LIFAN

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---NEW MODEL

As everybody know, in EUROPE market, the scooter is a large proportion of the motorcycle market,
frankly speaking, in scooter filed, lifan is not professional before, With the increasing market
competition, lifan
started to realize our own lack of, and try our best to Make up for it, so our company Invested millions
to Improvement and development our scooter, this years, there are two models will be into market:
one is 50CC with sport style, another is 125cc with luxury style. you already know the 50cc finished
and end of SEP, we will get the EEC certification, and then we will can get the order from our
customers. in fact until now, we already got 100 units order from our Russia customers. and our
Target quantity is 1.5 million units of next year for all europe market. just from the recent feedback
from our all customers, We are confident to complete this goal. and the model LF125T-19, it's different
with LF50QT-26, We will be defined LF50QT-26 as mid-range models, but LF125T-19 is High-level
products at all, it's not only has the appearance of luxury still strong power, the max speed can catch
10KW, We can proudly say no one enemy in china now. this model will finished end of this y ear.

i show above words to you and OMEGA, just hope you and OMEGA can know what's lifan did now,
and we hope you and OMEGA can become more and more confident also.

now, i will ansower your question:

1) What are the exact dimensions?
the motorcycle size is 1800*670*1150 and the carton size is 1900*580*1290

2) Will it be declared (officially) for 2 persons or 1 only?

it's for 2 persons

3) What will be the price difference between the model with mechanical
and digital speedometer (info panel)?
As for the each Optional status cost, please wait some more day, we are
doing the cost yet.

4) What will be the price difference between 2-stroke and 4-stroke

engine model?5) We suppose that it will be available in the usual color
palette?
firstly, i would like to explain this model's ENGINE only for 4-stroke, just the muffler have two style,
one have 2-stroke appearance another have 4-stroke. sure the cost of two kinds are difference,now
hope you can understand it.

in additional,as the price we have a rough idea, it's about USD595/ UNIT. just as I before show you,
this model be defined as mid-level, and we also think it's Value for money. the economy situation of
china even of whole world,i think you and OMEGA already know it at all:Rapid economic
rise,Continuous appreciation of RMB, These reasons lead to increased sales prices. so for this model
LF50QT-26,with USD595 per unit, frankly speaking, this price is not so high.

---NEW PLAN FOR NEW YEAR

Yes, we are also think the sales is going very well,I think there are two months for sale yet, right? we
have more chance to sales yet, right?

this year is the real sales beginning, so we believer for next year, our plan and aim will exact much
more. especially for the model,we think for one field, it's better keep 4-5 models to make
differences.now you know what model is real one for the market,then we can make a choice,just like
Scooter, the model LF50QT-8D is the leading one in next year without doubt, but we think we should
fetch in some new models to update the market, just like LF50QT-26, LF50QT-9N, LF125T-9L and
LF125T-19 etc. maybe these models will become to leading one, why not?

we think at the beginning we should do something base on the market feedback,but from the long
term, we should to learn how to guide the development of the market direction. only for this way, we
can say we know the market at all.

Now for OMEGA side, we suggest they can collect more informations from sales manager and their
dealers, we need the follow informations:

1) the main model for next year.

2)the rough quantity of each model.
3)the rough idea of promotion for next year, what's OMEGA's request for
lifan should do and offer?
4)from next year, all models should be base on EEC certification, right?
5)the exact plan for the new market serbia and montenegro and Croatia.

For LIFAN side, we will prepare everything (from prepare parts, manufacture to transport) in advance
base on your feedback. for the new models,we will provide maximum support (the promotion, the price
and everything that what's omega need and what's lifan can do)

now, i will ansower your question:

1)As to the importance of model LF50QT-8D, firstly, we will try our best to ask our factory make some
face-lifting, but please you understand that any changes will mean to the model need to change
also.and you know this model is old one and nearly to stop it,we can say this model is only for
OMEGA even. so if ask factory spend much money to update it, it's hard for us.then can we say that
the reason why this model is popular because they are inexpensive with big size? if yes, here i think
must let you know: for the next year, the price of LF50QT-8D will be increase than now, the cost of this
model increase nearly 5% and you can check the current EUR/RMB rate,compare with JAN with
10.7,now it's reduce to 10.07.if you need this model base on EEC from next year, so you can image
how much will be increase of the price of LF50QT-8D. so if the price is nearly same with our new
modeL, what do you think about what's will be change of the market? Sure, we know it's definitely has
a transition-period. but we believe the new model will become to leading one soon.
2)As to the after server, yes it's also our worry thing all along. and we must acknowledge in the
service manual and spare parts book insufficiency very much,it's make us too depression.this moment
each step much slowler, and lifan have too much models, it's real hard job for us, but we can say for
the new model we already begin to do this work, we will ask our engineer finished it before we can
mass manufacture.here we have another thinking, please consider that it's possible for OMEGA send
one engineer to our factory to learn how to repear motorycycle. in the beginning, we also consider to
send our enginner to OMEGA, but you know lifan have too much models, normally, one engineer
cannot know each one, and it's hard for us send many engineers to you, so we think it's the best and
quick way let your engineer to our factory. hope you can understand it.
finally, we know this period is Europe vacation yet, for the new plan, we think it's better for us to
discuss after all sales managers and the dealers come bace from vacation at all, during this period, if
you need any information from me or LIFAN,please let me know, i will try my best to do it.

