----

----

| Nevada                                                        |   | 26-2477977                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| Larger accelerated filer       o                                                              | Accelerated filer    o               |
|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| Non-accelerated filer           o(Do not check if a smaller reporting company) | Smaller reporting company     x |

----

----

|                               |   | 09/30/2010 |      |   | 12/31/2009 |   |     | 09/30/2009 |   |   | 12/31/2008 |   |
|------------------------------------|--------|------------|-----------|--------|------------|--------|----------|------------|--------|--------|------------|--------|
| CURRENT ASSETS                     |   |       |      |   |       |   |     |       |   |   |       |   |
| Cash and banks                     |   |       | 41,966    |   |       |   | 54,845   |       |   |   | 9,979      |   |   |   | 24,015 |   |
| Trade receivables                  |   |       | 822,894   |   |       |   | 274,802  |       |   |   | 193,705    |   |   |   | 84,986 |   |
| Due from related parties           |   |       | 674,602   |   |       |   | 130,594  |       |   |   | 20,243     |   |   |   | 333,876 |   |
| Due from shareholders              |   |       | 53,888    |   |       |   | -        |       |   |   | -          |   |   |   | 12,258 |   |
| Inventories                        |   |       | 530,116   |   |       |   | 259,883  |       |   |   | 474,612    |   |   |   | 282,876 |   |
| Other current assets               |   |       | 4,424     |   |       |   | 782      |       |   |   | 2,465      |   |   |   | 4,678 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Total current assets               |   |       | 2,127,890 |   |       |   | 720,906  |       |   |   | 701,004    |   |   |   | 742,689 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| NON CURRENT ASSETS                 |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Property, plant and equipment, net |   |       | 60,440    |   |       |   | 29,872   |       |   |   | 47,568     |   |   |   | 21,188 |   |
| Intangible assets, net             |   |       | 12,731    |   |       |   | -        |       |   |   |       |   |   |   | - |   |
| Other non current assets           |   |       | 1,116     |   |       |   | 3,725    |       |   |   |       |   |   |   | - |   |
| Rights, net                        |   |       | 8,400     |   |       |   | 14,976   |       |   |   | 18,736     |   |   |   | 23,468 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Total non current assets           |   |       | 82,687    |   |       |   | 48,573   |       |   |   | 66,304     |   |   |   | 44,656 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| TOTAL ASSETS                       |   |       | 2,210,577 |   |       |   | 769,479  |       |   |   | 767,308    |   |   |   | 787,345 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| CURRENT LIABILITIES                |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       | 5,471     |   |       |   | 11,282   |       |   |   | 20,790     |   |   |   | 4,467 |   |
| Trade payables                     |   |       | 176,114   |   |       |   | 70,619   |       |   |   | 110,740    |   |   |   | 343,544 |   |
| Due to shareholders                |   |       | 59,241    |   |       |   | 75,584   |       |   |   | 108,777    |   |   |   | 40,077 |   |
| Due to related parties             |   |       | 1,125,741 |   |       |   | 670,976  |       |   |   | 742,934    |   |   |   | 289,324 |   |
| Other current liabilities          |   |       | 14,236    |   |       |   | 120,619  |       |   |   | 6,134      |   |   |   | 25,286 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Total current liabilities          |   |       | 1,380,803 |   |       |   | 949,080  |       |   |   | 989,375    |   |   |   | 702,698 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| NON CURRENT LIABILITIES            |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       |      |   |       |   | 2,321    |       |   |   | 3,583      |   |   |   | 5,118 |   |
| Reserve for retirement pay         |   |       | 933       |   |       |   | 1,041    |       |   |   | 848        |   |   |   | 314 |   |
| Share purchase advances            |   |       | 750,000   |   |       |   | -        |       |   |   | -          |   |   |   | - |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Total non current liabilities      |   |       | 750,933   |   |       |   | 3,362    |       |   |   | 4,431      |   |   |   | 5,432 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES      |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Share capital                      |   |       | 125,500   |   |       |   | 125,500  |       |   |   | 125,500    |   |   |   | 125,500 |   |
| Retain earnings                    |   |       | (308,463  | )      |       |   | (46,285  | )          |   |   | (46,285    | )      |   |   | 7,749 |   |
| Net income for the period          |   |       | 261,804   |   |       |   | (262,178 | )          |   |   | (305,713   | )      |   |   | (54,034 | ) |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Total shareholders’ equity   |   |       | 78,841    |   |       |   | (182,963 | )          |   |   | (226,498   | )      |   |   | 79,215 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| TOTAL LIABILITIES AND              |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       | 2,210,577 |   |       |   | 769,479  |       |   |   | 767,308    |   |   |   | 787,345 |   |
|                               |   |       |      |   |       |   |     |       |   |   |       |   |   |   |   |   |

----

|                                                        |   |   | 01.01.- 09.30.2010 |   |   |   | 01.01.- 12.31.2009 |   |   |   | 01.01.- 09.30.2009 |   |   |   | 01.01.- 12.31.2008 |   |
|-------------------------------------------------------------|--------|--------|--------------------|--------|--------|--------|--------------------|--------|--------|--------|--------------------|--------|--------|--------|--------------------|--------|
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| NET SALES                                                   |   |   | 2,676,936          |   |   |   | 2,029,074          |   |   |   | 1,807,348          |   |   |   | 1,752,442          |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| COST OF SALES                                               |   |   | (1,798,549         | )      |   |   | (1,742,047         | )      |   |   | (1,618,647         | )      |   |   | (1,540,132         | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| Gross profit                                                |   |   | 878,387            |   |   |   | 287,027            |   |   |   | 188,702            |   |   |   | 212,310            |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| SELLING EXPENSES                                            |   |   | (349,041           | )      |   |   | (409,386           | )      |   |   | (423,242           | )      |   |   | (122,476           | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| GENERAL AND ADMINISTRATIVE  EXPENSES              |   |   | (275,980           | )      |   |   | (140,121           | )      |   |   | (55,289            | )      |   |   | (164,652           | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| Income from operations                                      |   |   | 253,366            |   |   |   | (262,480           | )      |   |   | (289,830           | )      |   |   | (74,818            | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| OTHER INCOME AND EXPENSES, NET                              |   |   | (31,276            | )      |   |   | 6,621              |   |   |   | (17,447            | )      |   |   | 621                |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| FINANCIAL INCOME AND EXPENSES , NET                         |   |   | (5,905             | )      |   |   | (8,741             | )      |   |   | 13,842             |   |   |   | (3,051             | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| Income before taxation and currency translation gain/(loss) |   |   | 216,185            |   |   |   | (264,600           | )      |   |   | (293,434           | )      |   |   | (77,248            | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| TAXATION CHARGE                                             |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| Taxation current                                            |   |   | --                 |   |   |   | --                 |   |   |   | --                 |   |   |   | --                 |   |
| Deferred                                                    |   |   | --                 |   |   |   | --                 |   |   |   | --                 |   |   |   | --                 |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| CURRENCY TRANSLATION GAIN/(LOSS)                            |   |   | 45,619             |   |   |   | 2,422              |   |   |   | (12,279            | )      |   |   | 23,214             |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| Net income for the period                                   |   |   | 261,804            |   |   |   | (262,178           | )      |   |   | (305,713           | )      |   |   | (54,034            | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| OTHER COMPREHENSIVE INCOME                                  |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |
| Total comprehensive income                                  |   |   | 261,804            |   |   |   | (262,178           | )      |   |   | (305,713           | )      |   |   | (54,034            | )      |
|                                                        |   |   |               |   |   |   |               |   |   |   |               |   |   |   |               |   |

