EIGER TECHNOLOGY, INC.

Unaudited Consolidated Financial Statements

For the nine months ended June 30, 2003

Monteith, Monteith & Co.

Chartered Accountants

208 Ontario Street

Stratford, Ontario N5A 3H4

Telephone: (519) 271-6550 Fax: (519) 271-4796

E-mail: "administrator@monteith.on.ca">administrator@monteith.on.ca

August 12, 2003

To: The Audit Committee of Eiger Technology, Inc..

Dear Sirs/Mesdames:

In accordance with our engagement letter dated August 5, 2003, we have reviewed the consolidated balance sheets of Eiger Technology, Inc. as at June 30, 2003 and September 30, 2002, and the consolidated statements of operations and retained earnings, and cash flows for the nine month periods ended June 30, 2003 and June 30, 2002. These consolidated financial statements are the responsibility of the Companys management.

We performed our review in accordance with Canadian generally accepted standards for a review of interim financial statements by an entitys auditor. Such an interim review consists principally of applying analytical procedures to financial data, and making enquiries of, and having discussions with, persons responsible for financial and accounting matters. An interim review is substantially less in scope than an audit, whose objective is the expression of an opinion regarding the financial statements; accordingly, we do not express such an opinion. An interim review does not provide assurance that we would become aware of any or all significant matters that might be identified in an audit.

Based on our review, we are not aware of any material modification that needs to be made for these interim consolidated financial statements to be in accordance with Canadian generally accepted accounting principles.

This report is solely for the use of the audit committee of Eiger Technology, Inc. to assist it in discharging its regulatory obligation to review these consolidated financial statements, and should not be used for any other purpose. Any use that a third party makes of this report, or any reliance or decisions made based on it, are the responsibility of such third parties. We accept no responsibility for loss or damages, if any, suffered by any third party as a result of decisions made or actions taken based on this report.

Sincerely,

Monteith, Monteith & Co.

CHARTERED ACCOUNTANTS

EIGER TECHNOLOGY, INC.

Unaudited Consolidated Balance Sheet

June 30 September 30

2003 2002

$ $

Assets

Current

Cash and Marketable Securities 1,027,000 3,635,000

Accounts Receivable 5,716,000 5,004,000

Inventories 5,010,000 4,493,000

Prepaid Expenses 699,000 378,000

12,452,000 13,510,000

Capital 4,340,000 4,867,000

Long-term Investments 1,641,000 1,650,000

Goodwill 2,274,000 3,013,000

Future Income Tax Benefit 249,000 --

Other 896,000 718,000

21,852,000 23,758,000

Liabilities and Shareholders Equity

Current

Bank Indebtedness 1,388,000 4,028,000

Accounts Payable and Accrued Liabilities 9,801,000 4,395,000

Current Portion of Long-term Debt 145,000 145,000

11,334,000 8,568,000

Long-term Debt 765,000 940,000

Non-Controlling Interest (2,829,000) (1,873,000)

Shareholders Equity

Share Capital 42,707,000 42,235,000

Contributed Surplus 217,000 217,000

Retained Earnings (Deficit) (30,342,000) (26,329,000)

12,582,000 16,123,000

21,852,000 23,758,000

On Behalf of the Board:

Gerry Racicot Director

_{Gerry
Racicot}

Keith Attoe Director

_Keith
Attoe

EIGER TECHNOLOGY, INC.

Unaudited Consolidated Statement of Operations and Retained Earnings

For the nine months ended June 30 2003 2003 2002 2002 (Current Quarter) (Year-to-date) (Current Quarter) (Year-to-date)

$ $ $ $

Sales 5,928,000 18,447,000 3,796,000 13,274,000

Cost of Sales 5,153,000 15,820,000 3,357,000 11,559,000

Gross Margin 775,000 2,627,000 439,000 1,715,000

Expenses

Selling, General and Administrative 1,559,000 4,848,000 1,819,000 6,230,000

Amortization of Capital Assets 164,000 420,000 91,000 265,000

Amortization of Goodwill and Other Assets 38,000 114,000 60,000 208,000

Interest on Long-term Debt 16,000 32,000 -- --

Other Interest and Bank Charges 70,000 286,000 132,000 368,000

Discontinued Operations (Net) 93,000 226,000 58,000 148,000

1,940,000 5,926,000 2,160,000 7,219,000

Income (Loss) from Operations (1,165,000) (3,299,000) (1,721,000) (5,504,000)

