----

----

| Nevada                                                        |   | 26-2477977                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| Larger accelerated filer        ̈         | Accelerated filer     ̈     |
|--------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|
| Non-accelerated filer        ̈(Do not check if a smaller reporting company)       | Smaller reporting company     x |

----

|                                |                                                                                   |   | Page     |
|-------------------------------------|----------------------------------------------------------------------------------------|--------|----------|
| PART I - FINANCIAL INFORMATION |                                                                                   |   |
|                                |                                                                                   |   |     |
| Item 1.                        | Financial Statements.                                    |   | 3   |
|                                |                                                                                   |   |     |
| Item 2.                             | Management's Discussion and Analysis of Financial Condition and Results of Operations. |   | 50  |
|                                |                                                                                   |   |     |
| Item 3.                             | Quantitative and Qualitative Disclosures About Market Risk.                            |   | 59       |
|                                |                                                                                   |   |     |
| Item 4.                             | Controls and Procedures.                                                               |   | 59       |
|                                |                                                                                   |   |     |
| PART II - OTHER INFORMATION    |                                                                                   |   |
|                                |                                                                                   |   |     |
| Item 1.                             | Legal Proceedings.                                                                     |   | 60       |
|                                |                                                                                   |   |     |
| Item 6.                             | Exhibits.                                                                              |   | 60       |
|                                |                                                                                   |   |     |
| Signature                           |                                                                                   | 61     |

----

----

| TOUCHIT TECHNOLOGIES KS & TOUCH IT EDUCATION TECHNOLOGIES KS                           |
|--------------------------------------------------------------------------------------------|
|   COMBINED BALANCE SHEETS                                                        |
| FOR THE PERIODS ENDED 31 MARCH 2011 & 2010 AND YEARS ENDED 31 DECEMBER 2010 & 2009 |
| (Amounts expressed in US Dollars (USD) in full unless otherwise indicated)                 |

| CURRENT ASSETS                     |   | 31/03/2011 |       |   | 31/12/2010 |   |      | 31/03/2010 |   |   | 31/12/2009 |   |
|------------------------------------|--------|------------|------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                               |   |       |       |   |       |   |      |       |   |   |       |   |
| Cash and cash equivalents          |   |       | 27,954     |   |       |   | 50,556    |       |   |   | 52,383     |   |   |   | 54,845 |   |
| Trade receivables, net             |   |       | 365,234    |   |       |   | 705,225   |       |   |   | 426,491    |   |   |   | 274,802 |   |
| Due from related parties           |   |       | 484,459    |   |       |   | 863,395   |       |   |   | 357,013    |   |   |   | 130,594 |   |
| Due from Shareholders              |   |       | 49,827     |   |       |   | 50,585    |       |   |   | 21,399     |   |   |   | - |   |
| Inventories                        |   |       | 612,991    |   |       |   | 365,643   |       |   |   | 243,783    |   |   |   | 259,883 |   |
| Other current assets               |   |       | 4,561      |   |       |   | 1,106     |       |   |   | 4,445      |   |   |   | 782 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total current assets               |   |       | 1,545,026  |   |       |   | 2,036,510 |       |   |   | 1,105,514  |   |   |   | 720,906 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| NON CURRENT ASSETS                 |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   | 14,976 |   |
| Property, plant and equipment, net |   |       | 64,051     |   |       |   | 64,495    |       |   |   | 27,446     |   |   |   | 29,872 |   |
| Intangible assets, net             |   |       | 33,403     |   |       |   | 25,145    |       |   |   | -          |   |   |   | - |   |
| Rights                             |   |       | -          |   |       |   | -         |       |   |   | 12,855     |   |   |   |   |   |
| Other non current assets           |   |       | 153        |   |       |   | 3,555     |       |   |   | 92         |   |   |   | 3,725 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total non current assets           |   |       | 97,607     |   |       |   | 93,195    |       |   |   | 40,393     |   |   |   | 48,573 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   | - |   |
| TOTAL ASSETS                       |   |       | 1,642,633  |   |       |   | 2,129,705 |       |   |   | 1,145,907  |   |   |   | 769,479 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| CURRENT LIABILITIES                |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Borrowings                         |   |       | 587        |   |       |   | 2,351     |       |   |   | 11,317     |   |   |   | 11,282 |   |
| Trade payables                     |   |       | 205,295    |   |       |   | 124,745   |       |   |   | 61,328     |   |   |   | 70,619 |   |
| Due to shareholders                |   |       | 60,448     |   |       |   | 47,257    |       |   |   | 68,469     |   |   |   | 75,584 |   |
| Due to related parties             |   |       | 807,120    |   |       |   | 1,145,992 |       |   |   | 814,323    |   |   |   | 670,976 |   |
| Other current liabilities          |   |       | 54,209     |   |       |   | 73,233    |       |   |   | 302,326    |   |   |   | 120,619 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total current liabilities          |   |       | 1,127,659  |   |       |   | 1,393,578 |       |   |   | 1,257,763  |   |   |   | 949,080 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| NON CURRENT LIABILITIES            |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Borrowings                         |   |       | -          |   |       |   | -         |       |   |   | 597        |   |   |   | 2,321 |   |
| Employee termination benefits      |   |       | 1,373      |   |       |   | -         |       |   |   | -          |   |   |   | - |   |
| Reserve for retirement pay         |   |       | -          |   |       |   | 1,842     |       |   |   | 493        |   |   |   | 1,041 |   |
| Share purchase advances            |   |       | 750,000    |   |       |   | 750,000   |       |   |   | -          |   |   |   | - |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total non current liabilities      |   |       | 751,373    |   |       |   | 751,842   |       |   |   | 1,090      |   |   |   | 3,362 |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES      |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Share capital                      |   |       | 127,570    |   |       |   | 127,570   |       |   |   | 35,500     |   |   |   | 125,500 |   |
| Retained earnings                  |   |       | (143,285   | )      |       |   | (308,463  | )          |   |   | 111,009    |   |   |   | (46,285 | ) |
| Net income / (loss) for the period |   |       | (220,684   | )      |       |   | 173,899   |       |   |   | 78,675     |   |   |   | (262,178 | ) |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total shareholders’ equity   |   |       | (236,399   | )      |       |   | (7,004    | )          |   |   | 225,184    |   |   |   | (182,963 | ) |
|                               |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| TOTAL LIABILITIES AND              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       | (1,642,633 | )      |       |   | 3,138,416 |       |   |   | 485,220    |   |   |   | 769,479 |   |

----

| TOUCHIT TECHNOLOGIES KS & TOUCH IT EDUCATION TECHNOLOGIES KS                      |
|---------------------------------------------------------------------------------------|
|   COMBINED STATEMENTS OF COMPREHENSIVE INCOME                               |
| FOR THE PERIODS ENDED 31 MARCH 2011 AND 2010 & YEARS ENDED 31 DEC 2010 & 2009 |
| (Amounts expressed in US Dollars (USD) in full unless otherwise indicated)            |

|                                                             |   | 31/03/2011 |     |   | 31/12/2010 |   |       | 31/03/2010 |   |   | 31/12/2009 |   |
|------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|------------|------------|--------|--------|------------|--------|
|                                                             |   |       |     |   |       |   |       |       |   |   |       |   |
| NET SALES                                                        |   |       | 773,658  |   |       |   | 3,577,881  |       |   |   | 1,046,011  |   |   |   | 2,029,074 |   |
| COST OF SALES                                                    |   |       | (556,766 | )      |       |   | (2,502,037 | )          |   |   | (719,035   | )      |   |   | (1,742,047 | ) |
| Gross profit                                                     |   |       | 216,892  |   |       |   | 1,075,844  |       |   |   | 326,976    |   |   |   | 287,027 |   |
| MARKETING AND SELLING EXPENSE                                    |   |       | (293,399 | )      |       |   | (504,329   | )          |   |   | (179,608   | )      |   |   | (409,386 | ) |
| GENERAL AND ADMINISTRATIVE  EXPENSES                   |   |       | (86,852  | )      |       |   | (479,064   | )          |   |   | (75,100    | )      |   |   | (140,121 | ) |
| Profit from operations                                           |   |       | (163,359 | )      |       |   | 92,451     |       |   |   | 72,268     |   |   |   | (262,480 | ) |
| OTHER INCOME AND EXPENSES, net                                   |   |       | (46,836  | )      |       |   | 24,094     |       |   |   | (233       | )      |   |   | 6,621 |   |
| FINANCIAL INCOME AND EXPENSES, net                               |   |       | (1,449   | )      |       |   | (8,294     | )          |   |   | (2,237     | )      |   |   | (8,741 | ) |
| Profit Loss before taxation and currency translation gain/(loss) |   |       | (211,644 | )      |       |   | 60,063     |       |   |   | 69,798     |   |   |   | (264,600 | ) |
| TAXATION CHARGE                                                  |   |       | --       |   |       |   | --         |       |   |   | --         |   |   |   | -- |   |
| Taxation current                                                 |   |       | --       |   |       |   | --         |       |   |   | --         |   |   |   | -- |   |
| Deferred                                                         |   |       | --       |   |       |   | --         |       |   |   | --         |   |   |   | -- |   |
| CURRENCY TRANSLATION GAIN/(LOSS)                                 |   |       | (9,039   | )      |       |   | 60,063     |       |   |   | 219        |   |   |   | 2,422 |   |
| Net income/(loss)  for the year                        |   |       | (211,644 | )      |       |   | 105,115    |       |   |   | 70,017     |   |   |   | (262,178 | ) |
| OTHER COMPREHENSIVE INCOME                                       |   |       | --       |   |       |   | --         |       |   |   | --         |   |   |   | -- |   |
| Total comprehensive income                                       |   |       | (220,683 | )      |       |   | 165,178    |       |   |   | 70,236     |   |   |   | (262,178 | ) |

