MIRA INFORM REPORT

Report Date :

26^th February, 2007

IDENTIFICATION DETAILS

Name :	LINMARK (HK) LTD
Registered Office :	Unit 1101-1108, 11/F., Hong Kong International, Trade & Exhibition Centre, 1 Trademart Drive, Kowloon, Hong Kong.
Country :	Hong Kong
Date of Incorporation :	22.03.1999
Com. Reg. No.:	670350
Legal Form :	Private
Line of Business :	Engaged as a procurement office for its group cos

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear

Company Name & Address

LINMARK (HK) LTD.

UNIT 1101-1108, 11/F., HONG KONG INTERNATIONAL, TRADE & EXHIBITION CENTRE, 1 TRADEMART DRIVE, KOWLOON, HONG KONG.

TEL : 852 27340888

FAX : 852 23110797 / 23112525

EXECUTIVE SUMMARY

INCORPORATION DATE : 22-3-1999

REGISTRATION NO. : 670350

REGISTERED LEGAL FORM : PRIVATE

CHIEF EXECUTIVE : FU JIN MING PATRICK (MANAGING DIRECTOR)

STAFF STRENGTH : 300 (SHARING WITH SC'S GROUP)

AUTHORIZED CAPITAL : HK$100,000 = 100,000 SHARES @ HK$1.-

PAID-UP CAPITAL : HK$2

BUSINESS LINE : PROCUREMENT OFFICE

TURNOVER : US$288M (GROUP, YEAR ENDED 30-4-2006)

EQUITIES : N/A (GROUP, YEAR ENDED 30-4-2006)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : FAIRLY LARGE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.80930 = USD1 AS OF 2007-2-25

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

HKD – Hong Kong Dollars

The correct address of SC is the heading one instead of "20/F, Office Tower One, The Harbourfront, 18 Tak Fung Street, Hunghom, Kowloon" given by you.

SC is a private limited company registered under incorporation file no. 670350 on 22-3-1999.

SC's shareholders & directors are shown to be as follows:

Shareholders (as at 22-3-2006) Number of shares held

Sign Express Ltd. 1

Linmark Westman Investments Ltd. 1

-----

2

==

Directors (as at 22-3-2006)

Wang Lu Yen / P152541(0)

Solomon Peter Loris / K743782(A)

Fu Jin Ming Patrick / E627970(1)

Wong Wai Ming / D373313(1)

Khoo Kim Cheng / K781240(A)

The above registration information is based on SC's annual return filed at Companies Registry within the last 2 years.

Our current search revealed certain material change or amendment of SC has been recorded within the last 2 years & noted as follows:

Partial change in SC's directorship as follows:

Name(s) of resigned director(s) Resignation date

Feniger Steven Julien 28-2-2006

Name(s) of newly appointed director(s) Appointment date

Solomon Peter Loris 28-2-2006

Total number of employees : 300 (sharing with SC's group).

Location : Maintaining its office at the heading business address which occupies a gross area of 18,000 square feet at a commercial building in a commercial & industrial district.

Condition inside the premises during our visit : Active.

Office/factory layout : Standard.

This section will contain the civil litigations & winding-up petitions filed against SC for the last 6 years (as stored in our database), and the mortgage/charge filed by SC for the last 2 years. In Hong Kong, creation of such mortgages/charges by an unlimited co is not required to be registered in the public records.

Civil litigation/winding-up petitions : None in our database.

Mortgage/charge record(s) : None filed since its incorporation date.

Linmark Westman Investments Ltd., shareholder, whose partial inforamtion is as follows:

Registered / business address: P.O.Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands

Business line: As an offshore investment holding co.

Civil litigation & winding-up petition records: None in our database

SC is, in turn, an ultimate subsidiary of Linmark Group Ltd., a public listed co. on SEHK with stock code 915, whose partial information is as follows:

Year established : 1964 (listed on 10-5-2002)

Registered/business address : Same as heading business address

Business line : As a holding co. with diverse interests in the sourcing business & the business of provision of supply chain management solutions to retail chain operators, brands, wholesalers, mail order houses & department stores in various countries

No. of employees : 1,006 (as at 30-4-2006)

Civil litigation & winding-up petition records : None in our database

Turnover : US$288M (year ended 30-4-2006)

Partial financial data of the said company:

Items Fiscal yr 30-4-2005 Fiscal yr 30-4-2006

Current assets : US$51M US$93M

Current liabilities : US$26M US$86M

Fixed assets & non-current assets : US$49M US$117M

Tangible worth/(net deficit) : US$74M US$123M

Turnover : US$90M US$288M

Net income/(net loss) : US$15M US$11M

Fu Jin Ming Patrick, managing director:

- Born in 1944 & married

- He joined SC's Group in 1969 in Taiwan & became a regional vice president in 1987

- He has extensive experience in the sourcing industry, in both apparel & hardgoods

- He oversees a number of the Group's major customers in USA & leads the Group's hardgoods department & PR China focused projects

- He holds a Bachelor of Arts degree from Fu Jen Catholic University in Taiwan & participated in the "Retail Executive Development Programme" at The University of British Columbia, Canada

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: Flat C, 11/F, 17 Mount Sterling Mall, Mei Foo Sun Chuen, Kowloon, HK.