This year is first year for OMEGA to do motorcycle business, it's very successful, we are think it's
enable us to have a mind to do next year well, and the quantity can grow two or three times than this
year, it's our goal and hope it's same for OMEGA also. Now we can say the goal is clear, next step is
how to achieves the goal. Here I would like to explain from follow five points:

--AFTER-SERVICE

1A) SPARE PARTS

As to this point, we were discussed many times from the first order, as your report: around 1100 pcs
total was sold, but there is little quality feedback from OMEGA. On the one hand we felt very happy,
because that's means lifan's motorcycle is well, but on the other hand is also anxious: Without the
question is because does not have any quality question truly or OMEGA have not made field survey
from end users or dealers? According to ours experience, for some problems maybe will be find after
use period of time. So we are worry very much about there is serious problem be happen suddenly,
that's will be a deathblow. So we strong OMEGA must keep Close relation with dealer, it's should one
month holds two dealers' meeting to look for the investigation. Meanwhile our engineer suggest
OMEGA must keep 2% completely parts for each model in your stock at least, here I make a list,
please see the attachment. we think this moment, we must finished this work soon.

2A) MANUALE
USER MANUAL: for this one, I think OMEGA already got all for each model, if you need any more,
please let me know, I will arrange it again.

SERVER MANUAL: as I told you before: in the service manual insufficiency very much, it's make us
too depression.this moment each step much slow, and lifan have too much models, it's real hard job
for us, but we know that ho w much important for OMEGA, so we think out a way to solved it that let
your engineer list all problems you already met or your thinking it should to be know in advance, then
we will ask our engineer make a report base on your problems. we think it's the best and quick way to
solved it.how about your thinking?

--THE MODEL

1B)SUMMARIZE
Through this first selling year, as for the model we should have a clear understanding how the model
will be positioned: low, middle or high? meanwhiel we should to know which model is mass quantity
one, which is Profit one and best selling? then OMEGA should to check why this model can be say it's
the best selling, mass quantity or profit one? We cannot only see our own situation, we are must to
know what's our competitor to do and how about the market to change. Because a man who know
who can fight and who can't fight,then he can win, meanwhile
we will recommend our model base on your market feedback also.

2B)LF50QT-8D & LF50QT-26

Without any doubt, the model LF50QT-8D is the currently leading model, so for next year we will go
ahead,as for the price, just like my last mail told you due the cost increase so much, so the price of
this model in next year will be adjust, we hope OMEGA can understand, but sure consider the market
already accept this model completely,it's not good for market, if the price increase too much, so we will
try our best to strict control the markup,we will consider give up our own profit to keep it even.we think
this model will be a mass quantity model for next year, how about your thinking?

regarding OMEGA'S suggestion that make some small face-lifting, we already discussed it with our
factory, firstly, as i informed you before, this model is old one, we must consider the cost of change,
our factory already agree to design the new sticker for this model, it's easy and possible for us, but if
you hope we can design new front mask or other parts, our factory want to know how many quantity of
this model OMEGA can sale in next year, we must consider the feasibility base on your quantity.
As for the model LF50QT-26, it's new model, so we need some time to test and promote, we have
strong confidence this model will be another one mass quantity model also.

--PROMOTION
1C)PROMOTION GOODS
For next year, we will offer the promotion goods same as this year did, the promotion goods are
umbrella, note book, pen, hat, ruler,cup,light box, model leaf, calendar, poster and so on. if OMEGA
have any special request, please tell me soon.

2C)EXHIBITION
For next year,if OMEGA will attend some professional exhibition? as our experience and customers
feedback, the exhibition is very useful,you can get many professional information from each side. so if
OMEGA have any exhibition plan, hope you can offer to me in advance, we can consider to prepare
some promotion goods for it, if necessary we will also consider to send our people to help you.

