Dear customers:
     Firstly, I represent all stuff of the Schenck Shanghai Testing Machinery Corp., Ltd. (Original Schenck Shanghai Testing Machinery Co., Ltd.) to show our sincerely thanks for your strong support and help since the decades.
     Meanwhile we are pleased to inform you that our company Schenck Shanghai Testing Machinery Corp., Ltd. (Original Shanghai Testing Machinery Works.) has renamed as Shanghai Schiak Testing Machinery Co., Ltd., which is a professional manufacturing enterprise in the field of balancing Machine and materials testing machine, and subsidiary to the Shanghai Electric Group.(see appendix)
    Our predecessor is Shanghai Testing Machine Works who was established in 1948. In early 1990s, Carl Schenck thought highly of Chinese market and its sustaining development in testing machines and choose us on their own initiative for that we occupied a huge market share and they regards us as a high-profile trade enterprises to cooperate with. In 1991 JV with Schenck German was established, and our names became Shanghai Schenck Testing Machinery Co., Ltd. (SST). Each side has 50% shares and the JV term is 50 years.
    At the first stage of our cooperation, we have achieved remarkable success with Germany technology in the introduction, digestion and absorption, But with deepening into the cooperation, different cultural background makes both sides defend their own interests in different ways. And more and more problems come out—our products sell only focus in china or to spread to the overseas with advantages of high quality and low cost? The technology should be strengthened through our own research and development or just copy from others? Refer to many other advanced technology and competitive products but from non-Schenck (such as high-speed balancing and large scales projects), shall we go after or give up? Such disputes became more and more and finally lead to an unmanageable end. Negotiations failed repeatedly. Chinese investors try to protect the cooperation relations, and try to perfect in courtliness again and again, but eventually we got nothing return. Germany Carl Schenck seek a new partner, violate the contract and disregard of the interests and feelings of Chinese Investors at all, In 1999, the establishment of cooperative enterprises –Schenck Shanghai Machinery Corp.(SSM). Then in their reports sent in the relative government, Carl Schenck German did their solemnly promises: never produce the similar standard products as SST. But what was the result? All these years since year 1999, the domestic Balancing market has two Schenck Company, produces and sells the similar products in universal balancing machines. We felt so sorry that it must bring lots of inconveniences and confusion to our customers during all these years. But it is not made by us, even not our wish either. All we could do is to take this opportunity to express our sorry again to our dear customers.
     In order to stop this chaotic situation, in order to find a better practical way to protect Chinese investors’ interests and rights, also in order to reserve and continue the development upon our own national industries with high-end technology, our Chinese investors, Shanghai Electric Group Corp. Ltd. resolutely terminate the 50-year cooperation contracts, and open the purse to purchase all the 50% shares back from Carl Schenck German.
     Shanghai Electric (Group) Corporation, by virtue of his ownership of the tremendous economic strength, on the basis of the former Shanghai Schenck Testing Machinery Company adopt restructuring, increased investment and technological innovation efforts, made us the new name -- Shanghai Schiak Testing Machinery Co., Ltd. As a modernization company who emphasize the research and development into the high precision instrument manufacturing, Shanghai Schiak Testing Machinery Co., Ltd. has capacity to concentrate research and development, design and manufacturing in order to meet requirements from the market. Our technical team is typically strong and composed by four experts of balancing machine, a total of 39 professional engineers with high or middle-technical post. We now put full application of CAD, 3D design software or auxiliary software in the design and adopt the introduction of improved upgrading advanced international standards. Now this team had been active in a number of projects of major national scene.
    We change the company name, but our quality polices "Oriented by customer, persisting in improving, and hankering for the better" and a series of ISO900 standard management system are the reservation. "Strict scientific management, advanced measurement technology, first-class product quality and excellent service quality concepts" are still received. The new Schiak's economic strength and social credibility has even been stronger since the extra investment injection.
    In the future, we promise the new Shanghai Schiak Testing Machinery Co., Ltd. provides long-life span service, including all the necessary spare parts, for the products from Original Schenck Shanghai Testing Machinery Corp., Ltd. Here we notice the customers who have already chosen us or willing to choose us, please do not worry about the service issues. In order to avoid confusion and unnecessary loss, you can stick to our company for the continuous service and needn’t find some other company or units. Meanwhile, I sincerely advise you when choose products, please pay more attention to the inner quality while ignore the flaring brand, do not spend the first-class price to purchase a second-line market manufactured products. It will make you double loss and suffered in the economic and credibility.
    Finally, we hope to receive your constantly support and assistant in the future.
    Best prosperity and rich brilliant to you!

Shanghai Schiak Testing Machinery Co., Ltd.

July 16th, 2007