----

| TOUCHIT TECHNOLOGIES KS & TOUCH IT EDUCATION TECHNOLOGIES KS                           |
|--------------------------------------------------------------------------------------------|
|   COMBINED STATEMENTS OF CASH FLOW                                               |
| FOR THE PERIODS ENDED 31 MARCH 2011 & 2010 AND YEARS ENDED 31 DECEMBER 2010 & 2009 |
| (Amounts expressed in US Dollars (USD) in full unless otherwise indicated)                 |

|                                                               |   | 31/03/2011 |     |   | 31/12/2010 |   |     | 31/03/2010 |   |   |     | 31.12.2009 |   |
|--------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|----------|------------|--------|--------|----------|------------|--------|
| CASH FLOWS FROM OPERATING  ACTIVITIES                    |   |       |     |   |       |   |     |       |   |   |     |       |   |
| Net income                                                         |   |       | (220,683 | )      |       |   | 165,178  |       |   |   | 70,017   |       |   |   | (262,178 | ) |
| Adjustments to reconcile net income to net cash provided           |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| By operating activities:                                           |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Depreciation and amortisation                                      |   |       | 7,431    |   |       |   | 17,516   |       |   |   | 4,547    |       |   |   | 17,133 |   |
| Provision for employee benefit                                     |   |       | (469     | )      |       |   | 801      |       |   |   | (548     | )          |   |   | 727 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Changes in operating assets and liabilities                        |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Trade receivables, net                                             |   |       | 339,990  |   |       |   | (430,428 | )          |   |   | (151,689 | )          |   |   | (189,816 | ) |
| Due from shareholders                                              |   |       | (33,340  | )      |       |   | (773,544 | )          |   |   | (72,113  | )          |   |   | 12,258 |   |
| Due from related parties                                           |   |       | 379,679  |   |       |   |     |       |   |   | (238,293 | )          |   |   | 203,282 |   |
| Inventories                                                        |   |       | (217,422 | )      |       |   | (17,620  | )          |   |   | 74,942   |       |   |   | 22,993 |   |
| Other current assets                                               |   |       | 3,376    |   |       |   | 98,467   |       |   |   | 3,716    |       |   |   | 3,896 |   |
| Other non current assets                                           |   |       |     |   |       |   | 331      |       |   |   |     |       |   |   | (3,725 | ) |
| Trade payables                                                     |   |       | 92,934   |   |       |   | 54,126   |       |   |   | (9,291   | )          |   |   | (272,925 | ) |
| Due to shareholders                                                |   |       | (336,735 | )      |       |   | 54,413   |       |   |   | (7,115   | )          |   |   | 30,430 |   |
| Due to related parties                                             |   |       | (1,330   | )      |       |   | 392,276  |       |   |   | 143,347  |       |   |   | 386,729 |   |
| Other current liabilities                                          |   |       | (19,024  | )      |       |   | (47,386  | )          |   |   | 181,707  |       |   |   | 95,332 |   |
| Share Purchase Advances                                            |   |       |     |   |       |   | 750,000  |       |   |   |     |       |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Net cash generated from (used for)  operating activities |   |       | (5,593   | )      |       |   | 67,197   |       |   |   | (773     | )          |   |   | 44,136 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Increase/(decrease) in short-term borrowings                       |   |       | (1,764   | )      |       |   | (8,931   | )          |   |   | 35       |       |   |   | 6,815 |   |
| Increase/(decrease) in long-term  borrowings             |   |       | --       |   |       |   |     |       |   |   | (1,724   | )          |   |   | (2,797 | ) |
| Dividends paid                                                     |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Net cash (used for) provided from  financing activities  |   |       | (1,764   | )      |       |   | (8,931   | )          |   |   | (1,689   | )          |   |   | 4,018 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Purchases of property, plant and equipment and intangible assets   |   |       | (15,245  | )      |       |   | (62,304  | )          |   |   | 0        |       |   |   | (17,324 | ) |
| Share  capital increase                                  |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| Net cash used for investing activities                             |   |       | (15,245  | )      |       |   | (62,304  | )          |   |   | 0        |       |   |   | (17,324 | ) |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| NET INCREASE / (DECREASE) IN CASH AND BANKS                        |   |       | (22,602  | )      |       |   | (4,289   | )          |   |   | (2,462   | )          |   |   | 30,830 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| CASH AND BANKS AT BEGINNING OF THE YEAR                            |   |       | 50,556   |   |       |   | 54,845   |       |   |   | 54,845   |       |   |   | 24,015 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |     |       |   |   |   |   |
| CASH AND BANKS AT END OF THE PERIOD                                |   |       | 27,954   |   |       |   | 50,556   |       |   |   | 52,383   |       |   |   | 54,845 |   |

----

----

----

----

|                                                                     |   | Notes  |   |   |   | 31.03.2011 |    |   |   | 31.12.2010 |      |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|------------|---------|--------|--------|------------|-----------|
| ASSETS                                                                   |   |   |   |   |   |       |    |   |   |       |      |
| Cash and cash equivalents                                                |   |   | 5      |   |   |       | 13,448  |   |   |       | 47,282    |   |
| Trade receivables, net                                                   |   |   | 6      |   |   |       | 355,128 |   |   |       | 669,937   |   |
| Due from shareholders                                                    |   |   | 7      |   |   |       | 40,000  |   |   |       | 40,743    |   |
| Inventories, net                                                         |   |   | 8      |   |   |       | 207,581 |   |   |       | 174,226   |   |
| Other current assets                                                     |   |   | 9      |   |   |       | 4,315   |   |   |       | 885       |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
|         Total current assets     |   |   |   |   |   |       | 620,472 |   |   |       | 933,073   |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
| Property, plant and equipment, net                                       |   |   | 10     |   |   |       | 64,051  |   |   |       | 64,495    |   |
| Intangible assets, net                                                   |   |   | 11     |   |   |       | 20,584  |   |   |       | 11,833    |   |
| Other non-current assets                                                 |   |   | 12     |   |   |       | 153     |   |   |       | 3,555     |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
|         Total non-current assets |   |   |   |   |   |       | 84,788  |   |   |       | 79,883    |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
| Total assets                                                             |   |   |   |   |   |       | 705,260 |   |   |       | 1,012,956 |   |

| LIABILITIES AND SHAREHOLDERS' EQUITY                      |   |   |   |   |   |   |     |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|
| Short-term bank loans                                     |   |   | 13     |   |   |   | 587      |   |   |   | 2,351 |   |
| Trade payables                                            |   |   | 14     |   |   |   | 175,971  |   |   |   | 58,150 |   |
| Due to shareholders                                       |   |   | 7      |   |   |   | 37,688   |   |   |   | 37,494 |   |
| Due to related parties                                    |   |   | 7      |   |   |   | 703,757  |   |   |   | 1,041,105 |   |
| Other current liabilities                                 |   |   | 15     |   |   |   | 44,004   |   |   |   | 25,232 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
|      Total current liabilities   |   |   |   |   |   |   | 962,007  |   |   |   | 1,164,332 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Employee termination benefits                             |   |   | 16     |   |   |   | 1,373    |   |   |   | 1,842 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
|      Total long-term liabilities |   |   |   |   |   |   | 1,373    |   |   |   | 1,842 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Shareholders' Equity:                                     |   |   |   |   |   |   |     |   |   |   |   |   |
| Share capital                                             |   |   | 17     |   |   |   | 90,000   |   |   |   | 90,000 |   |
| Accumulated deficit                                       |   |   |   |   |   |   | (243,218 | )      |   |   | (419,472 | ) |
| Net profit / (loss) for the period                        |   |   |   |   |   |   | (104,902 | )      |   |   | 176,254 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Total shareholders’ equity                          |   |   |   |   |   |   | (258,120 | )      |   |   | (153,218 | ) |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Total liabilities and shareholders’ equity          |   |   |   |   |   |   | 705,260  |   |   |   | 1,012,956 |   |

----

|                                                 |   | Notes  |   |   |   | 31.03.2011 |     |   |   | 31.03.2010 |     |
|------------------------------------------------------|--------|--------|--------|--------|--------|------------|----------|--------|--------|------------|----------|
|                                                 |   |   |   |   |   |       |     |   |   |       |     |
| Sales                                                |   |   | 18     |   |   |       | 470,451  |   |   |       | 739,356  |   |
| Cost of sales                                        |   |   | 19     |   |   |       | (337,707 | )      |   |       | (517,730 | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|     Gross profit                 |   |   |   |   |   |       | 132,744  |   |   |       | 221,626  |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Marketing and selling expenses                       |   |   | 20     |   |   |       | (178,406 | )      |   |       | (164,564 | ) |
| General and administrative expenses                  |   |   | 21     |   |   |       | (41,290  | )      |   |       | (67,163  | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|    Total operating loss               |   |   |   |   |   |       | (86,952  | )      |   |       | (10,101  | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Financial expenses                                   |   |   | 23     |   |   |       | (1,449   | )      |   |       | (1,668   | ) |
| Other income / (expense), net                        |   |   | 22     |   |   |       | (13,597  | )      |   |       | (417     | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|    Loss before provision for taxation |   |   |   |   |   |       | (101,998 | )      |   |       | (12,186  | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Provision for taxation                               |   |   |   |   |   |       |     |   |   |       |     |   |
|    - Current                          |   |   |   |   |   |       | --       |   |   |       | --       |   |
|    - Deferred                         |   |   |   |   |   |       | --       |   |   |       | --       |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|    Net loss for the period            |   |   |   |   |   |       | (101,998 | )      |   |       | (12,186  | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Other comprehensive income                           |   |   |   |   |   |       |     |   |   |       |     |   |
| Currency translation differences                     |   |   |   |   |   |       | (2,904   | )      |   |       | 3,528    |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Total comprehensive income / (loss) for the period   |   |   |   |   |   |       | (104,902 | )      |   |       | (8,658   | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |

----

|                                                                           |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Cash flow from operating activities                                            |   |   |       |   |   |   |       |   |
| Net loss for the period                                                        |   |   | (104,902   | )      |   |   | (8,658     | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Adjustments to reconcile net loss to netcash provided by operating activities: |   |   |       |   |   |   |       |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Depreciation                                                                   |   |   | 6,938      |   |   |   | 2,426      |   |
| Provision for employee termination benefit                                     |   |   | (469       | )      |   |   | 367        |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Net loss adjusted to non-cash items                                            |   |   | (98,433    | )      |   |   | (5,865     | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Changes in operating assets and liabilities:                                   |   |   |       |   |   |   |       |   |
| Change in trade receivables                                                    |   |   | 314,808    |   |   |   | (97,959    | )      |
| Change in due from shareholders                                                |   |   | 743        |   |   |   | (11,874    | )      |
| Change in inventories                                                          |   |   | (33,355    | )      |   |   | (62,588    | )      |
| Change in other current assets                                                 |   |   | (3,429     | )      |   |   | (3,746     | )      |
| Change in other non current assets                                             |   |   | 3,402      |   |   |   | 3,633      |   |
| Change in trade payables                                                       |   |   | 117,821    |   |   |   | (16,228    | )      |
| Change in due to shareholders                                                  |   |   | 194        |   |   |   | 12,809     |   |
| Change in due to related parties                                               |   |   | (337,348   | )      |   |   | 150,704    |   |
| Change in other current liabilities                                            |   |   | 18,772     |   |   |   | 902        |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Net cash used for operating activities                                         |   |   | (16,825    | )      |   |   | (30,212    | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash flows from investing activities:                                          |   |   |       |   |   |   |       |   |
| Purchased of property and equipment                                            |   |   | (15,245    | )      |   |   | --         |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Net cash outflows from investing activities                                    |   |   | (15,245    | )      |   |   | --         |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash flows from financing activities:                                          |   |   |       |   |   |   |       |   |
| Increase in short-term borrowings                                              |   |   | (1,764     | )      |   |   | 35         |   |
| Decrease in long-term  borrowings                                    |   |   | --         |   |   |   | (1,724     | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash outflows generated by financing activities                                |   |   | (1,764     | )      |   |   | (1,689     | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Net decrease in cash and cash equivalents                                      |   |   | (33,834    | )      |   |   | (31,901    | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the beginning of the period                       |   |   | 47,282     |   |   |   | 52,641     |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the end of the period                             |   |   | 13,448     |   |   |   | 20,740     |   |
|                                                                           |   |   |       |   |   |   |       |   |