3)OTHERS
From our other customers' feedback,the promotion is not only limitation in exhibition, we can adopt all
ways that your think it's useful and suitable. here we have a suggestion: SALON. it's our one of
customer told us, it's very popular.

in additional, please discuss with your engineer,do you need lifan offer some tools, I means the
special tools for motorcycle,because once our customers met this same problem that they cannot buy
the special repair tools in local country. so here we want to know if you will also met the same
problems, if yes, you can ask your engineer make a list, i will make a report and ask our factory to
prepare it freely as promotion.

--THE NEW MARKET

As for this matter, we are full understand OMEGA'S thinking, we are agree that for next year, first step
is expand Bosnina market with steady step, try our best to growth one or t wo times base on this year,
the second step is enters the new market: serbia and montenegro. as for Croatia and slovenia, we
know your thinking and worrying, we can agree with you steady enter into this marktet step by step,
but cannot not move completely just look, if we do it like that, we are sure that we will miss much
opportunity, actually, the bosina passed through a test phase also, just like the year of 2006 & 2007.so
we are think that it's better for us let the year of 2009 as a test year of croatia market.

by the way, for these new market, we are suggest that OMEGA can establish after-service net firstly,
once this net finished, it will show your dealer strong confidence, then next step:selling, will easy for us
very much.

--POTENTIAL PROBLEM
It's seem that everything is good until now,but please understand: we must maintains the crisis
consciousness all along.we must pay more attention on competitor's tre nd and market change. so for
next year, we sincerely hope OMEGA can make more manpower and the physical resource
dive into motorcycle business.

Finally, here we have a request, please let OMEGA show us the calculational methods from FOB
PRICE to ENDING SALE PRICE. we need it because we want to know the cost composition, it's a
guide line for us to develop new goods in the future.
best regards!

1. As to the stock, please to estimate how many until and what’s model will be in stock end of the
selling season.

3. As to the promotional support in 2009, we can do it but we must get OMEGA plan for 2009 firstly,
then we can make a report to our financial department and layout department, and the report must be
base on OMEGA plan. Please understand it.

4. As to the models for 2009, if OMEGA will consider the cheap CUB(just like LF50Q-2) and the
scooter LF50QT-2A or not?

5. As to the 125CC new model LF125T-19, this model isn’t complete finished yet, maybe end of this
year, we can get it then I will offer you all information in the first time. Here can you offer us more
information about the 125cc in Bosnia and Croatia, Slovenia market, just like the quantity, price,
specification and t he appearance for this kind of displacement.

6. As to the bigger model LF250-8,you means LF250-B,right? please see the attachment.
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1.As to the model with certification, except the model LF50QT-4 without certification, other models that
already order all have certification:

The all 50CC motorcycle have EUR2 certification, up 50CC motorcycle have EUR2 and EUR3
certification. The ATV only have EUR2, no matter what's 50CC or up 50CC.and the electrical
motorcycle, it's need CE certification only.
So you can choose the main models from all models already order in this year, except LF50Q-4.

2.As to the 125CC motorcycle, here we have three point:

Firstly, as for sporty style, when we finished the model LF50QT-26, we will consider use this model
with 125CC engine. For this way, we can finish one sporty style motorcycle with 125CC.

Secondly, compare with 'RETRO', can we say our model LF125T-9A belong to this kind of style.

Finally, as for the 125CC, our new model LF125T-19, it's belong to luxury style, I think you should
remember it yet, please see the attachment, we will try our best to finished it end of this year.

Our model LF125T-19, this moment, we just finished one sample to test, here i would like to tell you
follow:125CC, four stroke, water-cooling, four valve and the prominent advantage is the max power
can catch around 10KW. as for the price, i'm so sorry i cannot offer it to you this moment, because we
are not finished the cost calculate yet. how about your thinking the target price of this model in Bosnia
market? i can send your suggestion to our finance department foir reference.

3. As to the model LF50QT-8D,our factory give us a reply, they can do some change on front masc,
and the cost of open the model will need around EUR30000.00, so we think if the quantity can catch
1500 -2000 units, our company can take EUR10000 as support, and the rest EUR20000 will apportion
to each unit, so the unit price will be increase EUR13 .3 to EUR10, you can easy get that the quantity
more bigger, the price will be lower much also. So for this point, please double check the market
quantity of this model.

As to the model LF50QT-8D, we will to do it from two sides, one side I will ask our design engineer to
design a total new stocker, another side they will make a draft of the front mask, then I will show to
OMEGA, you can choose it by yourself. For this matter, I will push them to finished it soon.