Crest Licensing Systems Limited

Registered Office Address
Anderson Lloyd
Level 9, Otago House
Cnr Princes St And Moray Pl
Dunedin

Directors
MANGNUS, Rene  
MARSH, David Graeme  
McLAUCHLAN, Grant
PERKINSON, Martin

History
Incorporated: 05-OCT-2000

Crest Licensing Systems Limited was incorporated in October 2000
to act as the holding company for Crest Commercial Cleaning Ltd 
and Franchise Finance Ltd. CLSL's subsidiaries generate multiple
income streams from franchise sales, master franchise sales,    
royalties on turnover and interest on financing.                

Crest Commercial Cleaning Ltd ('CCCL') is an established        
franchise company that provides services in the commercial      
cleaning sector. It is represented in Auckland, Hamilton,       
Tauranga, Wellington, Christchurch, Dunedin and Invercargill.   
CCCL began operations in 1996 and is profitable and experiencing
strong growth. CCCL's franchisees are security vetted           
owner-operators offering high quality commercial cleaning       
services to SME's, corporate property companies, property       
managers, schools, institutions and corporates.                 

By May 2002, CCCL had 45 Franchisee's and 3 master Franchisees. 
This company is under an expansion plan that will see it open   
new regions in New Zealand during the 2003 year. The meduim term
goal for this subsidiary is 150 franchisees.                    

Franchise Finance Ltd, also incorporated in October 2000, is a  
specialist finance company that provides loans to franchisees to
facilitate the purchase of a Crest franchise and related        
equipment. The provision of financing creates another revenue   
stream for CLSL.                                                

Major Shareholders
Rene & Robin Mangnus and Douglas Lyon - 25.0%
David & William Marsh - 25.0%
Graeme & Grant McLauchlan - 25.0%
Crest Pacific Ltd - 24.3%
Steven & Tania Walsh - 0.25%

Shares on Issue
39,942,000

Ownership Restrictions
None known

Share Registry
BK Registries Ltd

Website
www.crestsystems.co.nz

News

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Friday 28th June 2002 - NBR Personal Investor, by Deborah Hill Cone

Franchising company Crest Licensing Systems boasts its business model, which smooths cashflow
to franchisees by paying them fortnightly, makes it more attractive than other franchising   
investments.                                                                                 

Crest is aiming to raise $1 million, issuing 9.7 million new shares at 10c each, to fund     
expansion of its commercial cleaning franchise system and other franchise products.          

The Crest commercial cleaning franchise, a Dunedin-created brand, has 45 franchisees and     
three master franchisees generating turnover of $2.7 million this year.                      

It aims to get a greater share of the commercial cleaning business, estimated to be worth    
$726 million in 2000 by Statistics New Zealand. "It's not the most glamorous but it's a good 
business," Crest chief executive Rene Mangnus said.                                          

The Crest system keeps control of the debtor's ledger and pays franchisees fortnightly, which
is an advantage because it stops franchisees running into cash difficulties while they wait  
up to six weeks for customers to pay their invoices. "It relieves the burden on franchisees  
because people need money to live," Mr Mangnus said.                                         

Franchising was the model usually chosen by companies as a way to fund expansion to avoid    
having to find new investors and raise cash but Mr Mangnus said Crest was doing a capital    
raising "to fund and executive a speedier expansion of current business activities."         

He said other franchising companies, such as listed companies Infratil and Restaurant Brands,
had also sought investors.                                                                   

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June 2002 - NZUM

Crest Licensing Systems is issuing 9,710,000 shares to the public at 10c per share, the      
licensing company has multiple income streams from franchise sales, master franchise sales,  
royalties on turnover and interest on finance. Turnover is well established and they have a  
strong contracted revenue base with revenue projected to grow to $10m in 2005.               

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2001 - NZUM

Crest Licensing Systems was recognised in the Deloitte/Unlimited 2001 Fast 50 index as New   
Zealand's 25th fastest growing company.                                                      

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