----

|                                                    |   | Sharecapital |   |   | Accumulateddeficit |   |     | Net loss for the year/ period |   |   | Total Shareholders' Equity |    |
|---------------------------------------------------------|--------|--------------|--------|--------|--------------------|--------|----------|-------------------------------|--------|--------|----------------------------|---------|
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |
| Opening balance as of 1 January 2010                    |   |         | 90,000 |   |               |   | (100,028 | )                             |   |   | (319,444                   | )  |   |   | (329,472 | ) |
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |   |   |   |   |
| Transfer to accumulated deficit                         |   |         | --     |   |               |   | (319,444 | )                             |   |   | 319,444                    |    |   |   | -- |   |
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |   |   |   |   |
| Net profit (loss) for the year 2010                     |   |         | --     |   |               |   | --       |                          |   |   | 176,254                    |    |   |   | 176,254 |   |
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |   |   |   |   |
| Balances at 31 December 2010                            |   |         | 90,000 |   |               |   | (419,472 | )                             |   |   | 176,254                    |    |   |   | (153,218 | ) |
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |   |   |   |   |
| Transfer to accumulated deficit                         |   |         | --     |   |               |   | 176,254  |                          |   |   | (176,254                   | )       |   |   | -- |   |
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |   |   |   |   |
| Net profit / (loss) for the three months period of 2011 |   |         | --     |   |               |   | --       |                          |   |   | (104,902                   | )       |   |   | (104,902 | ) |
|                                                    |   |         |   |   |               |   |     |                          |   |   |                       |    |   |   |   |   |
| Balances at 31 March 2011                               |   |         | 90,000 |   |               |   | (243,218 | )                             |   |   | (104,902                   | )       |   |   | (258,120 | ) |

----

| 1.   | OPERATIONS OF THE COMPANY: |
|----------------|----------------------------|

| 2.   | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS |
|----------------|------------------------------------------------|

----

| 3. | BASIS OF PRESENTATION |
|----|-----------------------|

|                                  |   | Administrative expense |   |   | Marketing expense |   |    | Cost of Sales |   |
|---------------------------------------|--------|------------------------|--------|--------|-------------------|--------|---------|---------------|--------|
| Balances as reported at 31 March 2010 |   |                   | 59,818 |   |              |   | 165,485 |          |   |   | 524,154 |   |
| Classification                        |   |                   | 7,345  |   |              |   | (921    | )             |   |   | (6,424 | ) |
| Restated balance at 31 March 2010     |   |                   | 67,163 |   |              |   | 164,564 |          |   |   | 517,730 |   |

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES |
|----------------|---------------------------------|

| Machinery and equipments                  | 2-6 years |
|-------------------------------------------|-----------|
| Motor vehicles                            | 4 years   |
| Furniture, fixtures and office equipments | 4-5 years |

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

|        |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|-------------|--------|--------|------------|--------|--------|--------|------------|--------|
|        |   |   |       |   |   |   |       |   |
| USD         |   |   | 1.5483     |   |   |   | 1.5460     |   |
| EURO        |   |   | 2.1816     |   |   |   | 2.0491     |   |
| GBP         |   |   | 2.4845     |   |   |   | 2.3886     |   |
|        |   |   |       |   |   |   |       |   |
| Average USD |   |   | 1.5741     |   |   |   | 1.4991     |   |

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

| 5. | CASH AND CASH EQUIVALENTS |
|----|---------------------------|

|         |   |   | 31.03.2010 |   |   |   | 31.12.2010 |   |
|--------------|--------|--------|------------|--------|--------|--------|------------|--------|
|         |   |   |       |   |   |   |       |   |
| Cash in hand |   |   | 981        |   |   |   | 1,196      |   |
| Banks        |   |   | 12,467     |   |   |   | 46,086     |   |
|         |   |   |       |   |   |   |       |   |
| Total        |   |   | 13,448     |   |   |   | 47,282     |   |

----

| 6.   | TRADE RECEIVABLES |
|----------------|-------------------|

|                           |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                           |   |   |       |   |   |   |       |   |
| Proformance Products           |   |   | 275,384    |   |   |   | 526,077    |   |
| Others ( less than USD 60,000) |   |   | 79,744     |   |   |   | 143,860    |   |
|                           |   |   |       |   |   |   |       |   |
| Total                          |   |   | 355,128    |   |   |   | 669,937    |   |

| 7.   | RELATED PARTY TRANSACTIONS |
|----------------|----------------------------|

| Due from shareholders    |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                     |   |   |       |   |   |   |       |   |
| Recep Tanışman |   |   | 40,000     |   |   |   | 40,743     |   |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 40,000     |   |   |   | 40,743     |   |

| Due to related parties                                                         |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                           |   |   |       |   |   |   |       |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 336,172    |   |   |   | 417,709    |   |
| Touch IT Educations Technologies Dış. Tic. Koll. Şirketi        |   |   | 319,497    |   |   |   | 587,308    |   |
| Kamron Inc                                                                     |   |   | 36,088     |   |   |   | 36,088     |   |
| International RT                                                               |   |   | 12,000     |   |   |   | 0          |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Total                                                                          |   |   | 703,757    |   |   |   | 1,041,105  |   |

| Due to shareholders              |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                             |   |   |       |   |   |   |       |   |
| Ali Rıza Tanışman |   |   | 22,516     |   |   |   | 22,549     |   |
| Andrew Brabian Stuart            |   |   | 14,795     |   |   |   | 14,566     |   |
| Recep Tanışman         |   |   | 377        |   |   |   | 379        |   |
|                             |   |   |       |   |   |   |       |   |
| Total                            |   |   | 37,688     |   |   |   | 37,494     |   |

----

| 7.   | RELATED PARTY TRANSACTIONS (CONTINUED) |
|----------------|----------------------------------------|

| Major purchases from related parties                                           |   |   |       |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                           |   |   |       |   |   |   |
| Trade goods                                                                    |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 139,583    |   |   |   | -- |   |
| Touch IT Educations Technologies Dış. Tic. Koll. Şirketi        |   |   | 78,225     |   |   |   | 123,968 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Total                                                                          |   |   | 217,808    |   |   |   | 123,968 |   |

|                                                                           |   |   |       |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                           |   |   |       |   |   |   |
| Services provided                                                              |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Kamron Inc.                                                                    |   |   | --         |   |   |   | -- |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 372        |   |   |   | -- |   |
| International TR                                                               |   |   | 36,000     |   |   |   | -- |   |
| Total                                                                          |   |   | 36,372     |   |   |   | -- |   |

|                                                                           |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                           |   |   |       |   |   |   |       |   |
| Touch IT Educations Technologies Dış. Tic. Koll. Şirketi        |   |   | 57,211     |   |   |   | --         |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 271        |   |   |   | 99,896     |   |
|                                                                           |   |   |       |   |   |   |       |   |
|                                                                           |   |   | 57,482     |   |   |   | 99,896     |   |

| 8.   | INVENTORIES: |
|----------------|--------------|

|                                            |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|-------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                            |   |   |       |   |   |   |       |   |
| Raw material and supplies                       |   |   | 250,255    |   |   |   | 196,971    |   |
| Finished goods                                  |   |   | 201        |   |   |   | 1,534      |   |
| Advances given for purchases                    |   |   | 4,868      |   |   |   | 11,232     |   |
| Other inventories                               |   |   | 3,008      |   |   |   | 2,738      |   |
| Provision for damaged and slow moving stock (-) |   |   | (50,751    | )      |   |   | (38,249    | )      |
| Total                                           |   |   | 207,581    |   |   |   | 174,226    |   |

----

| 9.   | OTHER CURRENT ASSETS: |
|----------------|-----------------------|

|                          |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                          |   |   |       |   |   |   |       |   |
| Prepaid insurance expense     |   |   | 3,429      |   |   |   | --         |   |
| Deposits and Guarantees given |   |   | 400        |   |   |   | 400        |   |
| Other                         |   |   | 485        |   |   |   | 485        |   |
|                          |   |   |       |   |   |   |       |   |
| Total                         |   |   | 4,314      |   |   |   | 885        |   |

| 10.   | PROPERTY, PLANT AND EQUIPMENT, NET |
|-----------------|------------------------------------|

|                    |   | 1 January 2010 |   |   | Additions |   |    | 31 December 2010 |   |   | Additions |   |   | 31 March 2011 |   |
|-------------------------|--------|----------------|--------|--------|-----------|--------|---------|------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |
| Cost                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |
| Machinery and equipment |   |           | 3,655  |   |      |   | 1,483   |             |   |   | 5,139     |   |   |          | 0      |   |   |   | 5,139 |   |
| Vehicles                |   |           | 29,455 |   |      |   | --      |             |   |   | 29,455    |   |   |          | 0      |   |   |   | 29,455 |   |
| Furniture and fixtures  |   |           | 6,302  |   |      |   | 46,165  |             |   |   | 52,467    |   |   |          | 4,013  |   |   |   | 56,480 |   |
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Total                   |   |           | 39,412 |   |      |   | 47,648  |             |   |   | 87,061    |   |   |          | 4,013  |   |   |   | 91,074 |   |
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Depreciation            |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Machinery and equipment |   |           | (1,194 | )      |      |   | (1,113  | )                |   |   | (2,308    | )      |   |          | (205   | ) |   |   | (2,513 | ) |
| Vehicles                |   |           | (6,828 | )      |      |   | (5,883  | )                |   |   | (12,711   | )      |   |          | (1,630 | ) |   |   | (14,341 | ) |
| Furniture and fixtures  |   |           | (1,518 | )      |      |   | (6,029  | )                |   |   | (7,547    | )      |   |          | (2,622 | ) |   |   | (10,169 | ) |
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Total                   |   |           | (9,540 | )      |      |   | (13,025 | )                |   |   | (22,566   | )      |   |          | (4,457 | ) |   |   | (27,023 | ) |
|                    |   |           |   |   |      |   |    |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Net book value          |   |           | 29,872 |   |      |   |    |             |   |   | 64,495    |   |   |          |   |   |   |   | 64,051 |   |

