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TSI Manufacturing LLC Ltd.“Growth Through Strategic Partnerships”

Presentation 2008

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TSI Philosophy

• Commitment to strategic OEM relationships. Manufacturing partnerships are exclusive to each customer.

• Invest in engineering and technology. Engineers, workstations, software, prototype equipment.

• Product design & development. To create OEM manufacturing opportunities through new

product development.

• Strategic partnerships for manufacturing. On-time delivery of quality products, at competitive costs.

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Office Locations

Bend, Oregon Administration/Sales Voice: 541-318-0500 Fax: 541-318-0600 Web: www.tsimfg.com Contact:gwescott@tsimfg.

com

Hong Kong Scheduling & Shipping Voice: 852-2367-4606 Fax: 852-2368-1243 Contact: ellen@tsimfg.com

Bao An, China Engineering/NPD Voice: 86-755-2736-8881 Fax: 86-755-2736-8822

Contact: arthur@tsimfg.com

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Financial

• TSI is a privately held company. Incorporated in Oregon and Hong Kong. Major shareholders:

Bob Smith Gee Ing Young Arthur Yang

• Operation started 1985.

• Debt free, with ample cash reserves.

• Bank References: Wells Fargo Bank, Bend, Oregon, 541-550-4097 (John MacMillan) Wells Fargo Bank, Hong Kong, (852)-2315-9501 (Freda Dan)

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Organizational Chart

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Key Personnel

• Bob Smith ASEE (RC), BSME (URI), MSME (UMass) Registered Professional Engineer (Manufacturing, California) 20 Years in industry. Started TSI in 1985

General Instrument 7 years Philips 3 years Polaroid 10 years

• Arthur Yang BSBA, 21 years with TSI.

• Li Lin BSME, 14 years with TSI.

• Paul Lin BSEE, 9 years with TSI.

• Tony Tang MSME, 8 years with TSI.

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TSI Sales Summary Y2006

• 1: Office Products (staplers & punches)

• 2: Medical

• 3: Motorcycle Parts & Accessories

• 4: Hydration Products

• 5: Other

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Sales(2007 Forecast)

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Engineering ServicesBao An, China

• Operations started June-2000.

• SolidWorks, Pro-E and AutoCad software.

• Prototype & modeling capabilities.

• Electronics engineering

Engineering Development CapabilitiesCreating OEM Manufacturing Opportunities

• Engineering Prototypes Feature developments. Prove concepts. Confirm tooling designs. Test production designs. Cross-platform usage.

• Production Prototypes Functional, “production-look”. Industrial designs. Marketing analysis. Confirm reliability of design.

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Manufacturing Joint-Ventures

TSI-HCC• Pingho, China

• ISO9002

• Staplers

• Switch Products

TSI-Plum• Chang An, China

• FDA, ISO9002

• Electronic & Medical Products; FDA certified.

TSI-RFI• Bao An, China

• ISO9002

• Staplers, Punches

• Toys Products

TSI-Wenda• Ning Bao, China

• ISO9002

• Staplers, Punches

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Joint-Venture Agreements

TSI Provides: Product engineering. Engineering & Quality documentation. Quality Assurance staffing. Tooling & mold designs. Consigned piece parts. Financial support.

• Manufacturing Partners provide: Dedicated factory space and equipment. Direct labor. Piece parts production. Factory supervision.

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Manufacturing Commitments

• Production Capacities. Minimum two year committed under joint-ventures. Joint equipment investments. Capabilities in multiple locations.

• Tooling. All tooling owned/controlled by TSI. Back-up tooling for most products, funded by TSI.

• Inventories. Long-lead steel parts: 30 days stock. Piece parts: 30 days stock, except plastics & packaging. Finished Goods: As required by customer forecasts.

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Products Shipped(1992 - 2006)

• Products shipped from China: 59,291,401

35,163,219 Pocket Staplers 7,672,054 Hydration Products 5,730,444 Removers 5,108,120 Desktop Staplers 3,438,053 Heavy Duty Staplers 1,251,824 Component Parts 526,296 Punches 401,391 Motorcycle Products

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Stapler Products

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Punch Products

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Hydration Components

• “Bite Me” Valves

• Bladder Fittings

• Bladder Spouts

• Bladder Filler Caps

• Bladder Adapters

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Hydration Products

Motorsports Products

• Pre-oiled Air Filters• Stainless steel Oil Filters• Paper Oil Filters• Anodized CNC Billet

Covers• Anodized CNC Billet

Vent Caps• Anodized CNC Billet

Fuel Screws• Stainless Steel/Al

Exhaust Canisters

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TSI-HCC

• Pingho, China

• ISO-9002 certified.

• Metal parts tooling & production.

• Plastic molded parts.

• Turnkey production.

• 4,400 sq-meters.

• New 15,000 sq-m factory, late-2008.

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TSI-Plum

• Songgong, China.

• ISO-9002 & FDA certified.

• SMD/Thru-Hole Circuit Assembly.

• Turnkey production.

• 8000 sq-meters.

• FDA Certified.

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TSI-RFI

• Songgong, China.

• ISO-9002 certified.

• Metal parts production.

• Plastic molded parts.

• Turnkey production.

• 8000 sq-meters.

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TSI-Wenda

• Ningbo, China

• ISO-9002 (China cert.)

• Paper punches

• Mini & Desktop staplers

• 8,000 sq-meters.

• Adding 8,000 sq-m, 2008

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Growth Plans

• Engineering Larger facilities Upgraded workstations In-house rapid prototype.

• Quality Additional staffing Precision measurement equipment

• Manufacturing Increased capacities Expanded manufacturing capabilities

• Development Advanced hydration products Electric staplers Premium filter products