----

|                                                               |   | 09/30/2010 |     |   | 12/31/2009 |   |     | 09/30/2009 |   |   | 12/31/2008 |   |
|--------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|----------|------------|--------|--------|------------|--------|
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |
| CASH FLOWS FROM OPERATING  ACTIVITIES                    |   |       |     |   |       |   |     |       |   |   |       |   |
| Net income                                                         |   |       | 261,804  |   |       |   | (262,178 | )          |   |   | (305,713   | )      |   |   | 45,994 |   |
| Adjustments to reconcile net income to net cash provided           |   |       | --       |   |       |   | --       |       |   |   | --         |   |   |   |   |   |
| By operating activities:                                           |   |       | --       |   |       |   | --       |       |   |   | --         |   |   |   |   |   |
|                                                               |   |       | 10,250   |   |       |   | 8,640    |       |   |   | 9,395      |   |   |   |   |   |
| Provision for retirement pay                                       |   |       | (108     | )      |       |   | 727      |       |   |   | 534        |   |   |   | 314 |   |
| Depletion allowance                                                |   |       | 6,576    |   |       |   | 8,493    |       |   |   | 4,732      |   |   |   | 8,493 |   |
| Changes in operating assets and liabilities                        |   |       | --       |   |       |   | --       |       |   |   | --         |   |   |   |   |   |
| Trade receivables                                                  |   |       | (548,092 | )      |       |   | (189,816 | )          |   |   | (69,336    | )      |   |   | 68,474 |   |
| Due from related parties                                           |   |       | (544,008 | )      |       |   | 203,282  |       |   |   | 313,633    |   |   |   | (273,150 | ) |
| Due from shareholders                                              |   |       | (53,888  | )      |       |   | 12,258   |       |   |   | 12,258     |   |   |   | (12,258 | ) |
| Inventories                                                        |   |       | (270,233 | )      |       |   | 22,993   |       |   |   | (82,797    | )      |   |   | 150,232 |   |
| Other current assets                                               |   |       | (3,642   | )      |       |   | 3,896    |       |   |   | 4,251      |   |   |   | (302 | ) |
| Borrowings                                                         |   |       | 2,609    |   |       |   | (3,725   | )          |   |   | --         |   |   |   |   |   |
| Trade payables                                                     |   |       | 96,471   |   |       |   | (272,925 | )          |   |   | (238,040   | )      |   |   | 47,713 |   |
| Due to shareholders                                                |   |       | (16,211  | )      |       |   | 30,430   |       |   |   | 74,968     |   |   |   | (10,231 | ) |
| Due to related parties                                             |   |       | 463,657  |   |       |   | 386,729  |       |   |   | 285,747    |   |   |   | -- |   |
| Other current liabilities                                          |   |       | (106,383 | )      |       |   | 95,332   |       |   |   | (15,375    | )      |   |   | 18,983 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Net cash generated from (used for)  operating activities |   |       | (701,198 | )      |       |   | 44,136   |       |   |   | (5,743     | )      |   |   | 44,262 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                                                               |   |       | (5,811   | )      |       |   | 6,815    |       |   |   | 14,035     |   |   |   |   |   |
|                                                               |   |       | (2,321   | )      |       |   | (2,797   | )          |   |   | (4,157     | )      |   |   |   |   |
| Dividends paid                                                     |   |       | --       |   |       |   | --       |       |   |   | --         |   |   |   | (37,219 | ) |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Net cash (used for) provided from  financing activities  |   |       | (8,132   | )      |       |   | 4,018    |       |   |   | 9,878      |   |   |   | (37,219 | ) |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| Net cash provided from investing activities                        |   |       | 696,451  |   |       |   | (17,324  | )          |   |   | (22,966    | )      |   |   |   |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                          |   |       | (12,878  | )      |       |   | 30,830   |       |   |   | (18,831    | )      |   |   | 7,043 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                     |   |       | 54,845   |   |       |   | 24,015   |       |   |   | 28,810     |   |   |   | 7,613 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                         |   |       | 41,967   |   |       |   | 54,845   |       |   |   | 9,979      |   |   |   | 14,656 |   |
|                                                               |   |       |     |   |       |   |     |       |   |   |       |   |

----

----

----

|                                       |   | Notes  |   |   |   | 30.09.2010 |      |   |   | 31.12.2009 |     |
|--------------------------------------------|--------|--------|--------|--------|--------|------------|-----------|--------|--------|------------|----------|
| ASSETS                                     |   |   |   |   |   |       |      |   |   |       |     |
| Cash and cash equivalents                  |   |   | 5      |   |   | $          | 38,134    |   |   | $          | 52,641   |   |
| Trade receivables, net                     |   |   | 6      |   |   |       | 811,767   |   |   |       | 269,394  |   |
| Due from shareholders                      |   |   | 7      |   |   |       | 43,404    |   |   |       | --       |   |
| Inventories, net                           |   |   | 8      |   |   |       | 258,639   |   |   |       | 166,448  |   |
| Other current assets                       |   |   | 9      |   |   |       | 4,325     |   |   |       | 400      |   |
| Total current assets                       |   |   |   |   |   |       | 1,156,269 |   |   |       | 488,883  |   |
| Property and equipment, net                |   |   | 10     |   |   |       | 60,440    |   |   |       | 29,872   |   |
| Intangible assets, net                     |   |   | 11     |   |   |       | 12,731    |   |   |       | --       |   |
| Other non-current assets                   |   |   | 12     |   |   |       | 1,116     |   |   |       | 3,725    |   |
| Total non-current assets                   |   |   |   |   |   |       | 74,287    |   |   |       | 33,597   |   |
|                                       |   |   |   |   |   |       |      |   |   |       |     |   |
| Total assets                               |   |   |   |   |   |       | 1,230,556 |   |   |       | 522,480  |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY       |   |   |   |   |   |       |      |   |   |       |     |   |
| Short-term bank loans                      |   |   | 13     |   |   |       | 5,471     |   |   |       | 11,282   |   |
| Trade payables                             |   |   | 14     |   |   |       | 127,036   |   |   |       | 69,013   |   |
| Due to shareholders                        |   |   | 7      |   |   |       | 36,742    |   |   |       | 55,660   |   |
| Due to related parties                     |   |   | 7      |   |   |       | 1,106,631 |   |   |       | 642,160  |   |
| Other current liabilities                  |   |   | 15     |   |   |       | 8,155     |   |   |       | 71,516   |   |
| Total current liabilities                  |   |   |   |   |   |       | 1,284,035 |   |   |       | 849,631  |   |
| Long-term bank loans                       |   |   | 13     |   |   |       | --        |   |   |       | 2,321    |   |
| Employee termination benefits              |   |   | 16     |   |   |       | 247       |   |   |       |     |   |
| Total long-term liabilities                |   |   |   |   |   |       | 247       |   |   |       | 2,321    |   |
| Shareholders' Equity:                      |   |   |   |   |   |       |      |   |   |       |     |   |
| Share capital                              |   |   | 17     |   |   |       | 90,000    |   |   |       | 90,000   |   |
| Accumulated deficit                        |   |   |   |   |   |       | (419,472  | )      |   |       | (100,028 | ) |
| Net profit/(loss) for the period           |   |   |   |   |   |       | 275,746   |   |   |       | (319,444 | ) |
|                                       |   |   |   |   |   |       |      |   |   |       |     |   |
| Total shareholders' equity                 |   |   |   |   |   |       | (53,726   | )      |   |       | (329,472 | ) |
|                                       |   |   |   |   |   |       |      |   |   |       |     |   |
| Total liabilities and shareholders' equity |   |   |   |   |   |       | 1,230,556 |   |   |       | 522,480  |   |

----

|                                         |   | Notes  |   |   |   | 30.09.2010 |       |
|----------------------------------------------|--------|--------|--------|--------|--------|------------|------------|
| Sales                                        |   |   | 18     |   |   |       | 1,842,913  |   |
| Cost of sales                                |   |   | 19     |   |   |       | (1,207,022 | ) |
| Gross profit                                 |   |   |   |   |   |       | 635,891    |   |
| Marketing, selling and distribution expenses |   |   | 20     |   |   |       | (212,766   | ) |
| General and administrative expenses          |   |   | 21     |   |   |       | (139,389   | )  |
| Total operating profit                       |   |   |   |   |   |       | 283,736    |   |
| Financial income / (expense), net            |   |   | 23     |   |   |       | (3,885     | )  |
| Other income / (expense), net                |   |   | 22     |   |   |       | (40,938    | )  |
| Translation loss                             |   |   |   |   |   |       | 36,833     |   |
| Profit before provision for taxation         |   |   |   |   |   |       | 275,746    |   |
| Provision for taxation                       |   |   |   |   |   |       |       |   |
| - Current                                    |   |   |   |   |   |       |       |   |
| - Deferred                                   |   |   |   |   |   |       |       |   |
| Net profit for the period                    |   |   |   |   |   |       | 275,746    |   |
| Other comprehensive income                   |   |   |   |   |   |       |       |   |
| Currency translation differences             |   |   |   |   |   |       |       |   |
| Total comprehensive income for the period    |   |   |   |   |   |       | 275,746    |   |

