Spread 2008 Business Plan

1. Opportunity of Spread • Maintain Spread HK /Taiwan/PRC market share • Gain market share/profit from current business • Extend 30 % share of new business other than Foxconn • Streamline Spread business for South and Centre China . • Link Spread Taiwan and Spread HK or other area to provide • total inbound supplier chain solution to customer . Spread 2008 Business Plan

2. How to Achieve 1. Maintain/Extend Spread HK /Taiwan/PRC Market share( import and export) Current revenue (HK$)Current Gross Margin (HK$) Taiwan 230,000 60,000-75,000 80% of Taiwan business is come from Foxonn nomination cargo, and 20% is come from TPK import/export, Zylux import, and agent handling charge. Recent and Future development in sea and air forwarder a.DDU and CIF shipment from existing Spread warehouse supplier b.TPK/HTC program will implement on end of Feb., forecast air 10,000 kgs per month with Revenue: HK$110,000 gross margin :HK$ 10,000 c. Gain Foxconn Singapore nomination approx 25000-30,000 kgs per month Revenue: HK$ 210,000-257,400 gross margin :HK$ 100,000- 120,000 d. Seek Foxconn USA air nomination from Chicago Revenue and gross margin under pending due still need to work with agent for quotation and comparison. f. Secure nomination for Zylux/Delphi China export sea shipment Revenue: HK$ 140,400 gross margin :HK$ 9,360 Estimate total Revenue: HK$ 460,400 gross margin HK$119,360

3. How to Achieve 2. Extend business other than Foxonn Account: Zylux Acoustics( Taiwan base) Service requirement: Import/export cargo management Commodity: Speaker and parts material from USA and Asia. Service items: 1.HK local pick up 2.Warehouse management/storage 3. consolidation and cross border truck 4. import/re export clearance arrangement 5. China export truck and HK local delivery to end customer’s warehouse such as: DHL, EGL, APLL etc. 6.Forwarding service 7.China inspection 8.RMA and other re handling service Estimate cargo quantity: 100-150 pallets per month with size110x110x110/pallet Estimate warehouse and other service revenue about HK$ 12,000-15,000/month but not including any other service charge.

4. How to Achieve 2. Extend business other than Foxonn Account: Wintex Garments Service requirement: import/ export cargo management Commodity: Garments for export and material for import Service items: 1. China export truck and HK local delivery to end customer’s nominate warehouse such as: Maersk Logistics, NYK Logistics, APLL etc. 2.Warehouse management/storage 3. import/re export clearance arrangement 5. China export truck and HK local delivery to end customer’s warehouse such as: DHL, EGL, APLL etc. 6.Forwarding service 7.China inspection 8.RMA and other re handling service Estimate cargo quantity: 100-150 pallets per month with size110x110x110/pallet Estimate warehouse and other service revenue about HK$ 12,000-15,000/month but not including any other service charge.

5. Inbound Supplier Chain Flow Analysis Vertical + Horizon Customer/ supplier Identify customer and traget a.Foxconn nomination (done) b. Tie-in DDU, DDP, CIF shipment from current Foxconn supplier(5% today) c.Spread current warehouse supplier and extend other business opportunity(List+follow up) d. Extend other business from Spread current supplier .(sales call+ contact ) e.Other customer – TPK, Zylux , Wintex and others Origin Transportation (sea/air) Current Twn with Rev. /margin Future Sin margin estimate HK$80,000 And USA Chicago and new DDU/DDP customers New nomination Relay Hub Warehouse Current supplier data Base to filter the Supplier list to define Target Account Capable Sales and CSR Local delivery Cross border truck Value-added Service to linkage With Hub and origin service , also may Extend to Export Resource + New needs Cnee/Factory

6. Maintain service for nominated Foxconn Air and Sea shipments, • Service typeVolume/monthlyRev./US$Contribution US$ • Sea 20-25 container 10,000 2,500-3,000 • Air 8,000- 12,000 kgs 10,700-175,000 7,000-8,500 • Maintain and develop business for TPK • Currently Taiwan to Xmn 350-500 kgs 7,000 1,000 • Future opportunities: air truck to Suzhou BLP, truck to HK, material inbound from Asia and Taiwan • . RMA shipment, etc. • Develop and search most appropriate co-loader and agents in market to build up the competitive position of Spread and support more function to IT customer ( direct or in-direct) • Solicit Spread total solution business to VMI customer or non- Foxconn tie- in vendors • Develop non-IT shipment for Spread Solution • Wintex, Coddys- Garments and other items • ( HK warehouse, cross broader truck from Dongguan and Hu Nan) revenue and volume still under review • Tempered- Bath room acessories/ pluming / hardware( Yantian and Xiamen warehouse Agenda for Spread Business Plan

7. Spread Taiwan 2007 Cost Analysis( monthly) Taiwan Revenue Taiwan CostNT$375,000/month

8. Issues for discussion of Spread Taiwan • Share holder’s percentage • Opening cost( mainly cost on harbor beau's deposit- total NT$ 680,000) • Monthly Cost cash flow for first three month ( July, Aug. and Sept.) • Co-loader selection

9. SPREAD TAIWAN BUSINESS DIRECTION • Mission(使命定位) Be leader of Inbound supplier chain solution provider a. How to achieve- set up strgedty b. Who is target customer ( definition of customer ) c. What is products difference (in process/system/service and organization) • Process come from =customer requirement + internal operation requirement. Process major points coverage a. Human resource structure b. Organization c. Coordination of horizen de