Company Background

An Overview

Eden Outsource (www.edenoutsource.com) is a full service organization specializing in packaging, assembly, and distribution with capabilities that address the needs of both industrial and retail manufacturers. Eden’s unique blend of service offerings allows customers to fully integrate all supply chain needs with one source while benefiting from increased production capacity, speed to marketplace, flexibility and overall cost reductions. Eden Outsource is proud to be associated with and approved by the following major corporations: IBM, Q-Logic, Sun Micro, Celestica, ICL, Fujitsu, Solectron, Apple, DEC, Alcon Surgical and Xerox.

Eden Industries was established in 1985 by Thomas and Jon Rodberg as a packaging design and distribution company. In June 2001, the company name was changed to Eden Outsource to better reflect the types and wide-ranging scope of services it provides. Eden Outsource has more than 120 active customers and operates in five countries.

Distinctive Competence

Eden Outsource’s key strength is that no other service providers are quite like Eden. Its management team has an extensive family background rooted deep within the Air Cargo industry. When the company started designing packaging, its management team naturally developed designs with the intention of helping shippers reduce claims in damaged goods. Through this and because of their intimate knowledge of how materials are handled and transported, they discovered that Eden could help these same companies achieve substantial freight savings through its alternative packaging designs and materials. Eden’s additional blend of expertise in assembly and procurement provides a full service solution that no other company in this field can claim. Most companies are limited to providing only assembly, packaging or logistics. Eden offers all this and more under one roof.

Eden Outsource remains committed to innovation, quality and customer service. Its management easily accepts change and adapts well to satisfy special customer needs and requirements. Eden’s many years and experience qualifies it to assist clients in the areas of marketing and perceived value, assembly, labor, procurement, product protection and distribution.

Fast Growing Market

Eden is a premier provider of integrated supply chain management, packaging, assembly and distribution services to many local manufacturers. Eden’s ultimate goal is to provide these same services to regional, national, and international customers.

According to a recent report by IDC (as reported in the July 9^th issue of Electronic News), the worldwide market for contract manufacturing services is set to more than double from $103 billion in 2000 to $231 billion in 2005. The research company attributes this growth to the increase in scope of these services, wherein the industry has grown to include industrial design and enclosure services as well as global distribution and logistics services, among others. Eden Outsource has kept ahead of the pace with these services expansions. Eden Outsource is poised to provide the outsourced services that technology, retail and other manufacturing companies need.

Alliances

In July 2001, Eden Outsource and Liberty Logistics of Ontario, Calif., announced that the two companies are working together to provide expanded services to customers. Eden provides Liberty with assembly, packaging and display services, while Liberty provides Eden with mass retail distribution via its 180,000 square foot warehouse as well as a fully integrated supply chain system. In a true merging of key services, the Eden/Liberty alliances is indicative of the evolution and growth of the contract manufacturing and assembly industry in which companies are outsourcing more functions, including procurement and supply chain management, to reduce costs and positively affect bottom lines while focusing on core competencies.

Providing Needed Services to Technology, Retail and Other Manufacturers

Procurement.

Multi-Level Procurement
Source & Recommend
Seamless Fulfillment
Expediting
Planning
Materials Management
Cost Reductions
Receiving Inspection
Processing & Delivery

Package Design and Development.

Industrial Packaging Design
Retail and Point-of-Purchase Design
Thermoformed Packaging
Foam and Cushioning Design
ESD packaging & Control
Merchandising and Displays
Sales and Presentation Cases
Promotional Package Design

Assembly.

Parts Assembly
Tear Downs
Re-Configuring
Kitting & Testing
Displays and Assembly
Labeling
Quality Control Inspection
Shrink, Blister, and Skin Packaging
Clamshell Sealing & Assembly

Graphic Design and Creative Services.

New Product Marketing Design
Corporate Identification
Packaging Layouts
Display Graphics
Theme Programs
Computer Graphics
Creative Development

Distribution.

Local, Regional and National
Import/Export
Consolidations
Direct Distribution

Just-In-Time (JIT) Programs.

Multi-Destination

Local Warehousing
Company-Owned and Operated Vehicles
Inventory Control
Daily, Weekly, Monthly Scheduling
Computer Reports

Key Personnel

Thomas Rodberg, President

Tom has more than 30 years of experience in sales and operations management. Of this, 12 years were spent in the air cargo industry where he held positions including district manager, regional vice president and vice president of national account sales. He was responsible for station profits and losses, sales management and nationwide corporate sales, establishing vendor and finished products shipping programs for many United States Fortune 500 companies. Rodberg’s background and experience include import, export and domestic activity. In 1985, he co-founded Eden Industries with his brother, Jon, and remains responsible for the company’s overall sales, distribution, assembly and test operations.