----

|                                                                                         |   |   | 30.09.2010 |   |
|----------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| Cash flow from operating activitiesNet profit for the period                                 |   |   | 275,746    |   |
| Adjustments to reconcile net profit to netcash provided by operating activities:Depreciation |   |   | 10,250     |   |
| Provision for employee termination benefit                                                   |   |   | 247        |   |
| Net profit adjusted to non-cash items                                                        |   |   | 286,243    |   |
| Changes in operating assets and liabilities:                                                 |   |   |       |   |
| Change in trade receivables                                                                  |   |   | (542,373   | )      |
| Change in due from shareholders                                                              |   |   | (43,404    | )      |
| Change in inventories                                                                        |   |   | (92,191    | )      |
| Change in other current assets                                                               |   |   | (3,925     | )      |
| Change in other non current assets                                                           |   |   | 2,609      |   |
| Change in trade payables                                                                     |   |   | 48,999     |   |
| Change in due to shareholders                                                                |   |   | (9,894     | )      |
| Change in due to related parties                                                             |   |   | 464,471    |   |
| Change in other current liabilities                                                          |   |   | (63,361    | )      |
| Net cash used for operating activities                                                       |   |   | 47,174     |   |
| Cash flows from investing activities:Purchased of property and equipment and intangibles     |   |   | (53,549    | )      |
| Net cash outflows from investing activities                                                  |   |   | (53,549    | )      |
| Cash flows from financing activities:Increase in short-term borrowings                       |   |   | (5,811     | )      |
| Decrease in long-term borrowings                                                             |   |   | (2,321     | )      |
| Cash outflows generated by financing activities                                              |   |   | (8,132     | )      |
| Net decrease in cash and cash equivalents                                                    |   |   | (14,507    | )      |
| Cash and cash equivalents at the beginning of the year                                       |   |   | 52,641     |   |
| Cash and cash equivalents at the end of the period                                           |   |   | 38,134     |   |

----

|                                          |   | Sharecapital |   |   | Accumulateddeficit |   |     | Net (loss) /profit for the year/ period |   |   | Total Shareholders'Equity |    |
|-----------------------------------------------|--------|--------------|--------|--------|--------------------|--------|----------|-----------------------------------------|--------|--------|---------------------------|---------|
| Opening balance as of 1 January 2009          |   |         | 90,000 |   |               |   | (100,028 | )                                       |   |   | (100,028                  | )       |   |   | (10,028 | ) |
| Transfer to accumulated deficit               |   |         |   |   |               |   |     |                                    |   |   | (100,028                  | )  |   |   |   |   |
| Net loss for the year 2009                    |   |         |   |   |               |   |     |                                    |   |   | (319,444                  | )  |   |   | (319,444 | )  |
| Balances at 31 December 2009                  |   |         | 90,000 |   |               |   | (100,028 | )                                       |   |   | (319,444                  | )       |   |   | 329,472 |   |
| Transfer to accumulated deficit               |   |         | --     |   |               |   | (319,444 | )                                  |   |   | 319,444                   |    |   |   | 275,746 |   |
| Net profit for the nine months period of 2010 |   |         | --     |   |               |   | --       |                                    |   |   | 275,746                   |    |   |   |   |   |
| Balances at 30 September 2010                 |   |         | 90,000 |   |               |   | (419,472 | )                                       |   |   | 275,746                   |    |   |   | 53,726 |   |

----

----

----

| Machinery and equipments             | 2-6 years |
|-------------------------------------------|-----------|
| Motor vehicles                            | 4 years   |
| Furniture, fixtures and office equipments | 4-5 years |

----

|        |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|-------------|--------|--------|------------|--------|--------|--------|------------|--------|
| USD         |   |   | 1.4512     |   |   |   | 1.5057     |   |
| EURO        |   |   | 1.9754     |   |   |   | 2.1603     |   |
| GBP         |   |   | 2.2937     |   |   |   | 2.3892     |   |
| Average USD |   |   | 1.5143     |   |   |   | 1.5454     |   |

----

|              |   |   | 30.09.2010  |   |   |   | 31.12.2009  |   |
|-------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|
| Cash in handBanks |   |   | 34,8083,326 |   |   |   | 9,62143,020 |   |
| Total             |   |   | 38,134      |   |   |   | 52,641      |   |

----

|              |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|-------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Trade receivables |   |   | 811,767    |   |   |   | 269,394    |   |
| Total             |   |   | 811,767    |   |   |   | 269,394    |   |

|                                                 |   |   |       |   |   |   |
|------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Due from shareholders has been presented as follows: |   |   |       |   |   |   |
| Due from shareholders                                |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Recep Tanisman                                       |   |   | 43,404     |   |   |   |   |   |
| Total                                                |   |   | 43,404     |   |   |   |   |   |

| Due to related parties                                                                                                                                                            |   |   | 30.09.2010                 |   |   |   | 31.12.2009                |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|--------|---------------------------|--------|
| Emko Emaye ve Yazi Tahtalari ve Egitim GerecleriA.S          .Touch IT Educations Technologies Di . Tic. Koll.SirketiKamron Inc |   |   | 534,177 536,36636,088 |   |   |   | 570,532 25,52946,099 |   |
| Total                                                                                                                                                                             |   |   | 1,106,631                  |   |   |   | 642,160                   |   |
|                                                                                                                                                                              |   |   |                       |   |   |   |                      |   |
| Due to shareholders                                                                                                                                                               |   |   | 30.09.2010                 |   |   |   | 31.12.2009                |   |
| Ali Riza TanismanAndrew Brabin StuartRecep Tanisman                                                                                                                               |   |   | 23,73112,809202            |   |   |   | 22,65733,003--            |   |
| Total                                                                                                                                                                             |   |   | 36,742                     |   |   |   | 55,660                    |   |

----

| Major purchases from related parties                           |   |   |       |   |   |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Trade goods                                                    |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Emko Emaye ve Yazi Tahtalari ve Egitim Gerecleri A.S.          |   |   | 333,480    |   |   |   | 447,898 |   |
| Touch IT Educations Technologies Dis. Tic. Koll.Sirketi        |   |   | 141,260    |   |   |   | 156,524 |   |
| Total                                                          |   |   | 474,740    |   |   |   | 604,422 |   |
| Services provided                                              |   |   |       |   |   |   |   |   |
|                                                           |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Kamron Inc.                                                    |   |   | 40,994     |   |   |   | 88,181 |   |
| Emko Emaye ve Yazi Tahtalari ve Egitim Gerecleri A.S.          |   |   | 1,730      |   |   |   | 21,267 |   |
| Total                                                          |   |   | 42,724     |   |   |   | 109,448 |   |
| Major sales to related parties have been presented as follows: |   |   |       |   |   |   |   |   |
|                                                           |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Touch IT Educations Technologies Dis. Tic. Koll.Sirketi        |   |   | 148,756    |   |   |   | 179,035 |   |
| Emko Emaye ve Yazi Tahtalari ve Egitim Gerecleri A.S.          |   |   | 3,999      |   |   |   | -- |   |
|                                                           |   |   | 152,755    |   |   |   | 179,035 |   |

|                         |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Raw material and supplies    |   |   | 190,316    |   |   |   | 120,691    |   |
| Finished goods               |   |   | 48,069     |   |   |   | 16,045     |   |
| Advances given for purchases |   |   | 11,196     |   |   |   | 22,632     |   |
| Other inventories            |   |   | 8,288      |   |   |   | 7,080      |   |
| Total                        |   |   | 258,639    |   |   |   | 166,448    |   |

----

|                                          |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Prepaid ExpensesDeposits and Guarantees given |   |   | 3,925400   |   |   |   | --400      |   |
| Total                                         |   |   | 4,325      |   |   |   | 400        |   |

|                                                              |   | 1 January2009 |                   |   | Additions |   |                  | 31 December2009 |   |   | Additions        |   |   | 30 September2010 |                |
|-------------------------------------------------------------------|--------|---------------|------------------------|--------|-----------|--------|-----------------------|-----------------|--------|--------|------------------|--------|--------|------------------|---------------------|
| CostMachinery and equipmentVehiclesFurniture and fixtures         |   |          | 3,655 12,5225,911 |   |      |   | --16,933391           |            |   |   | 3,65529,4556,302 |   |   |             | 1,483 --37,406 |   |   |   | 5,13929,45543,708 |   |
| Total                                                             |   |          | 22,088                 |   |      |   | 17,324                |            |   |   | 39,412           |   |   |             | 38,890              |   |   |   | 78,302 |   |
| DepreciationMachinery and equipmentVehiclesFurniture and fixtures |   |          | 171522207              |   |      |   | 1,023 6,3061,311 |            |   |   | 1,1946,8281,518  |   |   |             | 8674,2543,201       |   |   |   | 2,06111,0824,719 |   |
| Total                                                             |   |          | 900                    |   |      |   | 8,640                 |            |   |   | 9,540            |   |   |             | 8,323               |   |   |   | 17,862 |   |
|                                                              |   |          |                   |   |      |   |                  |            |   |   |             |   |   |             |                |   |   |   |   |   |
| Net book value                                                    |   |          | 21,188                 |   |      |   |                  |            |   |   | 29,872           |   |   |             |                |   |   |   | 60,440 |   |

