Our customers, who are manufacturers in plastic molding processing, number more than 2,000, including Japanese makers operating in the U.S. Automation needs in the domestic plastic molding industry in the U.S. are intensifying because of labor shortages, harsh price competition, and increasing product supplies. Because take-out robots are not yet commonly used throughout the industry, we see the U.S. as a prime opportunity for expanding our market. At an exhibition held in Chicago in June 2006, the servo robots exhibited by Yushin took top place in terms of reliability, operation, and programming functions. It was an outstanding opportunity for us to demonstrate just how good our robots are, before thousands of onlookers.

Our main customers at the moment include plastic molding manufacturers in automotive and IT-related fields. Right now, cheaper take-out robots manufactured by local makers hold the highest share of the market in Korea, and we are hard put to match them in terms of price, but as the automation-hungry industry continues to grow, we anticipate increased demand for high-performance robots. Korea is in the midst of a production boom in next-generation development products such as light-guiding panels and DVD-related devices. Companies are fighting hard for top place in these emerging fields. That gives the Korean market enormous appeal, and we are confident that it will not be long before our products are receiving the recognition they deserve for their high performance and value.

Because Europe has long been a major center of plastic processing, there are numerous outstanding molding compnies there. However, manufacturers have been relatively slow to install take-out robots in their plants. We see this as a prime marketing opportunity. We are currently doing business with makers in a broad range of fields including tableware and kitchen utensils, recording media, and optical discs. We face constant challenge from competing manufacturers, but our "high-cycle machines" with their shorter overall cycle times, such as our ultra-high speed robots and optical disc take-out robots, are highly acclaimed in Europe. We also have high expectations for the growing market in next-generation cellular phones, and we look forward to becoming even more active in Europe.

Our office is located approximately 150 kilometers northwest of central London. They promote Yushin robots mainly in UK and Ireland, and provide maintenance services for their products that have been sold in those regions.The company "Yushin Automation" will allow Yushin to cover whole Europe and they expect to increase sales.

China has been experiencing explosive economic growth in a short period of time with a corresponding increase in market activity. To respond to that enormous market, we established an office in Tianjin in 2003, and subsidiaries in Shenzhen and Shanghai in 2004. Our customers consist mainly of Japanese manufacturers of information devices, optical devices, and household appliances operating in mainland China. However, with growing demand for cellular phones, leading cell phone manufacturers from Europe and the U.S. have begun building plants in mainland China and are going into full-scale operation there. Especially in Shenzhen region, since there are many international manufactures of the household appliances, precision optics and OA-related products, high demand of our take-out robots is expected.