1 、 Project General

　 1.1 Project No: 071

　 1.2 Project Contact Unit: Guangxi Wuming Dengguang Alcohol Plant

　 1.3 Negotiating Representative: Huang Hanjie

　　 Tel: +86-771-6222193

　　 Add: Wuming County Seat, Guangxi

　 1.4 Project Site: Wuming County Seat

　 1.5 Total Investment: USD 13.5 million

　 1.6 Anticipated Economic Benefits: When the Project reaches its full capacity, it will generate annual sales volume volume of RMB 325.00 million yuan with the annual after tax profit of RMB 36 million. The Project investment recovery period will be 4.6 year (inclusive of one year of construction period).

　 1.7 Pattern of Cooperation Joint Venture or Cooperative Operation

　 1.8 Progress of Project Preparation: Project Proposal has been complete and delivered for approval.

2 、 Project Scope, Capacity and Capital Compositions

　 2.1 Project Scope and Capacity: Based on the original facilities and capacities, it is expected to construct 5 additional production lines to produce modified cassava starch with the annual capacity of 50 thousand tons. The items of the Project will include the engineering design, equipment and auxiliary facilities selection, civil construction, equipment and auxiliary facilities installation.

　 2.2 Capital Compositions: Investment in fixed assets:RMB 63.87 million yuan; working capital: RMB 47.97 million yuan. The funds will be obtained by self-raising, loaning and/or inviting investment.

3 、 Brief Introduction of the Project Contact Unit

　 Wuming Chengdong Dengguang Alcohol Plant is an enterprise under Township Enterprise Bureau of Wuming County. It is now employing 45 staff, of which 10 are qualified with senior tile. The plant is producing alcohol 3,00 tons annually. The alcohol produced is stable in quality and sold mainly out side the county.

4 、 Project Market Analyses

　 Starch is an industrial material with broad usages. Through the chemical and physical and/or bio-method treatments, the natural starch will be turned into the modified starch possessing of the incomparable properties. The products are highly competitive. In recent years, the production of modified are developing rapidly. Although, the yield of the modified starch had reached 670 thousand tons up to 2000, the supply was not able to satisfy the domestic demand, which had resulted in bulk import from abroad annually. It has a big room in the market for the development of modified starch.

5 、 Supporting Facilities for the Project

　 5.1 The Conditions of Transportation, Telecommunication, Water & Power Supply

　　 The proposed Project site is 8km away from Wuming County Seat through a Class IV asphalt paved highway and 40km away from Nanning traveling on the standard Class II highway. The distance between Nanning Airport and the site is 60km.The transportation conditions are convenient. The water for production can be pumped from nearby Wuming He River, while the domestic water will be supplied from Wuming Water Supply Works. The water, power supply and telecommunication conditions all meet the demand of the Project.

　 5.2 Raw Material Supply

　　 Wuming County teems in cassava. The cassava planting area in 2002 reached 227 thousand mu with the cassava yield of 400 thousand tons. The cassava starch production in 2001 was 120 thousand tons, accounting for 33% of the yield in Guangxi. The cassava production bases are distributed in the peripheral area of the proposed Project site.

6 、 Project competitive Advantages

　 6.1 Applicable Preferential Policies The Project is entitled to various preferential policies offered by municipality and county and the Preferential Taxation Policies for Promoting Foreign Investment implemented in Wuming County.

　 6.2 Other Advantages of the Project

　　 The Project is supported by sufficient cassava supply. The site is situated in the location with obvious geological advantages. The production technologies are advanced and reliable.