MIRA INFORM REPORT

Report Date :

26.09.2012

IDENTIFICATION DETAILS

Name :	UBIQUOSS INC.

Registered Office :	24th Fl., Military Mutual Aid Association 467-12, Dogok 2-dong, Gangnam-gu, Seoul, Korea 135-700

Country :	South Korea

Financials (as on) :	30.06.2012

Date of Incorporation :	11.07.2000

Com. Reg. No.:	106-81-91981

Legal Form :	Listed Company

LINE OF BUSINESS :	MANUFACTURE OF LINE TELECOMMUNICATION APPARATUSES

No. of Employees :	215

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SOUTH KOREA - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

Basic Information

Company Name	UBIQUOSS INC. (Korean Company Name : “(주)유비쿼스”)
Registered Address	467-12, Dogok 2-dong, Gangnam-gu, Seoul, Korea
Building	24th Fl., Military Mutual Aid Association
Zip Code	135-700
Tel	+82-70-8666-5000
Fax	+82-2-2190-3201
E-mail	sales@ubiquoss.com
Website	www.ubiquoss.com
Trading Address	24th Fl., Military Mutual Aid Association, 467-12, Dogok 2-dong, Gangnam-gu, Seoul, Korea
Tel	+82-70-8666-5000
Fax	+82-2-2190-3201
General Business Address	7F Nipa B/D, 79-2 Garakbon-Dong, Songpa-Gu, Seoul, 138-711, Korea
Type	Export/Import
Industry	Manufacture of Line Telecommunication Apparatuses
Main Business	Network Equipment
Established (mm/dd/yyyy)	07/11/2000

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	System installation(81111809)
Sell	Application service providers(81112106)
Sell	Systems integration design(81111503)
Sell	Software or hardware engineering(81111500)
Sell	Business function specific software(43231500)

CEO’s

Name	Lee Sang-Keun
Date of Birth	08/18/1960
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

10,600,000,000

Employees

215

Formation

Listed Company(KOSDAQ : 078070) as of 01/23/2009

Venture Business

Bank Details

Industrial Bank of Korea-Gaepo Branch

Corporate Registered No.

110111-2023185

Business Registered No.

106-81-91981

Permit & Licenses

Int’l Trade No.: 30637072

Shareholder Position

Name	Shares	%
LEE SANG-KEUN	5,537,959	26.12
PARK KWAN-HO	599,838	2.83
CHO KYU-NAM	427,231	2.02
KIM JAE-KOOK	337,231	1.59
OTHERS	14,297,741	67.44
TOTAL	21,200,000	100.00

Company History

07/11/2000 Incorporated as Locus Networks Inc.

09/2003 Moved to the present HQ address from 93-45, Bukchang-dong, Jung-gu, Seoul, Korea

03/25/2005 Changed company name to the present name

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
President & CEO	Mr.	Lee Sang-Keun	Korean	1960.08.18	Kookmin University, Korea
Vice President	Mr.	Jung Byung-Tae	Korean	1960.03.20	Warton, Uni. Penn / Exec. MBA
Vice President	Mr.	Choi Yong-Ho	Korean	1961.02.07	Sungkyunkwan University, Korea
Outside Director	Mr.	Song Ju-Young	Korean	1951.12.12	Clemson University, USA
Auditor	Mr.	Kim Jang-Soo	Korean	1969.08.28	Busan National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2012	31,380,685,119	154,595,894,817	8,037,000,786
(*)2011	73,659,400,399	150,759,433,352	16,838,953,441
(*)2010	81,727,538,823	144,312,727,817	20,611,100,735

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	50,000,000,000
Paid-Up Capital(KRW)	10,600,000,000
Total Issues Shares	21,200,000

