MIRA INFORM REPORT

Report Date :

03.06.2008

IDENTIFICATION DETAILS

Name :	MG2 - S.R.L.
Registered Office :	Via Del Savena, 18 PIAN DI MACINA 40065 – Pianoro (BO)
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	01.01.1998
Com. Reg. No.:	BO-1998-24867
Legal Form :	Limited Liability Company
Line of Business :	Manufacture and Installation of Automatic Machines for Dosage and Packaging

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Eur 337.200
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear

name & address

Mg2 - S.r.l.

Via Del Savena, 18 PIAN DI MACINA

40065 - Pianoro (BO) -IT-

SUMMARY

Fiscal Code	:	01819491208
Legal Form	:	Limited liability company
Start of Activities	:	01/01/1998
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	18.000.000/20.000.000 Eur
Number of Employees	:	from 176 to 200

CREDIT ANALYSIS

CREDIT OPINION	:	337.200 - Eur
Score	:	Risk medium
Creditworthness Rate	:	Sufficient
		Financial aspect not fully sufficient - developments are to be
		followed.

ACTIVITY

Manufacture and installation of automatic machines for dosage and packaging.

Manufacture of balances and automatic machines for selling and distribution.

LEGAL DATA

Legal Form : Limited liability company

Fiscal Code : 01819491208

Foreign Trade Reg. no. : BO041666 since 15/04/1998

Foreign Trade Reg. no. : 041666 of Bologna since 15/04/1998

Chamber of Commerce no. : 393530 of Bologna since 23/02/1998

Firms' Register : BO-1998-24867 since 11/03/1998

V.A.T. Code : 01819491208

Foundation Date	: 19/11/1997
Establishment Date	: 19/11/1997
Start of Activities	: 01/01/1998
Legal Duration Date	: 31/12/2020
Nominal Capital	: 312.000	Eur
Subscribed Capital	: 312.000	Eur
Paid up Capital	: 312.000	Eur

MEMBERS

Gamberini

Ernesto

Born in Bologna

(BO)

on 06/09/1937

- Fiscal Code : GMBRST37P06A944L

Residence :

Via

Valle Verde

, 43/2

- 40065

Pianoro

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	19/11/1997
Board Chairman	19/11/1997

No Protests registered.

Sabbatini

Luciana

Born in Bologna

(BO)

on 19/11/1938

- Fiscal Code : SBBLCN38S59A944Z

Residence :

Via

Valleverde

, 43/2

- 40065

Pianoro

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	19/11/1997
Managing Director	06/05/1998

No Protests registered.

Manieri

Rosaria

Born in Venosa

(PZ)

on 14/04/1960

- Fiscal Code : MNRRSR60D54L738P

Residence :

Via

Emilia

, 133

- 40068

San Lazzaro di Savena

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Permanent Auditor	29/05/2007
Auditor	16/11/2004

Andreoli

Vincenzo

Born in Cascia

(PG)

on 05/04/1944

- Fiscal Code : NDRVCN44D05B948S

Residence :

Via

Toscana

, 133

- 40100

Bologna

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Supervisory Board Chairman	29/05/2007
Auditor	16/11/2004

Foschi

Gino

Born in Imola

(BO)

on 21/07/1928

- Fiscal Code : FSCGNI28L21E289X

Residence :

Via

Venezia

, 34

- 40068

San Lazzaro di Savena

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Permanent Auditor	29/05/2007
Auditor	16/11/2004

Landuzzi

Teresa

Born in Bologna

(BO)

on 08/05/1960

- Fiscal Code : LNDTRS60E48A944U

Residence :

Via

Dal Monte

, 10

- 40068

San Lazzaro di Savena

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Temporary Auditor	29/05/2007
Auditor	16/11/2004

Gamberini

Saverio

Born in Bologna

(BO)

on 18/03/1966

- Fiscal Code : GMBSVR66C18A944W

Residence :

Via

Pilati

, 28

- 40068

San Lazzaro di Savena

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	19/11/1997

No Protests registered.

Gamberini

Manuela

Born in Ozzano dell'Emilia

(BO)

on 17/06/1962

- Fiscal Code : GMBMNL62H57G205U

Residence :

Via

F.lli Dall'olio

, 11

- 40065

Pianoro

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	19/11/1997

No Protests registered.

Andreoli

Sabrina

Born in Bologna

(BO)

on 10/08/1968

- Fiscal Code : NDRSRN68M50A944V

Residence :

Via

Ia Pontevecchio

, 33/2

- 40100

Bologna

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Temporary Auditor	29/05/2007
Auditor	16/11/2004

Andreoli

Maurizio

Born in Modena

(MO)

on 11/10/1950

- Fiscal Code : NDRMRZ50R11F257A

Residence :

Via

Stradello Del Fiume

, 12

- 41100

Modena

(MO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/01/2008

No Protests registered.