Larry Rodberg, Vice President, Operations

Larry has 32 years experience in the transportation and distribution industries. He has held several key executive positions for global freight forwarding and “parts banking” companies. He organized and developed Burlington Air Express (now BAX Global) operations before joining Eden Industries in 1994. His general responsibilities include managing and directing Eden’s purchasing, customer service, and warehouse operations. Eden’s recent success in their assembly operations is directly attributed to Rodberg’s hands on involvement, management, hiring and training for all of Eden’s assembly, kitting and testing operations. With this, his duties also include inventory control, quality control, warehousing and global distribution. Larry’s IT experience allowed him to take credit for the recent purchase and implementation of Eden’s new Windows based Navision computer program. Mr. Rodberg was the past president of the Air Courier Conference of America and Airforwarders Association. He was also the recipient of the 1991 “Air Cargo” Man of the Year Award.

Jon Rodberg, Vice President, Sales and Marketing

Jon has 27 years experience in outside sales, management and customer service. Ten of these years were spent in the Air Cargo industry. His positions included warehouse operations, customer service, expediting and outside sales in Los Angeles and Orange County. His annual sales exceeded 3.6MM and included both domestic and international accounts. As the freight company expanded, he gained additional experience in Less-Than-Load trucking, Air Express, and Ocean Import/ Export. In 1985, Rodberg co-founded Eden Industries with his brother, Tom. To date he maintains his own account base in addition to involvement in sales management. His marketing responsibilities include research and identification of new opportunities, corporate strategy and direction, development of strategic alliances and partnerships, new sales and product development, sales training, packaging and graphic design consultation, sales promotions, presentations, Eden’s Web site development, public relations, media and graphics.

Barry Webster, Consultant/Quality Control ISO 9002

Mr. Webster graduated in 1973 from the University of Washington as an engineer. At that time, he started working for the Weyerhaeuser Company where he worked his way up from an hourly employee to branch manager and served as an efficiency expert to evaluate operations that required improvement. In 1988, he moved to Presco Tech and was promoted to regional vice president, overseeing four plants in three states. In 1992, Webster became a lead auditor and began working for Stone Container Corporation for the development and implementation of ISO 9001. He later assisted Amcor, Inc., and Sunclipse, Inc., in developing and installing ISO 9001 processes. In 1994, Webster joined the TC207 group of ISO in developing standards for ISO 9000 and ISO 14000 in various distribution, medical and computer manufacturing companies.

Gary Pickett, C.P.A. Financial Advisor

Mr. Pickett has been a member of the accounting profession since 1977. He holds a bachelor’s degree in business administration from the University of Southern California, where he also fulfilled most of the requirements for a master’s degree in business taxation. As a member of the Tax Department of the “Big Eight” accounting firm of Ernst & Ernst (now Ernst & Young), he was exposed to a variety of industrial tax issues. Over the years, Pickett has taught continuing professional education courses for several community colleges. With his diverse background and knowledge, Pickett’s role with Eden Outsource is to serve as an outside chief financial officer and advisor.

Company Milestones

Eden Outsource is committed to innovation and problem solving, not just to be different, but to be valued. The company’s management team believes there is always a better way to do something. Because of this, the company has enjoyed growth and several important milestones even as it has involved itself with worthwhile endeavors:

· October 2002- Expands packaging and assembly operations through strategic partnership with Signature Packaging, Redmond Washington.

· July 2002- Eden announces new line of standardized Clamshell Packaging for use at club and major discount stores.

· April 2002- Eden expands assembly operations through purchase of RF sealing machine to weld plastic “clamshells” for retail and club store applications.

· August 2001- Eden strikes alliance with Liberty Logistics to increase retail distribution capacity.

· May 2001 – Eden Industries announces name change to Eden Outsource to better communicate assembly and procurement services.

· August 2000 - IBM chooses Eden Industries for its outsourcing services.

· July 2000 – Solectron chooses Eden Industries for its outsourcing services.

· June 2000 – Celestica chooses Eden Industries for its outsourcing services.

· June 1998 – Eden Industries awarded the “Hero of Heart” Award by Children’s Hospital Orange County’s (CHOC’s) Padrino organization.

· Jan 1998 - Eden Industries establishes programming and reconfiguration line for Xerox Corporation.

· June 1995 - Eden Industries begins testing and kitting for Xerox Corporation.

· December 1993 – Eden Industries opens it new 17,000 Sq. ft. facilities at its current Irvine location. Enhances assembly and just-in-time (JIT) delivery services.

· September 1990 – Eden Industries celebrates Five-Year Anniversary and hosts Open House with 200 in attendance.

· November 1989 - Eden Industries moves into 13,000 sq. ft. facility, Costa Mesa, CA

· June 1988 - Eden Industries wins Alcon Surgical contract.

· February 1987 - Eden Industries wins contract to perform Toshiba’s laptop packaging. Moves into 7,000 sq. ft. facility, Irvine, CA. Tops $ 1MM in sales revenues.

· October 1986 - Eden Industries achieves $ 500,000 in first-year sales.

· October 1985 - Eden Industries established by Thomas and Jon Rodberg as a packaging design and distribution company. First order received from Panasonic Corporation, Cypress Ca.