----

|                                    |   | 31 December2009 |   |   | Additions |   |        | 30 September2010 |   |
|-----------------------------------------|--------|-----------------|--------|--------|-----------|--------|-------------|------------------|--------|
| CostRightsOther tangible assets         |   |            | ----   |   |      |   | 10,7743,885 |             |   |   | 10,7743,885 |   |
| Total                                   |   |            | --     |   |      |   | 14,659      |             |   |   | 14,659 |   |
| DepreciationRightsOther tangible assets |   |            | ----   |   |      |   | 1,496432    |             |   |   | 1,496432 |   |
| Total                                   |   |            | --     |   |      |   | 1,928       |             |   |   | 1,928 |   |
|                                    |   |            |   |   |      |   |        |             |   |   |   |   |
| Net book value                          |   |            | --     |   |      |   |        |             |   |   | 12,731 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 30.09.2010 |   |   |   | 31.12.2009  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|
| Short term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |       |   |   |   |        |   |
| TRY bank loans                                                                                               |   |   | 5,471      |   |   |   | 11,282      |   |
| Sub total                                                                                                                   |   |   | 5,471      |   |   |   | 11,282      |   |
| Lone term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |        |   |
| TRY bank loans                                                                      |   |   | --         |   |   |   | 2,321       |   |
| Sub total                                                                                               |   |   | --         |   |   |   | 2,321       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |        |   |
| Total                                                                                                                            |   |   | 5,471      |   |   |   | 13,603      |   |
| Analysis of bank loans' repayments is as follows:                                                                                                                                                                                                                                                                                                                                                                                            |   |   |       |   |   |   |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 30.09.2010 |   |   |   | 31.12.2009  |   |
| Within one yearBetween one to two years                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 5,471--    |   |   |   | 11,2822,321 |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 5,471      |   |   |   | 13,603      |   |

|                          |   |   | 30.09.2010       |   |   |   | 31.12.2009  |   |
|-------------------------------|--------|--------|------------------|--------|--------|--------|-------------|--------|
| SuppliersOther trade payables |   |   | 126,874 162 |   |   |   | 65,8313,182 |   |
| Total                         |   |   | 127,036          |   |   |   | 69,013      |   |

----

|                                 |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Social security withholdings payable |   |   | 1,819      |   |   |   | 685        |   |
| Accrued expenses                     |   |   | 1,250      |   |   |   | --         |   |
| Advances received                    |   |   | --         |   |   |   | 68,597     |   |
| Other liabilities                    |   |   | 5,086      |   |   |   | 2,234      |   |
| Total                                |   |   | 8,155      |   |   |   | 71,516     |   |

----

|                 |   |         | 30.09.2010 |   |   |   |   |         |   | 31.12.2009 |   |   |   |   |
|----------------------|--------|--------------|------------|--------|--------|--------|--------|--------------|--------|------------|--------|--------|--------|--------|
|                 |   | Shareholding |       |   |   |   |   | Shareholding |   |       |   |   |
|                 |   | Amount       |       |   | %      |   |   | Amount       |   |       | %      |   |
| Ali Riza Tam man     |   |         | 2,700      |   |   |   | 3      | %            |   |       | 29,700 |   |   |   | 33 | % |
| Andrew Stuart Brabin |   |         | 30,600     |   |   |   | 34     | %            |   |       | 30,600 |   |   |   | 34 | % |
| Recep Tanisman       |   |         | 27,000     |   |   |   | 30     | %            |   |       | --     |   |   |   | -- |   |
| Ronald George Murphy |   |         | 29,700     |   |   |   | 33     | %            |   |       | 29,700 |   |   |   | 33 | % |
|                 |   |         | 90,000     |   |   |   | 100    | %            |   |       | 90,000 |   |   |   | 100 | % |

|                   |   |   | 30.09.2010 |   |
|------------------------|--------|--------|------------|--------|
| Clever board           |   |   | 631,121    |   |
| Touch it board 78 inch |   |   | 571,331    |   |
| Touch it board 80 inch |   |   | 180,825    |   |
| Triumph board 78 inch  |   |   | 136,060    |   |
| Electronic circuit     |   |   | 118,238    |   |
| Touch it board 90 inch |   |   | 93,042     |   |
| Triumph board 80 inch  |   |   | 52,386     |   |
| Touch it board 50 inch |   |   | 34,484     |   |
| Triumph board 50 inch  |   |   | 1,222      |   |
| Others                 |   |   | 26,421     |   |
| Returns (-)            |   |   | (2,217     | )      |
| Total                  |   |   | 1,842,913  |   |

----

|                           |   |   | 30.09.2010 |   |
|--------------------------------|--------|--------|------------|--------|
| Direct material cost           |   |   | 1,076,008  |   |
| Direct labour cost             |   |   | 50,995     |   |
| General production overheads   |   |   | 76,091     |   |
| Ending inventory (trade goods) |   |   | (516       | )      |
| Depreciation                   |   |   | 4,444      |   |
| Total                          |   |   | 1,207,022  |   |

|                                             |   |   | 30.09.2010 |   |
|--------------------------------------------------|--------|--------|------------|--------|
| Export expensesSales & marketing expenses of |   |   | (85,595    | )      |
| shareholders                                     |   |   | (42,032    | )      |
| Software expenses                                |   |   | (32,906    | )      |
| Consultancy expenses                             |   |   | (20,358    | )      |
| Cargo expenses                                   |   |   | (4,894     | )      |
| Depreciation                                     |   |   | (1,211     | )      |
| Others                                           |   |   | (25,770    | )      |
| Total                                            |   |   | (212,766   | )      |

|                     |   |   | 30.09.2010 |   |
|--------------------------|--------|--------|------------|--------|
| Shareholders expenses    |   |   | 94,606     |   |
| Consulting expenses      |   |   | 28,841     |   |
| Food expenses            |   |   | 2,369      |   |
| Depreciation             |   |   | 4,595      |   |
| Tax and duties           |   |   | 856        |   |
| Retirement pay liability |   |   | 247        |   |
| Other                    |   |   | 7,875      |   |
| Total                    |   |   | 139,389    |   |

----

|                                  |   |   | 30.09.2010 |    |
|---------------------------------------|--------|--------|------------|---------|
| Provision for impairment of inventory |   |   | (38,092    | )  |
| Non tax deductable expenses           |   |   | (4,566     | )  |
| Other, net                            |   |   | 1,720      |    |
| Total                                 |   |   | (40,938    | )       |

|                                    |   |   | 30.09.2010 |   |
|-----------------------------------------|--------|--------|------------|--------|
| Interest expensesOther banking expenses |   |   | 1,1562,729 |   |
| Total                                   |   |   | 3,885      |   |

|                                                                                                                                                                                                                               |   | Financial     |   |   | Loans and Financial |   |      | liabilities at |   |   | Carrying |   |   | Fair   |      |   | Note   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------------------|--------|-----------|----------------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                                                                                                                               |   | assets at     |   |   | receivables              |   |      | amortized cost |   |   | value    |   |   | value  |      |   |   |   |
| 30 September 2010                                                                                                                                                                                                                  |   | amortizedcost |   |   |                     |   |      |           |   |   |     |   |   |   |      |   |   |   |
| Financial assetsCash and cash equivalents                                                                                                                                                                                          |   |          | --     |   |                     |   | 38,134    |           |   |   | --       |   |   |   | 38,134    |   |   |   | 38,134 |   |   |   | 5 |   |
| Trade receivables                                                                                                                                                                                                                  |   |          | --     |   |                     |   | 811,767   |           |   |   | --       |   |   |   | 811,767   |   |   |   | 811,767 |   |   |   | 6 |   |
| Financial liabilitiesBorrowings                                                                                                                                                                                                    |   |          | --     |   |                     |   | 5,471     |           |   |   | --       |   |   |   | 5,471     |   |   |   | 5,471 |   |   |   | 13 |   |
| Trade payables                               (includingrelated parties) |   |          | --     |   |                     |   | 1,233,677 |           |   |   | --       |   |   |   | 1,233,677 |   |   |   | 1,233,677 |   |   |   | 7-14 |   |