Loss on Discontinued Operations (1,686,000) (1,686,000) -- --

Other Income (Expense) 89,000 54,000 36,000 199,000

Income before Taxes (2,940,000) (4,931,000) (1,685,000) (5,305,000)

Provision for Income Taxes Future (113,000) (249,000) (378,000) (378,000)

Income before Non-controlling Interest (2,827,000) (4,682,000) (1,307,000) (4,927,000)

Non-controlling Interest (281,000) (669,000) (203,000) (1,458,000)

Net Income (Loss) for the Period (2,546,000) (4,013,000) (1,104,000) (3,469,000)

Retained Earnings (Deficit),

Beginning of Period (27,796,000) (26,329,000) (23,456,000) (21,091,000)

Retained Earnings (Deficit),

End of Period (30,342,000) (30,342,000) (24,560,000) (24,560,000)

EIGER TECHNOLOGY, INC.

Unaudited Consolidated Statement of Cash Flows

For the nine months ended June 30 2003 2003 2002 2002

(Current Quarter) (Year-to-date) (Current Quarter) (Year-to-date)

$ $ $ $

Operating Activities

Net Income (Loss) for the Period (2,546,000) (4,013,000) (1,104,000) (3,469,000)

Items not Involving Cash

Loss on Discontinued Operations 1,686,000 1,686,000 -- --

Provision for Income Taxes Future (113,000) (249,000) -- --

Amortization 227,000 610,000 180,000 560,000

(746,000) (1,966,000) (924,000) (2,909,000)

Changes in Non-cash Operating Accounts

Accounts Receivable 341,000 (712,000) 478,000 4,594,000

Inventories 1,038,000 (1,056,000) (176,000) 1,149,000

Prepaid Expenses (30,000) (321,000) (124,000) 470,000

Accounts Payable 711,000 5,406,000 143,000 (2,292,000)

Non-controlling Interest (313,000) (758,000) (440,000) (1,458,000)

(1,075,000) 593,000 (1,043,000) (446,000)

Investment Activities

Sale (Purchase) of Capital Assets 820,000 (799,000) (595,000) (829,000)

Long-term Investments -- 9,000 39,000 140,000

Goodwill and Other Assets 51,000 (226,000) 3,000 294,000

871,000 (996,000) (553,000) (395,000)

Financing Activities

Operating Line of Credit (122,000) (2,640,000) (172,000) 1,442,000

Long-term Debt (30,000) (175,000) (370,000) (369,000)

Non-controlling Interest - -- 138,000 115,000 (4,000)

Common Shares Issued 185,000 472,000 117,000 235,000

33,000 (2,205,000) (310,000) 1,304,000

Net Cash Flows for the Period (171,000) (2,608,000) (1,906,000) 463,000

Cash and Cash Equivalents,

Beginning of Period 1,198,000 3,635,000 8,362,000 5,993,000

Cash and Cash Equivalents,

End of Period 1,027,000 1,027,000 6,456,000 6,456,000

Cash and Cash Equivalents Represented

By: Cash and Marketable Securities 1,027,000 1,027,000 8,362,000 8,362,000

EIGER TECHNOLOGY, INC.

Notes to the Consolidated Financial Statements

For the nine months ended March 31, 2003

Significant Accounting Policies:

Except that the Company now measures stock-based compensation using the fair value method, these interim financial statements have been prepared using the same accounting principles and the same methods of application as were used in the preparation of the Companys annual financial statements for the year ended September 30, 2002. These interim financial statements may not contain all the disclosures necessary to be fully in accordance with Canadian generally accepted accounting principles, and should, therefore, be read in conjunction with the annual financial statements for the year ended September 30, 2002.

