The Company has signed a contract to provide DVRs to replace those in the 400 ATMs of the Beijing branch of China Construction Bank. This contract illustrates the effect of the government legislation, mentioned above, that requires banks to replace all DVRs that are more than five years old. BlueStar has been the sole provider of DVR products to the Beijing branch of China Construction Bank since 2003 and has now been selected to provide their latest series of DVRs as replacements to comply with the legislation. China Construction Bank is the third largest bank in China and this contract demonstrates the quality and competitiveness of BlueStar's products.

In addition to this, the Company has agreed to supply its DVRs and video networking software solutions to the Beijing branch of Huaxia Bank, the Beijing branch of China Everbright Bank and the Tianjin branch of Bank of China. The Board is pleased to announce these contract wins and is hopeful they will lead to repeat business of the nature described above for China Construction Bank.

BlueStar has also signed a contract to provide its software to the An Heng Testing Company to update the 3000 and 4000 BlueStar DVR series which were installed in the Agricultural Bank of China by BlueStar. This contract is part of an ongoing process that the Agricultural Bank of China are undertaking in order to ensure their DVRs are networked across all branches.

Commenting on the agreement, Xiao Gang, Chief Executive Officer of BlueStar said: "As a result of the legislation and subsequent increase in networking projects, BlueStar has been helping companies to transfer from a simple DVR setup to a more complex integrated and networked solution. BlueStar is therefore in a more competitive position moving forward and has excellent visibility of revenue."

"The contract with the Beijing branch of China Construction Bank also marks an important step in the Company's development. Repeat business of this nature indicates that our DVR and software solutions are establishing a stronghold in the market and being recognised as innovative and technologically advanced products."