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Interactive Q&A: Simon Fu, CFO of China Expert Technology (CXTI.OB)

Simon,

First, congratulations on a few very successful years. I have several questions, and to the extent you can answer them I would greatly appreciate it:

1. CXTI has landed numerous substantial e-government contracts in the Fujian province. At some point, I imagine that most of the larger governments will have at least a basic level of e-government services in place and the contracts will shift from larger implementation projects to smaller maintenance and improvement contracts. Is this assumption correct, and if so when do you see the market in Fujian maturing?

2. CXTI has recently announced contracts outside Fujian province. Looking out three to five years, what percentage of new revenues would you expect to see from non-Fujian contracts? How important has the consultant CXTI retained been in landing these contracts?

3. Now that CXTI has cleared up the debentures, what steps does it intend to take to upgrade its listing to Amex or (preferably) Nasdaq smallcap?

4. Are there any changes likely in the tax rates paid by CXTI in coming years?

Thank you for your consideration of these issues.

The Microcap Speculator
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