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Profile of this Business Opportunity

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Injection molding business (NYS "S" Corporations) consists of an operations entity and a real estate holding company (for the manufacturing facility) hereinafter referred to as "the Company"; located near Buffalo, NY; is a designer and manufacturer of plastic products through the processes of injection molding, vacuum forming & fabrication (the Company also designs and builds tooling related to these processes).

The president and sole shareholder of the Company is involved in the day to day operations of the business and is looking for a "partner" to acquire part or all of the business in order to facilitate cash-flow issues and allow him to transition into retirement over the next four to six years. The combined operations of the two Companies generated gross revenue of $1.9M during fiscal 1998 and a net loss of $95,000. The Company is currently pursuing expansion plans; including introduction of new products and a strategic acquisition; to increase sales to the $3 - $3.5 M level and generate net income in the 8 to 10% range. A portion of the acquisition proceeds will be used to pursue the Company's expansion plans.

Immediate cash needs of the Company are outlined as follows:

The transaction also contemplates the partner’s commitment of approximatelv $200,000 additional capital within the next six months for design and tooling related to new products scheduled for introduction during fiscal 2000.

In exchange for this consideration the shareholder is prepared to give up a controlling interest in the operating Company. The transaction would also contemplate a fair salary/consulting agreement and a multi-year lease with the real estate holding company for the operating company’s facility (32,000 sq. ft @ $4.25 – includes real estate taxes).

A fair market value** balance sheet of the operating company after this cash infusion would approximately be (as of 7/31/99):
** fair market values are based upon the shareholder’s estimates; the assets have not been appraised.

We will overnight mail a confidentiality letter and a sealed package containing the following documents for your review in order to determine if you have an interest in looking further into this opportunity. Please sign and mail us the confidentiality letter or, if you have no interest please return the entire package (unsealed) to us immediately. Time is of the essence so, please contact us as soon as possible regarding your interest.

• Promotional literature
• Overall expansion plan
• S and marketing plan
• Strategic acquisition plan & correspondence
• New product cost – benefit analysis
• New product sales activity analysis

• Comparative financial statements (Reviewed) 10/31/95 – 10/31/98
• Internal financial statement for the period 11/1/98 – 4/30/99
• Accounts receivable/payable aging reports as of 7/28/99
• FMV schedule of assets

Based upon your interest, the next step would be to meet with the shareholder to discuss how to proceed with the transaction.

For Additional Information about this Business:

Forward a signed Confidentiality Letter to James R. Ellegate at either address above; accompanied by a document/information request.

The information contained in this Confidential Business Review, including but not limited to the Business Profile, financial statements and other data has been supplied by our Client. American Business Network, Inc. has not audited or otherwise confirmed this information and makes no representations, expressed or implied, as to its accuracy or completeness or the conclusions to be drawn and shall in no way be responsible for the content, accuracy and truthfulness of such information. Any and all representations shall be made solely by the Client as set forth in an executed purchase or other type of investment agreement which shall control as to representations and warranties, if any between the client and purchaser/investor.

This Confidential Business Review is only intended to provide a prospective purchaser, investor, joint venturer with preliminary information regarding the Client whose business is currently available for sale or other type of investment. The information and exhibits contained herein have been obtained primarily from the Client and both Client and American Business Network, Inc. believe that the data is a fair representation of Client's business activities. However, American Business Network, Inc. cannot and does not guarantee its completeness or accuracy.

Any interested party potentially involved with a transaction with this Client is advised to perform a due diligence review of Client prior to any purchase or other type of investment in the Client. To maintain confidentiality and to avoid any disruption of the Client's business, all discussions concerning this memorandum or questions about the Client shall be directed through American Business Network, Inc. and there should be no direct contact with Client or its personnel.

If presented, any Pro Forma Financial Statements disregard the infusion of capital and/or debt for the purchase of client or its operating capital needs, adequacy of personnel, expertise and other factors necessary to attain the pro forma results. Furthermore, even if capital funding and/or debt financing as depicted in the pro forma data is obtained and the business operates through to the end of the pro forma period, there are usually differences between the pro forma and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after you have received this report.

email us: American Business Network, Inc.

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