----

|                                                                                                            |   | Financialassets atamortized |   |   | Loans andreceivables |   |    | Financialliabilities atamortized cost |   |   | Carryingvalue |   |   | Fairvalue |    |   | Note   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|----------------------|--------|---------|---------------------------------------|--------|--------|---------------|--------|--------|-----------|---------|--------|--------|--------|
| 31 December 2009                                                                                                |   | cost                        |   |   |                 |   |    |                                  |   |   |          |   |   |      |    |   |   |   |
| Financial assetsCash and cash equivalents                                                                       |   |                        | --     |   |                 |   | 52,641  |                                  |   |   | --            |   |   |      | 52,641  |   |   |   | 52,641 |   |   |   | 5 |   |
| Trade receivables                                                                                               |   |                        | --     |   |                 |   | 269,394 |                                  |   |   | --            |   |   |      | 269,394 |   |   |   | 269,394 |   |   |   | 6 |   |
| Financial liabilitiesBorrowings                                                                                 |   |                        | --     |   |                 |   | --      |                                  |   |   | 13,603        |   |   |      | 13,603  |   |   |   | 13,603 |   |   |   | 13 |   |
| Trade            payables(includingrelated parties) |   |                        | --     |   |                 |   | 711,173 |                                  |   |   | --            |   |   |      | 711,173 |   |   |   | 711,173 |   |   |   | 7-14 |   |

|                          |   |   |      |   |     |       | 30.09.2010 |   |   |       | 31.12.2009 |   |
|-------------------------------|--------|--------|-----------|--------|----------|------------|------------|--------|--------|------------|------------|--------|
|                          |   |   | F/C  |   |     |       | Foreign    |   |   |       |       |   | Foreign |   |   |   |   |
|                          |   | Type   |      |   | Currency |       |       | TRY    |   |       | Currency   |   |   | TRY |   |
| Cash                          |   | USD    |      |   |     | 1,000      |       |   |   | 1,451      |       |   |   | -- |   |   |   | -- |   |
| Banks                         |   | USD    |      |   |     | 1,398      |       |   |   | 2,028      |       |   |   | 41,901 |   |   |   | 63,090 |   |
| Trade receivables             |   | USD    |      |   |     | 811,767    |       |   |   | 1,178,037  |       |   |   | 269,394 |   |   |   | 405,628 |   |
| Advances Given (inventories)  |   | USD    |      |   |     | --         |       |   |   | --         |       |   |   | 10,774 |   |   |   | 16,222 |   |
| Trade payables                |   | USD    |      |   |     | (97,920    | )          |   |   | (142,102   | )          |   |   | (553,238 | ) |   |   | (833,010 | ) |
| Due to related parties        |   | EURO   |      |   |     | --         |       |   |   | --         |       |   |   | (904 | ) |   |   | (1,953 | ) |
|                          |   | USD    |      |   |     | (1,106,631 | )          |   |   | (1,605,943 | )          |   |   | -- |   |   |   |   |   |
| Due to shareholders           |   | USD    |      |   |     | (12,809    | )          |   |   | (18,588    | )          |   |   | (33,003 | ) |   |   | (49,693 | ) |
| Other current liabilities     |   | USD    |      |   |     | --         |       |   |   | --         |       |   |   | (68,598 | ) |   |   | (103,288 | ) |
| Net F/CAssets and Liabilities |   |   |      |   |     |       |       |   |   |       | (585,117   | )      |   |   |   |   |   |   | (503,004 | ) |

----

|                        |   | Current |      |   | Noncurrent |   |   | Total  |   |
|-----------------------------|--------|---------|-----------|--------|------------|--------|--------|--------|--------|
| 30 September 2010Borrowings |   |    | 5,471     |   |       |   | --     |   |   |   | 5,471 |   |
| Trade payables              |   |    | 127,036   |   |       |   | --     |   |   |   | 127,036 |   |
| Due to related parties      |   |    | 1,106,631 |   |       |   | --     |   |   |   | 1,106,631 |   |
| 31 December 2009Borrowings  |   |    | 11,282    |   |       |   | 2,321  |   |   |   | 13,603 |   |
| Trade payables              |   |    | 69,013    |   |       |   | --     |   |   |   | 69,013 |   |
| Due to related parties      |   |    | 642,160   |   |       |   | --     |   |   |   | 642,160 |   |

----

----

----

|                                       |   | Notes  |   | 30.09.2010 |    | 31.12.2009 |    |
|--------------------------------------------|--------|--------|--------|------------|---------|------------|---------|
| ASSETS                                     |   |   |   |       |    |       |    |
| Cash and cash equivalents                  |   |   | 5      |       | 3,832   |       | 2,204   |   |
| Trade receivables, net                     |   |   | 6      |       | 11,127  |       | 5,408   |   |
| Due from related parties                   |   |   | 7      |       | 674,602 |       | 130,594 |   |
| Due from shareholders                      |   |   | 7      |       | 10,484  |       | --      |   |
| Inventories, net                           |   |   | 8      |       | 271,477 |       | 93,435  |   |
| Other current assets                       |   |   | 9      |       | 99      |       | 382     |   |
|                                       |   |   |   |       |    |       |    |   |
| Total current assets                       |   |   |   |       | 971,621 |       | 232,023 |   |
| Rights, net                                |   |   | 10     |       | 8,400   |       | 14,976  |   |
| Total non-current assets                   |   |   |   |       | 8,400   |       | 14,976  |   |
|                                       |   |   |   |       |    |       |    |   |
| Total assets                               |   |   |   |       | 980,021 |       | 246,999 |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY       |   |   |   |       |    |       |    |   |
| Trade payables                             |   |   | 11     |       | 49,078  |       | 1,606   |   |
| Due to shareholders                        |   |   | 7      |       | 22,499  |       | 19,924  |   |
| Due to related parties                     |   |   | 7      |       | 19,110  |       | 28,816  |   |
| Other current liabilities                  |   |   | 12     |       | 6,081   |       | 49,103  |   |
|                                       |   |   |   |       |    |       |    |   |
| Total current liabilities                  |   |   |   |       | 96,768  |       | 99,449  |   |
| Share purchase advances                    |   |   | 14     |       | 750,000 |       | -       |   |
| Employee termination benefits              |   |   | 13     |       | 686     |       | 1,041   |   |
| Total long-term liabilities                |   |   |   |       | 750,686 |       | 1,041   |   |
| Shareholders' Equity:                      |   |   |   |       |    |       |    |   |
| Share capital                              |   |   | 15     |       | 35,500  |       | 35,500  |   |
| Retained Earnings                          |   |   |   |       | 111,009 |       | 53,743  |   |
| Net income for the period                  |   |   |   |       | (13,942 | )     | 57,266  |   |
|                                       |   |   |   |       |    |       |    |   |
| Total shareholders' equity                 |   |   |   |       | 132,567 |       | 146,509 |   |
|                                       |   |   |   |       |    |       |    |   |
| Total liabilities and shareholders' equity |   |   |   |       | 980,021 |       | 246,999 |   |

----

|                                                   |   | Notes  |   | 30.09.2010 |   |
|--------------------------------------------------------|--------|--------|--------|------------|--------|
|                                                   |   |   |   |       |   |
| Sales                                                  |   | 16     |   | 834,023    |   |
| Cost of sales                                          |   | 17     |   | (591,527   | )      |
|                                                   |   |   |   |       |   |
| Gross profit                                           |   |   |   | 242,496    |   |
|                                                   |   |   |   |       |   |
| Marketing, selling and distribution expenses           |   | 17     |   | (136,275   | )      |
| General and administrative expenses                    |   | 19     |   | (136,591   | )      |
|                                                   |   |   |   |       |   |
| Total operating income                                 |   |   |   | (30,370    | )      |
|                                                   |   |   |   |       |   |
| Financial income / (expense), net                      |   |   |   | (2,020     | )      |
| Other income / (expense), net                          |   |   |   | 9,662      |   |
|                                                   |   |   |   |       |   |
| Profit before provision for taxation                   |   |   |   | (22,728    | )      |
|                                                   |   |   |   |       |   |
| Provision for taxation -   Current- Deferred |   |   |   |       |   |
|                                                   |   |   |   |       |   |
| Net income for the period                              |   |   |   | (22,728    | )      |
|                                                   |   |   |   |       |   |
| Other comprehensive income                             |   |   |   |       |   |
| Currency translation differences                       |   |   |   | 8,786      |   |
| Total comprehensive income for the period              |   |   |   | (13,942    | )      |

