1. W.B.T.Y. Bikes “We’re Better Than You” OFFICES: Headquartered in Los Angeles, CA. Branches in New York, Chicago, and Miami. European offices in Paris, France & Prague, Czech Republic. OUR MISSION: “To get people where they want to go fast, effectively and affordably”

2. W.B.T.Y. Bikes Board of Directors Arjun Rastogi – Chief Financial Officer Anuja Navaratna – Chief Administrative Officer Jeff Hayes – Chief Marketing Officer William Cunningham – Research & Market Analyst W.B.T.Y.

3. Our Products Adv2 MOUNTAIN BIKE Adv2 MOUNTAIN BIKE Solid steel frame Solid steel frame Award winning brake system Award winning brake system Unmatched comfort Unmatched comfort W.B.T.Y.

4. Our Products Coolio YOUTH BIKE Coolio YOUTH BIKE Classic steel frame Classic steel frame Excellent suspension Excellent suspension Affordable Price Affordable Price W.B.T.Y.

5. Our Products QuickShifta ROAD BIKE QuickShifta ROAD BIKE Unmatched Performance Unmatched Performance Award winning design Award winning design Endorsed by the best Endorsed by the best OnStar GPS system OnStar GPS system W.B.T.Y.

6. Gauging The Sales Forecast…  Is extremely difficult  May require extensive outside research  Can involve a huge amount of risk  Can make or break a new product  Determines if you hit your target market W.B.T.Y.

7. Objectives Met (Hitting the target market) The Advance2 saw 0 lost sales over the six year period. The QuickShifta also saw 0 lost sales all four years We also met demand the first three years with our youth bike, Coolio. W.B.T.Y.

8. Missed Opportunities Final two years, the Coolio missed production forecasts by 6,299 bikes or $1.6 mil. We were in a financial position to issue larger dividends to increase shareholder confidence. Opportunity to redevelop the QuickShifta. W.B.T.Y.

9. New Product Launches and Developments Coolio (2007) Redeveloped Advance 2 (2007) QuickShifta (2008) In 2008 W.B.T.Y. became the first company to introduce an OnStar GPS system standard on all QuickShifta Road Bikes.

10. Performance An Overview I TWO DISTINCT STAGES Stage One 2006-2008 Stage One 2006-2008 New Product Launching Profit Making Earning revenue for future projects Earning revenue for future projects Brand Promotion Advertising & PR expenditure Advertising & PR expenditure Getting the company’s name out Getting the company’s name out W.B.T.Y.

11. Performance An Overview I A PERIOD OF PREPARATION Identifying our ‘true’ competitors Identifying our ‘true’ competitors Adapting to their strategies Adapting to their strategies Formulate counter-strategies Formulate counter-strategies Increasing production capacity Increasing production capacity A PERIOD OF DISCOVERY Understanding market conditions Understanding market conditions W.B.T.Y.

12. Capacity (SCU) 2006 – 2008 First Three Years 2006 – 20,000 2006 – 20,000 Produced only 1 bike 2007 – 30,000 2007 – 30,000 Produced 2 bikes 2008 – 30,000 2008 – 30,000 Produced 3 bikes W.B.T.Y.

13. Production Standards 2006-2008 Production Wastage Idle Time Production Wastage Idle Time 2006 --- 70% 24% 6% 2007 --- 73% 27%0% 2008 --- 79% 21%0% W.B.T.Y.

14. Operations 2006 - 2008 Efficiency □ 2006 = $150,000 □ 2007 = $2,500,000 □ 2008 = $1,500,000 Quality □ 2006 = $150,000 □ 2007 = $150,000 □ 2008 = $150,000 W.B.T.Y.

15. Branding Years 2006 – 2008 Year 2006 --- Middle of the market Year 2007 --- Needed to increase to be more competitive Year 2008 --- Another slight increase to help with release of road bike W.B.T.Y.

16. Advertisement Years 2006 - 2008 Year 2006 --- Majority concentrated on Magazine and Television Advertisements Year 2007 --- Slightly increased Concentrated more on Television and Magazine Concentrated more on Television and Magazine Year 2008 --- Increased again to create more of an interest in the biking community W.B.T.Y.