----

| 11.   | INTANGIBLE ASSETS, NET |
|-----------------|------------------------|

|                  |   | 1 January 2010 |   |   | Additions |   |   | 31 December 2010 |   |   | Additions |   |   | 31 March 2011 |   |
|-----------------------|--------|----------------|--------|--------|-----------|--------|--------|------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                  |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |
| Cost                  |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |
| Rights                |   |           | --     |   |      |   | 10,774 |             |   |   | 10,774    |   |   |          | 11,232 |   |   |   | 22,006 |   |
| Other tangible assets |   |           | --     |   |      |   | 3,885  |             |   |   | 3,885     |   |   |          | --     |   |   |   | 3,885 |   |
|                  |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Total                 |   |           | --     |   |      |   | 14,659 |             |   |   | 14,659    |   |   |          | 11,232 |   |   |   | 25,891 |   |
|                  |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Depreciation          |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Rights                |   |           | --     |   |      |   | (2,394 | )                |   |   | (2,394    | )      |   |          | (1,834 | ) |   |   | (4,228 | ) |
| Other tangible assets |   |           | --     |   |      |   | (432   | )                |   |   | (432      | )      |   |          | (647   | ) |   |   | (1,079 | ) |
|                  |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Total                 |   |           | --     |   |      |   | (2,826 | )                |   |   | (2,826    | )      |   |          | (2,481 | ) |   |   | (5,307 | ) |
|                  |   |           |   |   |      |   |   |             |   |   |      |   |   |          |   |   |   |   |   |   |
| Net book value        |   |           | --     |   |      |   |   |             |   |   | 11,833    |   |   |          |   |   |   |   | 20,584 |   |

| 12.   | OTHER NON CURRENT ASSETS: |
|-----------------|---------------------------|

----

| 13.   | BANK LOANS |
|-----------------|------------|

|                  |   |   | 31. 03.2011 |   |   |   | 31.12.2010 |   |
|-----------------------|--------|--------|-------------|--------|--------|--------|------------|--------|
|                  |   |   |        |   |   |   |       |   |
| Short term borrowings |   |   |        |   |   |   |       |   |
| TRY bank loans        |   |   | 587         |   |   |   | 2,351      |   |
|                  |   |   |        |   |   |   |       |   |
| Sub total             |   |   | 587         |   |   |   | 2,351      |   |
|                  |   |   |        |   |   |   |       |   |
| Long term borrowings  |   |   |        |   |   |   |       |   |
| TRY bank loans        |   |   | --          |   |   |   | --         |   |
|                  |   |   |        |   |   |   |       |   |
| Sub total             |   |   | --          |   |   |   | --         |   |
|                  |   |   |        |   |   |   |       |   |
| Total                 |   |   | 587         |   |   |   | 2,351      |   |

|                     |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                     |   |   |       |   |   |   |       |   |
| Within one year          |   |   | 587        |   |   |   | 2,351      |   |
| Between one to two years |   |   | --         |   |   |   | --         |   |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 587        |   |   |   | 2,351      |   |

| 14.   | TRADE PAYABLES |
|-----------------|----------------|

|                 |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                 |   |   |       |   |   |   |       |   |
| Suppliers            |   |   | 175,971    |   |   |   | 58,150     |   |
| Other trade payables |   |   | --         |   |   |   | --         |   |
|                 |   |   |       |   |   |   |       |   |
| Total                |   |   | 175,971    |   |   |   | 58,150     |   |

----

| 15.   | OTHER CURRENT LIABILITIES |
|-----------------|---------------------------|

|                                                     |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                     |   |   |       |   |   |   |       |   |   |
| Social security premiums & withholding taxes payable |   |   | 5,447      |   |   |   | 6,010      |   |
| Due to personnel                                         |   |   | 7,644      |   |   |   | 7,056      |   |
| Accrued expenses                                         |   |   | 1,625      |   |   |   | 1,350      |   |
| Advances received                                        |   |   | 29,248     |   |   |   | 10,776     |   |   |
| Other liabilities                                        |   |   | 40         |   |   |   | 40         |   |
|                                                     |   |   |       |   |   |   |       |   |   |
| Total                                                    |   |   | 44,004     |   |   |   | 25,232     |   |

| 16.   | RESERVE FOR EMPLOYEE TERMINATION BENEFITS |
|-----------------|-------------------------------------------|

|                                       |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Discount rate                              |   |   | 10.00      | %      |   |   | 10.00      | %      |
| Expected rates of salary / limit increases |   |   | 5.1        | %      |   |   | 5.1        | %      |

----

| 17.   | SHARE CAPITAL |
|-----------------|---------------|

|                             |   |  31.03.2011 |   |   |  31.12.2010 |   |
|----------------------------------|--------|------------------|--------|--------|------------------|--------|
|                             |   | Shareholding     |   |   |             |   |   |   | Shareholding |   |   |   |   |
|                             |   | Amount           |   |   | %                |   |   | Amount |   |   | % |   |
| Ali Rıza Tanışman |   |             | 2,676  |   |             |   | 2.97 | % |   |   | 2,676 |   |   |   | 2.97 | % |
| Andrew Stuart Brabin             |   |             | 30,324 |   |             |   | 33.70 | % |   |   | 30,324 |   |   |   | 33.70 | % |
| Recep Tanışman         |   |             | 26,757 |   |             |   | 29.73 | % |   |   | 26,757 |   |   |   | 29.73 | % |
| Ronald George Murphy             |   |             | 29,432 |   |             |   | 32.70 | % |   |   | 29,432 |   |   |   | 32.70 | % |
| Cansın Tanışman   |   |             | 811    |   |             |   | 0.90 | % |   |   | 811 |   |   |   | 0.90 | % |
|                             |   |             | 90,000 |   |             |   | 100.00 | % |   |   | 90,000 |   |   |   | 100.00 | % |

----

| 18.   | SALES |
|-----------------|-------|

|                   |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                   |   |   |       |   |   |   |       |   |
| Clever board           |   |   | 337,124    |   |   |   | 240,674    |   |
| Triumph board 78 inch  |   |   | --         |   |   |   | 135,378    |   |
| Touch it board 78 inch |   |   | 73,514     |   |   |   | 68,779     |   |
| Touch it board 80 inch |   |   | --         |   |   |   | 58,354     |   |
| Triumph board 80 inch  |   |   | --         |   |   |   | 52,123     |   |
| Touch it board 90 inch |   |   | 1,911      |   |   |   | 48,654     |   |
| Touch it board 50 inch |   |   | 3,242      |   |   |   | 20,989     |   |
| Triumph board 50 inch  |   |   | --         |   |   |   | 1,216      |   |
| Electronic circuit     |   |   | 53,678     |   |   |   | 96,169     |   |
| Others                 |   |   | 982        |   |   |   | 17,020     |   |
|                   |   |   |       |   |   |   |       |   |
| Returns (-)            |   |   | --         |   |   |   | --         |   |
|                   |   |   |       |   |   |   |       |   |
| Total                  |   |   | 470,451    |   |   |   | 739,356    |   |

| 19. | COST OF SALES |
|-----|---------------|

|                           |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                           |   |   |       |   |   |   |       |   |
| Direct material cost           |   |   | 238,013    |   |   |   | 491,248    |   |
| Direct labor cost              |   |   | 18,869     |   |   |   | 6,512      |   |
| General production overheads   |   |   | 27,129     |   |   |   | 23,451     |   |
| Ending inventory (trade goods) |   |   | (2,304     | )      |   |   | (4,649     | )      |
| Depreciation                   |   |   | 1,835      |   |   |   | 1,168      |   |
|                           |   |   |       |   |   |   |       |   |
| Cost of Good Sold              |   |   | 283,542    |   |   |   | 517,730    |   |
| Cost of Raw Materials Sold     |   |   | 54,165     |   |   |   | --         |   |
| Total Cost of Sales            |   |   | 337,707    |   |   |   | 517,730    |   |

----

| 20. | MARKETING AND SELLING EXPENSES |
|-----|--------------------------------|

|                                                            |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|-----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                            |   |   |       |   |   |   |       |   |
| Export expenses                                                 |   |   | 31,384     |   |   |   | 126,947    |   |
| Sales & marketing expenses of shareholders                  |   |   | --         |   |   |   | 14,593     |   |
| Commission expense received from Proforma                       |   |   | 53,494     |   |   |   | --         |   |
| Consultancy received regarding selling and marketing activities |   |   | 84,968     |   |   |   | --         |   |
| Cargo expenses                                                  |   |   | 1,284      |   |   |   | 2,115      |   |
| Software expense                                                |   |   | 2,100      |   |   |   | --         |   |
| Others                                                          |   |   | 5,176      |   |   |   | 20,909     |   |
|                                                            |   |   |       |   |   |   |       |   |
| Total                                                           |   |   | 178,406    |   |   |   | 164,564    |   |

| 21. | GENERAL AND ADMINISTRATIVE EXPENSES |
|-----|-------------------------------------|

|                     |   | 31.03.2011 |   |   | 31.03.2010 |   |
|--------------------------|--------|------------|--------|--------|------------|--------|
|                     |   |       |   |   |       |   |
| Shareholders expenses    |   | --         |   |   | 46,447     |   |
| Consulting expenses      |   | 10,470     |   |   | 11,051     |   |
| Personnel expense        |   | 18,615     |   |   | 6,424      |   |
| Retirement pay liability |   | --         |   |   | 367        |   |
| Depreciation             |   | 5,103      |   |   | 1,258      |   |
| Tax and duties           |   | 121        |   |   | 333        |   |
| Food expenses            |   | 1,720      |   |   | 145        |   |
| Other                    |   | 5,261      |   |   | 1,138      |   |
|                     |   |       |   |   |       |   |
| Total                    |   | 41,290     |   |   | 67,163     |   |

----

| 22.   | OTHER INCOME AND (EXPENSES), NET |
|-----------------|----------------------------------|

|                                  |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|---------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                  |   |   |       |   |   |   |       |   |
| Provision for impairment of inventory |   |   | (12,502    | )      |   |   | --         |   |
| Non tax deductable expenses           |   |   | (309       | )      |   |   | (649       | )      |
| Other, net                            |   |   | (786       | )      |   |   | 232        |   |
|                                  |   |   |       |   |   |   |       |   |
| Total                                 |   |   | (13,597    | )      |   |   | (417       | )      |

| 23. | FINANCIAL EXPENSES |
|-----|--------------------|

|                   |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                   |   |   |       |   |   |   |       |   |
| Interest expenses      |   |   | (91        | )      |   |   | (657       | )      |
| Other banking expenses |   |   | (1,358     | )      |   |   | (1,011     | )      |
|                   |   |   |       |   |   |   |       |   |
| Total                  |   |   | (1,449     | )      |   |   | (1,668     | )      |