Credit history check: This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:

Civil litigation as defendants : None in our database

Bankruptcy/winding-up petitions : None in our database

Delinquent payment records : None in our database

Debt collection records : No overdue amount owed by the said person was placed to us for collection

Wang Lu Yen, director:

- Born in 1953 & married

- He is also the chairman & executive director of Linmark Group Ltd., SC's parent co.

- He has been the chairman of Roly International Holdings Ltd. since 2000

- He joined the Group in 1998

- He has over 25 years of experience in the trading & distribution business

- He was awarded Outstanding Businessman by Taiwan's Ministry of Economic Affairs in 1985 & Director of The Year Awards 2005 by The Hog Kong Institute of Director in 2005

- He holds a Bachelor's degree in Business Administration from Soochow University, Taiwan

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: Flat No.57, 8/F, Tower 9, HK Parkview, 88 Tai Tam Reservoir Road, HK.

Credit history check : This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:

Civil litigation as defendants : None in our database

Bankruptcy/winding-up petitions : None in our database

Delinquent payment records : None in our database

Debt collection records : No overdue amount owed by the said person was placed to us for collection

Ownership background appraisal:

Rating : 1Obtained scores : 78 (see explanatory notes below)

Keys : 1 : scores 81-100 : Excellent

2 : scores 61-80 : Good

3 : scores 46-60 : Average

4 : scores 21-45 : Fair

5 : scores 01-20 : Poor

The rating indicates the personal financial & operational strength of SC's major principals. It is calculated from a composite of scores obtained from the following 5 factors which carry equal weight in our analysis:

Personal financial strength, credit history & trade reputation, business experience & track record, market connection and management skill.

Business categories :

SC runs as a procurement office for its group cos. Sourced items include household products, jewellery, stationery, apparels, footwears, consumer electronies, fashion accessories & hardgoods.

Principal purchases :

Major types of sourcing : Merchandise, raw materials & accessories

Local--type of suppliers : Distributors & manufacturers

Buying terms : COD & credit of 30 to 60 days

Overseas--supplying countries : PR China, Taiwan & SE Asia

Buying terms : L/C & T/T

Principal market :

Local--type of customers : Nil

Selling terms : Nil

Overseas--buying countries : SE Asia, Taiwan, Australia, USA, Europe, Middle East & Canada

Selling terms : L/C & T/T

Jointly occupying the premises with the below mentioned affiliates.

SC's local affiliates:

---------------------

- IGCS Ltd.

- Linmark Agency (HK) Ltd.

- Linmark International (HK) Ltd.

- Merchandise Creative Ltd.

- Trend Xpress Ltd.

- Westown Ltd.

- CU Packaging & Design Ltd.

- Inspire World Ltd.

- ISO International (Holdings) Ltd.

- Market Asia Ltd.

- Power Path Ltd.

- Tamarind International Ltd.

SC's overseas affiliates:

-------------------------

- Westown (Shanghai) Ltd. ( in PR China )

- Westown (Tianjin) Ltd.( in PR China )

- Westown (Korea) Ltd.( in Republic of Korea )

- Linmark Marketing Services Ices Ltd. ( in Taiwan )

- Westman Linmark (Thailand) Ltd. ( in Thailand )

- Westown Ltd. ( in PR China )

- Linmark Agency (Mauritius) Ltd. ( in Repubic of Mauritius )

- Linmark International (Bangladesh) Ltd. ( in Bangladesh )

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment records and our debt collection record concerning SC.

Trade payment experience : SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

Delinquent payment record : None in our database.

Debt collection record : No overdue amount owed by SC was placed to us for collection within the last 6 years.

Banking relations are maintained principally with:

- HSBC

- Citibank N.A.

- Standard Chartered Bank (HK) Ltd.

During our report preparation, the principals could not be contacted while the staff members hesitated to release financial information without the principals' consent.

Outside sources report that SC possesses adequate working capital to meet its normal trade requirements & reasonable financing to operate along the line.

As per current co. search, total amount of indebtedness of SC in respect of all mortgages and charges which are required to be registered with Companies Registry as at 22-3-2006 was nil.

From all indications, SC is believed to have made a steady and successful trend of development. Credit in the range of fairly large amount can be considered.

-- Asset Tracing --

Upon our current investigation, our database & sources consulted indicate that SC was not involved in any property transaction (both purchase & disposal) in Hong Kong for the last 6 years.

Linmark Group Ltd.'s share price movements are as follows:

- Closed on 15-2-2007: HK$1.04

- Year high / low: HK$2.175 / HK$0.93

- Price earning ratio: 8.24

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions