1. 1 TRADE LOGISTICS CONFERENCE 2010

2. 2 Company Overview Logistics Food Safety Costs of freight and customs Key Issues & Challenges

3. 3 COMPANY OVERVIEW Kaliroy Produce is an exclusive distributor for:  Agricola La Primavera S.A. de C.V.  Bioparques de Occidente S.A. de C.V. We are a fully integrated organization, from growing to marketing. Total Production acres managed by the company are more than 1,000 (440 Hectares ). AcresHas  Open Field 375 150  Green-House 725290

4. JALISCO TO NOGALES 1,822 KMS, AVERAGE TIME 19:00 HRS SINALOA TO NOGALES 973 KMS, AVERAGE TIME 9:30 HRS JALISCO TO McALLEN 1,270 KMS, AVERAGE TIME 13:00 HRS 4 DISTRIBUTION CULIACAN SAN GABRIEL GROWING AREAS McAllen, TX Nogales, AZ COMPANY OVERVIEW

5. 5 Operations COMPANY OVERVIEW

6. 6 PRODUCT PACKAGE PRESENTATIONS TOMATOES PRODUCTPACKING Roma25 Lbs., clams Vine Ripe2 Layer/25 Lbs., RPC HH Beefsteak 15 Lbs, 5lbs, clams GrapeVolume-fill, clams TRUCKLOAD MAP ON PACKAGES SHIPPED  25 LBS = TRUCK LOAD WITH 1920 BOXES  2 LAYER = TRUCK LOAD WITH 2112 BOXES  1 LAYER = TRUCK LOAD WITH 2400 BOXES LOGISTICS

7. 7 NEVER SPENT MORE THAN 2 HOURS ON INSPECTIONS INSPECTIONS NEVER ARE LESS THAN 4 HOURS, COULD BE 8 HOURS LOGISTICS INSPECTIONS AT THE BORDER

8. 8 MEXICAN CUSTOMS KEY POINTS:  MAYMAR FACILITY INSIDE THE FISCAL CORRIDOR  GOOD TIME INSPECTIONS MEXICAN CUSTOMS LOGISTICS

9. 9 Source: LOGISTICS

10. 10 Mission “Detect and prevent terrorists and terrorist weapons from entering the United States, while facilitating the orderly and efficient flow of legitimate trade and people at and through our Nation’s borders”. FOOD SAFETY

11. 11 Committed with our product and people Security, since October, 2009 we are a C-TPAT Certified and Validated Company. It means hard work and costs, however, the benefits we received are better. The Company invested around of $200,000 on C-TPAT Program implementation. -Wal-Mart Program -Fast Lane -Tranquility -Possibility of better trade relations FOOD SAFETY

12. 12 FOOD SAFETY One of our most important concerns is to provide our customers with safe and quality products. Our operations have an excellent & reliable Food Safety Program.  Our companies are certified for: GMP (Good Manufacturing Practices) GAP (Good Agricultural Practices) HACCP Mexico Calidad Suprema SENASICA www.primuslabs.com/kaliroy/index.asp http://www.senasica.gob.mx/ http://www.mexicocalidadsuprema.com.mx/organismos.php

13. 13 PRODUCTION COSTS FREIGHT FROM JALISCO $2,500 USD FREIGHT FROM SINALOA $1,500 USD USD FIGURES 200820092010TOTAL FREIGHT 5,552,356 5,755,037 5,957,496 17,264,889 AMERICAN CUSTOM 243,161 246,957 296,184 786,303 MEXICAN CUSTOM 207,792 223,250 245,384 676,426 MAYMAR 191,133 188,391 202,675 582,200 DUMPING 53,618 46,263 41,040 140,921 SEALS 11,584 11,418 12,283 35,285 TOTAL 6,259,644 6,471,316 6,755,063 19,486,023 200820092010TOTAL EXPORT BOXES PACKED 5,791,910 5,708,832 6,141,68017,642,422 DOMESTIC BOXES PACKED 1,762,316 1,794,390 1,896,0145,452,720 EXPORT TRUCK LOADS 2,896 2,854 3,0718,821 COSTS

14. 14 WAL-MART OPPORTUNITY Since 2007 Wal-Mart developed a program to buy directly from the growers. We deliver our product directly to Wal-Mart’s Distribution Centers at Los Lunas, NM. and Casa Grande, AZ. We also deliver at Nogales, AZ to SunFed which distributes to more Wal-Mart’s Distribution Centers. We sell our product to others Wal-Mart’s direct suppliers. (Brokers) CHALLENGES

15. 15 KEY ISSUES & CHALLENGES Keep and Improve all Certifications Increases on Diesel affects us directly (Freight Cost) Military check point @ Benjamin Hill, inspection lasts 4 to 8 hours CTPAT compliance with ALL business partners New technology @ Nogales border CBP to expedite the inspection processes Maintain and improve all food safety initiatives (Culture) Improve OTD (On Time Delivery) CHALLENGES