'China Opens Doors for U.S. Small- and Mid-Sized Businesses

New Center in Yiwu Will Facilitate Sales Of American Consumer Products

YIWU, PEOPLE'S REPUBLIC OF CHINA (August 22, 2007) - An unprecedented effort by the government of China to facilitate sales by U.S. small- and mid-sized consumer-products companies will launch this October with the grand opening of the American Merchandise Center (AMC) in the international trade center of Yiwu.

Similar facilities in Chengdu and Shenyang are scheduled to open next year.

Based on the American concept of a merchandise mart, the first-of-its kind, 120,000 square-foot Yiwu facility will provide display space and resources to American consumer-products manufacturers that otherwise lack the resources and economies of scale to do business in China. Companies with as little as $1 million in annual sales and two years of business history are being encouraged to inquire.

To build traffic for the center and to assist exhibitors, the Chinese government is providing:

◊ A $6 million advertising and promotion fund;

◊ Bi-lingual trade advisors to assist with visas, space set-up and living arrangements, as well as to facilitate regulatory compliance; and

◊ A showcase manager to handle inquiries, pricing, order processing and fulfillment.

Denise Netzel, co-owner of Tend2 Corporation in Arlington Heights, IL, sees China as a "huge untapped market" for her company's air and water purification equipment, as well as for its nutritional products.

"AMC offers support systems that for the first time make it possible for us to tap into China's fast-growing middle- and upper-middle class," she said. "Our products specifically address air- and water-quality issues that currently concern Chinese consumers. Now that we are able to make those products available in that country, we are confident that word-of-mouth promotion alone will help us generate sales."

Yiwu is located 180 miles southwest of Shanghai and is visited by more than 200,000 buyers daily. It has been recognized by the United Nations, the World Bank and Morgan Stanley as the "Largest Small Commodity Market in the World."

The AMC is being managed and marketed by Colin Wu, who has successfully advised multinationals such as Canon, Abbott Laboratories and FedEx on their Chinese acquisitions and alliances. Wu formerly served at the Foreign Affairs Ministry of the People's Republic of China and is founder of Schaumberg, Illinois-based Bid8.com, Inc., an online search engine for government and commercial contacts worldwide.

According to Wu, the initial focus is on attracting American manufacturers in five industries with high potential for sales in the Chinese market - consumer electronics, cosmetics and toiletries, health care products, sporting goods and luxury food products (e.g., wine, chocolate and jam.)

He cites three reasons why now is a promising time for small- and mid-sized American manufacturers to attract already-growing Chinese consumer interest and support:

◊ Widespread awareness among Chinese consumers of the safety and quality issues besetting Chinese manufacturers.

◊ Changing spending habits among China's traditionally thrifty middle class (the Chinese luxury goods market, already the second largest in the Asia/Pacific region, is forecast to grow 28 percent annually until 2010 and the cosmetics retailing market is projected to reach 100-billion yuan by 2010;) and,

◊ The rising yuan, making American products more affordable;

"The Xinhua News Agency recently reported that a survey of Chinese consumers found that 92% of respondents were "concerned about food safety," and 78% believed enforcement of product safety regulations was "not good," Wu said. "Add to that the fact that the Chinese government is committed to facilitating the sale of U.S. consumer products, and American businesses have more compelling reasons than ever before to investigate the opportunities represented by the Chinese marketplace."

Additional information about the AMC is available on the Center's web site: www.2amc.us