse to, or have a
material interest adverse to the Company or its subsidiaries.

Dividend Policy

The Company has not paid dividends on the common shares in any of its last five
fiscal years. The directors of the Company will determine if and when dividends
should be declared and paid in the future based on the Company's financial
position at the relevant time. All of the common shares of the Company are
entitled to an equal share in any dividends declared and paid.


                                     - 27 -
<PAGE>

      B. Significant Changes.

There have been no significant changes since the date of the annual financial
statements included in this document.

Item 9. The Offer and Listing.

      A. Offer and listing details.

Information regarding the price history of the stock.

Calendar Period                     High (Cdn$)       Low (Cdn$)         Volume

Month Ended

February, 2002                       0.46             0.38               845,700
January, 2002                        0.56             0.42             1,776,900
December, 2001                       0.63             0.43             3,260,400
November, 2001                       0.60             0.40             1,752,500
October, 2001                        0.49             0.38             1,274,400

Quarter Ended

September 30, 2001                   0.80             0.40             3,190,200
June 30, 2001                        1.05             0.39             4,339,300
March 31, 2001                       0.63             0.38             4,223,000
December 31, 2000                    3.70             2.05             4,081,600
September 30, 2000                   5.00             2.65             4,779,800
June 30, 2000                        7.40             2.85             6,224,000
March 31, 2000                      10.30             3.00            17,147,400
December 31, 1999                    4.25             0.90             9,030,700

Year Ended

September 30, 1999                   1.73             0.22            10,682,000
September 30, 1998                   0.95             0.25             1,506,157
September 30, 1997                   0.90             0.40             1,318,300

Prior to October 11, 1996, all trades were cleared through the VSE and
subsequent to that date all trades were cleared on the TSE.

      B. Plan of distribution.

            Not Applicable.

      C. Markets.

The common shares of the Company were listed for trading on the Toronto Stock
Exchange (the "TSE") on October 11, 1996 and previous to this, on the Vancouver
Stock Exchange (the "VSE") on April 3, 1991 under the symbol "AXA".


                                     - 28 -
<PAGE>

The common shares were listed on the NASD OTC Electronic Bulletin Board on
October 8, 1997 and trade under the symbol "ETIFF".

      D. Selling shareholders.

            Not Applicable.

      F. Dilution.

            Not Applicable.

      F. Expenses of the issue.

            Not Applicable.

Item 10. Additional Information.

      A. Share capital.

            Not Applicable.

      B. Memorandum and articles of association.

The Company is incorporated under the laws of the Province of Ontario, Canada
and has been assigned company number 942684, with its registered office situated
at 330 Bay St., Suite 602, Toronto, ON M5H 2S8, Canada. The telephone number at
that location is (416) 216-8659.

The purpose of the Company is to perform any and all corporate activities
permissible under Ontario law. A director may vote in respect of any contract or
arrangement in which such director has an interest notwithstanding such
director's interest and an interested director will not be liable to the Company
for any profit realized through any such contract or arrangement by reason of
such director holding the office of director. The remuneration of the directors
shall from time to time be determined by the Company by ordinary resolution.
Directors of the Company are not required to own shares of the Company in order
to serve as directors.

The share capital of the Company is an unlimited number of authorized common
shares and 36,215,853 common shares outstanding as at the fiscal year end
September 30, 2001 and is unchanged as of March 28, 2002.

All common shares rank equally with other common shares, entitling the common
shareholder to one vote at the annual shareholder's meeting.


                                     - 29 -
<PAGE>

There are no provisions for a classified board of directors or for cumulative
voting for directors.

There are no limitations on the rights to own securities, including the rights
of non-resident or foreign shareholders to hold or exercise voting rights on the
securities.

There are no provisions in the Articles of Incorporation that would have the
effect of delaying, deferring or preventing a change in control of the Company
and that would operate only with respect to a merger, acquisition or corporate
restructuring involving the Company (or any of its subsidiaries).

There are no provisions in the Articles of Incorporation governing the ownership
threshold above which shareholder ownership must be disclosed. United States
federal law and Ontario provincial securities law, however, requires that all
directors, executive officers and holders of 10% or more of the stock of a
company that has a class of stock registered under the Securities Exchange Act
of 1934, as amended, disclose such ownership. In addition, holders of more than
5% of a registered equity security must disclose such ownership.

      C. Material contracts.

The Company has not entered into any material contracts, other than in the
ordinary course of business, during the preceding two years.

      D. Exchange controls.

Canada has no system of currency exchange controls. There are no exchange
restrictions on borrowing from foreign countries nor on the remittance of
dividends, interest, royalties and similar payments, management fees, loan
repayments, settlements of trade debts or the repatriation of capital.

The Investment Canada Act (the "ICA"), enacted on June 20, 1985, requires prior
notification to the Government of Canada on the "acquisition of control" of
Canadian businesses by a non-Canadian, as defined by the ICA. Certain
acquisitions of control, discussed below, are reviewed by the Government of
Canada. The term "acquisition of control" is defined as any one or more
non-Canadian persons acquiring all or substantially all of the assets used in
the Canadian business, or the acquisition of the voting shares of a Canadian
corporation carrying on the Canadian business or the acquisition of the voting
interests of an entity controlling or carrying on the Canadian business. The
acquisition of the majority of the outstanding shares is deemed to be an
"acquisition of control" of a corporation. The acquisition of less than a
majority, but one-third or more, of the voting shares of a corporation is
presumed to be an "acquisition of control" of a corporation unless it can be
established that the purchaser will not control the corporation.


                                     - 30 -
<PAGE>

Investments requiring notification and review are all direct acquisitions of
Canadian business with assets of Cdn. $5,000,000 or more (subject to the
comments below on WTO investors) and all indirect acquisitions of Canadian
businesses (subject to the comments below on WTO investors) with assets of more
than Cdn. $50,000,000 or with assets of between $5,000,000 and Cdn. $50,000,000
which represent more than 50% of the value of the total international
transactions. In addition, specific acquisitions or new business in designated
types of business activities related to Canada's cultural heritage or national
identity could be reviewed if the government of Canada considers that it is in
the public interest to do so.

The ICA was amended with the implementation of the agreement establishing the
World Trade Organization ("WTO") to provide for special review of thresholds for
"WTO investors", as defined in the ICA. "WTO investors" generally means:

(a) an individual, other than a Canadian, who is a member of a WTO member (such
as, for example, the United States), or who has the right of permanent residence
in relation to that WTO member.

(b) governments of WTO members; and

(c) entities that are not Canadian controlled, but which are WTO investor
controlled as determined by the rules specified in the ICA.

The special review thresholds for WTO investors do not apply, and general rules
described above do not apply, to the acquisition of control of certain types of
businesses specified in the ICA, including business that is a "cultural
business". If the WTO investor rules apply, an investment in the shares of the
Company by whom or from a WTO investor will be reviewable only if it is an
investment to acquire control of the Company and the value of the assets of the
Company is equal to or greater than a specified amount (the "WTO Review
Threshold"). The WTO Review Threshold is adjusted annually by using a formula
relating to increases in the nominal gross domestic product of Canada. The 1996
WTO Review Threshold is Cdn. $168,000,000.

If any non-Canadian, whether or not a WTO investor, acquires control of the
Company by the acquisition of shares, but the transaction is not reviewable as
described above, the non-Canadian is required to notify the Canadian government
and to provide certain basic information relating to the investment. A
non-Canadian, or a non-WTO investor, is required to provide a notice to the
government on the establishment of a new Canadian business. If the business of
the Company is then a prescribed type of business activity related to Canada's
cultural heritage or national identity, and if the Canadian government considers
it in the public interest to do so, then the Canadian government may give a
notice in writing within 21 days requiring the investment to be reviewed.

For non-Canadian (other than WTO investors), and indirect acquisition of
control, by the acquisition of voting interests of an entity that directly or
indirectly controls the Company, is reviewable if the value of the assets of the
Company is then Cdn.


                                     - 31 -
<PAGE>

$50,000,000 or more. If the WTO investor rules apply, then this requirement does
not apply to a WTO investor, or to a person acquiring the entity from a WTO
investor. Special rules specified in the ICA apply if the assets of the Company
is more than 50% of the value of the assets of the entity so acquired. By these
special rules, if the non-Canadian (whether or not a WTO investor) is acquiring
control of an entity that directly or indirectly controls the Company, and the
value of the assets of the company and all other entities carrying on business
in Canada, calculated in the manner provided by the ICA and the regulations
under the ICA, of the assets of all entities, the control of which is acquired,
directly or indirectly, in the transaction of which the acquisition of control
of the Company forms a part, then the threshold for a direct acquisition of
control as discussed above will apply, that is, a WTO Review Threshold of Cdn.
$168,000,000 (1996) for a WTO investor or a threshold of CDN. $5,000,000 for
non-Canadian other than a WTO investor. If the value exceeds that level the
transaction must be reviewed in the same manner as a direct acquisition of
control by the purchase of shares by the Company.

If an investment is renewable, an application for review in the form prescribed
by the regulations is normally required to be filed with the director appointed
under the ICA (the "Director") and the investment may not be consummated until
the review has been completed. There are, however, certain exceptions.
Applications concerning indirect acquisitions may be filed up to 30 days after
the investment is consummated and applications concerning reviewable investments
in culture-sensitive sectors are required upon receipt of a notice for review.
In addition, the Minister (a person designated as such under the ICA) may permit
an investment to be consummated prior to completion of the review, if he is
satisfied that the delay would cause undue hardship to the acquirer or
jeopardize the operations of the Canadian business that is being acquired. The
Director will submit the application to the Minister, together with many other
information or written undertakings given by the acquirer and any representation
submitted to the Director by a province that is likely to be of net benefit to
Canada, taking into account the information provided and having regard to
certain factors of assessment where they are relevant. Some of the factors to be
considered are:

(a) the effect of the investment on the level and nature of economic activity in
Canada, including the effect on employment, on resource processing, and on the
utilization of parts, components and services produced in Canada;

(b) the effect of the investment on exports from Canada;

(c) the degree and significance of participation by Canadians in the Canadian
business and in any industry in Canada of which it forms a part;

(d) the effect of the investment on productivity, industrial efficiency,
technological development, product innovation and product variety in Canada;

(e) the effect of the investment on competition within any industry or
industries in Canada;


                                     - 32 -
<PAGE>

(f) the compatibility of the investment with national, industrial, economic, and
cultural policies;

(g) the compatibility of the investment with national, industrial, economic, and
cultural policies taking into consideration industrial, economic, and cultural
objectives enunciated by the government of legislature of any province likely to
be significantly affected by the investment; and

(h) the contribution of the investment to Canada's ability to compete in world
markets.