Ziemacki

Giorgio

Born in Recanati

(MC)

on 21/12/1954

- Fiscal Code : ZMCGRG54T21H211C

Residence :

Via

Luisa Battistotti Sassi

, 14

- 20100

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/05/2008

No Protests registered.

Lolli

Ivano

Born in Pianoro

(BO)

on 28/05/1959

- Fiscal Code : LLLVNI59E28G570R

Residence :

Via

F.lli Dall'olio

, 11

- 40065

Pianoro

(BO)

- IT -

Position	Since	Shares Amount	% Ownership
Director	29/01/2008
Attorney with special power	29/04/1999

No Protests registered.

COMPANIES CONNECTED TO MEMBERS *

*checkings have been performed on a national scale.

*In this module are listed the companies in which members hold or held positions.

GAMBERINI

ERNESTO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
CERMET - CERTIFICAZIONE E RICERCA PER LA QUALITA' SOC. CONS. A R.	Granarolo dell'Emilia (BO) - IT -	03502820370	Director	Active	Registered
H.P.F. S.R.L.	Pianoro (BO) - IT -	00322060377	Director	Active	Registered
H.P.F. S.R.L.	Pianoro (BO) - IT -	00322060377	Board Chairman	Active	Registered
INFOGEA S.R.L.	Pianoro (BO) - IT -	03129330373	Sole Director	Dismiss	Ceased
INFOGEA S.R.L.	Pianoro (BO) - IT -	03129330373	Partner	Dismiss	Ceased
INFOGEA S.R.L.	Pianoro (BO) - IT -	03129330373	Liquidator	-	Ceased
PROMA-PACK SRL	Cinisello Balsamo (MI) - IT -	08001660151	Director	Active	Registered
S.C. ITALIA S.R.L.	Bologna (BO) - IT -	04110270370	Liquidator	-	Ceased
SECMA - SISTEMI ELETTRONICI DI CONTROLLO PER MACCHINE AUTOMA	Pianoro (BO) - IT -	03064620374	Partner	Dismiss	Registered
STUDIO DI MECCANICA GENERALE GAMBERINI - SOC.A RESPONSABILITA LIMITATA	Pianoro (BO) - IT -	00892140377	Director	-	Ceased
STUDIO DI MECCANICA GENERALE GAMBERINI - SOC.A RESPONSABILITA LIMITATA	Pianoro (BO) - IT -	00892140377	Partner	Dismiss	Ceased

SABBATINI

LUCIANA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
H.P.F. S.R.L.	Pianoro (BO) - IT -	00322060377	Director	Active	Registered
H.P.F. S.R.L.	Pianoro (BO) - IT -	00322060377	Managing Director	Active	Registered
INFOGEA S.R.L.	Pianoro (BO) - IT -	03129330373	Partner	Dismiss	Ceased
STUDIO DI MECCANICA GENERALE GAMBERINI - SOC.A RESPONSABILITA LIMITATA	Pianoro (BO) - IT -	00892140377	Director	-	Ceased
STUDIO DI MECCANICA GENERALE GAMBERINI - SOC.A RESPONSABILITA LIMITATA	Pianoro (BO) - IT -	00892140377	Partner	Dismiss	Ceased

LOLLI

IVANO

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
NUOVA MAB S.R.L.	Argelato (BO) - IT -	01819011204	Sole Director	-	Ceased

The indication "REGISTERED" as Firm Status could refere to Firms in Liquidation, Active, Inactive, etc.

For more information, in this case, we advise to request further investigations.

CAPITAL SHAREHOLDERS

Style / Name	Seat / Address	Fiscal Code	Owned Shares	% of Ownership
H.p.f. S.r.l.	Pianoro - IT -	00322060377	249.600 .Eur	80,00
Gamberini Saverio	San Lazzaro di Savena - IT -	GMBSVR66C18A944W	31.200 .Eur	10,00
Gamberini Manuela	Pianoro - IT -	GMBMNL62H57G205U	31.200 .Eur	10,00

DIRECT PARTICIPATIONS

The Company under review has no participations in other Companies.

