EXPORTING TO CANADA 1

J A N CORPORATION

TRADING COUNTRY:CANADA

TRADING PRODUCT:PERSONAL MOVIE WATCH

EXPORTING TO CANADA 2

ECONOMIC ANALYSISExchange Rates

1 Canadian dollar buys 1.04 U.S. dollars

U.S. exports are more competitive

EXPORTING TO CANADA 3

ECONOMIC ANALYSISInflation Rates

Current Inflation Rate: 2.5%

Target range: 1 - 3 %

EXPORTING TO CANADA 4

Canada is expected to be the only G7 country in surplus from 2006 to 2008

EXPORTING TO CANADA 5

Canada’s debt burden has declined from the 2nd highest to the lowest in the G7

EXPORTING TO CANADA 6

Canada has maintained a budgetary surplus since 1997, unlike the U.S.

EXPORTING TO CANADA 7

The Market Debt-to-GDP ratio is lower in Canada than in the U.S.

EXPORTING TO CANADA 8

MARKET AUDIT - COMPETITIVE MARKET ANALYSIS

Canadians and Americans are very similar

Brand name is the top-purchasing driver

New digital technologies affecting consumer preferences

EXPORTING TO CANADA 9

PRODUCT EVALUATION

ADVANTAGES

Low price

Light weigh

Easy to use

Retail stores availability

1.8” 2 GB storage USB interface 260,000 color screen Software CD files converter Multiple video formats + audio

EXPORTING TO CANADA 10

PRODUCT EVALUATION

DISADVANTAGES

Fairly large

Unattractive

Small screen

EXPORTING TO CANADA 11

OUR MARKET - Geographical Region

Most technologically developed provinces

QuebecOntario

Alberta

British Columbia

EXPORTING TO CANADA 12

OUR MARKET - Product

Transportation

Via air

or

Via truck

EXPORTING TO CANADA 13

OUR MARKET - Buying habits

Easy to use, popular, inexpensive products

Gen Y women (born between 1977-1994) are the leading purchasers of electronic products

Internet is the first place customers visit when doing research on a new product

EXPORTING TO CANADA 14

PRODUCT DISTRIBUTIONQuickTime™ and a

TIFF (Uncompressed) decompressorare needed to see this picture.

QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.

QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.

QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.

EXPORTING TO CANADA 15

PRODUCT DISTRIBUTION

Custom’s Broker

Import-Export Broker

EXPORTING TO CANADA 16

ADVERTISING

Paper

TV

Internet

E-Magazines

Online Ads

Jan.comDistributor's

ws

Magazines Flyers

Newspapers

EXPORTING TO CANADA 17

PRICING STRATEGY

P/unit cost: $31.04 USD

P/case cost: $1,200.00 USD

38% Profit Margin

Volume-based discounts

$99.99 CAD

OUR RETAIL PRICE

EXPORTING TO CANADA 18

OUR COMPETITION -Sony Walkman Video

$87.88 2GB storage capacity 1.8" QVGA LCD Screen

Windows Media Audio Compatibility

FM Tune

Time Machine Shuffle

Music Search

Bi-Directional LCD Display

EXPORTING TO CANADA 19

OUR COMPETITION -Creative Zen

$99.99 2 GB storage capacity 1.5" color display Flash memory Built-in speakers Audio recording capability World clock

EXPORTING TO CANADA 20

OUR COMPETITION -Philips 2GB MP3 Video Player

$99.99 2 GB storage capacity 2.2" color display FM radio Built-in speakers Music, photo and video

playback

EXPORTING TO CANADA 21

OUR COMPETITION -Samsung T9

$119.99 2 GB storage capacity 1.8" TFT LCD color screen FM radio USB connectivity Voice recording capability

EXPORTING TO CANADA 22

COMPARATIVE CHART

EXPORTING TO CANADA 23

MARKETPLACE Government

participation

Regional Office of Revenue Canada

Canadian Association of Importers and Exporters

Canada Ontario Business Service Centre

Export Controls Division (TIE)

exportcontrols.gc.ca

international.gc.ca

cbsa-asfc.gc.ca

cnsc.gc.ca

cgp.gc

AGENCIES

WEBSITES

EXPORTING TO CANADA 24

2008 PROJECTIONS

20K units sales

Personal video player industry is expected to grow to 4.5 billion dollars worldwide!

THANK YOUTHANK YOUTHANK YOUTHANK YOU