To ensure prompt review, the ICA set certain time limits for the Director and
the Minister. Within 45 days after a completed application has been received,
the Minister must notify the acquirer that he is satisfied that the investment
is likely to be of net benefit to Canada, or that he is unable to complete his
review, in which case he shall have 30 additional days to complete his review
(unless the acquirer agrees to longer period), or he is not satisfied that the
investment is likely to be of net benefit to Canada.

Where the Minister has advised the acquirer that he is not satisfied that the
investment is likely to be of net benefit to Canada, the acquirer has the right
to make representations and submit undertakings within 30 days of the date of
notice (or any period that is agreed upon between the acquirer and the
Minister). On the expiration of the 30 day period (or the agreed-upon
extension), the Minister must quickly notify the acquirer that he is not
satisfied that the investment is likely to be of net benefit to Canada. In the
latter case, the acquirer my not proceed with the investment or, if the
investment has already been consummated, must divest itself of control of the
Canadian business.

The ICA provides civil remedies for non-compliance with any provision. There are
also criminal penalties for breach of confidentiality or providing false
information.

Except as provided in the ICA, there are no limitations under the laws of
Canada, the Province of British Columbia, or in any constituent documents of the
Company on the right of non-Canadians to hold or vote the common shares of the
Company.

      E. Taxation.

Canadian Federal Income Taxation

The following discussion summarizes the principal Canadian federal income tax
considerations generally applicable to a person who owns one or more common
shares of the Company (the "Shareholder"), and who at all material times for the
purposes of the Income Tax Act (Canada) (the "Canadian Act") deals at arm's
length with the Company, holds all common shares solely as capital property, is
a non-resident of Canada, and does not, and is not deemed to, use or hold any
Common share in or in the course of carrying on business in Canada. It is
assumed that the common shares will at all material times be listed on a stock
exchange that is prescribed for the purposes of the Canadian Act.


                                     - 33 -
<PAGE>

This summary is based on the current provisions of the Canadian Act, including
the regulations thereunder, and the Canada-United States Income Tax Convention
(1980) (the "Treaty") as amended. This summary takes into account all specific
proposals to amend the Canadian Act and the regulations thereunder publicly
announced by the government of Canada to the date hereof and the Company's
understanding of the current published administrative and assessing practices of
Canada Customs and Revenue Agency. It is assumed that all such amendments will
be enacted substantially as currently proposed, and that there will be no other
material change to any such law or practice, although no assurances can be given
in these respects. Except to the extent otherwise expressly set out herein, this
summary does not take into account any provincial, territorial or foreign income
tax law or treaty.

This summary is not, and is not to be construed as, tax advice to any particular
Shareholder. Each prospective and current Shareholder is urged to obtain
independent advice as to the Canadian income tax consequences of an investment
in common shares applicable to the Shareholder's particular circumstances.

A Shareholder generally will not be subject to tax pursuant to the Canadian Act
on any capital gain realized by the Shareholder on a disposition of a Common
share unless the Common share constitutes "taxable Canadian property" to the
Shareholder for purposes of the Canadian Act and the Shareholder is not eligible
for relief pursuant to an applicable bilateral tax treaty. A Common share that
is disposed of by a Shareholder will not constitute taxable Canadian property of
the Shareholder provided that the Common share is listed on a stock exchange
that is prescribed for the purposes of the Canadian Act (the Toronto Stock
Exchange is so prescribed), and that neither the Shareholder, nor one or more
persons with whom the Shareholder did not deal at arm's length, alone or
together at any time in the five years immediately preceding the disposition
owned, or owned any right to acquire, 25% or more of the issued shares of any
class of the capital stock of the Company. In addition, the Treaty generally
will exempt a Shareholder who is a resident of the United States for the
purposes of the Treaty, and who would otherwise be liable to pay Canadian income
tax in respect of any capital gain realized by the Shareholder on the
disposition of a Common share, from such liability provided that the value of
the Common share is not derived principally from real property (including
resource property) situated in Canada or that the Shareholder does not have, and
has not had within the 12-month period preceding the disposition, a "permanent
establishment" or "fixed base," as those terms are defined for the purposes of
the Treaty, available to the Shareholder in Canada. The Treaty may not be
available to a non-resident Shareholder that is a U.S. LLC which is not subject
to tax in the U.S.

Any dividend on a Common share, including a stock dividend, paid or credited, or
deemed to be paid or credited, by the Company to a Shareholder will be subject
to Canadian withholding tax at the rate of 25% on the gross amount of the
dividend, or such lesser rate as may be available under an applicable income tax
treaty. Pursuant to the Treaty, the rate of withholding tax applicable to a
dividend paid on a Common share to a Shareholder who is a resident of the United
States for the purposes of the Treaty will be


                                     - 34 -
<PAGE>

reduced to 5% if the beneficial owner of the dividend is a company that owns at
least 10% of the voting stock of the Company, and in any other case will be
reduced to 15%, of the gross amount of the dividend. It is Canada Customs and
Revenue Agency`s position that the Treaty reductions are not available to a
Shareholder that is a "limited liability company" resident in the United States.
The Company will be required to withhold any such tax from the dividend, and
remit the tax directly to Canada Customs and Revenue Agency for the account of
the Shareholder.

Certain United States Federal Income Tax Consequences

The following is a general discussion of the material United States Federal
income tax law for U.S. holders that hold such common shares as a capital asset,
as defined under United States Federal income tax law and is limited to
discussion of U.S. Holders that own less than 10% of the common stock. This
discussion does not address all potentially relevant Federal income tax matters
and it does not address consequences peculiar to persons subject to special
provisions of Federal income tax law, such as those described below as excluded
from the definition of a U.S. Holder. In addition, this discussion does not
cover any state, local or foreign tax consequences.

The following discussion is based upon the sections of the Internal Revenue Code
of 1986, as amended to the date hereof (the "Code"), Treasury Regulations,
published Internal Revenue Service ("IRS") rulings, published administrative
positions of the IRS and court decisions that are currently applicable, any or
all of which could be materially and adversely changed, possibly on a
retroactive basis, at any time. In addition, this discussion does not consider
the potential effects, both adverse and beneficial, of any future legislation
which, if enacted, could be applied, possibly on a retroactive basis, at any
time. The following discussion is for general information only and it is not
intended to be, nor should it be construed to be, legal or tax advice to any
holder or prospective holder of common shares of the Company and no opinion or
representation with respect to the United States Federal income tax consequences
to any such holder or prospective holder is made. Accordingly, holders and
prospective holders of common shares of the Company should consult their own tax
advisors about the Federal, state, local, and foreign tax consequences of
purchasing, owning and disposing of common shares of the Company.

U.S. Holders

As used herein, a "U.S. Holder" is a holder of common shares of the Company who
or which is a citizen or individual resident (or is treated as a citizen or
individual resident) of the United States for federal income tax purposes, a
corporation or partnership created or organized (or treated as created or
organized for federal income tax purposes) in the United States, including only
the States and District of Columbia, or under the law of the United States or
any State or Territory or any political subdivision thereof, or a trust or
estate the income of which is includable in its gross income for federal income
tax purposes without regard to its source, if, (i) a court within the United
States is able to exercise primary supervision over the administration of the
trust and (ii) one or more United States trustees have the authority to control
all substantial decisions of the trust.


                                     - 35 -
<PAGE>

For purposes of this discussion, a U.S. Holder does not include persons subject
to special provisions of Federal income tax law, such as tax-exempt
organizations, qualified retirement plans, financial institutions, insurance
companies, real estate investment trusts, regulated investment companies,
broker-dealers and Holders who acquired their stock through the exercise of
employee stock options or otherwise as compensation.

Distributions on common shares of the Company

U.S. Holders receiving dividend distributions (including constructive dividends)
with respect to common shares of the Company are required to include in gross
income for United States Federal income tax purposes the gross amount of such
distributions to the extent that the Company has current or accumulated earnings
and profits, without reduction for any Canadian income tax withheld from such
distributions. Such Canadian tax withheld may be credited, subject to certain
limitations, against the U.S. Holder's United States Federal income tax
liability or, alternatively, may be deducted in computing the U.S. Holder's
United States Federal taxable income by those who itemize deductions. (See more
detailed discussion at "Foreign Tax Credit" below). To the extent that
distributions exceed current or accumulated earnings and profits of the Company,
they will be treated first as a return of capital up to the U.S. Holder's
adjusted basis in the common shares and thereafter as gain from the sale or
exchange of the common shares. Preferential tax rates for long-term capital
gains are applicable to a U.S. Holder which is an individual, estate or trust.
There are currently no preferential tax rates for long-term capital gains for a
U.S. Holder which is a corporation.

Dividends paid on the common shares of the Company will not generally be
eligible for the dividends received deduction provided to corporations receiving
dividends from certain United States corporations. A U.S. Holder which is a
corporation may, under certain circumstances, be entitled to a 70% deduction of
the United States source portion of dividends received from the Company if such
U.S. Holder owns shares representing at least 10% of the voting power and value
of the Company. The availability of this deduction is subject to several complex
limitations which are beyond the scope of this discussion.

Foreign Tax Credit

A U.S. Holder who pays (or has withheld from distributions) Canadian income tax
with respect to the ownership of common shares of the Company may be entitled,
at the option of the U.S. Holder, to either a deduction or a tax credit for such
foreign tax paid or withheld. Generally, it will be more advantageous to claim a
credit because a credit reduces United States Federal income taxes on a
dollar-for-dollar basis, while a deduction merely reduces the taxpayer's income
subject to tax. This election is made on a year-by-year basis and applies to all
foreign taxes paid by (or withheld from) the U.S. Holder during that year. There
are significant and complex limitations which apply to the credit, among which
is the general limitation that the credit cannot exceed the proportionate shares
of the U.S. Holder's United States income tax liability that the U.S. Holder's
foreign source income bears to his or its world-wide taxable income. In the
determination of the application of this limitation, the various items of income
and


                                     - 36 -
<PAGE>

deduction must be classified into foreign and domestic sources. Complex rules
govern this classification process. There are further limitations on the foreign
tax credit for certain types of income such as "passive income," "high
withholding tax interest," "financial services income," "shipping income" and
certain other classifications of income. The availability of the foreign tax
credit and the application of the limitations on the credit are fact specific
and holders and prospective holders of common shares of the Company should
consult their own tax advisors regarding their individual circumstances.