----

|                                                                              |   | 30.09.2010 |    |
|-----------------------------------------------------------------------------------|--------|------------|---------|
| Cash flow from operating activities                                               |   |       |    |
| Net income for the period                                                         |   | (13,942    | )  |
|                                                                              |   |       |    |
| Adjustments to reconcile net profit to net cash provided by operating activities: |   |       |    |
|                                                                              |   |       |    |
| Depreciation                                                                      |   | 6,576      |    |
| Provision for employee termination benefit                                        |   | (355       | )  |
|                                                                              |   |       |    |
| Net income adjusted to non-cash items                                             |   | (7,721     | )       |
|                                                                              |   |       |    |
| Changes in operating assets and liabilities:                                      |   |       |    |
| Change in trade receivables                                                       |   | (5,719     | )  |
| Change in due from related parties                                                |   | (544,008   | )  |
| Change in due from shareholders                                                   |   | (10,484    | )  |
| Change in inventories                                                             |   | (178,042   | )  |
| Change in other current assets                                                    |   | 283        |    |
| Change in trade payables                                                          |   | 47,472     |    |
| Change in due to related parties                                                  |   | (814       | )  |
| Change in due to shareholders                                                     |   | (6,317     | )  |
| Change in other current liabilities                                               |   | (43,022    | )  |
|                                                                              |   |       |    |
| Net cash provided from operating activities                                       |   | (748,372   | )       |
|                                                                              |   |       |    |
| Cash flows from investing activities:                                             |   |       |    |
| Purchased of property and equipment                                               |   |       |    |
| Change in share purchase advances                                                 |   | 750,000    |    |
|                                                                              |   |       |    |
| Net cash provided from investing activities                                       |   | 750,000    |    |
|                                                                              |   |       |    |
| Cash flows from financing activities:                                             |   |       |    |
| Increase/(decrease) in short-term borrowings                                      |   |       |    |
| Increase/(decrease) in long-term borrowings                                       |   |       |    |
|                                                                              |   |       |    |
| Cash flows provided by financing activities                                       |   |       |    |
|                                                                              |   |       |    |
| Net decrease in cash and cash equivalents                                         |   | 1,628      |    |
|                                                                              |   |       |    |
| Cash and cash equivalents at the beginning of the year                            |   | 2,204      |    |
|                                                                              |   |       |    |
| Cash and cash equivalents at the end of the period                                |   | 3,832      |    |

----

|                          |   | Share capital |   |   | Retained Earnings |   |    | Net income for theyear / period |   |   | Total Shareholders'Equity |    |
|-------------------------------|--------|---------------|--------|--------|-------------------|--------|---------|---------------------------------|--------|--------|---------------------------|---------|
| Balances at 31 December 2008  |   |          | 35,500 |   |              |   | 7,749   |                            |   |   | 45,994                    |    |   |   | 89,243 |   |
|                          |   |          |   |   |              |   |    |                            |   |   |                      |    |   |   |   |   |
| Transfer to retain earnings   |   |          | --     |   |              |   | 45,994  |                            |   |   | (45,994                   | )  |   |   |   |   |
|                          |   |          |   |   |              |   |    |                            |   |   |                      |    |   |   |   |   |
| Net income for the year       |   |          | --     |   |              |   | --      |                            |   |   | 57,266                    |    |   |   | 57,266 |   |
|                          |   |          |   |   |              |   |    |                            |   |   |                      |    |   |   |   |   |
| Balances at 31 December 2009  |   |          | 35,500 |   |              |   | 53,743  |                            |   |   | 57,266                    |    |   |   | 146,509 |   |
|                          |   |          |   |   |              |   |    |                            |   |   |                      |    |   |   |   |   |
| Transfer to retain earnings   |   |          | --     |   |              |   | 57,266  |                            |   |   | (57,266                   | )       |   |   |   |   |
|                          |   |          |   |   |              |   |    |                            |   |   |                      |    |   |   |   |   |
| Net income for the period     |   |          | --     |   |              |   | --      |                            |   |   | (13,942                   | )  |   |   | (13,942 | )  |
|                          |   |          |   |   |              |   |    |                            |   |   |                      |    |   |   |   |   |
| Balances at 30 September 2010 |   |          | 35,500 |   |              |   | 111,009 |                            |   |   | (13,942                   | )       |   |   | 132,567 |   |

----

|   | (All amounts are expressed in US Dollars (USD) in full, unless otherwise indicated) |
|--------|-------------------------------------------------------------------------------------|

| 1.   | OPERATIONS OF THE COMPANY: |
|----------------|----------------------------|

----

----

|   | (All amounts are expressed in US Dollars (USD) in full, unless otherwise indicated) |
|--------|-------------------------------------------------------------------------------------|

| 4.   | SIGNIFICANT ACCOUNTING POLICIES |
|----------------|---------------------------------|

----

|   | (All amounts are expressed in US Dollars (USD) in full, unless otherwise indicated)4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|        |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|-------------|--------|--------|------------|--------|--------|--------|------------|--------|
| USD         |   |   | 1.4512     |   |   |   | 1.5057     |   |
| EURO        |   |   | 1.9754     |   |   |   | 2.1603     |   |
| GBP         |   |   | 2.2937     |   |   |   | 2.3892     |   |
| Average USD |   |   | 1.5143     |   |   |   | 1.5454     |   |

----

|         |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|--------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Cash in hand |   |   | 2,848      |   |   |   | --         |   |
| Banks        |   |   | 984        |   |   |   | 2,204      |   |
|         |   |   |       |   |   |   |       |   |
| Total        |   |   | 3,832      |   |   |   | 2,204      |   |

| 6.   | TRADE RECEIVABLES |
|----------------|-------------------|

|              |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|-------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Trade receivables |   |   | 11,127     |   |   |   | 5,408      |   |
|              |   |   |       |   |   |   |       |   |
| Total             |   |   | 11,127     |   |   |   | 5,408      |   |

----

| Due from related parties                                             |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Touch IT Technologies Koll. Sir. Ronald George                       |   |   |       |   |   |   |       |   |
| Murphy ve Ortaklari                                                  |   |   | 536,366    |   |   |   | 25,528     |   |
| Emko Yazi Tahtalan ve Egitim Gerecleri A.S.                          |   |   | 132,236    |   |   |   | 105,066    |   |
| ASB Trading                                                          |   |   | 6,000      |   |   |   |  --   |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Total                                                                |   |   | 674,602    |   |   |   | 130,594    |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Due from shareholders                                                |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Andrew Stuart Brabin                                                 |   |   | 10,484     |   |   |   | --         |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Total                                                                |   |   | 10,484     |   |   |   | --         |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Due to related parties                                               |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Kamron                                                               |   |   | 19,110     |   |   |   | --         |   |
| Emko Yazi Tahtalan ve Egitim Gerecleri A.S.                          |   |   | --         |   |   |   | 28,816     |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Total                                                                |   |   | 19,110     |   |   |   | 28,816     |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Due to shareholders                                                  |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Ali Riza Tanisman                                                    |   |   | 22,499     |   |   |   | 19,924     |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Total                                                                |   |   | 22,499     |   |   |   | 19,924     |   |
| Major purchases from related parties have been presented as follows: |   |   |       |   |   |   |       |   |
| Major purchases from related parties                                 |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Touch It Technologies Koll. Sir. Ronald George                       |   |   |       |   |   |   |       |   |
| Murphy ve Ortaklari                                                  |   |   | 148,756    |   |   |   | 179,035    |   |
| Emko Yazi Tahtalan ve Egitim Gerecleri A.S.                          |   |   | --         |   |   |   | 15,734     |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Total                                                                |   |   | 148,756    |   |   |   | 194,769    |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Major sales to related parties                                       |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
| Emko Yazi Tahtalan ve Egitim Gerecleri A.S.                          |   |   | 368,957    |   |   |   | 280,000    |   |
| Touch IT Technologies Koll. Sir. Ronald George                       |   |   |       |   |   |   |       |   |
| Murphy ve Ortaklari                                                  |   |   | 127,340    |   |   |   | 156,524    |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Total                                                                |   |   | 496,297    |   |   |   | 436,524    |   |

----

| 7.   |  RELATED PARTY BALANCES AND TRANSACTIONS: |
|----------------|------------------------------------------------|

|   | Service provided     | 30.09.2010 |   | 31.12.2009 |
|--------|----------------------|------------|--------|------------|
|   | Kamron Inc.          | 68,222     |   |       |
|   | Andrew Stuart Brabin | 27,934     |   |       |
|   | Total                | 96,156     |   |       |

| 8.   |  INVENTORIES |
|----------------|-------------------|

|                                    | 30.09.2010    | 31.12.2009   |
|-----------------------------------------|---------------|--------------|
| Advances given for purchasesTrade goods | 205,49965,978 | 45,32448,111 |
| Total                                   | 271,477       | 93,435       |

| 10.   | NON-CURRENT ASSETS |
|-----------------|--------------------|

|                             | 30.09.2010     | 31.12.2009     |
|----------------------------------|----------------|----------------|
| License rightDepletion allowance | 35,000(26,600) | 35,500(20,524) |
| Total                            | 8,400          | 14,976         |

----

|           |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|----------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Trade payables |   |   | 49,078     |   |   |   | 1,606      |   |
| Total          |   |   | 49,078     |   |   |   | 1,606      |   |

|                                 |   |   | 30.09.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Taxes and funds payable              |   |   | 2,758      |   |   |   | --         |   |
| Social security withholdings payable |   |   | 2,073      |   |   |   | 929        |   |
| Accrued expenses                     |   |   | 1,250      |   |   |   | --         |   |
| Advances received                    |   |   | --         |   |   |   | 48,174     |   |
| Total                                |   |   | 6,081      |   |   |   | 49,103     |   |

