



| In the summer of 2002, the Cartridge World family of stores was growing quickly in Australia and Great Britain. Company Directors then set their sights on the world's most promising consumer market: The United States. The U.S. corporate headquarters were secured in the City of Emeryville, six miles east of San Francisco, California. With a top notch staff in place, the system began to grow. In 2003, 13 Master Territories were created, each owned by Master Franchisees who began to populate the U.S. market with the Cartridge World brand. By the end of 2003, 40 franchises had been awarded. In 2004, the corporate headquarters expanded to a new 12,000 square foot office facility, 8,000 square foot state-of-the-art training facility, and 20,000 square foot warehouse. 2004 was a break-out year for store growth with the 100th store in the United States was sold in June and three new Master territories were added. Since that time, we have expanded our retail store franchise system to over 650 stores and 28 Master Territories within the our North American Region. |