Disposition of common shares of the Company

A U.S. Holder will recognize gain or loss upon the sale of common shares of the
Company equal to the difference, if any, between the amount of cash plus the
fair market value of any property received, and the Holder's tax basis in the
common shares of the Company. This gain or loss will be capital gain or loss if
the common shares are a capital asset in the hands of the U.S. Holder. Any
capital gain will be a short-term or long-term capital gain or loss depending
upon the holding period of the U.S. Holder. Gains and losses are netted and
combined according to special rules in arriving at the overall capital gain or
loss for a particular tax year. Deductions for net capital losses are subject to
significant limitations. For U.S. Holders which are individuals, any unused
portion of such net capital loss may be carried over to be used in later tax
years until such net capital loss is thereby exhausted. For U.S. Holders which
are corporations (other than corporations subject to Subchapter S of the Code),
an unused net capital loss may be carried back three years from the loss year
and carried forward five years from the loss year to be offset against capital
gains until such net capital loss is thereby exhausted.

      Dividends and paying agents.

            Not Applicable.

      G. Statement by experts.

            Not Applicable.

      H. Documents on display.

The documents concerning the Company which are referred to in the document are
located at its principal executive office in Toronto, at the address stated at
the beginning of this document.

      I. Subsidiary Information.

            Not Applicable.

Item 11. Quantitative and Qualitative Disclosures About Market Risk.

            Not Applicable.


                                     - 37 -
<PAGE>

Item 12. Description of Securities other than Equity Securities.

            Not Applicable.

                                     PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies.

            Not Applicable.

Item 14. Material Modifications to the Rights of Security Holders and Use of
Proceeds.

            Not Applicable.

Item 15. [Reserved]

Item 16. [Reserved]


                                     - 38 -
<PAGE>

                                    PART III

Item 17. Financial Statements.

            Not Applicable.

Item 18. Financial Statements.

The following financial statements are attached to and form part of this Annual
Report:

Audit Report

Audited Consolidated Financial Statements of the Company for the years ended
September 30, 2001, September 30, 2000 and September 30, 1999.

Item 19. Exhibits.

Exhibit Number

1.1   Certificate of Incorporation dated September 8, 1986                     *
1.2   Certificate of Name Change dated November 26, 1999                       *
1.3   Articles (Bylaws) of the Corporation                                     *
1.4   Company Stock Option Plan                                                *
4.a.1 Plan of Exchange dated as of August 3, 2001 between Onlinetel and Eiger
      Technology, Inc.
4.a.2 Share Purchase Agreement dated as of November 8, 2001 among ETIFF Holdings
      Inc., K-Tronik International Corp., and LMC Capital Corp.
4.a.3 Share Purchase Agreement dated as of December 19, 2001 among Vision
      Unlimited Equipment Inc., ADH Custom Metal Fabricators Inc., and Newlook
      Capital Corp.

*     Adopted by reference, as previously filed with the Commission.


                                     - 39 -
<PAGE>

                                   SIGNATURES

      The registrant hereby certifies that it meets all of the requirements for
filing on Form 20-F and that it has duly caused and authorized the undersigned
to sign this Annual Report on its behalf.

Eiger Technology, Inc.


/s/ GERRY RACICOT
--------------------------------

Gerry Racicot
President and C.E.O.

March 26, 2002

                                  EXHIBIT INDEX

Exhibit
Number                                  Description
-------                                 -----------

4.a.1       Plan of Exchange dated as of August 3, 2001 between Onlinetel and
            Eiger Technology, Inc.

4.a.2       Share Purchase Agreement dated as of November 8, 2001 among ETIFF
            Holdings Inc., K-Tronik International Corp., and LMC Capital Corp.

4.a.3       Share Purchase Agreement dated as of December 19, 2001 among Vision
            Unlimited Equipment Inc., ADH Custom Metal Fabricators Inc., and
            Newlook Capital Corp.


                                     - 40 -
<PAGE>

                             EIGER TECHNOLOGY, INC.

                       CONSOLIDATED FINANCIAL STATEMENTS

                       September 30, 2001, 2000 and 1999
<PAGE>

                    [LETTERHEAD OF MONTEITH, MONTEITH & CO.]

                             EIGER TECHNOLOGY, INC.
                                     INDEX
                       September 30, 2001, 2000 and 1999

Auditor's Report

Consolidated Financial Statements

            Balance Sheets

            Statements of Operations and Retained Earnings

            Statements of Cash Flows

Notes to the Consolidated Financial Statements
<PAGE>

                    [LETTERHEAD OF MONTEITH, MONTEITH & CO.]

                                AUDITOR'S REPORT

To the Shareholders of Eiger Technology, Inc.:

      We have audited the consolidated balance sheets of Eiger Technology, Inc.
as at September 30, 2001, 2000 and 1999 and the consolidated statements of
operations and retained earnings and cash flows for the years then ended. These
financial statements are the responsibility of the company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

      We conducted our audits in accordance with auditing standards generally
accepted in Canada and the United States of America. Those standards require
that we plan and perform an audit to obtain reasonable assurance whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.

      In our opinion, the financial statements present fairly, in all material
respects, the financial position of Eiger Technology, Inc. as at September 30,
2001, 2000 and 1999 and the results of its operations and its cash flows for the
years then ended in accordance with accounting principles generally accepted in
Canada.


                                        Monteith, Monteith & Co.


                                          CHARTERED ACCOUNTANTS.

Stratford, Ontario,
January 26, 2002.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                           CONSOLIDATED BALANCE SHEETS
                               as at September 30

<TABLE>
<CAPTION>
                                                ASSETS

                                                     2001             2000             1999
                                                     ----             ----             ----
                                                       $                $                $
<S>                                              <C>               <C>              <C>
Current:
  Cash                                             1,847,000        2,031,000        1,173,000
  Cash Held in Escrow                                     --        4,978,000               --
  Short-term Investments (Note 4)                  4,146,000        6,805,000               --
  Accounts Receivable (Note 5)                     8,759,000       12,039,000        5,227,000
  Inventory                                        6,545,000       10,878,000        3,733,000
  Prepaid Expenses                                   769,000          686,000          248,000
                                                 -----------       ----------       ----------

                                                  22,066,000       37,417,000       10,381,000

Long-term Investments (Note 4)                       404,000        4,337,000          360,000
Capital (Note 6)                                   4,541,000        4,998,000        2,056,000
Goodwill                                           2,488,000        7,640,000        2,180,000
Other (Note 7)                                     1,222,000        2,753,000        2,041,000
                                                 -----------       ----------       ----------

                                                  30,721,000       57,145,000       17,018,000
                                                 ===========       ==========       ==========

                                     LIABILITIES and SHAREHOLDERS' EQUITY

Current:
  Bank Indebtedness (Note 8)                       3,515,000        2,670,000        1,760,000
  Accounts Payable and Accrued Liabilities         5,616,000       11,184,000        3,519,000
  Income Taxes Payable                                    --           39,000          237,000
  Current Portion of Long-term Debt (Note 9)         120,000          120,000          100,000
                                                 -----------       ----------       ----------

                                                   9,251,000       14,013,000        5,616,000
                                                 -----------       ----------       ----------

Long-term Debt (Note 9)                            1,014,000        1,488,000        1,111,000
                                                 -----------       ----------       ----------

Future Income Taxes (Note 10)                             --           43,000          175,000
                                                 -----------       ----------       ----------

Non-controlling Interest                            (671,000)       3,253,000        1,779,000
                                                 -----------       ----------       ----------

Shareholders' Equity:
  Share Capital (Note 11)                         42,001,000       38,895,000        8,191,000
  Contributed Surplus                                217,000          217,000          217,000
  Retained Earnings                              (21,091,000)        (764,000)         (71,000)
                                                 -----------       ----------       ----------

                                                  21,127,000       38,348,000        8,337,000
                                                 -----------       ----------       ----------

                                                  30,721,000       57,145,000       17,018,000
                                                 ===========       ==========       ==========
</TABLE>

On Behalf of the Board:


    "Gerry Racicot"                     Director
--------------------------------
        Gerry Racicot


    "Keith Attoe"                       Director
--------------------------------
        Keith Attoe

                            (See Accompanying Notes)
<PAGE>

                             EIGER TECHNOLOGY, INC.
          CONSOLIDATED STATEMENTS of OPERATIONS and RETAINED EARNINGS
                        for the years ended September 30

<TABLE>
<CAPTION>
                                                        2001             2000             1999
                                                        ----             ----             ----
                                                         $                $                $
<S>                                                 <C>               <C>              <C>
Sales                                                30,070,000       57,068,000       8,433,000

Cost of Sales                                        27,711,000       50,731,000       6,055,000
                                                    -----------       ----------       ---------

Gross Margin                                          2,359,000        6,337,000       2,378,000
                                                    -----------       ----------       ---------

Expenses:
  Selling, General and Administration                 7,769,000        5,154,000       2,410,000
  Amortization of Capital Assets                        568,000          407,000         204,000
  Amortization of Goodwill and Other                  1,032,000          871,000         222,000
  Interest on Long-term Debt                             98,000           92,000         111,000
  Other Interest and Bank Charges                       480,000          552,000         233,000
                                                    -----------       ----------       ---------

                                                      9,947,000        7,076,000       3,180,000
                                                    -----------       ----------       ---------

Income (Loss) before Provision for Income Taxes      (7,588,000)        (739,000)       (802,000)
                                                    -----------       ----------       ---------

Provision for Income Taxes: (Note 12)
  Current                                                (6,000)         289,000          30,000
  Future                                                (56,000)        (132,000)             --
                                                    -----------       ----------       ---------

                                                        (62,000)         157,000          30,000
                                                    -----------       ----------       ---------

Income (Loss) before Unusual Items                   (7,526,000)        (896,000)       (832,000)

  Discontinued Operations                                    --         (162,000)       (545,000)
  Gain on Disposal of Discontinued Operations                --          226,000              --
  Negotiated Reduction of Long-term Debt                     --               --         293,000
  Non-recurring Items (Note 14)                     (16,366,000)              --              --
                                                    -----------       ----------       ---------

Income (Loss) before Non-controlling Interest       (23,892,000)        (832,000)     (1,084,000)

Non-controlling Interest                             (3,565,000)        (139,000)       (342,000)
                                                    -----------       ----------       ---------

Net Income (Loss) for the Year                      (20,327,000)        (693,000)       (742,000)

Retained Earnings - Beginning of Year                  (764,000)         (71,000)        671,000
                                                    -----------       ----------       ---------

Retained Earnings - End of Year                     (21,091,000)        (764,000)        (71,000)
                                                    ===========       ==========       =========

