MIRA INFORM REPORT

Report Date :

25.06.2008

IDENTIFICATION DETAILS

Name :	SanDisk Semiconductor (shanghai) Co., Ltd

Registered Office :	No. 388, Jiangchuan East Road, Minhang District, Shanghai, 200241 Pr

Country :	China

Financials (as on) :	31.12.2007

Date of Incorporation :	01.08.2006

Com. Reg. No.:	310000400476080

Legal Form :	Wholly Foreign-Owned Enterprise

Line of Business :	Designing, Researching and Developing, Manufacturing and Selling Memory Cards and other Electronic Components.

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 1,000,000

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

name & address

SanDisk Semiconductor (shanghai) Co., Ltd

NO. 388, JIANGCHUAN EAST ROAD,

MINHANG DISTRICT, SHANGHAI, 200241 PR CHINA

TEL: 86 (0) 21-60905555 FAX: 86 (0) 21-60905566

EXECUTIVE SUMMARY

INCORPORATION DATE : AUGUST 1, 2006

REGISTRATION NO. : 310000400476080

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : mS. JUDY BRUNER (CHAIRMAN)

STAFF STRENGTH : 1,300

REGISTERED CAPITAL : USD 98,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 258,910,000 (AS OF DEC. 31, 2007)

EQUITIES : CNY 549,270,000 (AS OF DEC. 31, 2007)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 1,000,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : stable

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.874 = US$ 1

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 1, 2006.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes designing, researching & developing, testing, packaging and manufacturing new electronic components and products; selling self-made products; supplying related technology and consulting services (with permit if needed).

SC is mainly engaged in designing, researching & developing, manufacturing and selling memory cards and other electronic components.

Ms. Judy Bruner has been legal representative and chairman of SC since Aug. 2006.

SC is known to have approx. 1,300 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shanghai. Our checks reveal that SC owns the total premise about 60,000 square meters.

SC is not known to host website of its own at present.

SC started its normal operation in 2007.

MAIN SHAREHOLDERS:

Name % of Shareholding

Sandisk China Limited (Ireland) 100

l Legal representative and chairman:

Ms. Judy Bruner, American, about 45 years old. She is currently responsible for the overall management of SC.

Working Experience(s):

From 2006 to present Working in SC as chairman and legal representative.

l General manager:

Mr. Lin Yeguo, about 52 years old, Taiwanese. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2006 to present Working in SC as general manager.

SC is mainly engaged in designing, researching & developing, manufacturing and selling memory cards and other electronic components.

Main Products: memory cards and other electronic components

SC sources its materials 100% from overseas market, mainly USA and Hong Kong. SC sells 100% to overseas market, mainly American and Japanese market.

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.

*Major Supplier:

=============

Prentek International Inc (Taiwan)

*Major Customer:

==============

Sandisk Manufactory Limited (U.S.A.)

SC is not known to have any subsidiary at present.

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 and our debt collection record concerning SC.

Trade payment experience : SC’s suppliers declined to make any comments.

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.

Bank of Tokyo-Mitsubishi UFJ [China] Ltd. Shanghai Branch

AC#404029-00000203769

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2007)

Unit: CNY’000

Cash & bank	342,510
Inventory	36,040
Accounts receivable	38,120
Advances to suppliers	3,130
Other receivables	10,000
Prepaid expenses	1,380
Other current assets	0
	------------------
Current assets	431,180
Fixed assets	759,630
Fixed assets net value	646,580
Projects under construction	55,770
Long term investment	0
Intangible assets	20,880
Deferred tax debit	20,240
Other assets	0
	------------------
Total assets	1,174,650
	=============
Short loans	74,000
Accounts payable	136,370
Advances from customers	0
Accrued payroll	5,180
Interest payable	8,970
Taxes payable	1,700
Other payable	3,210
Accrued expenses	1,530
Other current liabilities	0
	------------------
Current liabilities	230,960
Long term liabilities	394,420
	------------------
Total liabilities	625,380
Equities	549,270
	------------------
Total liabilities & equities	1,174,650
	=============

Income Statement (as of Dec. 31, 2007)

Unit: CNY’000

Turnover	258,910
Cost of goods sold	209,920
Sales expense	0
Management expense	6,700
Finance expense	1,450
Non-operating income	80
Profit before tax	40,930
Less: profit tax	-19,350
Profits	60,280

Important Ratios

=============

	as of Dec. 31, 2007
*Current ratio	1.87
*Quick ratio	1.71
*Liabilities to assets	0.53
*Net profit margin (%)	23.28
*Return on total assets (%)	5.13
*Inventory /Turnover ×365	51 days
*Accounts receivable/Turnover ×365	54 days
*Turnover/Total assets	0.22
* Cost of goods sold/Turnover	0.81

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line.

l SC’s net profit margin is fairly good.

l SC’s return on total assets is fairly good.

l SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a normal level.

l SC’s quick ratio is maintained in a fairly good level.

l The inventory of SC is maintained in an average level.

l The accounts receivable of SC is maintained in an average level.

l SC’s short-term loan is in an average level.

l SC’s turnover is in a fair level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Stable.

SC is considered large-sized in its line with stable financial conditions and a short history. The given credit amount would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.79
UK Pound	1	Rs.85.04
Euro	1	Rs.67.39

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