"TiLoveYa"T Hq's Toxin-free Brand

At the present time, we distribute our seafood products principally in the United States and Europe, and we sell all of our marine bio and healthcare products in the PRC. Through our new Seattle-based distribution and marketing facilities, we are able to work more directly with buyers of all categories, wholesale and retail. The programs established with retail distributors are rather different than with wholesalers. Retailers require product introduction and marketing support and pay differently than wholesalers. The latter generally take delivery of product ex-plant and pay through a letter of credit, while the former take delivery in the United States and pay by pay order net 30 days.

One of the purposes of our new Seattle office serves is to direct our zero-toxin products to our target buyers, retail and Food Service Industry purchasers. We are currently selling our products to the European market through distributors and retailers that we met at the Seafood Shows in Boston and Brussels. We are actively seeking a distributor in Northern Europe for our new tilapia brand TILOVEYAT.

Our sales and marketing team consists of nine members and is under the overall supervision of Mr. Harry Wang Hua our Chief Operating Officer. Our sales and marketing team is responsible for establishing our sales and distribution networks both domestically and internationally, promoting our image and product awareness, and maintaining our customer relationships. As part of his duties, Mr. Wang Hua leads our plant management teams for both aquatic products, and marine bio and healthcare products. Mr. Ringstad, our Executive Vice President of Sales and Distribution, heads our China and Seattle based sales teams. The Seattle personnel is responsible for increasing awareness and focus of our new branding and marketing initiative and the rollout of our toxin free TiLoveYaT brand.

We believe that our principal operating subsidiary, HQOF, is the only vertically integrated PRC-based producer present at the International Seafood Shows (e.g., Brussels Seafood Show and Boston Seafood Expo). Participation in these industry events enables us to establish high level and immediate contacts with potential buyers. Buyer preferences and our response to these preferences, as well as prices and response to quality and quantity concerns, can be promptly addressed without the usual screening and middleman costs. We plan to aggressively market our products throughout North America, Europe and Asia.

In February 2006, we established our new corporate, marketing and sales office in Seattle, Washington, thus creating a strong presence in the U.S. market. This new office allows us to increase awareness of the importance of our toxin free product focus and to reap the benefits of more direct sales, increasing sales, market penetration and profitability. We expect to also be able to broaden the scope of our products to cater to seafood purchasing requirements.