Loudi International Kindergarten Hunan, China

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Loudi International Kindergarten Hunan, China

• Presented by InfoGlobe, LLC USA
• November 2006

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Location of Loudi International Kindergarten in
China
90 miles from Changsha international airport
Convenient highway access to Beijing, Shanghai
and Guangzhou
3
Loudi Economic Development Zone
Location of the proposed Kindergarten
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Strong demand for English language training and
American style teaching at the Kindergarten level
and beyond

• Chinese parents want their children to be
  successful in Chinas competitive market.
• Mastery of English and familiarity with American
  education methodology are considered a great
  advantage.

5
Huge Market Potential with Strong Local
Government Support

• The city of Loudi (population 4.3 million) has
  close to 100 kindergartens
• There are no quality English language
  kindergarten programs in Loudi
• Parents send their children (400 of more than
  10,000) to nearby larger cities such as Changsha
  for English language kindergarten programs
• High cost and inconvenience push the government
  for a solution
• The Chinese government is working with
  InfoGlobe, LLC to provide the best possible
  conditions for establishing a high-quality
  American-style child care and learning center
  Loudi International Kindergarten

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Strong and Growing Demand

• Social cultural elements Education is important
  to every Chinese family.
• Impact of government policy The one child family
  plan creates a strong financial base for each
  family. Financial resources from both
  grandparents and parents can be used for one
  child.
• Economic impact strong economic development
  creates new groups who wish their kids get the
  best education starting from kindergarten
• Four groups of customers have been identified
• 1) Business owners
• 2) Government officials
• 3) College and school teachers
• 4) Employees of profitable large business
• There is a demand for English language
  kindergarten
• education, but no local supply in Loudi

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Most Favorable Conditions with Least Possible
Risks

• Land purchase price is 70 lower than market
  price. 18 vs 70 per square meter (11 square
  feet). Close to 10,000 square meters are offered
  for purchase. (Appraisal at the time of purchase
  will be 500,000)
• Revenue from education business is tax free.
  (Savings of about 30)
• Free administrative services from LDEZ for
  company registration and other paperwork
• Opening doors to other businesses including
  English language training for students,
  professionals, business and government
• Permit flexibility and exceptions in the design
  and construction of the proposed American style
  kindergarten
• Guarantee the least risk If the business runs
  into
• unfavorable conditions three years after
  operation,
• local government guarantees to buy back the land
  
• and facilities at market price. In addition, the
  
• kindergarten and land can be sold or transferred
  at
• any time (for educational purposes only)

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The Kindergarten

• An exclusive contract has been signed between
  InfoGlobe, LLC and the Loudi Government.
• Land lot size 2.48 acres (10,000 square meter)
• Land price about 200,000 including tax.
• Building, landscape and equipment about
  800,000
• Total cost before opening to the public
  enrollment 1 million

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Milestones to Opening Ceremony

• 1) Contract signing November 11, 2006
• 2) Land Purchase December 31, 2006
• 3) Planning, Architecture and Design January
  May 2007
• 4) Construction June 2007 - February 2008
• 5) Interior design, Equipment and Landscaping
• March - June 2008
• 6) Marketing and Early Registration/Admission
• January 2008
• 7) Start of Class August 2008

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Operation Income and ROI

• 210 preschool children (ages 2-6)
• 150 students for weekend English training
• 200 students for winter and summer break English
  Training
• First Year tuition total is 255,000
• Second Year tuition total is 287,000
• Third Year tuition total is 318,800
• Fourth Year tuition total is 350,000
• Total operation cost 230,000 (assuming maximum
  cost)
• Total net income 5 deduction for education
  provider ICED or other
• (tax is waived for education business in China,
  no interest liability without bank loan) 45,923
• Return on investment (with Bank Loan) Year 1
  3
• Year 2 7
• Year 3 11 (up to 22)
• Year 4 15 (up to 39)

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Fundraising Plan

• The goal is 1,000,000
• Total 50 units at 20,000 per unit.
• Looking for 20-30 individual regular investor (1
  unit each)
• Plus 3-5 big investors (individual or
  organizations at 5-10 units/each).

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General Manger of the Operation Team in Loudi

• General Manager Mr. Li, Jiheng
• Mr. Li, age 60, BA from Hunan Teachers
  University in 1969. Has 40 years of experience
  in teaching covers all ages of students from
  preschool, high school to college. Previously
  and currently holds managerial positions
  including deputy magistrate of Loudi, president
  of teachers college of Loudi, commissioner of
  education of Loudi. Several Award winner of
  several excellent services in teaching and enjoys
  high reputation in Loudi Local and regards the
  general manager the position as his highest
  professional goal in life. InfoGlobe, LLC
  believes that Mr. Li has capacity and experience
  to implement the business goals of this project
  and has already appointed him as the general
  manger reporting directly to InfoGlobe.

