CORPORATE PRESENTATION

SPARKY GROUP ORGANIZATIONAL CHART Sofia, Bulgaria Berlin, Germany Production (1300 persons) Power tools Welded parts, Rough terrain and Forklift trucks SPARKY ELTOS AD Lovech, Bulgaria (750 employees) SPARKY AD Russe, Bulgaria (550 employees) Sales (200 persons) SPARKY Trading Ltd. SPARKY GmbH SG Logistics Limassol, Cyprus

THE FACTORIES SPARKY ELTOS AD SPARKY AD Russe manufacturing plant in Lovech, Bulgaria for production of power tools SPARKY AD Russe manufacturing plant in Russe, Bulgaria for production of welded parts, agricultural machines, backhoe loaders and rough terrain trucks

PRODUCTION SPARKY ELTOS AD SPARKY AD RUSSE R&D Engineering Plastic injection Manufacture of electric motors Manufacture of mechanical parts Metal heat treatment Manufacture of moulds and tooling Foundry for Al and Mg alloys Assembly Painting shop Control equipment SPARKY AD RUSSE R&D Engineering Foundry for steel and cast iron Welding Metal heat treatment Forging Painting shop Assembly Control equipment

WHO ARE WE The brand name SPARKY The Markets The Team EU countries, Eastern Europe, Middle East, Russia and CIS The Team Highly educated, well-trained staff with long experience in industrial production Continuous training and professional education

WHO ARE WE The Management The Production Experience Crisis management End-user oriented corporate communication The Production Continuous expansion of the product ranges Constant renovation Investment in new technologies Environmental awareness

WHAT WE DO Production of professional power tools – SPARKY branded and in cooperation with other established producers of power tools Production of private label power tools Production of components for other companies (outsourcing) Assembly work for established producers of power tools and other products

WHAT WE DO Production of forgings, castings, welded and machined parts on a subcontracting basis for leading European and world manufacturers Production of forklift trucks and backhoe loaders for the East European and Russian markets Original Equipment Manufacturer (OEM) assembly

SPARKY ELTOS AD – VIEW OF THE PLANT

SPARKY ELTOS AD BRIEF HISTORY 1961 Establishment of the factory 1965 Start of power tools production 1966 AEG first license purchase (500,000 machines capacity achieved) 1975 AEG second license purchase (1,000,000 machines capacity achieved) 1996 Privatisation of the factory by SPARKY GROUP 1997 Certified under ISO 9001 1998 Listed on the Bulgarian Stock Exchange 2003 Technical Laboratory certified under ISO/IEC 17025:1999 2004 Certified under ISO 14001 for the environmental management system 2006 Certified under OHSAS 18001 (Occupational Health and Safety System) 1997-2006 Investment of 30 million Euro 2008 Signed 2.2 million Euro contract for the purchase of cold chamber die casting machines for the Al/Mg foundry with the leading manufacturer Oskar Frech GmbH + Co. KG

SPARKY ELTOS AD ACHIEVMENTS The biggest employer in the region One of the top selling power tools brands in Bulgaria and well known in Russia and CIS The product range includes more than 150 models and modifications

PRODUCTION Certified production processes 1997 ISO 9001 certification-certificate guarantees the quality of the manufacturing process and of the products. Products are certified by TÜV Rheinland and conform the standards GS DIN CE. The components and the materials are supplied by: Albis, Ina, BASF, SKF, FAG, Thyssen, Shall, Marquardt, Capax, Pirelli, LFA, Röhm, Schunk, and other well reputed manufacturers 2004 ISO 14001 certification (established and applied environmental management system for development, production and maintenance of power tools and accessories) 2006 OHSAS 18001:1999 certification (Occupational Health and Safety System) -certificate is developed in response to urgent customer demand for a recognisable occupational health and safety management system standard. The emphasis is placed on practices being pro-active and preventive, by the identification of hazards and the evaluation and control of work related risks The Technical Laboratory is certified by the DUTCH ACCREDITATION COUNCIL RvA and complies with the accreditation criteria for test laboratories as laid down in ISO/IEC 17025:1999

TURNOVER (TEUR) 2005 2006 2007 2008 22.220 26.412 36.482 39.819

SALES BY PRODUCT LINE Spare Parts Impact drills 2-speed Impact Drills 11% 4% 7% 12% 16% 22% 1% Spare Parts Impact drills 2-speed Impact Drills Rotary hHammers Small Angle Grinders Big Angle Grinders Special Tools Other 11% Cordless

