MIRA INFORM REPORT

Report Date :

05.06.2008

IDENTIFICATION DETAILS

Name :	ACEROS DE AMERICA INC.

Registered Office :	Carretera No.1 Km.25,0 Río Piedras a Caguas, Caguas

Country :	Republica de Puerto Rico

Financial as on :	31.12.2007

Date of Incorporation :	1977

Legal Form :	Limited Company

Line of Business :	Materials for Construction

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory

Payment Behaviour :	No Complains

Litigation :	Clear

Registered Name

ACEROS DE AMERICA INC.

TAX-ID 660316868

Summary

BEGINNER OF ACTIVITIES. INCORPORATED IN 1977. GENERAL BALANCE AS OF DEC 31/2007: BALANCED ECONOMIC-FINANCIAL POSITION WITH GOOD FINAL PROFITS. APT FOR CURRENT CREDIT OPERATIONS WITH PROPER GUARANTEES.

Operations

MATERIALS FOR CONSTRUCTION
FERROUS ITEMS
COMMERCIALIZATION
DISTRIBUTION

Legal Structure

BUSINESS TYPE: LIMITED COMPANY
INCORPORATED: 1977
REGITERED: Cdad.de Caguas
DURATION: UNLIMITED
END OF FISCAL YEAR: DEC 31

Contact

HEADQUARTERS: Carretera No.1 Km.25,0 Río Piedras a Caguas, Caguas, República de Puerto Rico.

PHONE: (1787) 747-9331
Fax.: (1787) 720-5842
E-mail: abarcon@acerosdeamerica.com
E-mail: ffernández@acerosdeamerica.com
Website: www.acerosdeamerica.com

Partners

President: BARCON LOPEZ ANGEL
FINANCIAL MANAGER: FERNANDEZ FEDERICO
ACCOUNTANT: DURAND DELGADO NELLY

THE DIRECTION AND ADMINISTRATION OF THE COMPANY IS IN CHARGE OF THE PRESIDENT, AND AS MANAGER, HAVE USE OF SIGNATURE INDIVIDUALLY.

Corporate Stock

THE SHARE CAPITAL OF THE COMPANY IS ESTABLISHED IN u$s. 7.979.211 AS FOLLOWS:

> PACO GARCIA ........................... 50 %
> WOLF OTTO ............................. 50 %

History

BY MID 1977 AND WITH THE OBJECTIVE TO FACE THE EXPLOTATION OF THE ACTIVITIES DEVELOP, IT WAS ORGANIZED THE COMPANY LOCATED AT THE ADDRESS PREVIOUSLY MENTIONED.

THERE'S NO KNOWLEDGE THAT THE COMPANY PARTICIPATES IN ANY OTHER ECONOMIC GROUP NOR ITS DIRECTIVES IN ANY OTHER COMPANIES.

Economic-Financial Position

OUR AGENT MADE CONTACT WITH ACCOUNTANT Nelly Durán Delgado, WHO PROVIDED PARTIAL NUMBERS OF BALANCE SHEET AS OF DEC 31, 2007 AS FOLLOWS:

ASSETS:
------
Total CURRENT 4.236.942,00
FIXED           7.369.495,00
                   -------------
TOTAL ASSETS 11.606.437,00
                =============
LIABILITIES:
------
Total CURRENT 2.427.226,00
LONG TERM 1.200.000,00
NET WORTH 7.979.211,00
                  -------------
TOTAL LIABILITIES 11.606.437,00
            =============

EARNINGS STATEMENT:
--------------------

NET SALES 19.680.302,00
PROFITS 7.137.854,00

AT THE END OF THE EXERCISE, THE COMPANY HAD 3.28 of own resources TO TAKE CARE OF each dollar of commitment assumed TOWARD third PARTIES, UNDERSTANDING THAT it was not needed THE FREQUENT SUPPORT OF OTHERS IN ITS OPERATIONS.

