MIRA INFORM REPORT

Report Date :

3^rd March, 2007

IDENTIFICATION DETAILS

Name :	DONG IL STEEL MFG. CO., LTD.

Registered Office :	446-2, Yangbyeon-ri, Miyang-myeon, Anseong-si, Gyeonggi-Do, Korea.

Country :	Korea

Financials (as on) :	31.12.2005

Date of Incorporation :	13.07.1959

Legal Form :	Company Limited by shares

Line of Business :	Manufacture of Steel Wire

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Status :	Moderate

Payment Behaviour :	Usually Correct

Litigation :	Clear

Basic Information

Company Name	Dong Il Steel Mfg. Co., Ltd.
Address	446-2, Yangbyeon-ri, Miyang-myeon, Anseong-si, GYEONGGI-DO, KOREA
Building
Zip Code	456-844
Tel	+82-31-677-1234
Fax	+82-31-677-1451
E-mail	jmpark@dongil-steel.co.kr;skhwang@dongil-steel.co.kr;wsshim@dongil-steel.co.kr
Website	www.dongil-steel.co.kr
Seoul Office	1FL., sammok B/D., 826-10, Yeoksam-dong, Gangnam-gu, Seoul, Korea
Tel	+82-2-561-0941
Fax	+82-2-561-5194
Busan Office	701, Dongwon B/D., 1029-2, Geoje 2(i)-dong, Yeonje-gu, Busan, Korea
Tel	+82-51504-4680
Fax	+82-51-506-8594
Type	Export/Import
Industry	Manufacture of Steel Wire
Main Business	Low PC Wire and Strand, Hard Drawn Steel Wire, Galvanized Steel Wire and Strand, Cold Drawn Bar
Established	07/13/1959

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Mechanical wire(31151800)
Sell	Steel bars(30101604)
Sell	PC Steel Wire

Others

Name	Lee Chang-Ho
Address	755, Madu-Dong, Ilsan Dong-Gu, Goyang-Si, Gyunggi-Do, Korea
Date of Birth	07/101942
Title	President & CEO
Sex	Male
Nationality	Korean
Capital	2,500,000,000 KRW
Employees	170
Formation	Co., Ltd by shares

The Subject Company, founded in 1959, is the specialized company in the field of High Carbon Steel Wire Products industry over the past 40 years. The Subject Company's main products range widely from Low PC Wire and Strand, Hard Drawn Steel Wire, Piano Wire, Galvanized Steel Wire and Strand, to Cold Drawn Steel Bar.

With the completion of its most modernized plant equipped with the world's top-class facilities in Ansung, Kyonggi-do Province, 1997, The Subject Company is demonstrating well-established mass production systems for manufacturing our high-quality High Carbon Steel Wire Products. As a result of strict quality control and accumulated technical know-how from a long period of experience, The Subject Company's products with their unsurpassed quality have been consistently supplying to around 30 countries all over the world, including the United States and Japan.

The Subject has been listed at KSE in 1975, but due to the financial deterioration, it has been de-listed from KSE in 1980.

As of 04/03/1998, The Subject has been bankrupt due to the lack of current cashes, as of 02/26/1999, The Subject company has been approved of composition from Suwon District Court.

As of 06/30/2004, The Subject has acquired SAMMOK Co., Ltd., Through this M&A, as of 05/06/2004, The Subject has been exempted the obligation of reporting based on the composition.

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Day
President & CEO	Mr.	Lee Chang-Ho	Male	Korean	03/23/2004
Director	Mr.	Kim Kyo-Hyun	Male	Korean	03/23/2004
Director	Mr.	Lee Young-Soo	Male	Korean	03/23/2004
Auditor	Mr.	Eom Seok-Ho	Male	Korean	05/28/2004
Supervisor	Mr.	Jeong Myung-Don	Male	Korean	07/20/2004
Supervisor	Mr.	Yu Sung-Jae	Male	Korean	03/25/2003