    Earnings per Share:

      Before Non-recurring Items
        Basic                                             (0.23)           (0.04)          (0.06)
                                                    -----------       ----------       ---------

        Diluted                                           (0.23)           (0.04)          (0.06)
                                                    -----------       ----------       ---------

      Net Income (Loss)
        Basic                                             (0.61)           (0.03)          (0.05)
                                                    -----------       ----------       ---------

        Diluted                                           (0.61)           (0.03)          (0.05)
                                                    -----------       ----------       ---------
</TABLE>

                            (See Accompanying Notes)
<PAGE>

                             EIGER TECHNOLOGY, INC.
                     CONSOLIDATED STATEMENTS of CASH FLOWS
                        for the years ended September 30

<TABLE>
<CAPTION>
                                                                2001              2000            1999
                                                                ----              ----            ----
                                                                 $                 $               $
<S>                                                          <C>               <C>             <C>
Cash Flows from Operating Activities:
  Net Income (Loss) for the Year                             (20,327,000)        (693,000)       (742,000)
  Items not Involving Cash:
    Non-recurring Items (Note 14)                             16,366,000
    Amortization                                               1,600,000        1,278,000         427,000
    Future Income Taxes                                          (56,000)        (132,000)             --
                                                             -----------       ----------      ----------

                                                              (2,417,000)         453,000        (315,000)
                                                             -----------       ----------      ----------
    Changes in Non-cash Working Capital Balances:
      Accounts Receivable                                      3,280,000       (6,812,000)     (3,134,000)
      Inventory                                                3,203,000       (7,145,000)     (1,037,000)
      Prepaid Expenses                                           (83,000)        (438,000)       (226,000)
      Accounts Payable and Accrued Liabilities                (5,568,000)       7,665,000         433,000
      Income Taxes Payable                                       (39,000)        (198,000)        165,000
      Future Income Taxes                                             --               --          (1,000)
      Non-controlling Interest                                (3,094,000)        (137,000)      1,468,000
                                                             -----------       ----------      ----------

                                                              (4,718,000)      (6,612,000)     (2,647,000)
                                                             -----------       ----------      ----------

Cash Flows from Investing Activities:
  Purchase of Capital Assets                                    (478,000)      (3,349,000)       (147,000)
  Long-term Investments                                       (3,571,000)      (3,977,000)             --
  Purchase of Goodwill and Other Assets                       (2,531,000)      (2,243,000)     (1,326,000)
                                                             -----------       ----------      ----------

                                                              (6,580,000)      (9,569,000)     (1,473,000)
                                                             -----------       ----------      ----------

Cash Flows from Financing Activities:
  Increase (Decrease) in Long-term Debt                         (474,000)         397,000        (559,000)
  Increase (Decrease) in Bank Indebtedness                       845,000          910,000         312,000
  Advances from (Repayments to) Related Parties                       --               --         112,000
  Subs. Share Capital Issued to Non-controlling Interest              --        2,020,000              --
  Subs. Dividends Paid to Non-controlling Interest                    --         (409,000)             --
  Issuance of Share Capital (Net of Costs)                     3,106,000       25,904,000       5,282,000
                                                             -----------       ----------      ----------

                                                               3,477,000       28,822,000       5,147,000
                                                             -----------       ----------      ----------

Net Cash Flows for the Year                                   (7,821,000)      12,641,000       1,027,000

Cash and Cash Equivalents - Beginning of the Year             13,814,000        1,173,000         146,000
                                                             -----------       ----------      ----------

Cash and Cash Equivalents - End of the Year                    5,993,000       13,814,000       1,173,000
                                                             ===========       ==========      ==========

Cash and Cash Equivalents Represented by:
Cash                                                           1,847,000        2,031,000       1,173,000
Cash Held in Escrow                                                   --        4,978,000              --
Short-term Investments                                         4,146,000        6,805,000              --
                                                             -----------       ----------      ----------

                                                               5,993,000       13,814,000       1,173,000
                                                             ===========       ==========      ==========
</TABLE>

                            (See Accompanying Notes)
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

1.    Nature of Business:

      Eiger Technology, Inc. ("the Company") is incorporated under the laws of
      Ontario. Through its various subsidiaries, the Company manufactures and
      distributes electronic/computer peripherals and electronic ballasts to OEM
      and consumer markets worldwide, and offers Voice over Internet Protocol
      services to the Canadian long-distance market.

2.    Significant Accounting Policies:

      (a)   Basis of Preparation:

            These financial statements have been prepared in accordance with
            accounting principles generally accepted in Canada ("Cdn. GAAP"). A
            reconciliation to U.S. generally accepted accounting principles
            ("U.S. GAAP") is provided in Note 15. Because a precise
            determination of assets and liabilities depends on future events,
            the preparation of periodic financial statements necessitates the
            use of estimates and approximations. Actual amounts may differ from
            these estimates.

      (b)   Principles of Consolidation:

            The accompanying consolidated financial statements include the
            accounts of Eiger Technology, Inc. and all of its subsidiary
            companies as listed in Note 3. All significant intercompany
            transactions and balances have been eliminated upon consolidation.

      (c)   Cash and Cash Equivalents:

            Cash and cash equivalents consist of cash on account and short-term
            investments with remaining maturities of three months or less at
            acquisition.

      (d)   Inventory:

            Inventory is valued at the lower of cost and net realizable value.
            Cost is determined on a first-in, first-out basis and includes the
            costs of materials and direct labour plus the applicable share of
            manufacturing overhead.

      (e)   Investments:

            All non-consolidated investments are accounted for at cost.
            Short-term investments are written down to market value when less
            than cost. Long-term investments are written down to market value
            when a decline in market value below the carrying value is
            considered to be other than temporary.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

2.    Significant Accounting Policies - continued:

      (f)   Capital Assets:

            Capital assets are recorded at cost. Amortization is calculated on
            the declining-balance basis at the following annual rates:

                Building                 -  4-5%
                Machinery and Equipment  -  5-10%
                Automotive Equipment     -  20-30%
                Computer Equipment       -  20-30%
                Leasehold Improvements   -  10% straight line basis

      (g)   Goodwill:

            Goodwill represents the excess of the purchase price of the
            Company's interest in subsidiary companies over the fair value of
            the underlying net identifiable assets at the time of acquisition.
            Goodwill is amortized over 10 years on a straight-line basis (40
            years for acquisitions prior to 1997). Goodwill arising on
            acquisitions after June 30, 2001 is not amortized. Management
            evaluates the expected future net cash flows of the companies at
            each reporting date and adjusts goodwill for any impairment.

      (h)   Other Assets:

            Product development costs meeting generally accepted criteria for
            deferral are written down to expected realizable value, and are
            amortized once production commences over periods ranging from three
            to ten years, depending on the anticipated economic life of the
            particular product. Deferred organization, finance, and regulatory
            approval costs are amortized over 2 to 5 years. Long-term lease
            deposits are recorded at cost.

      (i)   Income Taxes:

            Income taxes are provided using the liability method of tax
            allocation. Under this method, future tax assets and liabilities are
            determined based on differences between financial reporting and
            income tax bases of assets and liabilities, and are measured using
            the substantially enacted tax rates and laws that will be in effect
            when the differences are expected to reverse.

      (j)   Issuance of Share Capital:

            The costs of issuing share capital are netted against share capital.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

2.    Significant Accounting Policies - continued:

      (k)   Revenue Recognition:

            Sales are recorded upon shipment to customers. Fees are recognized
            as services are rendered.

      (l)   Foreign Currency Translation:

            Due to the extensive degree of financing provided to its foreign
            subsidiaries by the Company, these subsidiaries are considered to be
            integrated operations. Accordingly, the temporal method of foreign
            currency translation is used. Under this method, monetary assets and
            liabilities of foreign subsidiaries are translated into Canadian
            dollars using the exchange rate in effect at the balance sheet date,
            non-monetary items are translated at historical exchange rates
            (except for items carried at market, which are translated at the
            balance sheet date exchange rate), and revenues and expenses are
            translated using average exchange rates to approximate the rates
            actually in effect at the time of the transactions. Resulting
            foreign exchange translation gains or losses are included in the
            determination of net income for the year, except for such gains or
            losses relating the translation or settlement of foreign currency
            denominated long-term monetary items which are deferred and
            amortized over the remaining life of the monetary item. There were
            no material exchange gains or losses on long-term foreign currency
            denominated monetary items during either of the reporting periods.

      (m)   Stock-based Compensation:

            No compensation expense is recognized for stock options granted to
            employees. Options are granted at the fair market value of the
            shares on the day of the grant. Any consideration paid by employees
            on the exercise of stock options is credited to share capital.

      (n)   Earnings per Share:

            Basic earnings per share is calculated based on the weighted average
            number of shares outstanding during the year. Diluted earnings per
            share is calculated using the treasury stock method based on the
            weighted average number of shares that would have been outstanding
            during the year had all the dilutive options been exercised at the
            beginning of the year, or date of issuance if later, and assuming
            that option proceeds would be used to purchase common shares at the
            average market price during the year.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

3.    Subsidiaries and Related Party Transactions:

      Eiger Technology, Inc. is related to the following corporations:

Name of Corporation                        Nature of Relationship
-------------------                        ----------------------

Vision Unlimited Equipment Inc.*           100% Subsidiary
A.D.H. Custom Metal Fabricators Inc.       100% Subsidiary of Vision
                                           Unlimited Equipment Inc.
Alexa Properties Inc.                      100% Subsidiary

K-Tronik Int'l Corp.                       53% Subsidiary
K-Tronik Asia Corp.                        59.3% owned through K-Tronik
                                           Int'l Corp. and directly

Alexa Korea Holdings, Inc.*                100% Subsidiary
EigerNet, Inc.                             58.5% Subsidiary of Alexa Korea
                                           Holdings, Inc.
Alexa (U.S.A.), Inc.*                      100% Subsidiary
Eiger Labs Group, Inc.                     64% Subsidiary of Alexa
                                           (U.S.A.), Inc.

Onlinetel, Inc.                            100% Subsidiary

*     Inactive - holding company only

      All transactions within the corporate group are in the normal course of
      business, are transacted at fair market value, are recorded at the
      carrying value at the time, and are eliminated upon consolidation.
      Intercompany balances at the financial statement date are also eliminated
      upon consolidation.

      Service fees paid to corporations owned by four management personnel
      during the period totalled $412,000 (2000: $320,000; 1999: $208,000).
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

4.    Investments:

      (a)   Short-term Investments:

      Short-term investments are comprised of Canadian money market funds and
      short-term commercial paper plus accrued interest, having a market value
      equivalent to their cost amount.

