Exhibits

Office Rental & Leashold Improvement (RMB)

Unit Cost Size (Sq.m) Subtotal

Rental (annual) 100 40 48,000
Rental (monthly) 100 40 4,000
Leasehold Improvement 1,000 40 40,000

Office Furniture & Equipment (RMB)

Unit Price Quantity Subtotal

Reception area 10,000 1 10,000
Interview room 15,000 1 15,000
Back office 10,000 3 30,000
Fax 4,000 1 4,000
Computer 10,000 1 10,000
Cellphone 2,000 1 2,000
Pagers 500 3 1,500
Total 72,500

Staff Salaries (RMB)

____Annual Salary____ ___Monthly Salary___

Low* High** Low* High**
Receptionist 6,000 9,600 500 800
Sales 72,000 72,000 6,000 6,000
HR Professional 0 120,000 0 10,000
Payroll Overhead (20%) 15,600 40,320 1,300 3,360
Total 93,600 241,920 7,800 20,160

* Based on receptionist RMB 500 per month, 2 sales RMB 3,000 per month and not hiring the HR professional
** Based on receptionist RMB 800 per month, 2 sales RMB 3,000 per month and hiring the HR professional

Marketing & Promotion (RMB)

Unit Cost Quantity Subtotal Monthly

Hiring News 500 52 26,000 2,167
Job Fairs 1,000 12 12,000 1,000
Total 38,000 3,167

Other Operating Costs (RMB)

Annual Cost Monthly Cost
Office Supplies 6,000 500
Telecommunication 6,000 500
Total Cost 12,000 1,000
 Fixed Costs - Low (RMB)
Annual Monthly
Rent (office) 48,000 4,000
Rent (appartment) 24,000 2,000
Staff salaries (Low) 93,600 7,800
Marketing & Promotion 38,000 3,167
Other operating costs 12,000 1,000
Total 215,600 17,967

Fixed Costs - High (RMB)

Annual Monthly
Rent (office) 48,000 4,000
Rent (appartment) 24,000 2,000
Staff salaries (high) 241,920 20,160
Marketing & Promotion 38,000 3,167
Other operating costs 12,000 1,000
Total 363,920 30,327

Starting Costs (RMB)

Office Furniture & Eq. 72,500
Leasehold improvmenent 48,000
Total 120,500

HR professional
professional
 Junior Level Manageme

Registration Fee Revenue

Revenue Schedule (RMB) 1 2
Success Fee
Positions per week 5 January 1,667 1,667
Applicants per position 20 February 1,667
Willing to show up for an interview 80% March
People interviewed 80 April
May
Potential registration fee (RMB) 10 June
Potential monthly fee revenue 3,200 July
August
September
Success Fee Revenue October
November
Positions filled per month 20 December
Avg. Annual Salary 10,000 Registration Fee 3,200 3,200
Avg. Monthly Salary 833 Total Revenue 4,867 6,533
Success Fee 10.0%
Additional monthly revenue 1,667 Minus monthly costs (17,967) (17,967)

Operating Profit (Loss) (13,100) (11,433)

Total Negative Cash Flows (58,133)

Middle Level Managem

Registration Fee Revenue

Revenue Schedule (RMB) 1 2
Positions per week 5 Success Fee
January 2,500 2,500
Applicants per position 20 February 2,500
Willing to show up for an interview 80% March
People interviewed 80 April
May
Potential registration fee (RMB) 10 June
Potential monthly fee revenue 3,200 July
August
September
Success Fee Revenue October
 November
Positions filled per month 20 December
Avg. Annual Salary 15,000 Registration Fee 3,200 3,200
Avg. Monthly Salary 1,250 Total 5,700 8,200
Success Fee 10.0%
Additional monthly revenue 2,500 Minus monthly costs (30,327) (30,327)

Operating Profit (Loss) (24,627) (22,127)

Total Negative Cash Flows (131,640)

Upper Level Manageme

Registration Fee Revenue (RMB)

Revenue Schedule (RMB) 1 2
Positions per week 5 Success Fee
January 3,333 3,333
Applicants per position 20 February 3,333
Willing to show up for an interview 80% March
People interviewed 80 April
May
Potential registration fee 10 June
Potential monthly fee revenue 3,200 July
August
September
Success Fee Revenue (RMB) October
November
Positions filled per month 20 December
Avg. Annual Salary 20,000 Registration Fee 3,200 3,200
Avg. Monthly Salary 1,667 Total 6,533 9,867
Success Fee 10.0%
Additional monthly revenue 3,333 Minus monthly costs (30,327) (30,327)

Operating Profit (Loss) (23,793) (20,460)

Total Negative Cash Flows (96,553)

Junior Level Management

Month
3 4 5 6 7 8 9 10 11 12

1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667 1,667
1,667 1,667 1,667 1,667
1,667 1,667 1,667
1,667 1,667
1,667
3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200
8,200 9,867 11,533 13,200 14,867 16,533 18,200 19,867 21,533 23,200

(17,967) (17,967) (17,967) (17,967) (17,967) (17,967) (17,967) (17,967) (17,967) (17,967)

(9,767) (8,100) (6,433) (4,767) (3,100) (1,433) 233 1,900 3,567 5,233

Middle Level Management

Month
3 4 5 6 7 8 9 10 11 12

2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500 2,500
2,500 2,500 2,500 2,500
2,500 2,500 2,500
 2,500 2,500
2,500
3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200
10,700 13,200 15,700 18,200 20,700 23,200 25,700 28,200 30,700 33,200

(30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327)

(19,627) (17,127) (14,627) (12,127) (9,627) (7,127) (4,627) (2,127) 373 2,873

Upper Level Management

Month
3 4 5 6 7 8 9 10 11 12

3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333 3,333
3,333 3,333 3,333 3,333
3,333 3,333 3,333
3,333 3,333
3,333
3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200
13,200 16,533 19,867 23,200 26,533 29,867 33,200 36,533 39,867 43,200

(30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327) (30,327)

(17,127) (13,793) (10,460) (7,127) (3,793) (460) 2,873 6,207 9,540 12,873
 1999
Total

20,000
18,333
16,667
15,000
13,333
11,667
10,000
8,333
6,667
5,000
3,333
1,667
38,400
168,400

(215,600)

(47,200)

1999
Total

30,000
27,500
25,000
22,500
20,000
17,500
15,000
12,500
10,000
7,500
 5,000
2,500
38,400
233,400

(363,920)

(130,520)

1999
Total

40,000
36,667
33,333
30,000
26,667
23,333
20,000
16,667
13,333
10,000
6,667
3,333
38,400
298,400

(335,600)

(37,200)
 Loan Financing (RMB)

Cash Flow Considerations

Starting Costs 120,500
Negative CF 96,553
Total 217,053

Loan
Value of Loan 225,000 <- extra 7.5K for miscellaneaous expenses
Loan value increase 236,250
Interest 5%
Annual interest expense 11,813 <- do not pay monthly expense until the end of the first year
can pay lump sum for the year
Repayment
Monthly debt repayment 6,250 <- represents 50% of operating profits
Months to repayment 36
Years to repayment 3.0 <- loan will be repaid by end of 2002

Interest
Monthly interest expense 984
Total interest expense 35,438 <- over the next 3 years

Sources of Financing
Loan 225,000
Personal investment 15,000
Total investment 240,000

Personal Income (after the 1st year) (RMB)

Operating profit 154,480
Interest expense (11,813)
Debt repayment (75,000)
Table Income 67,668
Income tax expense (30%) (20,300)
Personal income 47,367
of the first year