----

|                                  |  30.09.2010  |  31.12.2009 |
|---------------------------------------|------------------------|------------------|
|                                  | ShareholdingAmount     | %                | ShareholdingAmount | % |
| Andrew Stuart BrabinAli Riza Tanisman | 26,6258,875            | 75%25%           | 26,6258,875 | 75%25% |
|                                  | 35,500                 | 100%             | 35,500 | 100% |

|                         |   |   | 30.09.2010 |   |
|------------------------------|--------|--------|------------|--------|
| Electronic set               |   |   | 592,546    |   |
| Remote Control for classroom |   |   | 140,906    |   |
| Touch IT board               |   |   | 44,213     |   |
| Writing pad                  |   |   | 27,913     |   |
| Others                       |   |   | 36,718     |   |
| Returns (-)                  |   |   | (8,273     | )      |
| Total                        |   |   | 834,023    |   |

|                        |   |   | 30.09.2010 |   |
|-----------------------------|--------|--------|------------|--------|
| Cost of sales (trade goods) |   |   | (591,527   | )      |
| Total                       |   |   | (591,527   | )      |

----

|                     |   |   | 30.09.2010 |   |
|--------------------------|--------|--------|------------|--------|
| Consultancy expenses     |   |   | 100,995    |   |
| Export expenses          |   |   | 20,362     |   |
| Web site design expenses |   |   | 8,908      |   |
| Other expenses           |   |   | 6,010      |   |
| Total                    |   |   | 136,275    |   |

|                               |   |   | 30.09.2010 |   |
|------------------------------------|--------|--------|------------|--------|
| Consultancy expenses               |   |   | 62,145     |   |
| Salaries                           |   |   | 38,561     |   |
| Provision for doubtful receivables |   |   | 18,727     |   |
| Rental expenses                    |   |   | 9,776      |   |
| Depreciation expenses              |   |   | 6,576      |   |
| Other expenses                     |   |   | 806        |   |
| Total                              |   |   | 136,591    |   |

----

|   | (All amounts are expressed in US Dollars (USD) in full, unless otherwise indicated) |
|--------|-------------------------------------------------------------------------------------|

| 20.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
|-----------------|---------------------------------------------------|

|                                                                                                                                                                                                                                                     |   | Financialassets at |   |   |                 |   |    | Financial                    |      |   |          |   |   |      |    |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|---------|------------------------------|-----------|--------|---------------|--------|--------|-----------|---------|--------|--------|--------|
| 30 September 2010                                                                                                                                                                                                                                        |   | amortizedcost      |   |   | Loans andreceivables |   |    | liabilities atamortized cost |      |   | Carryingvalue |   |   | Fairvalue |    |   | Note   |   |
| Financial assetsCash and cash equivalents                                                                                                                                                                                                                |   |               | --     |   |                 |   | 3,832   |                         |      |   | --            |   |   |      | 3,832   |   |   |   | 3,832 |   |   |   | 3,832 |   |
| Trade receivables (including related parties)                                                                                                                                                                                                            |   |               | --     |   |                 |   | 685,729 |                         |      |   | --            |   |   |      | 685,729 |   |   |   | 685,729 |   |   |   | 685,729 |   |
| Financial liabilitiesTrade payables                               (including related parties) |   |               | --     |   |                 |   | 68,188  |                         |      |   | --            |   |   |      | 68,188  |   |   |   | 68,188 |   |   |   | 68,188 |   |
|                                                                                                                                                                                                                                                     |   |               |   |   |                 |   |    |                         |      |   |          |   |   |      |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                     |   | Financialassets at |   |   |                 |   |    |                         | Financial |   |          |   |   |      |    |   |   |   |   |   |   |   |
| 31 December 2009                                                                                                                                                                                                                                         |   | amortizedcost      |   |   | Loans andreceivables |   |    | liabilities atamortized cost |      |   | Carryingvalue |   |   | Fairvalue |    |   | Note   |   |
| Financial assetsCash and cash equivalents                                                                                                                                                                                                                |   |               | --     |   |                 |   | 2,204   |                         |      |   | --            |   |   |      | 2,204   |   |   |   | 2,204 |   |   |   | 5 |   |
| Trade receivables (including related parties)                                                                                                                                                                                                            |   |               | --     |   |                 |   | 136,002 |                         |      |   | --            |   |   |      | 136,002 |   |   |   | 136,002 |   |   |   | 6-7 |   |
| Financial liabilitiesTrade payables                               (including related parties) |   |               | --     |   |                 |   | 21,530  |                         |      |   | --            |   |   |      | 21,530  |   |   |   | 21,530 |   |   |   | 7-11 |   |

----

| 21.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                                                      |          | 30.09.2010            |              | 31.12.2009 |
|-----------------------------------------------------------|---------------|-----------------------|-------------------|------------|
|                                                      |  F/CTYPE |  ForeignCurrency |  TRY         |       |  ForeignCurrency |  TRY |
|  Cash                                                |          |  150             |  218         |       |   |   |
|  Banks                                               | USD           |  620             |  900         |       |  2,157 |  3,248 |
|  Due from related parties                            |  USD     | 674,602               | 978,982           |       | 123,953 | 186,636 |
|  Trade receivables                                   |  USD     | 4,102                 | 5,953             |       | 3,843 | 5,786 |
|  Due from shareholders                               |  USD     | 10,484                |  15,214      |       |  -- | -- |
|  Advances given  (Inventories)                  |  USD     | 67,225                | 97,557            |       |  45,324 | 68,244 |
|  Trade payables                                      |  USD     | (42,953)              |  (61,811)    |       |   |   |
|  Advances received  (Other current liabilities) |  USD     | --                    |  --          |       |  (48,173) | (72,534) |
|  Due to related party                                |  USD     | (19,110)              |  (27,732)    |       |   |   |
|  Share purchase advances                             |  USD     | 750,000               |  (1,088,400) |       |   |   |
|  Net F/C Assets and Liabilities                      |          |                  | (79,119)          |       |   |  191,380 |

----

| 20.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                                                                                                                        | Current                           Noncurrent | Total                          |
|-----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
| 30 September 2010Trade payables (including related parties) 31 December 2009Trade payables (including related parties) |  68,188  21,530                                                                                                                                                 |  68,188  21,530 |

| 21.   | SUBSEQUENT EVENTS |
|-----------------|-------------------|

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

----

----

----

| -   | Machinery and equipments 2-6 years |
|---------------|------------------------------------|

| -   | Motor vehicles 4 years |
|---------------|------------------------|

| -   | Furniture, fixtures and office equipments 4-5 years |
|---------------|-----------------------------------------------------|

|                                                        |   |   | 01.01.- 09.30.2010 |   |   |   | 01.01.- 09.30.2009 |   |
|-------------------------------------------------------------|--------|--------|--------------------|--------|--------|--------|--------------------|--------|
|                                                        |   |   |               |   |   |   |               |   |
| NET SALES                                                   |   |   | 2,676,936          |   |   |   | 1,807,348          |   |
|                                                        |   |   |               |   |   |   |               |   |
| COST OF SALES                                               |   |   | (1,798,549         | )      |   |   | (1,618,647         | )      |
|                                                        |   |   |               |   |   |   |               |   |
| Gross profit                                                |   |   | 878,387            |   |   |   | 188,702            |   |
|                                                        |   |   |               |   |   |   |               |   |
| SELLING EXPENSES                                            |   |   | (349,041           | )      |   |   | (423,242           | )      |
|                                                        |   |   |               |   |   |   |               |   |
| GENERAL AND ADMINISTRATIVE  EXPENSES              |   |   | (275,980           | )      |   |   | (55,289            | )      |
|                                                        |   |   |               |   |   |   |               |   |
| Income from operations                                      |   |   | 253,366            |   |   |   | (289,830           | )      |
|                                                        |   |   |               |   |   |   |               |   |
| OTHER INCOME AND EXPENSES, NET                              |   |   | (31,276            | )      |   |   | (17,447            | )      |
|                                                        |   |   |               |   |   |   |               |   |
| FINANCIAL INCOME AND EXPENSES , NET                         |   |   | (5,905             | )      |   |   | 13,842             |   |
|                                                        |   |   |               |   |   |   |               |   |
| Income before taxation and currency translation gain/(loss) |   |   | 216,185            |   |   |   | (293,434           | )      |
|                                                        |   |   |               |   |   |   |               |   |
| TAXATION CHARGE                                             |   |   |               |   |   |   |               |   |
| Taxation current                                            |   |   | --                 |   |   |   | --                 |   |
| Deferred                                                    |   |   | --                 |   |   |   | --                 |   |
|                                                        |   |   |               |   |   |   |               |   |
| CURRENCY TRANSLATION GAIN/(LOSS)                            |   |   | 45,619             |   |   |   | (12,279            | )      |
|                                                        |   |   |               |   |   |   |               |   |
| Net income for the period                                   |   |   | 261,804            |   |   |   | (305,713           | )      |
|                                                        |   |   |               |   |   |   |               |   |
| OTHER COMPREHENSIVE INCOME                                  |   |   |               |   |   |   |               |   |
|                                                        |   |   |               |   |   |   |               |   |
|                                                        |   |   |               |   |   |   |               |   |
| Total comprehensive income                                  |   |   | 261,804            |   |   |   | (305,713           | )      |
|                                                        |   |   |               |   |   |   |               |   |