      (b)   Long-term Investments:

                                                2001          2000         1999
                                                ----          ----         ----
                                                               $            $
Advances to Nixxo Technology, Inc.                  --     2,221,000          --
Advances to Lexatec VR Systems Inc.            324,000     1,444,000          --
Subsidiary long-term investment in
  debt securities                               80,000       437,000          --
Other                                               --       235,000     360,000
                                               -------     ---------     -------

                                               404,000     4.337,000     360,000
                                               =======     =========     =======

      The advances noted above are non-interest bearing, and have no specific
      terms of repayment.

5.    Accounts Receivable:

      Accounts receivable are reported net of an allowance for doubtful accounts
      of $196,000 (2000: $116,000; 1999: 193,000).

6.    Capital Assets:

<TABLE>
<CAPTION>
                                            2001                         2000          1999
                            -------------------------------------     ---------     ---------
                                         Accumulated    Net Book       Net Book      Net Book
                               Cost      Amortization     Value          Value         Value
                            -------------------------------------     ---------     ---------
                                $             $             $             $             $
<S>                         <C>           <C>           <C>           <C>           <C>
Land                          159,000            --       159,000       159,000       159,000

Buildings                   1,103,000       183,000       920,000       951,000       463,000

Machinery and Equipment     5,017,000     2,702,000     2,315,000     3,124,000     1,152,000

Furniture and Fixtures        817,000       389,000       428,000       392,000        83,000

Automotive Equipment          201,000        83,000       118,000       108,000        20,000

Leasehold Improvements        268,000       152,000       116,000       123,000       135,000

Computer Hardware             363,000        80,000       283,000        71,000        32,000

Computer Software             240,000        38,000       202,000        70,000        12,000
                            -------------------------------------     ---------     ---------

                            8,168,000     3,627,000     4,541,000     4,998,000     2,056,000
                            =====================================     =========     =========
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

7.    Other:

                                              2001         2000          1999
                                              ----         ----          ----
                                              $             $             $

Product Development Costs                    298,000     1,709,000     1,212,000
Deferred Organization and
  and Financing Costs                             --       370,000       525,000
Non-interest Bearing Long-term Deposits      682,000       435,000        95,000
Regulatory Approval                          174,000       174,000       141,000
Other                                         68,000        65,000        68,000
                                           ---------     ---------     ---------

                                           1,222,000     2,753,000     2,041,000
                                           =========     =========     =========

8.    Bank Indebtedness:

      The Canadian line of credit balance of $96,000 bears interest at Royal
      Bank prime plus .75%, is due on demand, and is secured by a general
      security agreement covering inventory, equipment and accounts receivable.
      Foreign subsidiary lines of credit balances totalling $3,419,000 (Cdn.)
      bear interest at rates ranging from 5 - 7.25%, are secured by inventory
      and equipment, and are repayable upon demand.

9.    Long-term Debt:

<TABLE>
<CAPTION>
                                                    2001            2000            1999
                                                    ----            ----            ----
                                                      $               $               $
<S>                                               <C>             <C>             <C>
Royal Bank of Canada term loan repayable in
monthly instalments of $10,000 plus interest
calculated at Royal Bank prime plus 1/4%            745,000         865,000         878,000

Shin Han Bank (Korea) term loan repayable in
bi-annual instalments of $60,500 commencing
May 8, 2006 and ending November 8, 2008
plus interest calculated at 6.75% per annum         303,000         651,000              --

Other                                                86,000          92,000         333,000
                                                  ---------       ---------       ---------

                                                  1,134,000       1,608,000       1,211,000

Less: Current Portion                              (120,000)       (120,000)       (100,000)
                                                  ---------       ---------       ---------

                                                  1,014,000       1,488,000       1,111,000
                                                  =========       =========       =========
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

9     Long-term Debt - continued:

      Principal payments required on long-term debt for the next five years are
      as follows:

                  Year                            Amount
                  ----                            ------
                                                    $
                  2002                           120,000
                  2003                           206,000
                  2004                           120,000
                  2005                           120,000
                  2006                           241,000
                                                 -------

                                                 807,000
                                                 =======

10.   Future Income Taxes:

      Significant components of future income tax assets (liabilities) are as
      follows:

<TABLE>
<CAPTION>
                                                   2001           2000         1999
                                                   ----           ----         ----
                                                    $              $             $
<S>                                            <C>             <C>           <C>
Excess of net book value of capital assets
  over tax value                                 (236,000)     (270,000)     (257,000)

Other future income tax liabilities                    --       (53,000)           --

Operating losses carried forward                2,254,000       372,000         3,000
  Less: Valuation Allowance                    (2,034,000)     (102,000)           --

"Canadian Exploration Expenses"
  carried forward                                      --            --        69,000

Other                                              16,000        10,000        10,000
                                               ----------      --------      --------

Net future income tax assets (liabilities)             --       (43,000)     (175,000)
                                               ==========      ========      ========
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

11.   Share Capital:

      Authorized: 100,000,000 Common Shares

      Issued:

<TABLE>
<CAPTION>
                                            2001                               2000                             1999
                                 ---------------------------       ---------------------------       --------------------------
                                   No. of             $              No. of            $              No. of             $
                                   Shares                            Shares                           Shares
                                   ------                            ------                           ------
<S>                              <C>              <C>              <C>              <C>              <C>             <C>
Beginning of Year:               33,945,858       39,437,000       21,284,358        9,340,000       13,815,001       2,176,000

Issued - private placement*          70,000        1,839,000       11,444,500       27,861,000        6,065,500       6,152,000

  - exercise of options             400,000          350,000          617,000          483,000           50,000          42,000

  - acquisitions                  1,799,995          936,000               --               --        1,353,857       1,882,000

  - earn out shares                      --               --          600,000        4,800,000               --              --

  - costs of issue                       --          (19,000)              --       (3,047,000)              --        (912,000)
                                 ---------------------------       ---------------------------       --------------------------

End of Year:                     36,215,853       42,543,000       33,945,858       39,437,000       21,284,358       9,340,000

Reciprocal Shareholdings           (526,929)        (542,000)        (526,929)        (542,000)        (826,929)     (1,149,000)
                                 ---------------------------       ---------------------------       --------------------------

Net per Balance Sheets           35,688,924       42,001,000       33,418,929       38,895,000       20,457,429       8,191,000
                                 ===========================       ===========================       ==========================
</TABLE>

*     Shares in escrow: None (2000: 4,840,000; 1999: None)

      The Company awards unconditional stock options to employees, officers,
      directors and others at the recommendation of the CEO as approved by the
      shareholders. Options are granted at the fair market value of the shares
      on the day granted, and vest immediately. The following is a continuity
      schedule of outstanding options for the reporting periods, where WAEP
      refers to "weighted average exercise price".

<TABLE>
<CAPTION>
                                2001                     2000                    1999
                        -------------------      -------------------      -----------------
                                       WAEP                     WAEP                   WAEP
                         No. of        ----       No. of        ----      No. of.      ----
                         Options        $         Options        $        Options       $
                         -------        -         -------        -        -------       -
<S>                     <C>            <C>       <C>            <C>       <C>          <C>
Beginning of Year:      1,713,000      3.37        895,000      0.74      955,000      0.75

Granted                 2,133,000      1.16      1,535,000      3.70           --        --

Exercised                (400,000)     0.88       (617,000)     0.76      (50,000)     0.85

Expired                        --        --       (100,000)     0.90      (10,000)     0.75
                        ---------                ---------                -------

End of Year:            3,446,000      2.29      1,713,000      3.37      895,000      0.74
                        =========                =========                =======
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

11.   Share Capital - continued:

      Stock options were exercised during the year at prices ranging from $0.60
      to $1.40. The weighted average contractual life for options outstanding at
      year end was 1,400 days.

      During the year, proceeds from exercised stock options of $350,000 was
      credited to share capital (2000: $483,000; 1999: $42,000). No amounts were
      recognized as compensation expense with respect to stock options granted
      or exercised in either of the reporting periods.

      Stock options have been granted to the CEO of K-Tronik Int'l Corp.
      contingent upon meeting sales quotas for that company as tabled below:

                                            Number of
Monthly Sales for Six                        Options
Consecutive Months                          Exercisable     Total      Excercise
Units of Ballasts                           Per Plateau   Cumulative     Price
-----------------------------------------   -----------   ----------   ---------

50,000 per month for 6 consecutive months      70,000        70,000       .60
60,000 per month for 6 consecutive months      70,000       140,000       .60
70,000 per month for 6 consecutive months      70,000       210,000       .60
80,000 per month for 6 consecutive months      70,000       280,000       .60
90,000 per month for 6 consecutive months      70,000       350,000       .60

      No shares were issued in fiscal 2001, fiscal 2000 or fiscal 1999 as a
      result of this agreement.

      Management has agreed to issue shares of the Company to four members of
      the management team of EigerNet, Inc. and Eiger Labs Group Inc. as
      performance earn out consideration contingent upon achieving the criteria
      tabled below for the combined results of those two companies:

                                                                        Common
Year           Gross Sales                   Net Income                 Shares
----           -----------                   ----------                 ------
1999         $27 million U.S.             $1.0 million U.S.             600,000
2000         $70 million U.S.             $2.5 million U.S.             750,000
2001         $80 million U.S.             $3.5 million U.S.             750,000
2002         $90 million U.S.             $4.0 million U.S.             900,000
2003        $110 million U.S.             $4.5 million U.S.           1,000,000

      600,000 shares were issued in fiscal 2000 as a result of this agreement
      based on the operating results for 1999. No shares were issued in fiscal
      2001 and none will be issued in fiscal 2002 pursuant to this agreement as
      the sales and income criteria have not been met.