STRUCTURE AND COMPANY ACTIVITY

In order to carry out its activities the firm uses the following locations:

-

Legal and operative seat

(Factory )

in :

Via

Del Savena

, 18 Loc. Pian Di Macina

- 40065 -

Pianoro

(BO)

- IT -

Trading Style: MG 2

PHONE

: 051/4694111

FAX	: 051/4694199

-

Branch

(Factory )

since 25/03/1998

in :

Via

Nazionale

, 55/10 Loc. RASTIGNANO

- 40067 -

Pianoro

(BO)

- IT -

-

Branch

(office )

since 01/11/1998

in :

Via

Del Savena

, 16

- 40065 -

Pianoro

(BO)

- IT -

Employees

: 193

Fittings and Equipment

for a value of 208.500

Eur

Stocks

for a value of 10.203.500

Eur

Vehicles

: 3.

Trade organization: direct or by agents.

Sales area on a national scale.

Products distribution is entrusted to mono-mandatory agents.

Transports are mainly done using own vehicles and third parties ones

The firm operates abroad as exporter. .

Products abroad are placed by :

- direct orders from foreign companies

HISTORICAL INFORMATION AND/OR FIRM'S STATUS

Ex-Members / Ex-Positions

Gamberini

Ernesto

Born in Bologna

on 06/09/1937

- Fiscal Code : GMBRST37P06A944L

Residence :

Via

Valle Verde

, 43/2

- 40065

Pianoro

(BO)

- IT -

Position

Chairman

Sabbatini

Luciana

Born in Bologna

on 19/11/1938

- Fiscal Code : SBBLCN38S59A944Z

Residence :

Via

Valleverde

, 43/2

- 40065

Pianoro

(BO)

- IT -

Position

Managing Director

Former seats

-

Branch

(Warehouse )

since 25/03/1998

Via

Del Savena Fraz. Pian di Macina

- 40065

- Pianoro

(BO)

- IT -

The firm absorved

SECMA - SISTEMI ELETTRONICI DI CONTROLLO PER MACCHINE AUTOMA

Via

NAZIONALE

, 55/10

, 40065

, Pianoro

(BO)

- IT -

Fiscal Code: 03064620374

Date

:

09/09/2003

The firm absorbed by merging of

Nuova Mab S.r.l.

Via

Marzabotto

, 2

, 40050

, Argelato

(BO)

- IT -

Fiscal Code: 01819011204

Date

:

09/09/2003

Project of merging by taking over of

Nuova Mab S.r.l.

Via

Marzabotto

, 2

, 40050

, Argelato

(BO)

- IT -

Fiscal Code: 01819011204

Date

Merging/Splitting-up Project :

01/04/2003

The firm took over the activity of

H.p.f. S.r.l.

Via

Del Savena

, 18

, 40065

, Pianoro

(BO)

- IT -

Fiscal Code: 00322060377

Date

:

19/11/1997

PAYMENTS ANALYSIS

The average term of debts to suplliers is normal compared with that of the sector.

PAYMENTS SCORE : - No insolvency

CREDIT REVOLVING

The subject of inquiry has been monitored by our company:

During the last 12 Months : n. 1 times.

PROTESTS

Protests checking on the subject firm has given a negative result.

LEGAL PROCEDURES

None reported, standing to the last received edition of the Official Publications.

IMMOVABLES *

*No specific (mortgage/cadastrial registrations) inspections have been requested.

None reported in the name of the Firm.

FINANCIAL AND ECONOMICAL ANALYSIS

Company's starting of activities dates back to 1998.

In the economic management , good and bad results followed on by turns. with a loss in the last financial year. The turnover is falling if compared with the previous financial year (EFAT1E%).

A loss is registered as to the operating result (-0,88%).

The analysis shows a fair financial position as the indebtedness volume is acceptable (2,98) but with an increase as against the previous accounting period.

Financial indebdtedness is under control whereas debts to suppliers are frequent even if it still falls within the sector's average.

Liquid assets are good.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	18.810.674	filed balance sheet
Profit (Loss) for the period	-1.081.453	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	22.274.583	filed balance sheet
Profit (Loss) for the period	1.045.874	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	20.784.549	filed balance sheet
Profit (Loss) for the period	-177.434	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	17.052.072	filed balance sheet
Profit (Loss) for the period	-1.366.379	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	26.049.053	filed balance sheet
Profit (Loss) for the period	2.431.995	filed balance sheet

BALANCE SHEETS

From our constant monitoring of the Public Administration, actually, no more recent balance sheets result to be filed.