----

| 24. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
|-----|---------------------------------------------------|

| 31 March 2011                              | Financial assets at amortized cost |   | Loans and receivables |    |   | Financial liabilities at amortized cost |   |   | Carrying value |   |    | Fair value |   |   | Note    |    |
|--------------------------------------------|------------------------------------|--------|-----------------------|---------|--------|-----------------------------------------|--------|--------|----------------|--------|---------|------------|--------|--------|---------|---------|
|                                       |                               |   |                  |    |   |                                    |   |   |           |   |    |       |   |   |    |    |
| Financial assets                           |                               |   |                  |    |   |                                    |   |   |           |   |    |       |   |   |    |    |
| Cash and cash equivalents                  |                               |   |                  | 13,448  |   |                                    |   |   |           |   | 13,448  |       |   |   | 13,448  |    |   |   | 5 |   |
| Trade receivables                          |                               |   |                  | 355,128 |   |                                    |   |   |           |   | 355,128 |       |   |   | 355,128 |    |   |   | 6 |   |
|                                       |                               |   |                  |    |   |                                    |   |   |           |   |    |       |   |   |    |    |   |   |   |   |
| Financial liabilities                      |                               |   |                  |    |   |                                    |   |   |           |   |    |       |   |   |    |    |   |   |   |   |
| Borrowings                                 |                               |   |                  |    |   |                                    |   | 587    |           |   |    | 587        |   |   |    | 587     |   |   |   | 13 |   |
| Trade payables (including related parties) |                               |   |                  | 879,728 |   |                                    |   |   |           |   |    | 879,728    |   |   |    | 879,728 |   |   |   | 7-14 |   |

| 31 December 2010                           |   | Financial assets at amortized cost |   |   | Loans and receivables |   |      | Financial liabilities at amortized cost |   |   | Carrying value |   |   | Fair value |      |   | Note   |   |
|--------------------------------------------|--------|------------------------------------|--------|--------|-----------------------|--------|-----------|-----------------------------------------|--------|--------|----------------|--------|--------|------------|-----------|--------|--------|--------|
|                                       |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |
| Financial assets                           |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |
| Cash and cash equivalents                  |   |                               | --     |   |                  |   | 47,282    |                                    |   |   | --             |   |   |       | 47,282    |   |   |   | 47,282 |   |   |   | 5 |   |
| Trade receivables                          |   |                               | --     |   |                  |   | 669,937   |                                    |   |   | --             |   |   |       | 669,937   |   |   |   | 669,937 |   |   |   | 6 |   |
|                                       |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |   |   |   |   |   |   |
| Financial liabilities                      |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |   |   |   |   |   |   |
| Borrowings                                 |   |                               | --     |   |                  |   | --        |                                    |   |   | 2,351          |   |   |       | 2,351     |   |   |   | 2,351 |   |   |   | 13 |   |
| Trade payables (including related parties) |   |                               | --     |   |                  |   | 1,099,255 |                                    |   |   | --             |   |   |       | 1,099,255 |   |   |   | 1,099,255 |   |   |   | 7-14 |   |

----

|   |   |   |   31.03.2011 |   |   31.12.2010 |
|--------|--------|--------|-------------------|--------|-------------------|
|   | F/C    |   | Foreign           |   |              |   | Foreign |   |   |
|   | Type   |   | Currency          |   | TRY               |   | Currency |   | TRY |

| Banks                          | USD    |   | 8,166     |   | 12,643      |   | 45,538      |   | 70,401      |
|--------------------------------|--------|--------|-----------|--------|-------------|--------|-------------|--------|-------------|
|                           | EUR    |   | 2,864     |   | 6,247       |   | 78          |   | 160         |
| Trade receivables              | USD    |   | 355,128   |   | 549,845     |   | 669,937     |   | 1,035,723   |
| Due from shareholders          | USD    |   | 40,000    |   | 61,932      |   | 31,302      |   | 48,393      |
|                           |   |   |      |   |        |   |        |   |        |
| Trade payables                 | USD    |   | (133,623) |   | (206,888)   |   | (23,829)    |   | (36,839)    |
| Due to related parties         | USD    |   | (699,282) |   | (1,082,698) |   | (1,039,944) |   | (1,607,753) |
|                           | EUR    |   | (1,000)   |   | (2,182)     |   | -           |   | -           |
| Due to shareholders            | USD    |   | (9,556)   |   | (14,795)    |   | (9,170)     |   | (14,177)    |
| Other current liabilities      | USD    |   | (29,247)  |   | (45,284)    |   | (10,776)    |   | (16,660)    |
|                           |   |   |      |   |        |   |        |   |        |
| Net F/C Assets and Liabilities |   |   |      |   | (721,179)   |   |        |   | (520,752)   |

----

|                   |   | Current |      |   | Noncurrent |   |   | Total  |   |
|------------------------|--------|---------|-----------|--------|------------|--------|--------|--------|--------|
| 31 March 2011          |   |    |      |   |       |   |   |   |   |
|                   |   |    |      |   |       |   |   |   |   |
| Borrowings             |   |    | 587       |   |       |   | --     |   |   |   | 587 |   |
| Trade payables         |   |    | 175,971   |   |       |   | --     |   |   |   | 175,971 |   |
| Due to related parties |   |    | 703,757   |   |       |   | --     |   |   |   | 703,757 |   |
|                   |   |    |      |   |       |   |   |   |   |   |   |   |
| 31 December 2010       |   |    |      |   |       |   |   |   |   |   |   |   |
|                   |   |    |      |   |       |   |   |   |   |   |   |   |
| Borrowings             |   |    | 2,351     |   |       |   | --     |   |   |   | 2,351 |   |
| Trade payables         |   |    | 58,150    |   |       |   | --     |   |   |   | 58,150 |   |
| Due to related parties |   |    | 1,041,105 |   |       |   | --     |   |   |   | 1,041,105 |   |

| 25.   | SUBSEQUENT EVENTS |
|-----------------|-------------------|

|   | There is no subsequent event has occurred which might affect the financial statements. |
|--------|----------------------------------------------------------------------------------------|

----

----

----

----

|                                                                     |   | Notes  |   |   |   | 31.03.2010 |    |   |   | 31.12.2010 |      |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|------------|---------|--------|--------|------------|-----------|
| ASSETS                                                                   |   |   |   |   |   |       |    |   |   |       |      |
| Cash and cash equivalents                                                |   |   | 5      |   |   |       | 14,506  |   |   |       | 3,274     |   |
| Trade receivables, net                                                   |   |   | 6      |   |   |       | 10,106  |   |   |       | 35,288    |   |
| Due from related parties                                                 |   |   | 7      |   |   |       | 484,459 |   |   |       | 863,395   |   |
| Due from shareholders                                                    |   |   | 7      |   |   |       | 9,827   |   |   |       | 9,842     |   |
| Inventories                                                              |   |   | 8      |   |   |       | 405,410 |   |   |       | 191,417   |   |
| Other current assets                                                     |   |   | 9      |   |   |       | 247     |   |   |       | 221       |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
|         Total current assets     |   |   |   |   |   |       | 924,555 |   |   |       | 1,103,437 |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
| Rights, net                                                              |   |   | 10     |   |   |       | 12,819  |   |   |       | 13,312    |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
|         Total non-current assets |   |   |   |   |   |       | 12,819  |   |   |       | 13,312    |   |
|                                                                     |   |   |   |   |   |       |    |   |   |       |      |   |
| Total assets                                                             |   |   |   |   |   |       | 937,374 |   |   |       | 1,116,749 |   |

| LIABILITIES AND SHAREHOLDERS' EQUITY                      |   |   |   |   |   |   |     |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|
| Trade payables                                            |   |   | 11     |   |   |   | 29,324   |   |   |   | 54,211 |   |
| Due to shareholders                                       |   |   | 7      |   |   |   | 22,760   |   |   |   | 22,147 |   |
| Due to related parties                                    |   |   | 7      |   |   |   | 103,363  |   |   |   | 104,887 |   |
| Other current liabilities                                 |   |   | 12     |   |   |   | 10,205   |   |   |   | 48,001 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
|      Total current liabilities   |   |   |   |   |   |   | 165,652  |   |   |   | 229,246 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Share purchase advances                                   |   |   | 1      |   |   |   | 750,000  |   |   |   | 750,000 |   |
| Employee termination benefits                             |   |   | 13     |   |   |   | --       |   |   |   | -- |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
|      Total long-term liabilities |   |   |   |   |   |   | 750,000  |   |   |   | 750,000 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Shareholders' Equity:                                     |   |   |   |   |   |   |     |   |   |   |   |   |
| Share capital                                             |   |   | 14     |   |   |   | 37,570   |   |   |   | 37,570 |   |
| Retained Earnings                                         |   |   |   |   |   |   | 99,933   |   |   |   | 111,009 |   |
| Net income / (loss) for the period                        |   |   |   |   |   |   | (115,781 | )      |   |   | (11,076 | ) |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Total shareholders’ equity                          |   |   |   |   |   |   | 21,722   |   |   |   | 137,503 |   |
|                                                      |   |   |   |   |   |   |     |   |   |   |   |   |
| Total liabilities and shareholders’ equity          |   |   |   |   |   |   | 937,374  |   |   |   | 1,116,749 |   |

----

|                                                 |   | Notes  |   |   |   | 31.03.2011 |     |   |   | 31.03.2010 |     |
|------------------------------------------------------|--------|--------|--------|--------|--------|------------|----------|--------|--------|------------|----------|
|                                                 |   |   |   |   |   |       |     |   |   |       |     |
| Sales                                                |   |   | 15     |   |   |       | 303,207  |   |   |       | 306,655  |   |
| Cost of sales                                        |   |   | 16     |   |   |       | (219,059 | )      |   |       | (194,881 | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|     Gross profit                 |   |   |   |   |   |       | 84,148   |   |   |       | 111,774  |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Marketing and selling expenses                       |   |   | 17     |   |   |       | (129,880 | )      |   |       | (14,123  | ) |
| General and administrative expenses                  |   |   | 18     |   |   |       | (30,675  | )      |   |       | (15,282  | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|    Total operating income             |   |   |   |   |   |       | (76,407  | )      |   |       | 82,369   |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Financial income / (expense), net                    |   |   |   |   |   |       | --       |   |   |       | (569     | ) |
| Other income / (expense), net                        |   |   |   |   |   |       | (33,239  | )      |   |       | 184      |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|    Loss before provision for taxation |   |   |   |   |   |       | (109,646 | )      |   |       | 81,984   |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Provision for taxation                               |   |   |   |   |   |       |     |   |   |       |     |   |
|    - Current                          |   |   |   |   |   |       | --       |   |   |       | --       |   |
|    - Deferred                         |   |   |   |   |   |       | --       |   |   |       | --       |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
|    Net income for the period          |   |   |   |   |   |       | (109,646 | )      |   |       | 81,984   |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Other comprehensive income                           |   |   |   |   |   |       |     |   |   |       |     |   |
| Currency translation differences                     |   |   |   |   |   |       | (6,135   | )      |   |       | (3,309   | ) |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |
| Total comprehensive income / (loss) for the period   |   |   |   |   |   |       | (115,781 | )      |   |       | 78,675   |   |
|                                                 |   |   |   |   |   |       |     |   |   |       |     |   |

