We grow and advance because we work Together

1. We grow and advance because we work Together

2. I would like to take this opportunity in welcoming you to our Matamoros/Brownsville region.It is the best area to invest and make your company successful, having always in mind a system of WIN-WIN. The Industrial union of Journeymen and laborers of the Maquiladora Industry which I represent has the best option to establish a work relationship in the region. I say this based on the following strengths and advantages in which we count on. • We have more than 5000 five thousand workers available to integrate immediately in a strong labor force in your company • due to their experience, quality and multi-skills. Your company can reach it’s highest standards in production and quality in one working week of new employee’s • The majority of our employee’s have experience in the field of auto parts, electronics, injection molding, textile, metal- mechanics, welding and among others for example quality systems ISO/TS16949, ISO 9001, QS-9000, ISO14001, Lean manufacturing, 5’S, Kaizen, Kanban, etc. • and our Proof is that the majority of the companies who work with us have received international awards in quality and safety such as Delphi Automotive System who obtain the award of excellence manufacturing “2000 Shingo Prize “ • Another of our unions strengths is that the companies that are with us have the lowest turn over rate in this country mainly along the Mexican and the United States border. This is where the majority of the industrial maquiladoras are located. The average turn over rate is 1% or less reducing with them their professional training courses and therefore reaching high standards in production and quality. • The advantages in these results are that 38 companies have seniority of more than 20 years operating in Matamoros and 52 companies one thru fifteen years and many more are expanding such as EDEMSA, DURA DE MEXICO, VICTOREEN OMHITE Among others.

3. Knowing that the globalization is essential, being competitive is why the new company of new creation can start tabulating new salaries of an average 8 dollars per day. The union can provide and select personnel that is required within a 24 hour working period. The local county of Matamoros is working together with Brownsville and Harlingen Chamber Industries, business associations such as BECD, CODEM, Maquiladoras Association, Harlingen Chamber of Commerce, also the government dependency offers better infrastructure, industrial parks and services to provide incentives for your company according to the number of jobs generated from the federal and state government in which again having in mind always the WIN –WIN system. We cordially invite you to our offices so that you may have more information about all the advantages we have to offer. We are at our best disposition in supporting our project in Matamoros, Tamaulipas Mexico. We grow and advance because we work together. Juan Villafuerte Morales Srio. General del SJOIIM

4. Overview of Matamoros-Brownsville strategic location

5. Strategic location logistics Strategic location logistics Bridges 4 Commercial Bridges 2 Rail Crossing 1 Airport 3 Deep Water Seaport 1 TIME / COST FACTOR: Crossing time 1-2 hours northbound, 1/hr southbound Crossing fees $180-$200 one way, depending on volume Deep Water Seaport Bridges Airport Highway Rail Crossing

6. Z5 Z4 Z5 Z3 Z2 Z3 Z1 Z1 Z2 Z3 Z4 Z5 Z4 Matamoros Strategic location on transportation time Strategic location on transportation time

7. Our site locations Our site locations LOS INDIOS RAIL CROSSING A GATEWAY B & M VETERANS B PORT OF BROWNSVILLE C

8. Overview • A growing, dynamic metropolitan region with a population of over 800,000 • A world-class manufacturing center with over 140 plants • The most stable, available labor force along the US-Mexico border with an extremely competitive wage structure • A cohesive pro-business environment, welcomed and supported by local and state governments • Multiple logistic options that provide cost efficient transportation of materials/products worldwide • An unparalleled quality of life, resort-like living, safe family oriented community, increasing entertainment venues, expanding health resources and educational opportunities.

9. Matamoros Industry Matamoros Industry • Home to over 140 world class manufacturers (13 permitted Maquilas in last 15 months). • Distinguished for quality, plants such as Delphi Rimir has been selected as one of top 25 manufacturing facilities in North America and recipient of the Shingo Prize. Industry Week Magazine • Companies such as Varel, Gobar Industries, and Collado/Ryerson employ higher skilled employees that have been trained in CNC machining, welding, or tooling • No longer just an assembly area, companies that have multiple locations in Mexico have set up their most technical manufacturing processes in Matamoros.

10. Tidi México S. de R.L. de C.V. A SAMPLING OF MATAMOROS’ CORPORATE CLIENTELE …and many more

11. Industry overview

12. Labor overview • Over three generations of families in Matamoros have worked in the local industry, which has cultivated strong work ethics related to the manufacturing industry. • With a population of over 800,000 IMPLAN, INEGI, companies in Matamoros are able to attract and maintain qualified candidates for their operations • Population growth is a steady 3.3% IMPLAN, INEGI • With engineers trained locally, many local companies maintain large engineering departments to handle complicated manufacturing issues and launch new products • Standard contracted work week is 48 hours • Turnover is normally less than 2% • Over 5,000 pre-screen candidates seeking employment.

13. SJOIIM available skilled workers 5,000 people ready to work • 15% to 20% have experience in the metal working industries • 80% have experience in the manufacturing industry

14. Labor environment Labor environment • 48-hour standard work week contract • The common practice in border locations and our county is make excellent labor relations. • Proactive Union approach that allows for extended probationary periods, temporary worker programs, productivity bonuses, training support

15. Universities • Total of 18 Universities and Tech schools • Matamoros Institute of Technology (2004) • 428 Bachelor degrees • 8 Graduate degrees • Matamoros Technological University (2004) • 400 Bachelor degrees Source: Matamoros Institute of Technology & Matamoros Technological University (2004)

16. Training resources CAST Centro de Asistencia y Servicios Tecnológicos • TRAINING COURSES: • Electronic • Electrical • Security • C N C • Automation • Human Relations • Metrology • Hydraulics • Quality Control • Computer science • Management • Welding

17. SERVICES: • Dimensional Metrology • Net’s Installation and Service • Software Development • Software Upgrades • Computer maintenance (Preventive and corrective) • Design of Testing equipment with PLC • Prototypes with EDM Machines (Wire & Sinker) and CNC • Automation Projects • Maintenance of Electrical Power Sub-stations • Troubleshooting of Electrical, electronic, mechanical equipment and/or PLC’s

18. INDUSTRIAL PARK

19. Infrastructure & Government • “Promote the region’s economic development and employment by integrating and diversifying the industry, commerce and tourism to achieve a better quality of life” Baltazar Hinojosa, Mayor of Matamoros.