Balance Sheet as at 31/12/2006 - Months 12 - Currency Eur - Amounts x 1

Balance Sheet as at 31/12/2005 - Months 12 - Currency Eur - Amounts x 1

Years		2006	2005
	BALANCE SHEET ACCOUNTS
.
ASSETS
CREDITS TO SHAREHOLDERS
FIXED ASSETS ( NET )		1.224.551	1.219.885
. Intangible assets		719.392	772.582
. Tangible fixed assets		505.159	447.303
. . Land and buildings
. . Plants, Equipm.and Machinery		208.270	169.932
. Long-term Investments
. . Financial loans
. . Own shares
CURRENT ASSETS		20.390.989	18.468.672
. Stock		10.203.497	9.020.289
. Credits		9.850.103	7.411.678
. . Credits to clients		9.252.635	6.993.608
. . Other credits		597.468	418.070
. Short-term financial assets
. Liquid assets		337.389	2.036.705
ACCRUED INCOME-DEFERR. ASSETS		164.801	151.329
TOTAL ASSETS		21.780.341	19.839.886
.
LIABILITIES
NET WORTH		3.995.665	5.036.930
. Company's capital		312.000	312.000
. Reserves		4.765.118	3.679.056
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		-1.081.453	1.045.874
PROVISION FOR RISKS AND LOSSES		1.818.111	1.745.672
SEVERANCE INDEMNITY FUND		2.902.249	2.567.876
DEBTS		13.058.696	10.472.625
. Financial M/L terms		779.167	850.000
. . Financial M/L term banks		779.167	850.000
. . Financial M/L bonds
. . Other financial M/L debts
. Financial short-term debts		3.173.214	554.034
. . Financial short-term banks		3.173.214	554.034
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		5.267.984	5.571.845
. Sundry M/L debts
. Sundry short-term debts		3.838.331	3.496.746
ACCRUED EXPENSE		5.620	16.783
TOTAL LIABILITIES		21.780.341	19.839.886
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		20.676.177	23.128.304
. Revenues from sales/services		18.810.674	22.274.583
. Change of stock (products)		1.176.745	411.450
OPERATING EXPENSES		20.867.948	21.693.686
. Purchasing expenses		2.544.394	2.811.482
. Change of stock (raw material)		4.623	-4.593
. Expenses from services		7.353.386	8.076.440
. Expenses from leasing		1.477.712	1.668.900
. General expenses/sundry charges		900.753	934.359
. Staff expenses		8.211.763	7.818.370
. Depreciation/Devaluation costs		375.317	388.728
FINANCIAL REVENUES (CHARGES)		-592.736	137.254
. Financial charges		-656.932	-72.758
. Financial revenues		64.196	210.012
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)			-1
PROFIT (LOSS) FOR THE PERIOD		-784.507	1.571.871
TAX		296.946	525.997
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		-1.081.453	1.045.874

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	6,26	6,93	2,03
Net Short-term indebtedness	Units	- 1	l	2,98	1,50	3,11
Current ratio	Units	=> 1	l	1,66	1,91	1,26
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	0,82	0,98	0,92
Return on Sales	%		l	- 3,75	6,44	3,50
Average stock waiting period	dd		l	195,26	145,76	60,71
Credits to clients average term	dd		l	177,04	113,00	124,63
Debts to suppliers average term	dd		l	166,68	159,73	158,82
Net financial revenues/ charges incidence	%		l	- 3,15	0,61	- 0,75
Labour cost incidence	%		l	43,65	35,09	20,80

O.V. = Optimal Value. When not present refer to the sector's.

A coloured item indicates the opinion of the rate during the last financial year

(green=good; orange=not optimal; red=insufficient; n.c.=not computable)

CREDIT OPINION

On the basis of the above mentioned, and the sales volume obtained, we deem that the maximum exposure for short and medium term transactions ( 90 - 120 days ) could be of:

337.200 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	944.297
Population living in the region	:	4.151.369
Number of families in the region	:	1.748.359

Monthly family expences average in the region (in Eur.) :

- per food products	:	425
- per non food products	:	2.063
- per energy consume	:	143

SECTOR DATA

The values are calculated on a base of 1.168 significant companies.

The companies cash their credits on an average of 124 dd.

The average duration of suppliers debts is about 158 dd.

The sector's profitability is on an average of 3,50%.

The labour cost affects the turnover in the measure of 20,80%.

Goods are held in stock in a range of 60 dd.

The difference between the sales volume and the resources used to realize it is about 1,18.

The employees costs represent the 21,30% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistcally the trade activity shows periods of crisis.

The area is statistically considered lowly risky.

In the region 18.860 protested subjects are found; in the province they count to 3.720.

The insolvency index for the region is 0,46, while for the province it is 0,40.

Total Bankrupt companies in the province : 4.335.

Total Bankrupt companies in the region : 14.698.

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.	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