Balance Sheet
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	154,595,894,817	150,759,433,352	144,312,727,817
Current Assets	90,309,098,872	101,323,318,941	107,617,236,686
Cash & Cash Equivalents	23,818,754,626	13,199,336,124	10,501,041,829
Trade Receivables & Other Receivables	11,387,227,363	9,583,021,380	10,381,620,074
Current Financial Instruments	46,020,330,935	69,912,338,589	80,678,085,284
Other Current Assets	583,389,114	18,648,141	6,056,489,499
Inventories	8,499,396,834	8,609,974,707	36,695,491,131
Non-Current Assets	64,286,795,945	49,436,114,411	5,367,520,815
Tangibles	12,983,456,004	11,847,636,082	2,429,970,383
Investment_Real Estates	255,472,275	262,551,033	276,708,908
Intangibles	1,608,238,921	958,279,971	907,761,487
Investment_Subsidiaries	2,501,800,000	1,601,800,000	1,804,200,000
Deferred Income Tax Assets	685,958,755	766,091,428	938,845,488
Non-Current Financial Instruments	46,251,869,990	33,999,755,897	24,970,484,050
Total Liabilities	19,737,649,075	22,269,110,285	22,008,803,921
Current Liabilities	17,584,256,075	18,453,219,760	16,561,151,396
Trade Payables & Other Payables	9,095,955,209	12,442,970,990	10,448,302,314
Short-Term Borrowings	6,674,225,057	3,667,916,751	5,171,470,665
Other Current Financial Debts	265,792,848	243,798,899	-
Other Current Liabilities	747,605,436	490,158,114	-
Deferred Income Tax Credit	800,677,525	1,608,375,006	941,378,417
Non-Current Liabilities	2,153,393,000	3,815,890,525	5,447,652,525
Other Non-Current Financial Debts	120,000,000	20,000,000	20,000,000
Other Non-Current Provisions	2,033,393,000	3,795,890,525	5,427,652,525
Capital Stock	10,600,000,000	10,600,000,000	10,600,000,000
Capital Surplus	6,903,408,156	6,903,408,156	6,903,408,156
Profit Surplus	125,845,909,656	119,728,750,970	103,949,718,579
Others	-8,491,072,070	-8,741,836,059	850,797,161
Total Equity	134,858,245,742	128,490,323,067	122,303,923,896
Liab. & Shareholder’s Equity	154,595,894,817	150,759,433,352	144,312,727,817

Income Statement
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	31,380,685,119	73,659,400,399	81,727,538,823
Cost of Sold Goods	18,884,548,514	41,058,050,694	42,301,952,945
Gross Profit	12,496,136,605	32,601,349,705	39,425,585,878
Selling & Admin. Expenses	6,601,517,225	18,266,253,866	22,199,486,942
Operating Income	5,894,619,380	14,335,095,839	17,226,098,936
Other Operating Income	966,178,523	800,026,658	1,209,987,010
Other Operating Expenses	435,515,590	377,332,450	301,631,776
Finance Income	2,991,612,795	6,150,230,360	6,349,788,245
Finance Expenses	283,066,474	979,252,182	306,488,917
Income Before Taxes	9,133,828,634	19,928,768,225	24,177,753,498
Income Taxes Expenses	1,096,827,848	3,089,814,784	3,566,652,763
Net Income	8,037,000,786	16,838,953,441	20,611,100,735

Cash Flows
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Operating Activities Cash Flows	857,191,086	17,599,775,503	28,881,339,513
Net Income	8,037,000,786	16,838,953,441	20,611,100,735
Adjustment	957,441,704	1,715,758,926	-1,297,703,609
Interests Paid	-28,208,262	-44,961,790	-250,922,080
Interests Received	2,847,081,240	4,009,567,181	3,986,617,017
Income Taxes	-1,861,431,274	-2,248,846,465	-5,033,398,546
Cash Flows from Investing	8,579,292,418	-2,933,127,843	-34,692,780,452
Cash Flows from Financing	1,182,986,899	-11,968,405,219	-11,366,448,865
Increase/Decrease in Cash	10,619,418,502	2,698,294,295	-17,177,889,804
Cash at the Beginning of Year	13,199,336,124	10,501,041,829	27,678,931,633
Cash at the End of Year	23,818,754,626	13,199,336,124	10,501,041,829

Products, Technologies, Services Description

Main Products & Services

Network Equipment

Trade Partners & Competitors

Competitors

EMFRONTIER, INC.

RM. 1404, POONGLIM BLDG., 823, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3016-7300 FAX:+82-2-3016-7346

SALTWARE CO., LTD.

RM. 901, KOLON SCIENCE VALLEY 2-CHA, 811, GURO 3-DONG, GURO-GU, SEOUL, KOREA

TEL:+82-2-2025-0066 FAX:+82-2-2025-4935

VALTECH CO., LTD.

19TH FL., GATEWAY TOWER BLDG., 12, DONGJA-DONG, YONGSAN-GU, SEOUL, KOREA

TEL:+82-2-727-5600 FAX:+82-2-727-5678

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

ANTIC GAMES CO., LTD.(110111-4256487)

Sales by Region

(Activity & Markets)

Sales/ Unit :Mil KRW	06/2012	2011	2010
Export	30,690	72,627	81,728
Domestic	691	1032	0
Total	31,381	73,659	81,728

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.53
UK Pound	1	Rs.86.82
Euro	1	Rs.69.03

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.