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Management and Operation Team in Loudi, China
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Management Team In USA
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Operation Model
Investment and Return
InfoGlobe raises funds, manages Investment,
expands profit and avoids risks
Monitor, approve and coordinate operation
policies and budget
Subcontract learning plan and material provider
Education provider(s) (ICED) provide sources of
learning materials and curriculum
Local Management and education team provides
American style childcare, learning and training
services
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Your Role as an Investor
You are planting a tree with your resource

• Investors who fund to Loudi International
  Kindergarten Project can
• Be elected as Board member or Advisory Council
  member (pending InfoGlobe approval)
• Participate as a member only

InfoGlobe, LLC in USA
Loudi International Kindergarten Management
Team in USA
Loudi International Kindergarten
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Your Role as Both Investor and Child Care /
Learning Service Provider
You may invest up to 80of the shares to the
proposed kindergarten

• Investors in the Loudi International
  Kindergarten Project can
• Provide expertise in management and learning
  materials to the kindergarten through
  coordination with InfoGlobe, LLC
• 2) Act as a major stakeholder with the right to
  create your own brand in China.
• Be elected as Board member or Advisory Council
  member (pending InfoGlobe approval)

InfoGlobe, LLC in USA
Loudi International Kindergarten Management
Team in USA
Branded Kindergarten
Loudi International Kindergarten
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InfoGlobes Role as the Manager of Loudi
International KindergartenShort Term Goals

• The Prime responsibilities of InfoGlobes
  management team are to
• 1) Raise enough investment funds on the
  exclusive contract defined time.
• 2) Make sure that the proposed kindergarten is
  constructed as expected,
• 3) Operation is smoothly and successfully so
  that it can generates revenue equal to or more
  than the estimated volume.
• 4) Report to members at any phase of the
  project
• To achieve that goal, the management team must
  work closely with both investors to secure enough
  funds and local operation team to guarantee
  service quality and business volume.

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InfoGlobes Role as the Manager of Loudi
International KindergartenLong Term Goals

• Expand a chain style kindergarten business to
  many other mid-size cities
• in China that demand this service by using
  the successful model of the proposed kindergarten
• 2) Provide the investors an opportunity to
  explore many other international business models
  

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InfoGlobe, LLC

• InfoGlobe,LLC is a Minneapolis based
  international Business Consultation Company
  specializing in US and China business
  management, financing and operation.
• Founded 2002 as a Limited liability company,
• Project experience in various areas including
• 1) International Technical and Management
  Training
• (2002-2004)
• 2) St. Paul Changsha sister city exchange
  projects (2002- presence)
• 3) Guangdong waste water treatment financing
  (2005 presence)
• 4) Waste heat to electricity projects financing
  and equity sharing negotiation (2006)
• 5) Direct loans shareholding option to support
  Change's (Hebei,China) Computer Network service
  expansion project. (2006)
• Officers Mike Xiong, Founder and CEO
• Richard He, President
• Greg Hugh, Executive Vice President

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Richard He Director of Management Teams

• Richards team is the center of communication and
  coordination

Investors
InfoGlobe,LLC
Richard He and his US team
Loudis general manager and kindergarten
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Richard Hes Resume Highlights

• President of InfoGlobe LLC.
• Richard got his first Master's degree in
  Computer Science from the Institute of Software,
  Chinese Academy of Sciences (ISCAS) in Beijing in
  1990. He worked as a research fellow at ISCAS
  where he took on some key projects, published
  several research papers and presented in several
  international and national conferences. He
  received some national awards for his research.
  He received his second MA in Computer Science
  from the University of Nebraska in 1994. Since
  then, he has worked for several companies
  (Fingerhut, Medtronic, and HB Fuller/Strategic)
  as a computer engineers. Presently he is working
  at Wells Fargo Bank as a senior System Engineer.
  He is the co-founder of China Insight, Inc.,
  which publishes the only English-language
  American newspaper to focus exclusively on
  connections between the United States and the
  People's Republic of China (PRC) and to foster
  U.S.-China cultural and business harmony. He is
  also treasurer of ICED. Richard is the key
  manager for the Loudi International Kindergarten
  project.

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International Preschool Curriculum and Learning
Material Provider

• InfoGlobe will partner with experienced preschool
  education organizations such as International
  Council for Education Development (ICED). The
  International Council for Education Development
  (ICED) is a 501(c) (3), tax-exempt, nonprofit,
  educational foundation committed to development
  and enhancement of education-related activities
  throughout the world, particularly to benefit
  developing countries and regions. This
  organization is based in Minnesota and headed by
  Sam Song who is an international educator and has
  extensive higher education experience in both
  China and the United Sates and Robert Osburn,
  Chairman of ICED, who is the Executive Director
  of The MacLaurin Institute at the University of
  Minnesota. ICED is one of InfoGlobes possible
  partners who may provide services on curriculum
  development and English Teacher recruiting inside
  the United States for the Loudi International
  Kindergarten. InfoGlobe plans to reserve 5
  percent of project profit for its partners
  cooperation.