----

|                                                                           |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                           |   |   |       |   |   |   |       |   |
| Cash flow from operating activities                                            |   |   |       |   |   |   |       |   |
| Net income for the period                                                      |   |   | (115,781   | )      |   |   | 78,675     |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Adjustments to reconcile net loss to netcash provided by operating activities: |   |   |       |   |   |   |       |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Depreciation                                                                   |   |   | 493        |   |   |   | 2,121      |   |
| Provision for employee termination benefit                                     |   |   | --         |   |   |   | (915       | )      |
|                                                                           |   |   |       |   |   |   |       |   |
| Net income adjusted to non-cash items                                          |   |   | (115,288   | )      |   |   | 79,881     |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Changes in operating assets and liabilities:                                   |   |   |       |   |   |   |       |   |
| Change in trade receivables                                                    |   |   | 25,182     |   |   |   | (53,730    | )      |
| Change in due from related parties                                             |   |   | 378,936    |   |   |   | (226,419   | )      |
| Change in due from shareholders                                                |   |   | 15         |   |   |   | (9,525     | )      |
| Change in inventories                                                          |   |   | (213,993   | )      |   |   | 78,688     |   |
| Change in other current assets                                                 |   |   | (26        | )      |   |   | 83         |   |
| Change in trade payables                                                       |   |   | (24,887    | )      |   |   | 6,937      |   |
| Change in due to related parties                                               |   |   | (1,524     | )      |   |   | (19,924    | )      |
| Change in due to shareholders                                                  |   |   | 613        |   |   |   | (7,357     | )      |
| Change in other current liabilities                                            |   |   | (37,796    | )      |   |   | 180,805    |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Net cash provided from operating activities                                    |   |   | 11,232     |   |   |   | 29,439     |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash flows from investing activities:                                          |   |   |       |   |   |   |       |   |
| Purchased of property and equipment                                            |   |   | --         |   |   |   | --         |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Net cash provided from investing activities                                    |   |   |       |   |   |   | --         |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash flows from financing activities:                                          |   |   |       |   |   |   |       |   |
| Increase/(decrease) in short-term borrowings                                   |   |   | --         |   |   |   | --         |   |
| Increase/(decrease) in long-term  borrowings                         |   |   | --         |   |   |   | --         |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash flows provided by financing activities                                    |   |   | --         |   |   |   | --         |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Net decrease in cash and cash equivalents                                      |   |   | 11,232     |   |   |   | 29,439     |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the beginning of the period                       |   |   | 3,274      |   |   |   | 2,204      |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the end of the period                             |   |   | 14,506     |   |   |   | 31,643     |   |
|                                                                           |   |   |       |   |   |   |       |   |

----

|                                            |   | Sharecapital |   |   | Retained Earnings |   |    | Net income for the year / period |   |   | Total Shareholders' Equity |   |
|-------------------------------------------------|--------|--------------|--------|--------|-------------------|--------|---------|---------------------------------------|--------|--------|----------------------------|--------|
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |
| Balances at 1 January 2010                      |   |         | 35,500 |   |              |   | 53,743  |                                  |   |   | 57,266                     |   |   |   | 146,509 |   |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Share capital increase                          |   |         | 2,070  |   |              |   | --      |                                  |   |   | --                         |   |   |   | 2,070 |   |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Transfer to retained earnings                   |   |         | --     |   |              |   | 57,266  |                                  |   |   | (57,266                    | )      |   |   | -- |   |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Net income for the year                         |   |         | --     |   |              |   | --      |                                  |   |   | (11,076                    | )      |   |   | (11,076 | ) |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Balances at 31 December 2010                    |   |         | 37,570 |   |              |   | 111,009 |                                  |   |   | (11,076                    | )      |   |   | 137,503 |   |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Transfer to retain earnings                     |   |         |   |   |              |   | (11,076 | )                                     |   |   | 11,076                     |   |   |   | 0 |   |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Net profit / (loss) for the three months period |   |         |   |   |              |   |    |                                  |   |   | (115,781                   | )      |   |   | (115,781 | ) |
|                                            |   |         |   |   |              |   |    |                                  |   |   |                       |   |   |   |   |   |
| Balances at 31 March 2011                       |   |         | 37,570 |   |              |   | 99,933  |                                  |   |   | (115,781                   | )      |   |   | 21,722 |   |

----

| 1.   | OPERATIONS OF THE COMPANY: |
|----------------|----------------------------|

| 2.   | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS |
|----------------|------------------------------------------------|

| 3.   | BASIS OF PRESENTATION |
|----------------|-----------------------|

----

| 4. | SIGNIFICANT ACCOUNTING POLICIES: |
|----|----------------------------------|

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

|        |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|-------------|--------|--------|------------|--------|--------|--------|------------|--------|
|        |   |   |       |   |   |   |       |   |
| USD         |   |   | 1.5483     |   |   |   | 1.5460     |   |
| EURO        |   |   | 2.1816     |   |   |   | 2.0491     |   |
| GBP         |   |   | 2.4845     |   |   |   | 2.3886     |   |
|        |   |   |       |   |   |   |       |   |
| Average USD |   |   | 1.5741     |   |   |   | 1.4991     |   |

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

| 5.   | CASH AND CASH EQUIVALENTS |
|----------------|---------------------------|

|         |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------|--------|--------|------------|--------|--------|--------|------------|--------|
|         |   |   |       |   |   |   |       |   |
| Cash in hand |   |   | 179        |   |   |   | 695        |   |
| Banks        |   |   | 14,327     |   |   |   | 2,579      |   |
|         |   |   |       |   |   |   |       |   |
| Total        |   |   | 14,506     |   |   |   | 3,274      |   |

| 6.   | TRADE RECEIVABLES |
|----------------|-------------------|

|                                   |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|----------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                   |   |   |       |   |   |   |       |   |
| Trade receivables                      |   |   | 63,249     |   |   |   | 54,829     |   |
| Provision for doubtful receivables (-) |   |   | (53,143    | )      |   |   | (19,541    | )      |
|                                   |   |   |       |   |   |   |       |   |
| Total                                  |   |   | 10,106     |   |   |   | 35,288     |   |

----

| 7.   | RELATED PARTY TRANSACTIONS: |
|----------------|-----------------------------|

| Due from related parties                                                      |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                          |   |   |       |   |   |   |       |   |
| Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.         |   |   | 321,494    |   |   |   | 587,308    |   |
| Touch IT Technologies Koll. Şti.. Ronald George Murphy ve Ortakları |   |   | 162,965    |   |   |   | 276,087    |   |
|                                                                          |   |   |       |   |   |   |       |   |
| Total                                                                         |   |   | 484,459    |   |   |   | 863,395    |   |

| Due from shareholders |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|-----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                  |   |   |       |   |   |   |       |   |
| Andrew Stuart Brabin  |   |   | 9,827      |   |   |   | 9,842      |   |
|                  |   |   |       |   |   |   |       |   |
| Total                 |   |   | 9,827      |   |   |   | 9,842      |   |

| Due to related parties |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                   |   |   |       |   |   |   |       |   |
| Kamron Inc             |   |   | 53,014     |   |   |   | 50,467     |   |
| ASB Trading            |   |   | 50,349     |   |   |   | 54,420     |   |
|                   |   |   |       |   |   |   |       |   |
| Total                  |   |   | 103,363    |   |   |   | 104,887    |   |

| Due to shareholders              |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                             |   |   |       |   |   |   |       |   |
| Ali Rıza Tanışman |   |   | 22,760     |   |   |   | 22,147     |   |
|                             |   |   |       |   |   |   |       |   |
| Total                            |   |   | 22,760     |   |   |   | 22,147     |   |

| Major purchases from related parties                                         |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Touch It Technologies Koll. Şti. Ronald George Murphy ve Ortakları |   |   | 57,211     |   |   |   | 166,309    |   |
| Total                                                                        |   |   | 57,211     |   |   |   | 166,309    |   |
|                                                                    |   |   |       |   |   |   |       |   |
| Major sales to related parties                                               |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
| Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.        |   |   | 101,918    |   |   |   | 660,520    |   |
| Touch IT Technologies Koll. Şti. Ronald George Murphy ve Ortakları |   |   | 78,225     |   |   |   | 255,201    |   |
| Total                                                                        |   |   | 180,143    |   |   |   | 915,721    |   |

----

| 7.   | RELATED PARTY BALANCES AND TRANSACTIONS (COUNTINUED): |
|----------------|-------------------------------------------------------|

| Service provided by  |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                 |   |   |       |   |   |   |       |   |
| Kamron Inc.          |   |   | 49,578     |   |   |   | 115,101    |   |
| Andrew Stuart Brabin |   |   | 52,213     |   |   |   | 103,527    |   |
|                 |   |   |       |   |   |   |       |   |
| Total                |   |   | 101,791    |   |   |   | 218,628    |   |

| 8.   | INVENTORIES |
|----------------|-------------|

|                            |   |   | 31.03.2010 |   |   |   | 31.12.2010 |   |
|---------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                            |   |   |       |   |   |   |       |   |
| Trade goods                     |   |   | 200,108    |   |   |   | 109,261    |   |
| Advances given for purchases(*) |   |   | 205,302    |   |   |   | 82,156     |   |
|                            |   |   |       |   |   |   |       |   |
| Total                           |   |   | 405,410    |   |   |   | 191,417    |   |

| 9.   | OTHER CURRENT ASSETS: |
|----------------|-----------------------|

| 10.   | NON-CURRENT ASSETS |
|-----------------|--------------------|

|                   |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                   |   |   |       |   |   |   |       |   |
| License right          |   |   | 35,500     |   |   |   | 35,500     |   |
| Depreciation allowance |   |   | (22,681    | )      |   |   | (22,188    | )      |
|                   |   |   |       |   |   |   |       |   |
| Total                  |   |   | 12,819     |   |   |   | 13,312     |   |