The effect of the change in accounting policy from the intrinsic value method to the fair value method of measuring stock-based compensation has not been determined.

Capital Assets:

&nb sp; $

Balance per September 30, 2002 financial statements 4,867,000

Telephone sub-assembly equipment EigerNet, Inc. plant in South Korea 1,594,000

Disposal of leased assets EigerNet, Inc. plant in South Korea (820,000)

Write-down of Capital Assets of Discontinued Operation (811,000)

Other additions and disposals 5,000

Amortization provided for nine months (495,000)

Balance June 30, 2003 4,340,000

Reconciliation to U.S. GAAP:

Relevant differences between accounting principles generally accepted in Canada (Cdn. GAAP) compared to those principles generally accepted in the United States of America (.US. GAAP) are as follows:

U.S. GAAP requires that all organization costs (including those previously deferred) be expensed currently. Also, all product development costs are to be expensed as incurred. Cdn. GAAP permits the deferral and amortization of these costs when certain conditions are met.

U.S. GAAP requires the measurement and reporting of comprehensive income. Comprehensive income includes net income and all other changes to shareholders equity other than amounts received from or paid to shareholders. The only reportable comprehensive income item for the Company relates to foreign currency translation adjustments as described below.

U.S. GAAP requires the use of the current rate method of foreign currency translation, with any resulting foreign exchange translation adjustments forming part of comprehensive income for the year and accumulating as a separate component of shareholders equity.

SFAS 123 recommends that the fair market value method be used to measure stock-based compensation, although APB Opinion 25 permits the use of the intrinsic method. While the intrinsic method was generally used in Canada, the fair value method is now required.

EIGER TECHNOLOGY, INC.

Notes to the Consolidated Financial Statements

For the nine months ended June 30, 2003

Reconciliation to U.S. GAAP continued:

Reconciliations: Year to Date Year to Date

June 30 June 30

2003 2002 $ $

Net Income

- per Cdn. GAAP (4,013,000) (3,469,000)

- expense current product development costs - -- --

- add back amortization of deferred costs -- 119,000

- adjustments to non-controlling interest and future taxes -- (42,000)

- foreign currency translation adjustment (9,000) 391,000

- per U.S. GAAP (4,022,000) (3,001,000)

Comprehensive item foreign currency translation 9,000 (391,000)

Comprehensive Income (4,013,000) (3,392,000)

Accumulated Other Comprehensive Items

- per Cdn. GAAP - -- --

- cumulative foreign currency translation adjustments (658,000) (627,000)

- per U.S. GAAP (658,000) (627,000)

Retained Earnings (Deficit)

- End of Period per Cdn. GAAP (30,342,000) (24,560,000)

- expense deferred product development costs net of

portion relating to non-controlling interest (179,000)

- foreign currency translation adjustments 658,000 627,000

- future income tax savings related to above -- 58,000

- End of Period per U.S. GAAP (29,684,000) (24,054,000)

Total Assets

- per Cdn. GAAP 21,852,000 25,400,000

- expense deferred product development costs -- (179,000)

- increase in future income tax assets - -- 58,000

- per U.S. GAAP 21,852,000 25,279,000

EIGER TECHNOLOGY, INC.

Notes to the Consolidated Financial Statements

For the nine months ended June 30, 2003

Discontinued Operations:

Effective June 30, 2003, management resolved to discontinue the operations of its Newlook segment. On July 8, 2003, the assets of ADH Custom Metal Fabricators Inc., the operating company of the segment, were sold for total cash proceeds of $256,000. A loss on disposition, net of the portion attributable to the non-controlling interest, of $1,686,000 has been recognized in the current quarter. Operating results to June 30, 2003 are reported, in summary, as Discontinued Operations on the Statement of Operations and Retained Earnings. Comparative figures for the prior year have been restated accordingly.

Contingent Liabilities:

The Company has been named as a defendant in two separate lawsuits. One suit alleges that the Company has infringed on the plaintiffs patent rights in connection with the manufacturing of MP3 players. No monetary value has, as yet, been attached to this suit. Management believes that no patent infringement has occurred, and is vigorously defending their position.

The other suit is by a former corporate shareholder, the management of which is disputing the value used to calculate the proceeds of redemption of the shares formerly held. They are seeking additional proceeds of $207,000 plus punitive damages of $250,000. Management is of the opinion that this action is frivolous, and will be successfully defended.

Segmented Information:

Segmented information is presented on the following two pages. The segment previously referred to as ADH is now known as Newlook.

EIGER TECHNOLOGY, INC.

SEGMENTED INFORMATION

June 30, 2003 __________________ &nb sp; Totals per All Reconciling Financial

Newlook K-Tronik Onlinetel Eiger Others Items Statements

Current Year to Current Year to Current Year to Current Year to Current Year to Current Year to Current Year to

Quarter Date Quarter Date Quarter Date Quarter Date Quarter Date Quarter Date Quarter

$ $ $ $ $ $ $ $ $ $ $ $ $ $

Sales:

External - -- - -- 2,432,000 7,092,000 1,281,000 3,525,000 2,215,000 7,830,000 -- - -- - -- - -- 5,928,000 18,447,000

Cost of Sales - -- - -- (1,797,000) (5,233,000) (1,007,000) (2,814,000) (2,349,000) (7,773,000) - -- - -- -- - -- (5,153,000) (15,820,000)

Loss on Discontinued Op. (1,686,000)(1,686,000) - -- - -- - -- - -- - -- -- - -- - -- - -- - -- (1,686,000) (1,686,000)

Other Income (Expenses) (93,000) (226,000) (987,000) (2,844,000) (327,000) (1,011,000) (305,000) (885,000) (317,000) (906,000) - -- - -- (2,029,000) (5,872,000)

(1,779,000)(1,912,000) (352,000) (985,000) (53,000) (300,000) (439,000) (828,000) (317,000) (906,000) - -- - -- (2,940,000) (4,931,000)

Future Income Taxes 23,000 58,000 90,000 191,000 113,000 249,000

Non-controlling Interest - -- - -- 120,000 288,000 - -- - -- 161,000 381,000 - -- - -- - -- - -- 281,000 669,000

Net Income (Loss) (1,779,000) (1,912,000) (232,000) (697,000) (30,000) (242,000) (278,000) (447,000) (227,000) (715,000) - -- - -- (2,546,000) (4,013,000)

Totals per

All Reconciling Financial

Newlook K-Tronik Onlinetel Eiger Others Items Statements

June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30

2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002

$ $ $ $ $ $ $ $ $ $ $ $ $ $

Current Assets:

Cash 17,000 232,000 79,000 442,000 25,000 77,000 583,000 1,679,000 323,000 1,205,000 - -- - -- 1,027,000 3,635,000

Accounts Receivable 207,000 305,000 1,891,000 2,200,000 651,000 567,000 2,819,000 1,791,000 148,000 212,000 - -- (71,000) 5,716,000 5,004,000

Inventory 27,000 704,000 3,207,000 2,526,000 - -- - -- 1,776,000 1,263,000 - -- - -- - -- - -- 5,010,000 4,493,000

Prepaid Expenses (3,000) 9,000 263,000 238,000 36,000 14,000 404,000 78,000 (1,000) 39,000 - -- - -- 699,000 378,000

248,000 1,250,000 5,440,000 5,406,000 712,000 658,000 5,582,000 4,811,000 470,000 1,456,000 - -- -- 12,452,000 13,510,000

Capital Assets 743,000 1,650,000 660,000 490,000 1,113,000 1,219,000 1,712,000 1,401,000 112,000 107,000 - -- - -- 4,340,000 4,867,000 Long-term Investments - -- - -- - -- - -- 8,000 -- 1,633,000 1,527,000 - -- 123,000 - -- - -- 1,641,000 1,650,000 Future Income Tax Benefit - -- - -- - -- - -- 58,000 - -- - -- - -- 191,000 - -- - -- - -- 249,000 -- Goodwill and Other -- 673,000 1,115,000 1,116,000 1,360,000 1,360,000 687,000 555,000 8,000 27,000 - -- - -- 3,170,000 3,731,000

Total Assets 991,000 3,573,000 7,215,000 7,012,000 3,251,000 3,237,000 9,614,000 8,294,000 781,000 1,713,000 - -- - -- 21,852,000 23,758,000

EIGER TECHNOLOGY, INC.