      Additional shares may become issuable pursuant to the agreement described
      in Note 16.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

12.   Provision for Income Taxes:

<TABLE>
<CAPTION>
                                                  2001           2000          1999
                                                  ----           ----          ----
                                                   $              $             $
<S>                                           <C>             <C>           <C>
Current Provision:                                (6,000)      289,000        30,000
                                              ----------      --------      --------
Future Provision:
  Losses carried forward                         (22,000)     (267,000)       (3,000)
  Net book value of capital assets               (34,000)       13,000         3,000
  Canadian Exploration Expenses                       --        69,000            --
  Other                                               --        53,000            --
                                              ----------      --------      --------

                                                 (56,000)     (132,000)           --
                                              ----------      --------      --------

Total Provision                                  (62,000)      157,000        30,000
                                              ==========      ========      ========

Reconciliation of Tax Provision:

  Income (Loss) before Provision for
    Income Taxes                              (7,588,000)     (739,000)     (802,000)
  Taxable Intercompany Dividend
    Eliminated on Consolidation                       --       409,000            --
  Taxable Intercompany Gain Eliminated
    on Consolidation                                  --            --       467,000
  Amortization of Goodwill Arising
    on Consolidation                             624,000       549,000        66,000
  Valuation Allowance on Losses Carried
    Forward                                    6,716,000       408,000            --
  Utilization of Unrecognized Losses
    Carried Forward                                   --            --       (50,000)
  Minor Permanent Differences                         --            --        (4,000)
  Discontinued Operations - Previous Year             --            --      (547,000)
  Prior Period Adjustments before
    Non-controlling Interest                          --            --       981,000
                                              ----------      --------      --------

  Income Subject to Current and Future
    Income Taxes                                (248,000)      627,000       111,000
                                              ==========      ========      ========

  At Average Statutory Rate (2001: 25%;
    2000: 25%; 1999: 27%)                        (62,000)      157,000        30,000
                                              ==========      ========      ========
</TABLE>

      The average statutory rate varies depending on the relative mix of incomes
      from the Company and its subsidiaries located in Canada, Korea and the
      United States.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

13.   Cash Payments of Interest and Income Taxes:

                                       2001             2000              1999
                                       ----             ----              ----
                                        $                 $                 $

Interest                             555,000           620,000           332,000
                                     =======           =======           =======

Income Taxes                          15,000           304,000            72,000
                                     =======           =======           =======

14.   Non-recurring Items:

                                                                          2001
                                                                          ----
                                                                           $

Charge for impairment in value of consolidated goodwill                6,500,000

Charge for impairment in value of long-term loans receivable           7,003,000

Non-recurring charge for impairment in value of inventory                566,000

Charge for impairment in value of capital assets                         184,000

Charge for decline in value of long-term investments in
  shares of other corporations                                           982,000

Charge for impairment in value of deferred product
  development costs                                                    1,131,000
                                                                      ----------

                                                                      16,366,000
                                                                      ==========

      Due to unfavourable economic conditions, particularly in the Republic of
      South Korea, the Company has experienced significant and long-term decline
      in the value of the asset groups noted above.

      The charges of impairment in values reported above are shown net of a
      reduction in future tax liabilities of $127,000 and non-controlling
      interest of $1,170,000.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

15.   Reconciliation to U.S. GAAP:

      These financial statements have been prepared in accordance with
      accounting principles generally accepted in Canada ("Cdn. GAAP").
      Significant differences under U.S. GAAP are discussed below.

      For fiscal years beginning after December 15, 1998, U.S. GAAP requires
      that all organization costs (including those previously deferred) be
      expensed currently. Also, all product development costs are to be expensed
      as incurred.

      U.S. GAAP requires the measurement and reporting of "comprehensive
      income". Comprehensive income includes net income and all other changes to
      Shareholders' Equity other than amounts received from or paid to
      shareholders. The only reportable comprehensive income item for the
      Company relates to foreign currency translation adjustments as described
      below.

      U.S. GAAP requires the use of the current rate method of foreign currency
      translation, with any resulting foreign exchange translation adjustments
      forming part of comprehensive income for the year and accumulating as a
      separate component of shareholders' equity.

      APB Opinion 25 requires the intrinsic value based method be used to
      measure stock option compensation. As the Company grants stock options at
      fair market value, no compensation is recognized. SFAS No. 123 requires
      pro-forma disclosure of net income and earnings per share as if the fair
      value method had been applied.

      Reconciliations to U.S. GAAP are as follows:

<TABLE>
<CAPTION>
                                                            2001              2000             1999
                                                            ----              ----             ----
                                                             $                  $               $
<S>                                                     <C>                 <C>            <C>
Net Income (Loss):
  - per Cdn. GAAP                                       (20,327,000)        (693,000)        (742,000)

  - expense deferred product development costs net
    of portion relating to non-controlling interest         856,000         (328,000)        (374,000)
  - expense deferred organization costs net of
    portion relating to non-controlling interest            219,000           90,000         (309,000)
  - foreign currency translation adjustment                 191,000          129,000            6,000
  - future income tax savings related to above             (347,000)          60,000          265,000
                                                        -----------         --------       ----------

  - per U.S. GAAP                                       (19,408,000)        (742,000)      (1,154,000)
                                                        -----------         --------       ----------

Comprehensive item - foreign exchange
  adjustment                                               (191,000)        (129,000)          (6,000)
                                                        -----------         --------       ----------

Comprehensive Income                                    (19,599,000)        (871,000)      (1,160,000)
                                                        ===========         ========       ==========
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

15.   Reconciliation to U.S. GAAP - continued:

<TABLE>
<CAPTION>
                                                            2001             2000              1999
                                                            ----             ----              ----
                                                             $                 $                $
<S>                                                     <C>               <C>              <C>
Retained Earnings:
  - per Cdn. GAAP                                       (21,091,000)        (764,000)         (71,000)
  - expense deferred product development costs
    net of portion relating to non-controlling
    interest                                               (298,000)      (1,154,000)        (826,000)
  - expense deferred organization costs net of
    portion relating to non-controlling interest                 --         (219,000)        (309,000)
  - foreign currency translation adjustments                326,000          135,000            6,000
  - future income tax savings related to above              100,000          447,000          387,000
                                                        -----------       ----------       ----------

      - per U.S. GAAP                                   (20,963,000)      (1,555,000)        (813,000)
                                                        ===========       ==========       ==========

Accumulated Other Comprehensive Items:
  - per Cdn. GAAP                                                --               --               --
  - foreign currency translation adjustments               (326,000)        (135,000)          (6,000)
                                                        -----------       ----------       ----------

  - per U.S. GAAP                                          (326,000)        (135,000)          (6,000)
                                                        ===========       ==========       ==========

Total Assets:
  - per Cdn GAAP                                         30,721,000       57,145,000       17,018,000
  - expense deferred product
    development costs                                      (298,000)      (1,709,000)      (1,212,000)
  - expense deferred organization costs                          --         (370,000)              --
  - increase in future income tax assets                    100,000          404,000          212,000
                                                        -----------       ----------       ----------

      - per U.S. GAAP                                    30,523,000       55,470,000       16,018,000
                                                        ===========       ==========       ==========

Earnings per Share:
      Basic                                                    (.59)            (.03)            (.08)
                                                        -----------       ----------       ----------

      Fully Diluted                                            (.59)            (.03)            (.08)
                                                        -----------       ----------       ----------
</TABLE>

      Pro-forma Disclosure (SFAS No. 123):

      Had SFAS No. 123 been followed, net income would have decreased by
      $1,766,000 in fiscal 2001 (2000: $4,342,000; 1999: no change), and basic
      and fully diluted earnings per share would have been (.64) and (.64)
      respectively (2000: (.20) and (.20)); (1999: .08 and (.08)).
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

16.   Acquisitions of Subsidiary Companies:

      On July 31, 2001 the Company acquired 100% of the outstanding shares of
      Onlinetel Inc., a company incorporated under the laws of Nevada. Onlinetel
      Inc. provides Voice over Internet Protocol ("VoIP) long distance services
      to the Canadian market.

      The consolidated financial statements of Eiger Technology, Inc. include
      the results of operations of Onlinetel, Inc. for the two months ended
      September 30, 2001.

      The acquisition was accomplished through the issuance of 1,799,995 common
      shares of Eiger Technology, Inc. having a total fair market value at the
      time of issuance of $936,000.

      The purchase equation at the time of acquisition was as follows:

                                                                        $Cdn.
                                                                      ---------

Current Assets                                                           48,000
Capital Assets                                                          594,000
Goodwill                                                              1,314,000
Liabilities                                                            (995,000)
                                                                      ---------

Net Assets Acquired                                                     961,000
                                                                      =========

T.S.E. Fee                                                               25,000
Shares of Eiger Technology Inc.                                         936,000
                                                                      ---------

Total Consideration                                                     961,000
                                                                      =========

      The share exchange agreement allows that additional shares of Eiger
      Technology, Inc. may be issued to the former shareholders of Onlinetel,
      Inc. if certain earn out provisions are met as follows:

Fiscal                  Gross                   Net                 Common
 Year                  Revenue                 Income               Shares
------                 -------                 ------               ------
  $                      $                       $                    #

2002                 19,083,000               2,442,000           1,800,000
2003                 37,348,000               6,213,000           1,800,000
2004                 50,849,000               9,353,000           1,800,000
2005                 59,867,000              13,849,000           1,800,000

Unmet earn out targets can be carried forward and met on a cumulative basis
until fiscal 2010.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

17.   Subsequent Events:

      Subsequent to the year end, the Company announced its intention to sell
      its 53% interest in K-Tronik Intl'l Corporation ("K-Tronik") to LMC
      Capital Corp. ("LMC"), a U.S. reporting issuer. The Company will received
      7,571,428 shares of LMC for its holdings, plus an 14,642,428 shares are
      expected to be worth approximately $8,500,000 and to represent a 51%
      interest in LMC.

      Subsequent to the year end, the Company has proposed to sell its 100%
      interest in Vision Unlimited Equipment Inc., and its 100% subsidiary, ADH
      Custom Metal Fabricators Inc., to Newlook Capital Corp. ("Newlook"), a
      capital pool company pursuant to Policy to 2.4 of the Canadian Venture
      Exchange Inc. ("CDNX"). The sale price of $2,400,000 will be satisfied by
      the issuance to the Company of 4,800,000 common shares of Newlook. These
      shares are expected to be received over a period of six years due to CDNX
      surplus and value security escrow restrictions. The transaction will
      result in the Company becoming a controlling shareholder of Newlook.

      The above-mentioned transactions are subject to approvals by the
      respective Boards of Directors, performance of due diligence procedures,
      and receipt of approvals from the applicable regulatory authorities.

18.   Financial Instruments:

      (a)   Fair Value:

      Cash and cash equivalents, short-term investments, accounts receivable and
      payable, and bank indebtedness are carried at cost which approximates fair
      value due to their short time to maturity. Management believes the
      carrying value of long-term investments to be equivalent to their fair
      market value. The fair values of the Company's long-term debt obligations,
      based on current rates for debt with similar terms and maturities, are
      approximately the same as their carrying values.