17. Product PR Years 2006 - 2008 Product Public Relations was set and maintained at a low amount for the duration of the first 2 year period Large increase in 2008 to encompass release of road bike W.B.T.Y.

18. Budgeting (Advertising and PR) 2006 --- $1,415,000 2007 --- $2,365,000 2008 --- $3,635,000 Branding 2006 --- $500,000 2007 --- $650,000 2008 --- $700,000 Wholesale Sales Revenue 2006 --- $7,078,328 2007 --- $14,245,444 2008 --- $17,127,565 W.B.T.Y. Stage 1

19. Profits Earned 1 --- $532,178 2 --- $60,705 3 --- $1,529,105 Cash Reserves 1 --- $4,734,861 2 --- $6,747,068 3 --- $8,560,833 Formative years --- slow and steady improvement Trying to carve a niche for WBTY in the market Need for sound financial decisions Launch new products to cater to consumer needs W.B.T.Y. Stage 1

20. Performance An Overview II TWO DISTINCT STAGES Stage Two (2009-2011) Stage Two (2009-2011) Tweaking expenditure Tweaking expenditure Release dividends Release dividends A PERIOD OF CHANGE A PERIOD OF ACHIEVEMENT Plans made were put into action Plans made were put into action Hard work pays off Hard work pays off W.B.T.Y.

21. Capacity (SCU) 2009 - 2011 □ Year 2009 --- 30,000 □ Year 2010 --- 30,000 □ Year 2011 --- 32,500 W.B.T.Y.

22. Production Standards 2009-2011 Production Wastage Idle Time 2009 --- 73% 27%0% 2010 --- 78% 21%1% 2011 --- 75% 19%6% W.B.T.Y.

23. Operations 2009 - 2011 Efficiency Efficiency □ 2009 --- $0 □ 2010 --- $650,000 □ 2011 --- $1,500,000 Quality Quality □ 2009 --- $650,000 □ 2010 --- $2,000,000 □ 2011 --- $2,000,000 W.B.T.Y.

24. Branding Years 2009 - 2011 Year 2009 --- Remained at $700,000 to retain public standards of new and old products Year 2010 --- Increased by $50,000 Year 2011 --- Plateau at $750,000 W.B.T.Y.

25. Advertisement Years 2009 - 2011 Year 2009 --- Level off of Advertisement Sufficient levels to sustain product sales Year 2010 --- Increase of $100 thousand Needed to compete with competition Year 2011 --- Expenses lowered due to advertisement satisfaction W.B.T.Y.

26. Product PR Years 2009 - 2011 Product PR did not see an increase until the year 2011 Increased by $5,000 Increased by $5,000 W.B.T.Y.

27. Profit Margins and Dealer Support Profit Margins Average of 35% for all years Dealer support Kept low to create more incentive with profit margins W.B.T.Y.

28. Budgeting (Advertising and PR) 2009 --- $3,635,000 2010 --- $3,734,999 2011 --- $3,805,000 Branding 2009 --- $700,000 2010 --- $750,000 2011 --- $750,000 Wholesale Sales Revenue 2009 --- $18,953,038 2010 --- $19,663,968 2011 --- $22,537,325 W.B.T.Y. Stage 2

29. Profits Earned 2009 --- $3,577,984 2010 --- $3,709,317 2011 --- $5,394,466 Cash Reserves 2009 --- $12,840,041 2010 --- $16,223,933 2011 --- $18,579,456 Years of Consolidation --- stabilization Established ourselves in the market Need for expansion Record profits Increased profitability --- care for investors W.B.T.Y. Stage 2

30. HIGHLIGHTS (2006 – 2011) Record Profit ----- $ Record Profit ----- $5,394,466 Never recorded a loss in any single year of running Current Ratio ----- 7.147 Earnings Per Share ----- $3.883 Debt to Equity Ratio ----- 0.14 Top Market Share ----- 28.0% Top Wholesale Sales ----- Top Wholesale Sales ----- $22,537,325 W.B.T.Y.