Adabi

INTERNATIONAL OPERATION

OVERSEAS REPRESENTATIONS

PT ADABI NUSA CITARASA (PTANC)
Medan, Sumatera, Indonesia
(Inc. January 11, 1994 - 75% owned)
Operates business as Sole Importer of ADABI's products for Indonesia.

YANTAI SHINHO ADABI SPICE PRODUCTS CO. LTD. (YSASP)
Yantai, Province of Shandong, People's Republic of China
(Inc. November 1996 - 50% owned)

Operates business as:

I.	Miller and exporter of chili powder and other local products including garlic flakes, pickled radish, oyster sauce etc for use by the parent company.

II.	Manufacturer and Trader of a full range of spice - based food products in China.

DISTRIBUTION OF PRODUCTION IN INDONESIA

P.T. Adabi Nusa Citarasa (PT Adabi) was set up in January 1994 in order to facilitate the export of Adabi products into Indonesia. The local laws require that all food products to be sold in Indonesia be registered and approved by the Health Department in Jakarta (referred locally as DES KES RI ML).

Presently, PT Adabi registered 11 Adabi products with the DEP KES RI and each product is designated a trade number. Since the registration, range of Adabi products were brought into Indonesia, mainly to Medan, Sumatera. Medan has been picked as the entry point as Adabi products are no strangers to the locals who knew about Adabi from Malaysia TV transmission. Demand for the products is encouraging and to-date preparation is being made for the products to be distributed to the other parts of Indonesia.

PT Adabi is presently negotiating with PT Eshan Rina, an established consumer goods distributor in Jakarta, to appoint them as distributor of Adabi products for JABOTABEK - an area which is made up of the province of Jakarta, Bogor, Tanggerang and Chilibon.

PT Adabi Nusa Citarasa (PT Adabi)

PT Adabi is 75% owned by ACISB. The balance of the equity is held by Indonesian nationals. PT Adabi's business in Medan is looked after by En. Zahari bin Omar, who also acts as Marketing Consultant. He is Malaysian and has been employed by ACISB since 1991. Prior to this, he has held various positions from Sales Supervisor to Sales Manager. When PT Adabi was formed, he resigned from ACISB and moved to Medan and has been engaged with PT Adabi as Consultant.

YANTAI SHINHO ADABI SPICE PRODUCTS CO. LTD. (YSA)
PROVINCE OF SHANDONG, CHINA

Date of Incorporation	November 1996
Address	Shinho Food 6F, 115 Xinanhe Road, Zhifu, Yantai, Shandung Tel : 0(635) 6642 943 / 0(635) 6642 944 Fax : 0(535) 6642 946
Directors	Lam Chong Yee Soon Ter Sun Syed Mansor Syed Kamaluddin
Shareholders	ACISB - 50% Soon Ter Sun - 25% Lam Chong Yee - 25%>
Authorised Capital	USD 500,000.00 ACISB has remitted USD 500,000 to YSA to fully paid - up the capital as required by the Chinese Authority. In turn, YSA extends credit to ACISB for the chilly purchases. ACISB has also shipped to YSA reconditioned machines, estimated worth around USD 140,000. YSA is yet to pay for this machines.
Status of Company	100% Foreign
Management	CEO - Soon Ter Sun Assistant CEO - Lam Chong Yee
Business	- Miller and exporter of grind chilly powder to ACISB. - Manufacturer of spice based consumer products in China.

Mr. Soon, an American national and Mr. Lam, a Singapore national, are both entrepreneurs who already have their own investment in China before teaming up with ACISB. Mr. Soon has already been in China for 5 years and invested in the following JV Companies with some local partners :

A. Shandong Shinho Foodstuff Industry Co.Ltd.

B. Yantai Shinho Food Co.Ltd.

Both companies produce soya-bean based consumer goods, under the brand - name of Shinho. Mr. Lam is known to ACISB long before he went to China to start his venture there 3 years ago. ACISB used to engage Mr. Lam as consultant in the area of new product development and research. He started Penglai Shinho Food Co. Ltd., with Mr. Soon and some local partners. The company produces soy sauce under Shinho brand.

EXPORT MARKET

COUNTRY	EXPORTER/IMPORTER
Singapore	Yee Lee Oils & Foodstuffs Pte. Ltd., Singapore
Japan	Nanyang Trading Co. Ltd., Japan
Mongolia	Delger International Group
UK and Australia	Kart Food Sdn. Bhd., Malaysia
Brunei	Hong Guan Sdn. Bhd., Brunei - acting as agent to Stasuria Enterprise Sdn. Bhd.
Indonesia	1. PT Adabi Nusa Citarasa as Importer 2. PT Eshan Dima as Distributor 3. PT Musti Alam Prime Rasa
Jordan	Abdullah Ahmad Ayad & Partners Trading company

Not all overseas market order the full range of Adabi products. For example, Japan only imports Perencah Nasi Goreng, Kari Daging and Tom Yam, Indonesia only Perencah Nasi Goreng, Tepung Goreng Pisang and Tepung Goreng Ayam while US only ketupat.