We, Actions Semiconductor Co., Ltd., are an exempted company incorporated under
the Companies Law (2004 Revision) of the Cayman Islands on July 27, 2005 for the
purpose of becoming the sole shareholder of Actions Semiconductor Co., Ltd., a
“category 2” global business company incorporated in the Republic of Mauritius,
which we refer to as Actions Semiconductor (Mauritius). A category 2 global
business license is issued by the Financial Services Commission of Mauritius to
a private company carrying on a qualified global business in a currency other
than the Mauritian currency with persons who are resident outside of Mauritius.
A preferential tax regime is applicable in Mauritius to a company holding a
category 2 global business license. In August 2005, we issued 480 million shares
to shareholders of Actions Semiconductor (Mauritius) in consideration for 100%
of its share capital.  ...