Ann: Market Update, page-15

Hi Niels as I understand the Super Socco relationship we have a cooperation agreement but no equity.

They lease part of our factory.

We co-operate with them on R & D

They build their bikes on the new production line. Not sure who owns the line.

They also build our bikes on the new production line.

They market Super Soco in China through their own dealership network.

We market our own products and the Super Soco products through our distribution network.

Pluses. IMO

* The further you get away from the grease the wealthier you can become
* Fixing the manufacturing cost is a huge plus. If you have an affordable product and can fix all your costs you are on the freeway to sure profits with someone else whose close to the action managing the variables and keeping you competitive.

I can't think of any minuses. Our strengths are a good product and an established brand with increasing market penetration in a market with massive growth potential.

Anyone can screw bikes together and Im sure that Super Soco which is in the go go stage of its development with the entrepreneurs on the factory floor ( no bureaucracy there yet) will do it much better and cheaper than we can.


cheers

Having said all that I better lift my bid.