Haluya medical equipment division 15 th June, 2011

1. Business Development Plan of Digital Dental X-ray Equipment in China Haluya medical equipment division 15th June, 2011

2. contents • China Dental service market • 2. Haluya Medical equipment business • 3. Support from Raymedical

3. China Dental service market • 1.1 Numbers of Dental Office in China • 1.2 Numbers of Dental Office & Hospital • 1.3 Dental Equipment Market • 1.4 Sales Quantity • 1.5 Competitors • 1.6 Digital X-ray Dental products and price concept • 1.7 general dental service requested from common Chinese people • 1.8 special points of the sales of dental equipment to hospital

5. 1.3 Dental Equipment Market Remark:“Y” in the table means: The Dental Institution owns this kind of equipment, but we don‘t have the brand name and model info.

6. 1.3 Dental Equipment Market Remark:"Y" in the table means: The Dental Institution owns this kind of equipment, but we don't have the brand name and model info.

7. 1.4 Sales Quantity

8. 1.5 Competitors

9. 1.6 Digital X-ray Dental products and price concept - Digital X-ray Panorama system has roughly 55% market share. - CBCT has 30% share and 3in1 system takes 15% shares. - the range of contract price with final user ( hospital ) is: RMB 180,000 – 1,250,000. - the reasons for a big price range: * different functions ( configurations ): single panorama function panorama + CBCT panorama + CBCT + Cephalo + image reconstruction * different brand value, reputation and the quality impression * different warranty period ( 1 year to 3 year ) and after service terms * different rebate term ( private hospital, public hospital) * different economy condition area ( rich and poor provinces ) - products from Sirona(Siemens) is the most expensive one and Vatech products is the cheapest in foreign brands group. - the price of domestic products is much cheaper than foreign products. - there is not a clear price concept even for a exactly same product from a same supplier because quite complicated background and promotion cost. - Chinese and foreign experts in medical equipment field believe: comparing global market, the contract price of digital x-ray products in China is the lowest one.

10. 1.6 Digital X-ray Dental products and price concept --- continuous

11. 1.7 general dental service requested from common Chinese people - Chinese people are getting rich, the living quality is improving rapidly. - more and more attention to healthy, including the healthy of tooth - new generation of parents prefer to spend more money to calibrate the tooth of their children, especially for the young girls. - much more money are spent to repair the teeth, one man-made tooth can be as expensive as RMB10,000. - more and more private dental offices and hospitals were founded in China - so, bigger and bigger request for modern dental medical service and new digital radiography equipment - new dental hospitals made their advertisement by telling they have some new and modern dental equipment.

12. 1.8 special points of the sales of dental equipment to hospital * different ownerships of the hospital government hospital hospital of medical university hospital of big group enterprise army hospital private hospital * big price range of the x-ray dental equipment depending up the ownerships * after service is important *

13. 2. Haluya Medical Instrument business 2.1 general introduction of Haluya group 2.2 the new business in medical area 2.3 marketing strategy 2.4 cooperation proposal with Ray Medical 2.5 sales network 2.6 technical support and after service 2.7 The advantages of Haluya

14. 2.1 general introduction of Haluya group * Haluya was founded in 1994 in Shenzhen. headquarters: Shenzhen subsidiary: Beijing Shanghai branch: Hong Kong main business: professional distribution of electronics components annual sales volume in 2010: US$100 million employees: 120 * Haluya has been authorized distributor of Samsung electronics components since 1996.

15. 2.1 general introduction of Haluya group * Haluya has established a professional distributing system covering whole China market. * meaning of professional distribution: - experienced and powerful sales ability - offering technical support - keeping stock - effective logistic service

16. 2.2 the new business in medical area * Haluya has been researching medical service area of China for years. * Haluya started business in medical x-ray equipment area in 2010: distributing flat panel digital x-ray detectors of Samsung Mobile Display. * Haluya became the exclusive distributor of Flat panel DR detectors of Samsung Mobile Display in China in Q4 2011.