Financials

Unit: KRW

Year	Sales	Assets	Net income
2005	84,744,875,283	89,580,857,899	1,763,874,429
2004	70,275,128,538	74,619,231,210	77,977,668,878
2003	52,637,397,608	79,966,151,627	(-)8,619,934,980

Financial Description

Unit: KRW

Authorized Capital

50,000,000,000

Paid-Up Capital

2,500,000,000

Total Issues Shares

500,000

Balance Sheet Unit : Korean Won

As of 12/31/2005

As of 12/31/2004

As of 12/31/2003

Total Assets

89,580,857,899

74,619,231,210

79,966,151,627

Current Assets

29,098,102,765

24,185,594,976

32,603,970,949

-Quick Assets

20,372,893,126

14,907,752,583

26,307,983,750

-Inventories

8,725,209,639

9,277,842,393

6,295,987,199

Fixed Assets

60,482,755,134

50,433,636,234

47,362,180,678

-Investment

534,459,963

2,174,287,358

540,976,250

-Tangibles

59,948,295,171

48,259,348,876

46,821,204,428

-Intangibles

Total Liabilities

33,425,340,222

20,227,587,962

103,551,062,257

Current Liabilities

29,774,450,370

19,781,170,974

26,064,680,450

Fixed Liabilities

3,650,889,852

446,416,988

77,486,381,807

Capital Stock

2,500,000,000

22,013,000,000

Capital Surplus

19,511,885,000

Profit Surplus

34,143,632,677

32,379,758,248

(-)45,597,910,630

Capital Adjustment

Total Equity

56,155,517,677

54,391,643,248

(-)23,584,910,630

Liab. & Shareholder’s Equity

89,580,857,899

74,619,231,210

79,966,151,627

Income Statement Unit : Korean Won

As of 12/31/2005

As of 12/31/2004

As of 12/31/2003

Sales

84,744,875,283

70,275,128,538

52,637,397,608

Cost of Sold Goods

66,551,829,836

60,854,185,107

46,089,863,777

Gross Profit

18,193,045,447

9,420,943,431

6,547,533,831

Selling & Admin. Expenses

22,102,913,175

8,986,021,819

5,265,426,349

Operating Income

(-)3,909,867,728

434,921,612

1,282,107,482

Non-Operating Income

10,896,313,907

18,031,810,060

954,297,543

Non-Operating expenses

3,204,484,816

6,311,202,877

10,813,800,730

Ordinary Income

3,781,961,363

12,155,528,795

(-)8,577,395,705

Special Income

64,883,422,166

Income Before Taxes

3,781,961,363

77,038,950,961

(-)8,577,395,705

Income Taxes Expenses

2,018,086,934

(-)938,717,917

42,539,275

Net Income

1,763,874,429

77,977,668,878

(-)8,619,934,980

Bank Details

Shinhan Bank

Yoksam Branch

Busan Bank

Gangnam Bank

Korea Exchange Bank

Star Tower Branch

Hana Bank

Yoksam Station Branch

Corporate Registered No.

110111-0032005

Business Registered No.

113-81-07346

Permit & Licenses

1970 Korean Industrial Standard -PC Wire and Strand

1974 Korean Industrial Standard-Hard Drawn Steel Wire

1983 Korean Industrial Standard-GALV’ D Strand

PC Hard Drawn Wire

1989 Korean Industrial Standard-Cold Drawn Steel Bar

Piano Wire

1994 Japanese Industrial Standard (JIS)-Hard Drawn Steel Wire

PC Wire and Strand

1995 ISO 9002 ( D.N.V )-Hard Drawn Steel Wire, PC Wire and Strand

Cold Drawn Steel Bar, Piano Wire, GALV’ D Steel Wire and Strand

1998 ISO 9001 Renewed ( D.N.V )

Shareholder Position

Name	Shares	%
Kim Joon-Nyon	56,667	11.33
Kim Yong-Hyun	53,333	10.67
Kim Kyo-Hyun	30,000	6.00
Kim Eun-Kyung	30,000	6.00
Kim Min-Jeong	30,000	6.00
Lee Young-Soo	30,000	6.00
Lee Young-Ja	30,000	6.00
Lee Young-Suck	30,000	6.00
Others	210,000	42.00
Total	500,000	100.00