      (b)   Interest Rate Risk:

      The Company is not exposed to significant interest rate risk due to the
      short-term maturity of its current monetary assets and liabilities. The
      Company's interest rate risk pertaining to its long-term debt obligations
      is not considered to be significant due to the relatively low amounts
      involved.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

18.   Financial Instruments - continued:

      (c)   Credit Risk:

      The Company's financial assets that are exposed to credit risk consist
      primarily of short-term investments, accounts receivable, and long-term
      investments.

      Short-term investments consist solely of money market funds and short-term
      commercial paper issued by investment-rated Canadian financial
      institutions, and are invested for terms not exceeding 90 days.

      The Company, in the normal course of business, is exposed to credit risk
      from its customers. Management believes that sufficient allowance has been
      made for bad debts in these financial statements based on a review of
      accounts on an individual basis. The concentration of credit risk in trade
      accounts receivable is not considered to be significant due to the
      Company's large client base.

      The Company is also exposed to credit risk with respect to its long-term
      advances to Lexatec VR Systems Inc. and certain subsidiary investments.
      Advances to Lexatec VR Systems Inc. are partially secured by a pledge of
      reciprocal shareholdings.

19.   Commitments:

      As at September 30, 2001, the Company had commitments under the terms of
      various operating leases requiring annual rental payments as follows:

                                                    $

                2002                             503,000
                2003                             551,000
                2004                             347,000
                2005                             160,000
                2006                             160,000
<PAGE>

                             EIGER TECHNOLOGY, INC.
                 NOTES to the CONSOLIDATED FINANCIAL STATEMENTS

20.   Segmented Information:

      Management has identified four reportable segments: "ADH", "K-Tronik",
      "Onlinetel" and "Eiger". Segementation is determined on the basis of the
      types of goods and services provided and geographic location.

      "ADH" consists of A.D.H. Custom Metal Fabricators Inc. and Alexa
      Properties Inc. A.D.H. Custom Metal Fabricators Inc. is a manufacturer of
      fluorescent light fixtures, data racks and other metal cabinetry. Alexa
      Properties Inc. owns the land and manufacturing facility in Stratford,
      Ontario.

      "K-Tronik" includes K-Tronik Int'l Corp., a distributor of electronic
      ballasts based in Hackensack, New Jersey, and K-Tronik Asia Corp., a
      manufacturer of electronic ballasts operating in Korea.

      "Onlinetel" consists of Onlinetel, Inc. which provides Voice over Internet
      Protocol services to the Canadian long distance market.

      "Eiger" includes Eiger Labs Group, Inc. and EierNet, Inc. Both of these
      companies are involved in the production and distribution of electronic
      communications products. EigerNet, Inc. is located in South Korea, while
      Eiger Labs Group, Inc. operates out of California.

      Financial information, segmented according to the above, is presented in
      the form of schedules over the next three pages.
<PAGE>

                             EIGER TECHNOLOGY, INC.
                              SEGMENTED INFORMATION
                               September 30, 2001

<TABLE>
<CAPTION>
                                                    ADH           K-Tronik         Onlinetel         Eiger
                                                 =========       ==========        =========       ==========
                                                     $               $                 $               $
<S>                                              <C>             <C>               <C>             <C>
Sales:
  External:
    - Domestic                                   2,301,000               --          234,000               --
    - Foreign                                           --       10,107,000               --       17,428,000
  Intersegment                                          --               --               --               --
                                                 ---------       ----------        ---------       ----------
                                                 2,301,000       10,107,000          234,000       17,428,000

Cost of Sales                                    2,004,000        7,934,000               --       17,958,000
                                                 ---------       ----------        ---------       ----------

Gross Margin                                       297,000        2,173,000          234,000         (530,000)
                                                 ---------       ----------        ---------       ----------

Expenses:
  Operations and Administration                    509,000        3,014,000          335,000        3,394,000
  Amortization of Capital and Other Assets         210,000          655,000           28,000          676,000
  Interest on Long-term Debt                        65,000               --               --           33,000
  Other Interest and Bank Charges                   56,000          360,000               --           61,000
                                                 ---------       ----------        ---------       ----------
                                                   840,000        4,029,000          363,000        4,164,000
                                                 ---------       ----------        ---------       ----------

Income (Loss) before Taxes                        (543,000)      (1,856,000)        (129,000)      (4,694,000)

Provision for Income Taxes                         (72,000)          15,000               --          (20,000)
                                                 ---------       ----------        ---------       ----------

Income (Loss) before Non-recurring Items          (471,000)      (1,871,000)        (129,000)      (4,674,000)

Non-recurring Items                               (136,000)      (1,048,000)              --       (8,691,000)

Non-controlling Interest                             2,000        1,245,000               --        2,318,000
                                                 ---------       ----------        ---------       ----------

Net Income (Loss) for the Year                    (605,000)      (1,674,000)        (129,000)     (11,047,000)
                                                 =========       ==========        =========       ==========

Cash Flows:
  From Operating Activities                       (224,000)      (1,892,000)        (303,000)      (1,399,000)

  From Investing Activities                        (32,000)        (112,000)        (158,000)      (2,282,000)

  From Financing Activities                        568,000        1,705,000          669,000        4,205,000
                                                 ---------       ----------        ---------       ----------

                                                   312,000         (299,000)         208,000          524,000
Cash and Cash Equivalents:
  Beginning of the Year                                 --          446,000               --          937,000
                                                 ---------       ----------        ---------       ----------

  End of the Year                                  312,000          147,000          208,000        1,461,000
                                                 =========       ==========        =========       ==========

Expenditures on Capital Assets
  and Goodwill during the Year                      32,000          207,000        1,472,000           43,000
                                                 =========       ==========        =========       ==========

Balance of Capital Assets and
  Goodwill - End of the Year
    - Domestic                                   1,803,000               --        2,037,000               --
    - Foreign                                           --        1,596,000               --        1,477,000
                                                 ---------       ----------        ---------       ----------

                                                 1,803,000        1,596,000        2,037,000        1,477,000
                                                 =========       ==========        =========       ==========

Amount of Investment in Investees
  Subject to Significant Influence                      --               --               --               --
                                                 =========       ==========        =========       ==========

Total Assets                                     4,428,000        8,440,000        2,423,000       14,351,000
                                                 =========       ==========        =========       ==========

<CAPTION>
                                                                                    Totals per
                                                    All           Reconciling       Financial
                                                   Others            Items          Statements
                                                 ===========      ===========      ===========
                                                     $                 $                $
<S>                                              <C>              <C>              <C>
Sales:
  External:
    - Domestic                                            --               --        2,535,000
    - Foreign                                             --               --       27,535,000
  Intersegment                                            --               --               --
                                                 -----------      -----------      -----------
                                                          --               --       30,070,000

Cost of Sales                                             --         (185,000)      27,711,000
                                                 -----------      -----------      -----------

Gross Margin                                              --               --        2,359,000
                                                 -----------      -----------      -----------

Expenses:
  Operations and Administration                      777,000         (260,000)       7,769,000
  Amortization of Capital and Other Assets            31,000               --        1,600,000
  Interest on Long-term Debt                              --               --           98,000
  Other Interest and Bank Charges                      3,000               --          480,000
                                                 -----------      -----------      -----------
                                                     811,000               --        9,947,000
                                                 -----------      -----------      -----------

Income (Loss) before Taxes                          (811,000)              --       (7,588,000)

Provision for Income Taxes                                --           15,000          (62,000)
                                                 -----------      -----------      -----------

Income (Loss) before Non-recurring Items            (811,000)              --       (7,526,000)

Non-recurring Items                               (6,491,000)              --      (16,366,000)

Non-controlling Interest                                  --               --        3,565,000
                                                 -----------      -----------      -----------

Net Income (Loss) for the Year                    (7,302,000)              --      (20,327,000)
                                                 ===========      ===========      ===========

Cash Flows:
  From Operating Activities                         (900,000)              --       (4,718,000)

  From Investing Activities                      (10,801,000)       6,805,000       (6,580,000)

  From Financing Activities                        3,135,000       (6,805,000)       3,477,000
                                                 -----------      -----------      -----------

                                                  (8,566,000)              --       (7,821,000)
Cash and Cash Equivalents:
  Beginning of the Year                           12,431,000               --       13,814,000
                                                 -----------      -----------      -----------

  End of the Year                                  3,865,000               --        5,993,000
                                                 ===========      ===========      ===========

Expenditures on Capital Assets
  and Goodwill during the Year                        38,000               --        1,792,000
                                                 ===========      ===========      ===========

Balance of Capital Assets and
  Goodwill - End of the Year
    - Domestic                                       116,000               --        3,956,000
    - Foreign                                             --               --        3,073,000
                                                 -----------      -----------      -----------

                                                     116,000               --        7,029,000
                                                 ===========      ===========      ===========

Amount of Investment in Investees
  Subject to Significant Influence                        --               --               --
                                                 ===========      ===========      ===========

Total Assets                                      35,402,000      (34,323,000)      30,721,000
                                                 ===========      ===========      ===========
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                              SEGMENTED INFORMATION
                               September 30, 2000

<TABLE>
<CAPTION>
                                                                                  Lexatec
                                                   ADH           K-Tronik      Discontinued)       Eiger
                                                =========       ==========     =============    ==========
                                                    $               $                $               $
<S>                                             <C>            <C>                <C>            <C>
Sales:
  External:
    - Domestic                                  2,834,000              --               --               --
    - Foreign                                       5,000       6,718,000         (123,000)      47,513,000
  Intersegment                                     18,000              --               --               --
                                               ----------      ----------      -----------      -----------
                                                2,857,000       6,718,000         (123,000)      47,513,000

Cost of Sales                                   2,523,000       4,465,000          (92,000)      43,763,000
                                               ----------      ----------      -----------      -----------

Gross Margin                                      334,000       2,253,000          (31,000)       3,750,000
                                               ----------      ----------      -----------      -----------

Expenses:
  Operations and Administration                   612,000       2,337,000          235,000        2,374,000
  Amortization of Capital and Other Assets        159,000         465,000            1,000          646,000
  Interest on Long-term Debt                       71,000              --               --           21,000
  Other Interest and Bank Charges                 103,000         252,000            1,000          195,000
                                               ----------      ----------      -----------      -----------
                                                  945,000       3,054,000          237,000        3,236,000
                                               ----------      ----------      -----------      -----------

Income (Loss) before Taxes                       (611,000)       (801,000)        (268,000)         514,000

Provision for Income Taxes                       (184,000)        (55,000)           1,000          324,000
                                               ----------      ----------      -----------      -----------

Income (Loss) before Non-recurring Items         (427,000)       (746,000)        (269,000)         190,000

Non-recurring Items                                    --              --               --               --

Non-controlling Interest                            3,000         545,000          107,000         (409,000)
                                               ----------      ----------      -----------      -----------