17. 2.2 the new business in medical area -- continuous * sales record of DR detectors from beginning * the good sales of Haluya attracted more Korea companies are going to cooperate with Haluya: - Mammography detector from Humanray - PACS software from Imfo U - and some others

18. 2.2 the new business in medical area * Haluya got familiar with medical equipment area through DR panel distributing business. * Haluya decided to do medical equipment business. By using the name and the professional distributing system of Haluya: to distribute advanced technology and products from Korea * founded a new joint venture company: Olymmed Medical in Beijing 中关村 - to promote system level products business in China mainland with Olymmed brand: - system integration of technology and system level product, focusing on digital x-ray system level products: standard DR system digital x-ray dental system digital x-ray mammography system - oem products from abroad partners who has advanced technology and engineering product. - closely following government principle of development public medical service system.

19. 2.3 marketing strategy - China started a fast-development period of public medical service system, according to the 12th national 5-year general development plan. the plan described the tasks and target very clear in the special section: chapter 34完善基本医疗卫生制度 --- construct basic medical system and regulation. 5 important points: * improve medical security system for city and countryside people * improve national public health system * improve the medical service to countryside people * construct national training system for doctors * build up information system of healthy and medical management - what government did in 2010 invested RMB 800 billion to the public healthy and medical system to improve hardware and software conditions. special support to develop domestic medical equipment industry.

20. 中国第十二个五年规划 第 八 篇　 改善民生　建立健全基本公共服务体系　 第三十四章　 完善基本医疗卫生制度

21. 8th September, 2010, President Jintao Hu visited Shenzhen Mindray, expressed powerful support to domestic medical industry.

22. 2.3 marketing strategy • - Haluya will closely research and follow the strategy from central government. • - in accordance the government strategy, Haluya will research target market, define and organize products. • target market: middle level city and below market. • product: middle and low level • - research and analysis competitors and their products in detail: • brand • marketing • products functions, performance, price, after service, warranty terms, quality and reliability • sales and distributing channel management • - start marketing in the sales areas at the same time of applying SFDA: • make advertisement on professional medical media. • marketing activities, • joint professional shows and conferences. • arrange special papers on hard media and web.

23. 2.4 cooperation proposal with Ray Medical • Haluya: • - supporting Raymedical to develop business in China: • - investigating market: • detail requirement from final customers • competitors and their products • … • - supporting Raymedical to apply SFDA for its products • - working language: English • - arrange a special translator: Korea and Chinese • - set up a team including marketing, sales, and after service members. • - marketing • - distributing Ray’s full range of digital dental x-ray products. • - offering technical support and after service • - effective use current resources of Haluya in Beijing, Shanghai, Shenzhen and Hong Kong. • - set up branches in Chengdu and Shenyang in 2012 • - the support from Raymedical is quite important: • technical training • sales training • share global market information from RayMedical • effective technical support to solve urgent and difficult problems

24. 2.4 cooperation proposal with Ray Medical - a special company invested mainly by Haluya. This is “Beijing Olymmed Medical” Chinese name: 北京欧林美帝医疗设备有限公司 - Meaning of Olymmed Olymmed = Olympic + medical Olympic: - higher, faster and stronger - healthy - international Medical: - focusing on digital radiography medical technology and equipment - focusing on cooperation with advanced partners - focusing on China mainland market - focusing on middle city and below level market - focusing on various applications of radiography technology - Olymmed will OEM middle and lower level products from RayMedical - SKD method - Olymmed will never doing designing and basic manufacturing of the medical equipment - Olymmed will apply SFDA for the products, using Olymmed brand - Olymmed, as a domestic brand, can share the special support terms from government. - Olymmed will share the general resources from Haluya Group

25. 2.5 sales development plan • Haluya is building distribution channels by step for selling the digital x-ray product. • increase market area and sales staff every year. And give them training. Each salesman covers two provinces. • Try to training salesmen to become sales engineers. • Small office or home office. • Sales director visit province branch, distributors and customers regularly. • Set up technical support team at the same time.

26. 2.6 technical support and after service - build technical support team: technical support center: Beijing increase FAE every year, step by step. arranged one FAE for every salesman and covers two provinces. special training will be finished before starting sales supporting sales activity and offering after service visiting customers regularly.

27. 2.7 The advantages of Haluya * fully understand Chinese culture and Industry area president Nan and another 5 staffs can speak Korean. * a professional distributor of electronic products * long term cooperation experience with Korea industry, especially Samsung. * there is an international and experienced IT technology team * effective technical support team, offering after service to final customers. * special government support

28. Support from Raymedical • - training on sales • - co-marketing for Ray brand product • - training of technical support and after service

29. Thanks www.haluya.com