Company History

1959.07.13 COMPANY ESTABLISHED.

1970.11 KOREAN INDUSTRIAL STANDARD (PC WIRE AND STRAND) APPROVED

1974.03 KOREAN INDUSTRIAL STANDARD (HARD DRAWN STEEL WIRE AND WIRE ROPE) APPROVED

1983.02 KOREAN INDUSTRIAL STANDARD (GALV'D STRAND AND PC HARD DRAWN WIRE)

1983.06 BUPYUNG FACTORY ESTABLISHED

1988.04 KOREAN INDUSTRIAL STANDARD (METAL PANEL) APPROVED

1989.04 KOREAN INDUSTRIAL STANDARD (COLD DRAWN STEEL BAR & PIANO WIRE) APPROVED

1994.07 JAPANESE INDUSTRIAL STANDARD (HARD DRAWN STEEL WIRE & PC WIRE, PC STRAND) APPROVED

1994.12 PC STRAND FOR WOLSONG'S #3, #4 ATOMIC FURNACE SUPPLIED

1995.09.21 ISO9002(DNV) (HARD DRAWN STEEL WIRE, PC WIRE /STRAND,COLD DRAWN STEEL BAR, PIANO WIRE, GALV'D STEEL WIRE & STRAND) APPROVED

1999.02 INCREASED PAID-IN CAPITAL BY 20 BILLION WON (ABT. U$ 16 MILLION)

Products, Technologies, Services Description

LOW PC WIRE & STRAND

The Subject Company's Low PC Wire and Strand have pioneered the nation's SOC Projects for the construction of High Speed Railroads, Bridges, Railroad Sleepers, Atomic Furnaces, Harbors and Airports. Our high-quality PC Products are well-known to the domestic and overseas customers, thus meeting with their needs to full satisfaction.

The Subject Company’s new Ansung mill is equipped with brand - new and sophisticated Low PC Line facilities that produce excellent PC Wire and Strand.Japan.

HARD DRAWN STEEL WIRE

The Subject Company ‘s Hard Drawn Steel Wire and Piano Wire are made from top-quality High Carbon Wire Rod and Piano Wire Rod as their raw materials whose carbon contents range from 0.40% to 0.96%. And they are Cold Drawn Wire products after passing through patenting heat treatment process which is aimed at maintaining consistent Tensile Strength and High Toughness of the product. Each product's Tensile Strength ranges from 930N/㎟ to 2,700N/㎟ with high grade of tensile force. Our Hard Drawn Steel Wire and Piano Wire are mainly used for making the precision spring products that require heavy load.

GALVANIZED STEEL WIRE & STRAND

The Subject Company ‘s Galvanized Steel Wire and Strand are mainly used for ACSR Cable, SS Cable and Messenger Wire. And for the use of other industrial fields, there are Agricultural Green House Wire, Zig-Zag Wire and Tighteing Wire.

COLD DRAWN BAR

Cold Drawn Steel Bar is classified into Free Cutting Carbon Steel containing Lead(Pb) or Sulphur(s) contents, Carbon Steel for Machine Structural Use (S**C/0.08% - 0.60%C), and Stainless Steel.

Free Cutting Carbon Steel is used for making main parts of Motors, Office Appliances, Cameras and Watches. Carbon Steel is used for making small-size Motor Shafts, Shock Absorbers, Rolls, Screws, Gears, and etc.

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

Sammok Precision & Ind.

Sales by Region (Activity & Markets)

Sales/ Unit : KRW	2005	2004	2003
Export	14,760,957,502	11,519,751,432	9,036,513,768
Domestic	69,983,917,781	58,755,377,106	43,600,883,840
Total	84,744,875,283	70,275,128,538	52,637,397,608

The Subject deals with the companies in Canada, China, Japan, Norway, Russia, Ukraine and USA.

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