The Company

• Located in the southwest region of China - Chongqing Municipality
• Endorsed by the Chinese government to centralize the silk processing industry
• Co-ordinates the entire silk manufacturing process from sericulture (the raising of silk worms for the production of raw silk), processing, clothing production and exportation of both final and raw products
• Approximately 450 workers
• Scheduled to be vended into Franklin Towers Enterprises Inc., a publically traded company on the OTCBB, stock symbol FTRW
• Price per share ~$1.25 USD
• Market Capitalization approx. $37.8 M

Key Points

• Qiluo has the support and approval for the development of the silk industry in Chongqing, China from the government
• Benefits from many preferential policies as a major contributor to the local economy
• The southwest region’s production of 18,000 tons of finished silk represents approximately 20% of the silk output in China
• Brand new state-of-the-art manufacturing facilities

Preferential Policies

• Land policy exemptions (land use and urban infrastructure facility fees)
• Tax breaks (33% corporate tax, with 18% rebate)
• Government incentives (50% deduction of fees for leading business enterprises)
• Project prioritization (Priority in review and approval applications)
• Energy discounts (upon approval, company can receive 50% discount of fees related to water, electric, gas, etc.)
• Subsidies through industry funds for capital in the Sanxia reservoir area
• National funds available for the support of the agricultural industry

Recent Capital Investments

• Administrative buildings
• Secondary process centre
• 12 electric automatic reeling machines
• Vacuum infiltration equipment
• Water infiltration equipment
• Hydration distribution facility
• Housing development

The Management

• Dynamic executive team who have experience building and managing large manufacturing industries
• Developed and built silk processing operations in Chongqing
• Mr. Dingliang Kuang, President & CEO of Qiluo has been nominated for “Outstanding Chinese Young Entrepreneur” and received the coveted title “Outstanding Young Farmers in Chongqing City”
• Possesses the experience, expertise and contacts necessary to spearhead the modernization and centralization of the silk industry in the Chongqing, China

Market Potential

• China is the number one silk exporter in the world
• The southwest region accounts for 10 percent of China’s silk exports
• China currently ranks number 2 in the world for exports, surpassing the United States at the end of 2006
• The demand for silk is greater than the available supply

Looking Forward

• With the newly modernized facilities Qiluo will increase both the quality and quantity of their silk manufacturing business
• Raised capital will assist to fund the acquisition of three related silk company’s in Chongqing (Dongkai Textile Ltd., Renyi Green Silk Reeling Ltd., and Zhengzhong Sericulture Development Ltd.)
• The estimated production of Qiluo after the modernization will be approximately 1,100 tons of finished silk per year generating sales of approximately US $65.6 M generating US $13M in profit annually.