MAJOR MARKETS

PRODUCTION LINE POWER TOOLS Eho

PRODUCTION OF COMPONENTS FOR RECOGNIZED MANUFACTURERS

POWER TOOLS & COMPONENTS PRODUCTION CAPACITY AC Electric motors production – 1.5 millions per year AXIS motor production lines – 3 lines Other motor production lines – 2 lines Motor power from 400 up to 2 600 watts Diameter of the armature stack ∅32, ∅35, ∅40, ∅46 and ∅53 18

POWER TOOLS & COMPONENTS PRODUCTION CAPACITY Die-casting of Al & Mg-Alloys – 500 tons per year New equipment FRECH cold chamber machines DAK 350-40 – 3 pcs One with fully automated cell for Mg-Alloy One with semi automated cell for Mg-Alloy One with semi automated cell for Al-Alloy Other equipment Die casting machine with 160 t. closing force – 2 pcs Die casting machine with 250 t. closing force – 4 pcs Die casting machine with 280 t. closing force – 5 pcs Die casting machine with 400 t. closing force – 2 pcs Die casting machine with 630 t. closing force – 1 pcs

POWER TOOLS & COMPONENTS PRODUCTION CAPACITY Machining of painted die-casted parts – 1 650 000 parts per year Vertical milling center MCV 750 – 2 pcs Vertical Milling centers CHIRON FZ 15 S – 2 pcs Vertical Milling centers CHIRON FZ 12 W – 3 pcs

POWER TOOLS & COMPONENTS PRODUCTION CAPACITY Machining of steel parts – 800 tons per year Two spindle Lathes EMCO MAIER ЕТ332 – 4 pcs Single spindle Lathes EMCO MAIER ЕТ34 – 2 pcs Two-spindle turning centre Gildemeister GD 26 – 3 pcs Two-spindle turning centre Gildemeister SPRINT 65 –1 pc Internal grinding machine OVERBECK IC 400 – 1 pc Centre-less grinding machine PALMARY PC-18S-NC – 1 pc Internal grinding machine OIG-150-3 PALMARY – 1 pc Heat treatment of steel parts – 600 tons per year Gas carburizing furnace AICHELIN – 1 pc Induction hardening machine – 1 pc

POWER TOOLS & COMPONENTS PRODUCTION CAPACITY Injection moulding of plastic parts – 550 tons per year Injection moulding machine BILLION H1925/300 & H2000/320 – 3 pcs Injection moulding machine ENGEL ES 1300/275 & ENGEL ES 700/175 – 5 pcs Injection moulding machine MAFFEI 40,SP160 C1 & MAFFEI 80,SP390 C2 – 2 pcs Injection moulding machine HAITIAN HTF 86X & HTF 160X & HTF 250 – 5 pcs

POWER TOOLS & COMPONENTS PRODUCTION CAPACITY Powder paint shop - 2 200 000 parts per year Conveyor powder paint installation for Steel, Al and Mg-Alloy part

Measurement and control equipment QUALITY ASSURANCE Measurement and control equipment MEASURING CENTRE WITH THREAD MEASUREMENT MECHANISM 3-AXIS COORDINATE MEASUREMENT MACHINE MICRO HARDNESS TESTER DOUBLE FLANK GEAR ROLLING INSPECTION MACHINE

INDUSTRIAL DESIGN Design and Prototyping Department

E-mail: info@sparkygroup.com HEAD OFFICE -BERLIN, GERMANY SPARKY Power Tools GmbH 20, Leipziger Strasse 10117 Berlin, Germany Tel.: +49 30 203916-0 Fax: +49 30 203916-66 EXLUSIVE EXCLUSIVE REPRESENTATIVE OF SPARKY GROUP FOR FRANCE INTRADEQ 33, Avenue Du Gros Chêne, BP 70118 HERBLAY, 95613 CERGY-PONTOISE CEDEX, FRANCE Tel.+ 33 (0)1 30 37 47 47 Fax + 33 (0)1 30 37 52 14 e-mail: intradeq@intradeq.com OFFICE SOFIA, BULGARIA SPARKY Trading Ltd. 1220 Sofia, Bulgaria 18 Parva Balgarska Armia Blvd. Tel.: + 359 (2) 9320 500 Fax: + 359 (2) 9320 510 E-mail: info@sparkygroup.com WWW.SPARKYGROUP.COM

THANK YOU AND SEE YOU SOON