Microline – Company Profile

October, 2011

General Data

• Microline, Slavonska av. 26/9, 10000 Zagreb, Croatia, tel. +385-1-279-7777

• Established in 1988

• 47 employees

• Private limited company

• Capital: €6 mill.

• 1200 m2 offices, 1400 m2 inventory

• Turnover 2010.: €25 mill.

Employe

Strategy

Territory coverage: Croatia (4.5 mill. inhabitants), Bosnia,

Macedonia, Serbia and Slovenia

Development of channels for our brands

Indirect channel (1800 hardware resellers, retailers, VARs, etc.)

and direct sale for big tender customers

Efficient business: inventory automation, Internet B2B

application, on-line RMA procedure.

Supply-chain cooperation with our customers

Company strength IMicroline strengts•MOL (Microline on Line) B2B system:•Our website provides an open window on our main system. Thanks to our website, each registered user has access to an important source of information and is able to place orders, 24h/7•On line ordering system featured with accurate and clear warehouse inventory status. About 90% of customers make use of this advantage. This also removes the burden of routine tasks off the sales personnel so they can focus their attention on active sales. •On line pre and post sale support enable to complete the selling even before the goods arrive in warehouse since accurate inventory data, in terms of both quantity and schedule, is available at all times 24h/24 7d/7;•On line claim handling (claims without need for warranty bill and invoice);•Logistics – tracking of shipment and its status;•Web Shop solution. We provide our clients with ready to use on-line shops so the end users see them as a large scale companies. They issue invoices to customer and we provide the goods so it appears that it is our partners who actually deliver the goods;

Company strength II

• A2A link between MOL's and partner's applications;• Own premises are located at the most frequent junction in Zagreb, just on the way to Domovinski most bridge leading to the airport. Customs Administration Branch Office is quite nearby. We have own presentation and training facilities (for up to 50 participants);• Warehouses equipped with automated high rack storage system able to accommodate 2200 pallet units;• Three high rack fork trucks and two standard fork lifters. Warehousemen are equipped with hand held PC terminals - bar code readers;• Software optimized warehouse operations (optimization of manpower and machinery, warehouse replenishing and releasing goods optimization according to the output frequency and other parameters) enable goods ordered by 15.00 or 16.00 hours to be delivered on the very same day;• Highly accurate, software controlled deliveries • Swift warehouse turnover;• Banking support for our clients (both major and small) by means of Zaba b2b business cards. Payment terms: 30, 60 and 90 days;• ISO 9001:2000 Quality Management System.

Vision and objectives

Visionis to be the recognized leader in our industry. Reaching most customers and continuously achieving the highest customer satisfaction will keep us on a profitable growth path. We strive to be the most exciting work place because our people are the key to our success.Objectives•to be the no. 1 or no. 2 ICT & CE trading company in all the countries that we operate in,•to increase our turnover and profitability with a continuous growth,•to secure our cost leadership by continually optimising our processes,•to reach most customers and continuously achieve the highest customer satisfaction,•to provide innovative services to offer our business partners greater benefits than comparable competitors,•to be the leading trading partner for all the manufacturers that we work with,•to strive the most exciting work place because our people are the key to our success,•always to be a reliable, socially responsible and environmentally aware partner for our owners, customers, employees and society.

Financial data 1.

Over past 22 years Microline has evolved from a "garage based" company into a distributor turning 25 million EURO a year.

year mill €2000 8,52001 12,02002 16,02003 16,82004 14,82005 14,32006 17,52007 21,02008 20,72009 18,22010 25,7

2011* target 30,0

Financial data 2.

• AA client status in Zagrebačka banka

• the company's fundamental policy is a strict financial discipline

• b2b cards, which provides customers with deferred payment opportunity but where payment schedule is precisely defined.

• All Microline financial reports are revised by licensed auditors.

Marketing

• ads monthly in Bug, the biggest Croatian computer magazine

• ads in PC Chip, a computer magazine

• E-mails to 2000 customers weekly, daily e-mails spec. offer

•Evaluation tests in many magazines

• Education events for partners , KAs, service partners ...

Inventory

5-floor storage and service area, man-up fork trucks

Distributions•KYE (Genius)

•LG

•OKI

•Canon

•HP IPG

•Sony NEC Optiarc

•Apacer

•Edimax

•GoClever

• Grundig

•Asus

•Micropos

•Sapphire

•Logitech

•MSI

•Orink

•Gigabyte

•Fortron

•Microsoft

•Motorola

•Toshiba

•Zotac