20. Incentives Incentives • Exemption in payroll tax. • Exemption in Property and Commerce Public Registry Tax. • Discount or exemption on licenses and permits during construction time. • Assist with the development of specialized training programs.

21. Incentives SUBSIDY ON PAYROLL TAXES Exemption during the first two years of operation and 50% of discount during the third and fourth years in payroll tax to those new companies that: Located in Matamoros. And generate a minimum of 250 employees during the year that support was requested and fulfill 200 employment during the next year. To prove that from January 2005 on, the integration of at least one local and/or a state supplier to the productive chain of their processes. To acquire at least three goods or services from suppliers located in the municipality where are established

22. Why Matamoros? Why Matamoros? • Good company/union working relationship and favorable contract negotiations • Available, experienced labor force • Competitive labor rates • Low turn-over rate • Pro-business environment, strong support from city, state and Brownsville • Multiple cross-border logistic options

23. Why SJOIIM? Why SJOIIM? • 5,000 people who are available immediately to integrate in your work force. • The average turnover of industries working with us have 1% or less. • We have multi skilled work force in different areas such as: Automotive, Electronic, Sewing, Injection Molding, Welding, Metal Mechanic. • Our people are productive and have experience in quality systems certification ISO 9001, ISO 9002, ISO 14001, QS 9000, Lean Manufacturing, ISO/TS 16949. • Just like Delphi Automotive Systems, their company together with our workers, can achieve world-class manufacturing status. • We have more than 90 client companies established in Matamoros. • Our client companies have the highest production standards and that is why our members take great pride in reaching those standards. Contact Office: Iturbide y 12 # 95 H. Matamoros, Mex. 87350 Tel. 011 52 (868) 813-4150, 816-6063 Fax 011 52 (868) 812-4062 E-mail: sjoiim@yahoo.com.mx www.sjoiim.org.mx www.sjoiim.com

24. Opinions from companies Company: Victoreen Ohmite • Our work relationship with the union (SJOIIM) is of cordial respect and mutual support for more than 18 years. The union supports us when we have problems of absenteeism, turn over, quality and by talking to people and having them be aware on how important it is in taking care of their jobs. • The average turn over is less than 3% yearly • More over-the union is adapting to globalization changes and demand although this has influence that our companies keep on expanding in Matamoros and new areas in production C.P. Public Accountant Pedro Hernandez Administrative Manager

25. Opinions from companies Company: Teccor de Mexico • Teccor is a company who has more than 38 years of seniority, maintaining a working relationship with the union (SJOIIM) in which this harmonious relationship is of mutual support. It provides us with qualified personnel immediately and its turn over percentage is very low, less than 2.8% • The union is working very close with the companies directors in finding a solution in a fair and professional way and with mutual support • The SJOIIM is a modern organization that gets involved with the companies problems and helps solve them and takes care of it’s associates interests in a harmonious way Lic. Ubaldo Lara Human Resource Manager

26. Opinions from companies Company: ENSAMBLADORA DE MATAMOROS EDEMSA • Between the union (SJOIIM) and our company the working relationship has been excellent and has created a peaceful and trustful environment within the past 24 years. • The response to our request in personnel have been always filled immediately according to our expectations. Our absenteeism and turn over percentage is less than 3% yearly • The solution to problems are solved fast because they speak to representatives to help them support the companies decisions as well as the workers interests without affecting either side • Due to the peaceful working environment that we have, a main factor for our corporation was that it gave us the trust to grow in Matamoros and not in other cities • The actual committee of the union is well adjusted to changes that might be needed, just like and excellent support of the maquiladoras industry and its members in which they feel very satisfied with their new change they have Lic. Agripina Prado Human Resource Manager

27. Opinions from companies Company: FABSERMEX COLLAD0 • The working relationship that we have with SJOIIM has been since 25 years ago, in which it has been good because the vacancies have been filled immediately and have fulfilled all our requirements • The percentage of absenteeism and rotation is low, less than 1% • The unions support in solving problems is applied through immediate disciplinary awareness of personnel and in the same manner when their presence is needed in the company they help all personnel with problems. • Among the advantages that we have to work with, the union provides qualified workers in different areas having personalized issues and good negotiation to the solutions of problems. • I consider that the SJOIIM is a strong organization and that it gives great support to workers and companies as well. Lic. Felipe Zuniga Human Resource Manager

28. Opinions from companies Company: Mezclas Matamoros • This company has an excellent working relationship with SJOIIM ever since two years ago in which they provide us with the personnel needed in the amount and time required. The turn over percentage and absenteeism is very low-1% Whenever the union’s support is needed to find solutions to any problem, the union is always ready and capable to listen and solve problems in it’s best manner. When its required to speak to personnel they are always in their best disposition to assist the company. The union has influence our companies development and growth and this all thanks to their availability,leadership,support,stability and also how problems are addressed. These are reasons why the union has contributed the growth in Matamoros and also has maintained and established a laborer management relationship. Lic. Luis Lazaro Human Resource Manager