Net Income (Loss) for the Year                   (424,000)       (201,000)        (162,000)        (219,000)
                                               ==========      ==========      ===========      ===========

Cash Flows:
  From Operating Activities                      (197,000)     (3,067,000)        (267,000)      (3,360,000)

  From Investing Activities                      (157,000)       (734,000)              --         (650,000)

  From Financing Activities                       354,000       4,226,000          267,000        3,795,000
                                               ----------      ----------      -----------      -----------

                                                       --         425,000               --         (215,000)
Cash and Cash Equivalents:
  Beginning of the Year                                --          21,000               --        1,152,000
                                               ----------      ----------      -----------      -----------

End of the Year                                        --         446,000               --          937,000
                                               ==========      ==========      ===========      ===========

Expenditures on Capital Assets
  and Goodwill during the Year                    158,000       1,434,000               --        8,206,000
                                               ==========      ==========      ===========      ===========

Balance of Capital Assets and
  Goodwill - End of the Year
    - Domestic                                  2,050,000              --               --               --
    - Foreign                                          --       1,708,000               --        8,790,000
                                               ----------      ----------      -----------      -----------

                                                2,050,000       1,708,000               --        8,790,000
                                               ==========      ==========      ===========      ===========

Amount of Investment in Investees
  Subject to Significant Influence                     --              --               --               --
                                               ==========      ==========      ===========      ===========

Total Assets                                    3,881,000       8,632,000               --       28,042,000
                                               ==========      ==========      ===========      ===========

<CAPTION>
                                                                                  Totals per
                                                    All          Reconciling       Financial
                                                   Others           Items          Statements
                                                ===========      ===========      ===========
                                                     $                 $                $
<S>                                              <C>              <C>               <C>
Sales:
  External:
    - Domestic                                            --           (2,000)       2,832,000
    - Foreign                                             --          123,000       54,236,000
  Intersegment                                            --          (18,000)              --
                                                 -----------      -----------       ----------
                                                          --          103,000       57,068,000

Cost of Sales                                             --           72,000       50,731,000
                                                 -----------      -----------       ----------

Gross Margin                                              --           31,000        6,337,000
                                                 -----------      -----------       ----------

Expenses:
  Operations and Administration                     (169,000)        (235,000)       5,154,000
  Amortization of Capital and Other Assets             8,000           (1,000)       1,278,000
  Interest on Long-term Debt                              --               --           92,000
  Other Interest and Bank Charges                      2,000           (1,000)         552,000
                                                 -----------      -----------       ----------
                                                    (159,000)        (237,000)       7,076,000
                                                 -----------      -----------       ----------

Income (Loss) before Taxes                           159,000          268,000         (739,000)

Provision for Income Taxes                            72,000           (1,000)         157,000
                                                 -----------      -----------       ----------

Income (Loss) before Non-recurring Items              87,000          269,000         (896,000)

Non-recurring Items                                       --           64,000           64,000

Non-controlling Interest                                  --         (107,000)         139,000
                                                 -----------      -----------       ----------

Net Income (Loss) for the Year                        87,000          226,000         (693,000)
                                                 ===========      ===========       ==========

Cash Flows:
  From Operating Activities                          279,000               --       (6,612,000)

  From Investing Activities                      (16,770,000)       8,742,000       (9,569,000)

  From Financing Activities                       28,922,000       (8,742,000)      28,822,000
                                                 -----------      -----------       ----------

                                                  12,431,000               --       12,641,000
Cash and Cash Equivalents:
  Beginning of the Year                                   --               --        1,173,000
                                                 -----------      -----------       ----------

End of the Year                                   12,431,000               --       13,814,000
                                                 ===========      ===========       ==========

Expenditures on Capital Assets
  and Goodwill during the Year                        95,000               --        9,893,000
                                                 ===========      ===========       ==========

Balance of Capital Assets and
  Goodwill - End of the Year
    - Domestic                                        90,000               --        2,140,000
    - Foreign                                             --               --       10,498,000
                                                 -----------      -----------       ----------

                                                      90,000               --       12,638,000
                                                 ===========      ===========       ==========

Amount of Investment in Investees
  Subject to Significant Influence                   175,000               --          175,000
                                                 ===========      ===========       ==========

Total Assets                                      40,093,000      (23,503,000)      57,145,000
                                                 ===========      ===========       ==========
</TABLE>
<PAGE>

                             EIGER TECHNOLOGY, INC.
                              SEGMENTED INFORMATION
                               September 30, 1999

<TABLE>
<CAPTION>
                                                                                  Lexatec          Eiger
                                                   ADH           K-Tronik      Discontinued)    (one month)
                                                =========       ==========     =============    ===========
                                                    $               $                $               $
<S>                                             <C>            <C>                <C>            <C>
Sales:
  External:
    - Domestic                                  3,397,000              --               --               --
    - Foreign                                      83,000       2,950,000        3,007,000        2,467,000
  Intersegment                                     55,000              --               --               --
                                                ---------      ----------        ---------       ----------
                                                3,535,000       2,950,000        3,007,000        2,467,000

Cost of Sales                                   2,852,000       1,585,000        2,964,000        2,282,000
                                                ---------      ----------        ---------       ----------

Gross Margin                                      683,000       1,365,000           43,000          185,000
                                                ---------      ----------        ---------       ----------

Expenses:
  Operations and Administration                   251,000       2,001,000          589,000           76,000
  Amortization of Capital and Other Assets        192,000         161,000            1,000            4,000
  Interest on Long-term Debt                      111,000              --               --               --
  Other Interest and Bank Charges                 108,000         123,000               --            2,000
                                                ---------      ----------        ---------       ----------
                                                  662,000       2,285,000          590,000           82,000
                                                ---------      ----------        ---------       ----------

Income (Loss) before Taxes                         21,000        (920,000)        (547,000)         103,000

Provision for Income Taxes                         (6,000)         12,000            3,000           28,000
                                                ---------      ----------        ---------       ----------

Income (Loss) before Non-recurring Items           27,000        (932,000)        (550,000)          75,000

Discontinued Operations                                --              --               --               --
Negotiated Loan Reduction                              --              --               --               --
Non-controlling Interest                          (12,000)        381,000            5,000          (27,000)
                                                ---------      ----------        ---------       ----------

Net Income (Loss) for the Year                     15,000        (551,000)        (545,000)          48,000
                                                =========      ==========        =========       ==========

Cash Flows:
  From Operating Activities                       395,000        (548,000)        (378,000)      (2,113,000)

  From Investing Activities                      (350,000)     (1,146,000)          (8,000)        (415,000)

  From Financing Activities                       (45,000)      1,603,000          386,000        3,680,000
                                                ---------      ----------        ---------       ----------

                                                       --         (91,000)              --        1,152,000
Cash and Cash Equivalents:
  Beginning of the Year                                --         112,000               --               --
                                                ---------      ----------        ---------       ----------

  End of the Year                                      --          21,000               --        1,152,000
                                                =========      ==========        =========       ==========

Expenditures on Capital Assets
  and Goodwill during the Year                     19,000         587,000            7,000        1,649,000
                                                =========      ==========        =========       ==========

Balance of Capital Assets and
  Goodwill - End of the Year
    - Domestic                                  2,052,000              --               --               --
    - Foreign                                          --         423,000            6,000        1,755,000
                                                ---------      ----------        ---------       ----------

                                                2,052,000         423,000               --        1,755,000
                                                =========      ==========        =========       ==========

Amount of Investment in Investees
  Subject to Significant Influence                     --              --               --               --
                                                =========      ==========        =========       ==========

Total Assets                                    5,015,000       4,949,000          808,000        8,552,000
                                                =========      ==========        =========       ==========

<CAPTION>
                                                                                  Totals per
                                                    All          Reconciling       Financial
                                                   Others           Items          Statements
                                                ===========      ===========      ===========
                                                     $                 $                $
<S>                                              <C>              <C>               <C>
Sales:
  External:
    - Domestic                                            --         (464,000)       2,933,000
    - Foreign                                             --       (3,007,000)       5,500,000
  Intersegment                                            --          (55,000)              --
                                                  ----------      -----------       ----------
                                                          --       (3,526,000)       8,433,000

Cost of Sales                                             --       (3,628,000)       6,055,000
                                                  ----------      -----------       ----------

Gross Margin                                              --          102,000        2,378,000
                                                  ----------      -----------       ----------

Expenses:
  Operations and Administration                        3,000         (510,000)       2,410,000
  Amortization of Capital and Other Assets             3,000           65,000          426,000
  Interest on Long-term Debt                              --               --          111,000
  Other Interest and Bank Charges                         --               --          233,000
                                                  ----------      -----------       ----------
                                                       6,000         (445,000)       3,180,000
                                                  ----------      -----------       ----------

Income (Loss) before Taxes                            (6,000)         547,000         (802,000)

Provision for Income Taxes                            (4,000)          (3,000)          30,000
                                                  ----------      -----------       ----------

Income (Loss) before Non-recurring Items              (2,000)         550,000         (832,000)

Discontinued Operations                                   --         (545,000)        (545,000)
Negotiated Loan Reduction                            293,000               --          293,000
Non-controlling Interest                                  --           (5,000)         342,000
                                                  ----------      -----------       ----------

Net Income (Loss) for the Year                       291,000               --         (742,000)
                                                  ==========      ===========       ==========

Cash Flows:
  From Operating Activities                           (3,000)              --       (2,647,000)

  From Investing Activities                       (6,449,000)       6,895,000       (1,473,000)

  From Financing Activities                        6,418,000       (6,895,000)       5,147,000
                                                  ----------      -----------       ----------

                                                     (34,000)              --        1,027,000
Cash and Cash Equivalents:
  Beginning of the Year                               34,000               --          146,000
                                                  ----------      -----------       ----------

  End of the Year                                         --               --        1,173,000
                                                  ==========      ===========       ==========

Expenditures on Capital Assets
  and Goodwill during the Year                            --               --        2,262,000
                                                  ==========      ===========       ==========

Balance of Capital Assets and
  Goodwill - End of the Year
    - Domestic                                            --               --        2,052,000
    - Foreign                                             --               --        2,184,000
                                                  ----------      -----------       ----------

                                                          --               --        4,236,000
                                                  ==========      ===========       ==========

Amount of Investment in Investees
  Subject to Significant Influence                   175,000               --          175,000
                                                  ==========      ===========       ==========

Total Assets                                      11,547,000      (13,853,000)      17,018,000
                                                  ==========      ===========       ==========
</TABLE>

<PAGE>