SEGMENTED INFORMATION

June 30, 2002

&nb sp; Totals per

All Reconciling Financial

Newlook K-Tronik Onlinetel Eiger Others Items Statements

Current Year to Current Year to Current Year to Current Year to Current Year to Current Year to Current Year to

Quarter Date Quarter Date Quarter Date Quarter Date Quarter Date Quarter Date Quarter Date

$ $ $ $ $ $ $ $ $ $ $ $ $ $

Sales:

External - -- - -- 2,742,000 7,463,000 324,000 1,068,000 730,000 4,743,000 -- - -- - -- - -- 3,796,000 13,274,000

Cost of Sales - -- - -- (2,111,000) (5,693,000) (302,000) (900,000) (944,000) (4,966,000) - -- -- - -- - -- (3,357,000) (11,559,000)

Other Expenses (58,000) (148,000) (766,000) (3,119,000) (508,000) (1,575,000) (409,000) (1,049,000) (383,000)(1,129,000) -- -- (2,124,000) (7,020,000)

(58,000) (148,000) (135,000) (1,349,000) (486,000) (1,407,000) (623,000) (1,272,000) (383,000)(1,129,000) - -- - -- (1,685,000) (5,305,000)

Future Income Taxes 378,000 378,000 378,000 378,000

Non-controlling Interest - -- - -- 107,000 240,000 - -- - -- 96,000 1,218,000 - -- - -- - -- - -- 203,000 1,458,000

Net Income (Loss) (58,000) (148,000) (28,000) (1,109,000) (486,000) (1,407,000) (149,000) 324,000 (383,000) (1,129,000) - -- - -- (1,104,000) (3,469,000)

Totals per

All Reconciling Financial

Newlook K-Tronik Onlinetel Eiger Others Items Statements

June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30 June 30 Sept.30

2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001

$ $ $ $ $ $ $ $ $ $ $ $ $ $

Current Assets:

Cash 185,000 312,000 45,000 147,000 12,000 208,000 4,585,000 1,461,000 1,629,000 3,865,000 - -- - -- 6,456,000 5,993,000

Accounts Receivable 331,000 344,000 1,951,000 2,102,000 267,000 173,000 1,582,000 6,098,000 34,000 42,000 - -- - -- 4,165,000 8,759,000

Inventory 803,000 875,000 3,482,000 3,650,000 - -- - -- 1,111,000 2,020,000 - -- - -- - -- - -- 5, 396,000 6,545,000

Prepaid Expenses 11,000 3,000 255,000 243,000 10,000 4,000 11,000 442,000 12,000 77,000 - -- - -- 299,000 769,000

1,330,000 1,534,000 5,733,000 6,142,000 289,000 385,000 7,289,000 10,021,000 1,675,000 3,984,000 - -- - -- 16,316,000 22,066,000

Capital Assets 1,650,000 1,721,000 518,000 660,000 1,287,000 724,000 1,455,000 1,320,000 110,000 116,000 - -- - -- 5,020,000 4,541,000 Long-term Investments - -- - -- - -- - -- 7,000 -- 134,000 80,000 123,000 324,000 - -- - -- 264,000 404,000 Goodwill and Other 789,000 379,000 1,122,000 1,182,000 1,360,000 1,314,000 497,000 789,000 32,000 46,000 - -- - -- 3,800,000 3,710,000

Total Assets 3,769,000 3,634,000 7,373,000 7,984 ,000 2,943,000 2,423,000 9,375,000 12,210,000 1,940,000 4,470,000 - -- - -- 25,400,000 30,721,000