Business Letter

This is my pleasure to announce that JinAo Testing Company LTD is commencing operations. JinAo Testing is a Joint Venture Company of Australia Wool Testing Authority LTD (AWTA LTD) and Jiangsu Inspection Corporation (JSIC), which is located in NanJing .

Both AWTA and JSIC brings the Joint Venture theirs core strengths - independence, integrity, technical competence and skilled technical team. While the initial focus of the joint venture will be on textiles-related materials and products, it plans to branch out into areas in which AWTA Ltd can bring to bear its other experience and competencies, including testing of building products, safety equipment and automotive components. A long term objective is to extend JinAo Testing's services into sampling, pre-shipment inspection, training and consulting.

The already strong links with the Australian wool industry will also be enhanced, with JinAo Testing expected to undertake significant projects with Australian Wool Innovation (AWI) and The Woolmark Company (TWC). These projects include AWI Verification of Australian Merino Fibre Content, Performance Attribute Testing of new and innovative products and technical support for new marketing initiatives.

Sincerely,