----

| 11.   | TRADE PAYABLES |
|-----------------|----------------|

|           |   |   | 31.03.2010 |   |   |   | 31.12.2010 |   |
|----------------|--------|--------|------------|--------|--------|--------|------------|--------|
|           |   |   |       |   |   |   |       |   |
| Trade payables |   |   | 29,324     |   |   |   | 54,211     |   |
|           |   |   |       |   |   |   |       |   |
| Total          |   |   | 29,324     |   |   |   | 54,211     |   |

| 12.   | OTHER CURRENT LIABILITIES |
|-----------------|---------------------------|

|                                                   |   |   | 31.03.2011 |   |   |   | 31.12.2010 |   |
|--------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                   |   |   |       |   |   |   |       |   |
| Taxes and funds payable                                |   |   | 1,568      |   |   |   | 2,471      |   |
| Social security premiums and withholding taxes payable |   |   | 2,470      |   |   |   | 1,439      |   |
| Accrued expenses                                       |   |   | 1,625      |   |   |   | 1,250      |   |
| Advances received                                      |   |   | 3,018      |   |   |   | 40,731     |   |
| Due to personnel                                       |   |   | 1,524      |   |   |   | 2,110      |   |
|                                                   |   |   |       |   |   |   |       |   |
| Total                                                  |   |   | 10,205     |   |   |   | 48,001     |   |

| 13.   | RESERVE FOR EMPLOYMENT TERMINATION BENEFITS |
|-----------------|---------------------------------------------|

----

| 14.   | SHARE CAPITAL |
|-----------------|---------------|

|                             |   | 31.03.2011   |   |   | 31.12.2010 |   |
|----------------------------------|--------|--------------|--------|--------|------------|--------|
|                             |   | Shareholding |   |   |       |   |   |   | Shareholding |   |   |   |   |
|                             |   | Amount       |   |   | %          |   |   | Amount |   |   | % |   |
|                             |   |         |   |   |       |   |   |   |   |   |   |   |   |   |
| Andrew Stuart Brabin             |   |         | 27,050 |   |       |   | 72 |   |   |   | 27,050 |   |   |   | 72 |   |
| Ali Rıza Tanışman |   |         | 1,503  |   |       |   | 4 |   |   |   | 1,503 |   |   |   | 4 |   |
| Recep Tanışman         |   |         | 7,515  |   |       |   | 20 |   |   |   | 7,515 |   |   |   | 20 |   |
| Cansın Tanışman   |   |         | 751    |   |       |   | 2 |   |   |   | 751 |   |   |   | 2 |   |
| Volkan Tanışman        |   |         | 751    |   |       |   | 2 |   |   |   | 751 |   |   |   | 2 |   |
|                             |   |         | 37,570 |   |       |   | 100 |   |   |   | 37,570 |   |   |   | 100 |   |

| 15.   | SALES |
|-----------------|-------|

|                         |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                         |   |   |       |   |   |   |       |   |
| Electronic set               |   |   | 288,162    |   |   |   | 165,271    |   |
| Remote Control for classroom |   |   | 4,345      |   |   |   | 76,304     |   |
| Touch IT board               |   |   | 2,540      |   |   |   | 44,213     |   |
| Others                       |   |   | 8,160      |   |   |   | 20,867     |   |
|                         |   |   |       |   |   |   |       |   |
| Returns (-)                  |   |   | --         |   |   |   | --         |   |
|                         |   |   |       |   |   |   |       |   |
| Total                        |   |   | 303,207    |   |   |   | 306,655    |   |

| 16.   | COST OF SALES |
|-----------------|---------------|

|                                |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                |   |   |       |   |   |   |       |   |
| Beginning inventory of trade goods  |   |   | 109,261    |   |   |   | 48,111     |   |
| Purchases                           |   |   | 309,906    |   |   |   | 161,517    |   |
| Ending inventory of trade goods (-) |   |   | (200,108   | )      |   |   | (14747     | )      |
|                                |   |   |       |   |   |   |       |   |
| Total                               |   |   | 219,059    |   |   |   | 194,881    |   |

----

| 17.   | MARKETING AND SELLING EXPENSES |
|-----------------|--------------------------------|

|                     |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                     |   |   |       |   |   |   |       |   |
| Export expenses          |   |   | 5,597      |   |   |   | 6,395      |   |
| Consultancy expenses (*) |   |   | 120,521    |   |   |   | 6,094      |   |
| Other expenses           |   |   | 3,762      |   |   |   | 1,634      |   |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 129,880    |   |   |   | 14,123     |   |

| 18.   | GENERAL AND ADMINISTRATIVE EXPENSES |
|-----------------|-------------------------------------|

|                           |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                           |   |   |       |   |   |   |       |   |
| Audit and consultancy expenses |   |   | 4,550      |   |   |   | 6,427      |   |
| Salaries                       |   |   | 20,349     |   |   |   | 4,187      |   |
| Rental expenses                |   |   | 3,300      |   |   |   | 3,211      |   |
| Depreciation                   |   |   | 493        |   |   |   | --         |   |
| Other expenses                 |   |   | 1,983      |   |   |   | 1,457      |   |
|                           |   |   |       |   |   |   |       |   |
| Total                          |   |   | 30,675     |   |   |   | 15,282     |   |

|                               |   |   | 31.03.2011 |   |   |   | 31.03.2010 |   |
|------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                               |   |   |       |   |   |   |       |   |
| Provision for doubtful receivables |   |   | (33,145    | )      |   |   | --         |   |
| Other expense                      |   |   | (94        | )      |   |   | --         |   |
| Other income                       |   |   | --         |   |   |   | 184        |   |
|                               |   |   |       |   |   |   |       |   |
| Total                              |   |   | (33,239    | )      |   |   | 184        |   |

----

| 19.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
|-----------------|---------------------------------------------------|

| 31 March 2011                                 | Financial assets atamortized cost | Loans andreceivables | Financial liabilitiesat amortized cost | Carrying value | Fair value | Note   |
|-----------------------------------------------|-----------------------------------|----------------------|----------------------------------------|----------------|------------|--------|
|                                          |                              |                 |                                   |           |       |   |
| Financial assets                              |                              |                 |                                   |           |       |   |
| Cash and cash equivalents                     | --                                | 14,506               | --                                     | 14,506         | 14,506     | 5      |
| Trade receivables (including related parties) | --                                | 494,565              | --                                     | 494,565        | 494,565    | 6-7    |
|                                          |                              |                 |                                   |           |       |   |
| Financial liabilities                         |                              |                 |                                   |           |       |   |
| Trade payables (including related parties)    | --                                | 132,687              | --                                     | 132,687        | 132,687    | 7-11   |

| 31 December 2010                              | Financial assets atamortized cost | Loans andreceivables | Financial liabilitiesat amortized cost | Carrying value | Fair value | Note   |
|-----------------------------------------------|-----------------------------------|----------------------|----------------------------------------|----------------|------------|--------|
|                                          |                              |                 |                                   |           |       |   |
| Financial assets                              |                              |                 |                                   |           |       |   |
| Cash and cash equivalents                     | --                                | 3,274                | --                                     | 3,274          | 3,274      | 5      |
| Trade receivables (including related parties) | --                                | 898,683              | --                                     | 898,683        | 898,683    | 6-7    |
|                                          |                              |                 |                                   |           |       |   |
| Financial liabilities                         |                              |                 |                                   |           |       |   |
| Trade payables (including related parties)    | --                                | 159,098              | --                                     | 159,098        | 159,098    | 7-11   |

----

| 19.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                           |     | 31.03.2011 |        | 31.12.2010 |
|--------------------------------|----------|------------|-------------|------------|
|                           | F/C      | Foreign    | TRY         |       | Foreign | TRY |
| Type                           | Currency |       | Currency    |
|                           |     |       |        |       |   |   |
| Banks                          | USD      | 14,062     | 21,772      |       | 2,138 | 3,306 |
|                           | EUR      | 22         | 47          |       | 19 | 38 |
|                           |     |       |        |       |   |   |
| Due from related parties       | USD      | 484,459    | 750,088     |       | 587,308 | 907,979 |
|                           |     |       |        |       |   |   |
| Trade receivables              | USD      | 63,249     | 97,928      |       | 34,731 | 53,694 |
|                           |     |       |        |       |   |   |
| Advances given                 | USD      | 205,302    | 317,869     |       | 72,544 | 112,153 |
| (Inventories)                  |     |       |        |       |   |   |
|                           |     |       |        |       |   |   |
| Trade payables                 | USD      | (21,867)   | (33,857)    |       | (43,480) | (67,220) |
|                           |     |       |        |       |   |   |
| Advances received              | USD      | (3,018)    | (4,673)     |       | (40,731) | (62,970) |
| (Other current liabilities)    |     |       |        |       |   |   |
|                           |     |       |        |       |   |   |
| Due to related parties         | USD      | (103,363)  | (160,037)   |       | (104,887) | (162,155) |
|                           |     |       |        |       |   |   |
| Share purchase advances        | USD      | (750,000)  | (1,161,225) |       | (750,000) | (1,159,500) |
|                           |     |       |        |       |   |   |
|                           |     |       |        |       |   |   |
| Net F/C Assets / (Liabilities) |     |       | (172,087)   |       |   | (374,675) |

----

| 20.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                                       |   | Current |    |   | Noncurrent |   |   | Total  |   |
|--------------------------------------------|--------|---------|---------|--------|------------|--------|--------|--------|--------|
| 31 March 2011                              |   |    |    |   |       |   |   |   |   |
|                                       |   |    |    |   |       |   |   |   |   |
| Trade payables (including related parties) |   |    | 132,687 |   |       |   | --     |   |   |   | 132,687 |   |
|                                       |   |    |    |   |       |   |   |   |   |   |   |   |
| 31 December 2010                           |   |    |    |   |       |   |   |   |   |   |   |   |
|                                       |   |    |    |   |       |   |   |   |   |   |   |   |
| Trade payables (including related parties) |   |    | 159,098 |   |       |   | --     |   |   |   | 159,098 |   |

| 21.   | SUBSEQUENT EVENTS |
|-----------------|-------------------|

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

----

----

----

| -   | Machinery and equipments: 2-6 years |
|---------------|-------------------------------------|

| -   | Motor vehicles: 4 years |
|---------------|-------------------------|

| -   | Furniture, fixtures and office equipments: 4-5 years |
|---------------|------------------------------------------------------|

