B2706 - VR LONDON'S EXECUTIVE SUMMARY

THE COMPANY: Due to advances in technology, faster equipment and better communications most smaller printing businesses are seeing the price that they can charge for their services eroding and their production capacity increasing without a corresponding increase in sales volume. As a result we are seeing some of the smaller businesses merge or purchase others to form one business with larger sales volumes and increased profitability. We beleive that these two businesses are ideally suited to this option.

WHAT IS FOR SALE: The owners are offering the shares of the Corporations for sale. The asking price for one is $187,000 and the other is $150,000. A rough estimate is that there would be about $50,000 worth of redundant equipment that could be sold. We beleive that a new owner would need about $300,000 to buy and merg both companies. The sale includes but is not limited to the following. Equipment $247,073 Inventory 34,418 Furniture & Fixtures 20,185 TOTAL $301,676

FINANCIAL SUMMARY: The businesses are generating about $350,000 each annually and are profitable. Some of the benifits to mergingwould be as follows. Both businesses are operating under capacity. Many of the common services provided could be accommodated on the equipment in either business. The two businesses could be operated from either location. Human resources could be utilized more effectively. The businesses are located a few blocks apart. Amalgamation would allow one new company to provide a broader range of services to a larger clientele. Synergies in other areas such as accounting, customer support, clerical, purchasing, etc. should result in more efficient operation.

Telephone: (519) 673-3197 • Fax: (519) 673-3199

Email: vrlondon@gtn.net