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2007.05

Dear Customers, Relations and Friends,

I am proud to present you the first newsletter of our company China Challenge. Through this letter we will at least twice a year update you on important and or interesting developments regarding our company, but also news facts, changes in regulations or others that might be of interest or influence to your business dealings with and within China.

In an effort to professionalize and upgrade our organization, increase customer service and our overall quality perception and to stay in line with our growth, we have taken several measures which should secure these.

First of all, we can welcome a new colleague to our management team in the position of General Manage, Filip Duthoy, belgium national. He will be responsible for improving and reinforcing of our companies organization, service and technical level.

Filip Duthoy has worked in product development and contract manufacturing since 1991. Most of this time he was located in Taiwan and China. For 7 years he worked at Verhaert Design & Development, a large Belgian product developer active in industrial and aerospace projects. As Project Manager, he started up Verhaert's Asian activities and then managed the Asian branch office for 4 years. He speaks Dutch, French, English and Chinese.

Secondly, we have decided that our company need to pass the ISO9001:2000 certification procedure. Currently we are in the middle of this process, mapping and then upgrading the procedures, streamlining our organization which ultimately must lead us to pass the test at the end of October.

Furthermore, we also welcome a new Chinese Colleague Mr. Wu Nan. With more than 20 years of experience in aluminum die casting and gravity casting as well as sandcasting using steel and alu, we have added invaluable experience and knowledge to our team.

And if that's not enough, we expect to add an experienced manager and a QA for our QC department.

With all these measures taken and new professionals added to our organization, we are positive that we can provide better service to your organization as well as use full input on your new product designs from both a product design point of view as well as from a production point of view.

Feel free to send me your opinion, remarks or suggestions.

Warmest Regards,

Gijsbert de Bruin

Director China Challenge Ltd.

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