Development of the Technology

Northport's China subsidiary originally established an on-line tax payment intranet system that required review and approval from both banking and tax bureau agencies. As a result, the core technology is acceptable to financial institutions and allows for secure accounting and payment processing procedures. This original platform technology known as Tenet, is still utilized by China corporate users.

Looking for additional uses for its technology, Northport noted the dramatic increase in sales of digital cameras and a lack of places to develop the photos. Since the end of 2005, an increase of 30% to 50% for digital printing has been shown in larger cities- in fact, higher than for traditional film printing. In addition, there are now millions of mobile phones with a camera function, and these camera cellular phones are expected to reach a level of 70% in the China market. There are currently over 550 million cell phones in China.

In 2005, using the Tenet platform, the management of Northport Beigang began the funding and development of a photo processing technology, and a trade name of Colorstar was registered with the China State Administration for Industry and Commerce in China as well as a Chinese patent applied for on the technology.

Subsequently, a user-operated, stand alone, digital photo developing and printing network operating system was developed. Controlled through a proprietary network server with terminals and self serve digital photo developing printers, the stand-alone devices provide users with digital print images equivalent to regular photographic pictures.?

Installed Beta test units provided market research in Beijing, Shenyang and Dalian and included sampling from consumers (local citizens, tourists and professionals), imaging shop proprietors (color film processing shops and photo-printing collection agencies), as well as convenience stores, lottery shops and advertising agencies and companies.

Colorstar kiosks have been develope