BEIJING, Dec. 18, 2006 -- In 2005, CCID conducted in-depth market research on collaboration solution providers to probe changes under competitive circumstances in the Chinese market, to seize opportunities and generate potentially effective marketing strategies in this market, with the delivery of the "2005 Chinese Collaboration Solution Market Research Report."

The research subjects are 500 leading Chinese enterprises covering Telecom, FSI, Iron, Petroleum & Chemistry, Energy and Transportation, and collaboration solution providers including Smartdot Technology.

The collaboration market is relatively mature, from a global perspective. The domestic market has seen continued growth in 2005 and many domestic players have demonstrated their competitive edge. As foreign vendors become more involved in the collaboration solution business, the market's dramatic growth has drawn even more attention from domestic vendors. In 2005, this market has grown to 3.93 billion with a growth rate of 28.4% from 2004 and the growth is sustaining.

Collaboration solution providers are classified into four groups according to their positions in the value chain. The First group are vendors focusing on providing hi-end consulting and system integration like Neusoft, China National Software and Service Company, and Accenture. The Second group are collaboration platform providers that provide collaboration infrastructures and applications, such as Smartdot, Inqure and Weaver, etc. The third group build collaboration applications and application models on second group vendors' platforms. And the fourth group focuses on product distribution.

In 2005, customers from energy and transportation industries, as well as the government always chose those providers with comprehensive capabilities and governmental background, some characteristics Smartdot possess, according to their demand for security, technology and personalization.

In several pivotal industries like iron, petroleum & chemistry, utility, transportation (airport), Smartdot demonstrated its edge with a share of 25%, 26.7%, 16.7% and 20.8% in each respective industry in 2005. In this year, Smartdot's strategy focuses on hi-end solutions and expanding into new realms and industries, important and prominent to the country. Also, Smartdot has initiated market research of demand from small and medium businesses.

The emergence of a collaboration solution value chain brings new opportunities to the vendors in this market. Vendors with core technology can provide core technologies and application platforms and vendors without those core technologies can evolve to ISV or consulting providers.

Based on these findings, CCID suggest vendors of collaboration solutions should cooperate with other vendors in the value chain to strengthen their own competitive capacity and, at the same time, develop partnerships with local small or medium SIs to attract customers with more specified products and professional services.

About Beijing Smartdot Technologies Co., Ltd.

Based in Beijing, PRC, Beijing Smartdot Technologies Co. Ltd. ("Smartdot") is a computer software development company engaged in software development and solution projects, with its primary focus being in the area of e-government projects and office automation. Smartdot was founded in 1998 by a group of graduate students from Tsinghua University in Beijing. After a few years of development, Smartdot has a strong client base in the government and state- owned corporate sector. In 2005 and 2006, Smartdot was voted by Deloitte to join "The Top 50 High-Tech and Fast-Growing Companies in PRC China" and "Top 500 High-Tech and Fast-Growing Companies in Asia."

SOURCE Beijing Smartdot Technologies Co., Ltd.

 For more information, please contact:

     Liu lin
     Tel:   +86-10-8215-0909 X8703
     Email: liulin@smartdot.com