On September 5, 2006, Pay88, Inc. ("Pay88'') entered into a Share Purchase Agreement with the shareholders of Chongqing Qianbao Technology Ltd. ("Qianbao''), a limited liability company based in Chongqing, China.

Pursuant to the Agreement, Pay88 acquired Qianbao by purchasing 100% of Qianbao's registered capital stock in exchange for 5,000,000 shares of Pay88's Series A Convertible Preferred Stock. A complete description of such transaction, including the terms of the preferred stock, is contained in the Current Report on Form 8-K filed by Pay88 with the Securities and Exchange Commission on September 6, 2006.

"We believe that the acquisition of QianBao Technology will add value to Pay88 by adding complementary product lines, improved technology and strengthening of our online marketing ability that will allow us to quickly broaden our online market penetration,'' said Guo Fan, Pay88's CEO. "This acquisition allows us to gain swift and respectable access to the huge and ever growing Chinese market. We are extremely excited by the positive implications this acquisition has to our future.''

Mr. Tao Fan, CEO of ChongQing Yahu Information Development Company and a major stockholder of Qianbao added, ``Qianbao's staff of 48 employees have been working feverishly on improving the online payment platform to make it an easy and enjoyable experience to our clients. Qianbao has the marketing team and technology in place to aggressively pursue customer growth and add value to Qianbao's loyal shareholder base.''

Simultaneous with the closing of the transaction, whereby Qianbao became a wholly owned subsidiary of Pay88, Lin Xu and Shiging Fu were nominated to the Board of Directors of Pay88.

Source:佚名