As far as the PROFITS of the exercise, IT has been of 36.26% OVER sales, VERY GOOD, obtaining sufficient amount of remittances TO HAVE A FLUID AND SMOOTH ECONOMIC SITUATION.

Assets

REAL ESTATE:
---------
AT THE END OF THE EXERCISE, THE COMPANY DOES NOT REGISTER THE POSSESION OF ANY REAL ESTATE.

IN REGARDS THE BUILDING THAT OCCUPIES, IT IS REGISTERED UNDER THE SHAREHOLDER Paco García, WITH A GOOD MARKET VALUE.

Commercial References Consulted

* CLIENT SINCE 26 YEARS AGO.
PURCHASE: PAINTS.
CREDIT LINE BY u$s.20.000.-
PAYMENT TERMS: 30 DAYS.
CONCEPT AND FULFILLMENT: VERY GOOD.

Evolution and Results

AS MENTIONED BEFORE, THE COMPANY IS DEDICATED TO COMMERCIALIZATION AND DISTRIBUTION OF CONTRUCTION MATERIALS, FERROUS ITEMS AND SIMILARS, SUCH AS:

Ironworks in general:

- manual and electrical Tools.
- electrical Products.
- PlUMBING.
- Sanitary.
- Accessory for iron doors.
- Posts for barbed wire.
- wood Connectors.

Pipe:
- COOPER.
- Corrugated.
- Electrical.
- Iron door.
- PVC
- Rectangular galvanized and black.
- Square galvanized and black.
- ISO galvanized Light Schedule 40 (black).

Plywood and wood:
- Panels of construction (Plyform).
- Panels for cabinetmakers.
- decorative Panels.
- Doors and marks.
- Hardboard.
- Plywood.
- Wood for construcTiOn treated and without treating.
- Moldings.

Rods:
- All the thicknesses.
- All the lengths.
- IMPORTED and American.

Products of wire:
- Barbed wire.
- Navajia Wire (Concertinas).
- black Wire of curtains ring.
- Cyclone Fence.
- Nails: currents, galvanized and of steel.
- Screens.
- Mooring cables for rods.

Structural and ornamental steel:
- Angular.
- Beams.
- Channels.
- Tolas.
- Planchelas.
- square and round Bars.
- Grating.

Products to put a roof on:
- channeled Zinc.
- smooth Zinc.
- asphalted Cardboard.
- It covers.
- Shingles.

MisceLlANEOUS:
- Cisterns.
- Tools.
- Ironworks.

THE COMPANY HAS a suitable infrastructure and well mounted organization.

The company has representatives in Puerto Rico Norte; San Juan Metro; Puerto Rico Norte-Este; Puerto Rico Sur; Puerto Rico Oeste, e Islas Vírgenes.

Approximately 40% of its sales are in cash and 60% with facilities of payment between 30/60 days, being observed that 85% of operations are made in the national market.

* 55 EMPLOYEES.

NATIONAL SUPPLIERS:
----------------------
BARTOW SETEAL INTERNATIONAL
INSULAR WIRE PRODUCTS CORP.
LANCO MANUFACTURING CORP.

Payment Record and Credit Risk

SCOTIABANK
BANCO POPULAR DOMINICANO

BOTH BANKS STATE THAT THE COMPANY OPERATES SINCE SOME YEARS AGO WITH A NORMAL CONDUCT.

Concept

NATIONAL AND OUT OF THE COUNTRY COMPANIES SUPPORT THE COMPANY WITH CREDIT OPERATIONS WITHOUT MAKING ANY OBJECTIONS ON THE WAY PAYMENTS ARE FULFILL.

* FULFILLMENT WITHOUT OBJECTIONS.

Final Opinion

BASED ON THE PREVIOUS REVIEW, THE COMPANY IS VIABLE FOR CURRENT CREDIT OPERATIONS WITH PROPER GUARANTEES

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