Nexel Registration File:

CAGE CODE: 1HVC5

 Registration at the Defense Logistic Agency.

Expiration Date: February 17, 2009.

Our Strategies.

·                       Actively promote, market, and sell U.S. goods (industrial and military), which NEXEL determines have some competitive edge in the Russian market.

·                       Use existing channels of distribution to move U.S. goods from U.S. to customers.

·                       Provide US manufactures with guidelines on how to spec, package, test, design, etc. their products to meet Russian customer requirement.

·                       Provide all necessary paperwork and compliance work to allow U.S. products to meet all requirements for sale in Russia.

·                       Submit all the necessary documents to the Department of State and Department of Commerce for licensing.

Rationale.

The collapse of the Soviet Union has created a market environment unlike any in history. Over a short period of time, the world "superpower" has become a collection of independent states. These newly independent states have a third-world economy yet, at the same time, they produce some of the most advanced technology in the world. The long process of converting from a state-controlled economy to a free market economy is underway. However, it is clear this process will take some years to complete. The technical infrastructure remains in place, although it is suffering due to lack of resources. The technology base, predominantly Russian, must find a place in the free market if it is to be  . The Russians are leaders, or at least competitive, in the areas of aerospace, composite materials, certain metallurgical processes, optics, and other advanced technologies. Due to the political and economic environment, these products and technologies are available for a small fraction of the cost of comparable products, technologies, and services found in the West.

Over the past four years, the principals of Hritsik and Associates, the predecessor of Nexel Enterprises, Inc., have maintained extensive contacts with many elements of the advanced technology sectors of the Russian military-industrial complex, principally in the areas of aerospace and composite materials technologies. And, as most Western businessmen operating in Russia have learned, the two fundamental prerequisites for success are:  1) finding a partner you can trust, and 2) developing personal relationships with the appropriate business and governmental officials because, in Russia, perhaps more than in any other country, successful business deals are based on personal relationships. Nexel can fill both these prerequisites.

In addition, we have found that these areas are experiencing few, if any, problems with corruption or organized crime that are developing in other sectors of the Russian economy. As a result, we intend to continue to emphasize this sphere of business. We plan to expand upon existing relationships where we already have penetrated the xenophobia which most foreign companies do not understand and with which they have a difficult time coping. As Russia continues to develop, the demand for foreign goods will grow exponentially. And, Nexel Enterprises, Inc. and its clients will continue to profit from the excellent position we have developed, which will allow the company to bring new Russian technologies and materials to the West and gradually to build up a distribution network for Western consumer goods in Russia.

§         KORRY ELECTRONICS, INC.

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