----

|                                                             |   | 31/03/2011 |     |   | 31/03/2010 |   |
|------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|
|                                                             |   |       |     |   |       |   |
| NET SALES                                                        |   |       | 773,658  |   |       |   | 1,046,011 |   |
| COST OF SALES                                                    |   |       | (556,766 | )      |       |   | (719,035 | ) |
| Gross profit                                                     |   |       | 216,892  |   |       |   | 326,976 |   |
| MARKETING AND SELLING EXPENSE                                    |   |       | (293,399 | )      |       |   | (179,608 | ) |
| GENERAL AND ADMINISTRATIVE  EXPENSES                   |   |       | (86,852  | )      |       |   | (75,100 | ) |
| Profit from operations                                           |   |       | (163,359 | )      |       |   | 72,268 |   |
| OTHER INCOME AND EXPENSES, net                                   |   |       | (46,836  | )      |       |   | (233 | ) |
| FINANCIAL INCOME AND EXPENSES, net                               |   |       | (1,449   | )      |       |   | (2,237 | ) |
| Profit Loss before taxation and currency translation gain/(loss) |   |       | (211,644 | )      |       |   | 69,798 |   |
| TAXATION CHARGE                                                  |   |       | --       |   |       |   | -- |   |
| Taxation current                                                 |   |       | --       |   |       |   | -- |   |
| Deferred                                                         |   |       | --       |   |       |   | -- |   |
| CURRENCY TRANSLATION GAIN/(LOSS)                                 |   |       | (9,040   | )      |       |   | 219 |   |
| Net income/(loss)  for the year                        |   |       | (211,644 | )      |       |   | 70,017 |   |
| OTHER COMPREHENSIVE INCOME                                       |   |       | --       |   |       |   | -- |   |
| Total comprehensive income                                       |   |       | (220,684 | )      |       |   | 70,236 |   |

|                 |   | 31/03/2011 |     |   | 31/03/2010 |   |      | 31/12/2009 |   |
|----------------------|--------|------------|----------|--------|------------|--------|-----------|------------|--------|
|                 |   |       |     |   |       |   |      |       |   |
| NET SALES            |   |       | 773,658  |   |       |   | 1,046,011 |       |   |   | 2,029,074 |   |
| COST OF SALES        |   |       | (556,766 | )      |       |   | (719,035  | )          |   |   | (1,742,047 | ) |
| Cost of sales as a % |   |       | 72       | %      |       |   | 69        | %          |   |   | 86 | % |

|                                           |   | 31/03/2011 |     |   | 31/03/2010 |   |     | 31/12/2009 |   |
|------------------------------------------------|--------|------------|----------|--------|------------|--------|----------|------------|--------|
|                                           |   |       |     |   |       |   |     |       |   |
| MARKETING AND SELLING EXPENSE                  |   |       | (293,399 | )      |       |   | (179,608 | )          |   |   | (409,386 | ) |
| As a percentage of revenue                     |   |       | 38       | %      |       |   | 17       | %          |   |   | 20 | % |
| GENERAL AND ADMINISTRATIVE  EXPENSES |   |       | (86,852  | )      |       |   | (75,100  | )          |   |   | (140,121 | ) |
| As a percentage of revenue                     |   |       | 11       | %      |       |   | 7        | %          |   |   | 7 | % |

----

| CURRENT ASSETS                     |   | 31/03/2011 |       |   | 31/03/2010 |   |
|------------------------------------|--------|------------|------------|--------|------------|--------|
|                               |   |       |       |   |       |   |
| Cash and cash equivalents          |   |       | 27,954     |   |       |   | 52,383 |   |
| Trade receivables, net             |   |       | 365,234    |   |       |   | 426,491 |   |
| Due from related parties           |   |       | 484,459    |   |       |   | 357,013 |   |
| Due from Shareholders              |   |       | 49,827     |   |       |   | 21,399 |   |
| Inventories                        |   |       | 612,991    |   |       |   | 243,783 |   |
| Other current assets               |   |       | 4,561      |   |       |   | 4,445 |   |
|                               |   |       |       |   |       |   |   |   |
| Total current assets               |   |       | 1,545,026  |   |       |   | 1,105,514 |   |
|                               |   |       |       |   |       |   |   |   |
| NON CURRENT ASSETS                 |   |       |       |   |       |   |   |   |
|                               |   |       |       |   |       |   |   |   |
| Property, plant and equipment, net |   |       | 64,051     |   |       |   | 27,446 |   |
| Intangible assets, net             |   |       | 33,403     |   |       |   | - |   |
| Rights                             |   |       | -          |   |       |   | 12,855 |   |
| Other non current assets           |   |       | 153        |   |       |   | 92 |   |
|                               |   |       |       |   |       |   |   |   |
| Total non current assets           |   |       | 97,607     |   |       |   | 40,393 |   |
|                               |   |       |       |   |       |   |   |   |
|                               |   |       |       |   |       |   |   |   |
| TOTAL ASSETS                       |   |       | 1,642,633  |   |       |   | 1,145,907 |   |
|                               |   |       |       |   |       |   |   |   |
|                               |   |       |       |   |       |   |   |   |
| CURRENT LIABILITIES                |   |       |       |   |       |   |   |   |
| Borrowings                         |   |       | 587        |   |       |   | 11,317 |   |
| Trade payables                     |   |       | 205,295    |   |       |   | 61,328 |   |
| Due to shareholders                |   |       | 60,448     |   |       |   | 68,469 |   |
| Due to related parties             |   |       | 807,120    |   |       |   | 814,323 |   |
| Other current liabilities          |   |       | 54,209     |   |       |   | 302,326 |   |
|                               |   |       |       |   |       |   |   |   |
| Total current liabilities          |   |       | 1,127,659  |   |       |   | 1,257,763 |   |
|                               |   |       |       |   |       |   |   |   |
|                               |   |       |       |   |       |   |   |   |
| NON CURRENT LIABILITIES            |   |       |       |   |       |   |   |   |
| Borrowings                         |   |       | -          |   |       |   | 597 |   |
| Employee termination benefits      |   |       | 1,373      |   |       |   | - |   |
| Reserve for retirement pay         |   |       | -          |   |       |   | 493 |   |
| Share purchase advances            |   |       | 750,000    |   |       |   | - |   |
|                               |   |       |       |   |       |   |   |   |
| Total non current liabilities      |   |       | 751,373    |   |       |   | 1,090 |   |
|                               |   |       |       |   |       |   |   |   |
|                               |   |       |       |   |       |   |   |   |
| COMMITMENTS AND CONTINGENCIES      |   |       |       |   |       |   |   |   |
|                               |   |       |       |   |       |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       |       |   |       |   |   |   |
| Share capital                      |   |       | 127,570    |   |       |   | 35,500 |   |
| Retained earnings                  |   |       | (143,285   | )      |       |   | 111,009 |   |
| Net income / (loss) for the period |   |       | (220,684   | )      |       |   | 78,675 |   |
|                               |   |       |       |   |       |   |   |   |
| Total shareholders’ equity   |   |       | (236,399   | )      |       |   | 225,184 |   |
|                               |   |       |       |   |       |   |   |   |
| TOTAL LIABILITIES AND              |   |       |       |   |       |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       | (1,642,633 | )      |       |   | 485,220 |   |

----

----

|                                                               |   | 31/03/2011 |     |   | 31/03/2010 |   |
|--------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|
| CASH FLOWS FROM OPERATING  ACTIVITIES                    |   |       |     |   |       |   |
| Net income                                                         |   |       | (220,683 | )      |       |   | 70,017 |   |
| Adjustments to reconcile net income to net cash provided           |   |       |     |   |       |   |   |   |
| By operating activities:                                           |   |       |     |   |       |   |   |   |
| Depreciation and amortisation                                      |   |       | 7,431    |   |       |   | 4,547 |   |
| Provision for employee benefit                                     |   |       | (469     | )      |       |   | (548 | ) |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| Changes in operating assets and liabilities                        |   |       |     |   |       |   |   |   |
| Trade receivables, net                                             |   |       | 339,990  |   |       |   | (151,689 | ) |
| Due from shareholders                                              |   |       | (33,340  | )      |       |   | (72,113 | ) |
| Due from related parties                                           |   |       | 379,679  |   |       |   | (238,293 | ) |
| Inventories                                                        |   |       | (217,422 | )      |       |   | 74,942 |   |
| Other current assets                                               |   |       | 3,376    |   |       |   | 3,716 |   |
| Other non current assets                                           |   |       |     |   |       |   |   |   |
| Trade payables                                                     |   |       | 92,934   |   |       |   | (9,291 | ) |
| Due to shareholders                                                |   |       | (336,735 | )      |       |   | (7,115 | ) |
| Due to related parties                                             |   |       | (1,330   | )      |       |   | 143,347 |   |
| Other current liabilities                                          |   |       | (19,024  | )      |       |   | 181,707 |   |
| Share Purchase Advances                                            |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| Net cash generated from (used for)  operating activities |   |       | (5,593   | )      |       |   | (773 | ) |
|                                                               |   |       |     |   |       |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                               |   |       |     |   |       |   |   |   |
| Increase/(decrease) in short-term borrowings                       |   |       | (1,764   | )      |       |   | 35 |   |
| Increase/(decrease) in long-term  borrowings             |   |       | --       |   |       |   | (1,724 | ) |
| Dividends paid                                                     |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| Net cash (used for) provided from  financing activities  |   |       | (1,764   | )      |       |   | (1,689 | ) |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                               |   |       |     |   |       |   |   |   |
| Purchases of property, plant and equipment and intangible assets   |   |       | (15,245  | )      |       |   | 0 |   |
| Share  capital increase                                  |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| Net cash used for investing activities                             |   |       | (15,245  | )      |       |   | 0 |   |
|                                                               |   |       |     |   |       |   |   |   |
| NET INCREASE / (DECREASE) IN CASH AND BANKS                        |   |       | (22,602  | )      |       |   | (2,462 | ) |
|                                                               |   |       |     |   |       |   |   |   |
| CASH AND BANKS AT BEGINNING OF THE YEAR                            |   |       | 50,556   |   |       |   | 54,845 |   |
|                                                               |   |       |     |   |       |   |   |   |
| CASH AND BANKS AT END OF THE PERIOD                                |   |       | 27,954   |   |       |   | 52,383 |   |

----

----

----

|  ExhibitNumber |  Description of Exhibit  |
|---------------------|------------------------------------|

|   |                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   | Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended.            |
|   |                                                                                                                                                                       |
| 31.2   | Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as amended.            |
|   |                                                                                                                                                                       |
| 32.1   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  (Principal Executive Officer).                |
|   |                                                                                                                                                                       |
| 32.2   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  (Principal Financial and Accounting Officer). |

----

|                |  TouchIT Technologies, Inc. |                                 |
|---------------------|----------------------------------|--------------------------------------|
|                |                             |                                 |   |
| Dated: May 16, 2011 | By:                              | /s/ Andrew Brabin               |   |
|                |                             | Andrew BrabinChief Financial Officer |   |

----