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|                               |   | 09/30/2010 |      |   | 09/30/2009 |   |
|------------------------------------|--------|------------|-----------|--------|------------|--------|
| CURRENT ASSETS                     |   |       |      |   |       |   |
| Cash and banks                     |   |       | 41,966    |   |       |   | 9,979 |   |
| Trade receivables                  |   |       | 822,894   |   |       |   | 193,705 |   |
| Due from related parties           |   |       | 674,602   |   |       |   | 20,243 |   |
| Due from shareholders              |   |       | 53,888    |   |       |   | - |   |
| Inventories                        |   |       | 530,116   |   |       |   | 474,612 |   |
| Other current assets               |   |       | 4,424     |   |       |   | 2,465 |   |
|                               |   |       |      |   |       |   |   |   |
| Total current assets               |   |       | 2,127,890 |   |       |   | 701,004 |   |
|                               |   |       |      |   |       |   |   |   |
| NON CURRENT ASSETS                 |   |       |      |   |       |   |   |   |
| Property, plant and equipment, net |   |       | 60,440    |   |       |   | 47,568 |   |
| Intangible assets, net             |   |       | 12,731    |   |       |   |   |   |
| Other non current assets           |   |       | 1,116     |   |       |   |   |   |
| Rights, net                        |   |       | 8,400     |   |       |   | 18,736 |   |
|                               |   |       |      |   |       |   |   |   |
| Total non current assets           |   |       | 82,687    |   |       |   | 66,304 |   |
|                               |   |       |      |   |       |   |   |   |
|                               |   |       |      |   |       |   |   |   |
| TOTAL ASSETS                       |   |       | 2,210,577 |   |       |   | 767,308 |   |
|                               |   |       |      |   |       |   |   |   |
|                               |   |       |      |   |       |   |   |   |
| CURRENT LIABILITIES                |   |       |      |   |       |   |   |   |
| Borrowings                         |   |       | 5,471     |   |       |   | 20,790 |   |
| Trade payables                     |   |       | 176,114   |   |       |   | 110,740 |   |
| Due to shareholders                |   |       | 59,241    |   |       |   | 108,777 |   |
| Due to related parties             |   |       | 1,125,741 |   |       |   | 742,934 |   |
| Other current liabilities          |   |       | 14,236    |   |       |   | 6,134 |   |
|                               |   |       |      |   |       |   |   |   |
| Total current liabilities          |   |       | 1,380,803 |   |       |   | 989,375 |   |
|                               |   |       |      |   |       |   |   |   |
|                               |   |       |      |   |       |   |   |   |
| NON CURRENT LIABILITIES            |   |       |      |   |       |   |   |   |
|                               |   |       |      |   |       |   | 3,583 |   |
| Reserve for retirement pay         |   |       | 933       |   |       |   | 848 |   |
| Share purchase advances            |   |       | 750,000   |   |       |   | - |   |
|                               |   |       |      |   |       |   |   |   |
| Total non current liabilities      |   |       | 750,933   |   |       |   | 4,431 |   |
|                               |   |       |      |   |       |   |   |   |
|                               |   |       |      |   |       |   |   |   |
| COMMITMENTS AND CONTINGENCIES      |   |       |      |   |       |   |   |   |
|                               |   |       |      |   |       |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       |      |   |       |   |   |   |
| Share capital                      |   |       | 125,500   |   |       |   | 125,500 |   |
| Retain earnings                    |   |       | (308,463  | )      |       |   | (46,285 | ) |
| Net income for the period          |   |       | 261,804   |   |       |   | (305,713 | ) |
|                               |   |       |      |   |       |   |   |   |
| Total shareholders’ equity   |   |       | 78,841    |   |       |   | (226,498 | ) |
|                               |   |       |      |   |       |   |   |   |
| TOTAL LIABILITIES AND              |   |       |      |   |       |   |   |   |
| SHAREHOLDERS' EQUITY               |   |       | 2,210,577 |   |       |   | 767,308 |   |
|                               |   |       |      |   |       |   |   |   |

----

----

|                                                               |   | 09/30/2010 |     |   | 09/30/2009 |   |
|--------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|
|                                                               |   |       |     |   |       |   |
| CASH FLOWS FROM OPERATING  ACTIVITIES                    |   |       |     |   |       |   |
| Net income                                                         |   |       | 261,804  |   |       |   | (305,713 | ) |
| Adjustments to reconcile net income to net cash provided           |   |       | --       |   |       |   | -- |   |
| By operating activities:                                           |   |       | --       |   |       |   | -- |   |
|                                                               |   |       | 10,250   |   |       |   | 9,395 |   |
| Provision for retirement pay                                       |   |       | (108     | )      |       |   | 534 |   |
| Depletion allowance                                                |   |       | 6,576    |   |       |   | 4,732 |   |
| Changes in operating assets and liabilities                        |   |       | --       |   |       |   | -- |   |
| Trade receivables                                                  |   |       | (548,092 | )      |       |   | (69,336 | ) |
| Due from related parties                                           |   |       | (544,008 | )      |       |   | 313,633 |   |
| Due from shareholders                                              |   |       | (53,888  | )      |       |   | 12,258 |   |
| Inventories                                                        |   |       | (270,233 | )      |       |   | (82,797 | ) |
| Other current assets                                               |   |       | (3,642   | )      |       |   | 4,251 |   |
|                                                               |   |       | 2,609    |   |       |   | -- |   |
| Trade payables                                                     |   |       | 96,471   |   |       |   | (238,040 | ) |
| Due to shareholders                                                |   |       | (16,211  | )      |       |   | 74,968 |   |
| Due to related parties                                             |   |       | 463,657  |   |       |   | 285,747 |   |
| Other current liabilities                                          |   |       | (106,383 | )      |       |   | (15,375 | ) |
|                                                               |   |       |     |   |       |   |   |   |
| Net cash generated from (used for)  operating activities |   |       | (701,198 | )      |       |   | (5,743 | ) |
|                                                               |   |       |     |   |       |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                               |   |       |     |   |       |   |   |   |
|                                                               |   |       | (5,811   | )      |       |   | 14,035 |   |
|                                                               |   |       | (2,321   | )      |       |   | (4,157 | ) |
| Dividends paid                                                     |   |       | --       |   |       |   | -- |   |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| Net cash (used for) provided from  financing activities  |   |       | (8,132   | )      |       |   | 9,878 |   |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
|                                                               |   |       |     |   |       |   |   |   |
| Net cash provided from investing activities                        |   |       | 696,451  |   |       |   | (22,966 | ) |
|                                                               |   |       |     |   |       |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                          |   |       | (12,878  | )      |       |   | (18,831 | ) |
|                                                               |   |       |     |   |       |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                     |   |       | 54,845   |   |       |   | 28,810 |   |
|                                                               |   |       |     |   |       |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                         |   |       | 41,967   |   |       |   | 9,979 |   |

----

----

----

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| -   | limited “public float” following the Share Exchange, in the hands of a small number of persons whose sales or lack of sales could result in positive or negative pricing pressure on the market price for our common stock; |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                    |
| -   | sales of our common stock; and                                                                                                                                                                                                          |

| -   | our ability to execute our business plan. |
|---------------|-------------------------------------------|

----

| ExhibitNumber |   | Description of Exhibit                                                                                                                                          |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                            |
| 31.1          |   | Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended. |
|          |   |                                                                                                                                                            |
| 31.2          |   | Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as amended. |
|          |   |                                                                                                                                                            |
| 32.1          |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(Chief Executive Officer).                |
|          |   |                                                                                                                                                            |
| 32.2     |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(Chief Financial Officer).                |

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|   |  TouchIT Technologies, Inc. |                                                         |
|--------|----------------------------------|--------------------------------------------------------------|
|   |                             |                                                         |   |
|   | By:                              | /s/ Andrew Brabin                                       |   |
|   |                             | Andrew BrabinChief Financial OfficerDated: November 17, 2010 |   |

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