Cygnet Financial Service Cygnet Financial Services Investment Proposal Business Plan

EXECUTIVE SUMMARY CYGNET'S strategy will be to source investment funds from private funders. CYGNET aims to operate in the commercial and industrial property sector. Investor funds will be lodged in an Investment Account with Deloitte & Touche and KPMG. CYGNET will source properties for development and re-investment and will operate the Administration Account. This is done on a call off from the Investment Account, and is subject to extensive viability and due diligence checks and balances. All profits and returns on investments and sales will be held in a Distribution Account and paid to investors as per instructions held. Technological advancements also permit for other economically feasible distribution channels, such as separately managed portfolios for large accounts.

'COMMERCIAL PROPERTY VALUES WILL INCREASE IN A VOLATILE ECONOMY' : CYGNET will offer high net worth investor’s opportunity to maximize profits and a capital growth element in exchange for contributions to CYGNET’S operating capital and for providing seed funds to establish the investment products described herein. This document alone does not constitute an offer of any type, nor does it provide any guarantee, financial, or otherwise. Risks associated with the CYGNET FINANCIAL SERVICES business plan are not limited to those detailed in this document.

COMPANY SUMMARY CYGNET FINANCIAL SERVICES is structured as a Close Corporation, incorporated in the Republic of South Africa. It has been designed to capitalize on property industry research performed by one of the founding members, Sagren Pillay. This company is unique because it differs substantially from the way most existing investment management firms operate. Many of the firms created in the last 15 years were started by the departure of portfolio managers from the country's largest banks, insurance companies, and brokerage firms. Generally, these individuals were deep in investment management but novice as it concerns the business and operating side of running an organization. The investment plan for CYGNET is different. CYGNET has been founded by managers and entrepreneurs with in-depth knowledge of all aspects concerning property investment organizations. Professional talent will be acquired and retained by offering key individuals and professional service companies’ competitive compensation to include equity stakes.

WE BELIEVE OUR PROCESS WILL BE SUCCESSFUL IN THE FUTURE FOR THE FOLLOWING REASONS: 1. It provides the opportunity to outperform the market without taking undue risks, whilst having ownership. 2. It does not concentrate heavily in a narrow segment of the market (e.g. residential, agricultural), thus portfolios are more likely to maintain a stable performance base when certain areas rotate out of favor and prompt redemptions. 3. It simplifies investor's portfolios by reducing the number of managers or funds they need in their overall property allocation. 4. As in most cases, investment opportunity at ground level (development projects) will generally allow the investor a far greater return on their investment in a shorter period. 5. Capital growth is taxed at lower rates than normal profits.

SALES STRATEGY SALES STRATEGY CYGNET'S property investment portfolio will be initially offered through an FSB registered administration fund. Technological advancements also permit for other economically feasible distribution channels such as separately managed portfolios for large account sizes. Based on our large, medium and small cap projects, revenue streams will be continuous from year 3. Ideally, clients should look to invest in the medium to long term to maximize profitability and returns. CYGNET generates its revenue from Administration Fees for services rendered on behalf of its clients. The chart and table below provide a more detailed look at our projected sales strategy.

COMPETITIVE EDGE ''Companies are nothing but men and women and their work. That which comes forth from a company is only as fine as the effort put into it.'‘ ''A customer is a person who brings us his wants-it is our job to fulfill those wants.'' The above quotes reflect the philosophy and ethos of CYGNET. Only by fine effort and effective control will we accomplish and attain our goals and those of our investors. CYGNET will centralize and standardize all property management systems, controls, responsibilities and personnel. Unlike other investment companies who generalize and pay dividends to all clients in their portfolios, we will strive to manage each client on a personal basis, and to maximize returns for each and every client.

MARKET STRATEGY CYGNET is based in Kwa-Zulu Natal and has excellent local knowledge of markets, trends and development nodes in the region. Our initial focus will be to invest locally, before expanding into other regions. This will only be done via thorough market analysis and project planning. We will utilize our website to find investment properties and opportunities, as well as to market our portfolios. We are registered with the Debt Control Council. The Estate Agency Affairs Board and will register with the Financial Services Board, to ensure legal compliance. We will charge an Administration Fee to our clients based on investment levels. Fees will approximate 1, 5% of investment.

MILESTONES CYGNET will strive to have projects in place and capitalization of R 2, 3 billion by This is a bold plan, but is highly achievable given the available projects and infrastructural changes that are being effected in South Africa. We have attached Large, Medium and Small Cap targets as per our initial market analysis.

MANAGEMENT SUMMARY CYGNET has compiled a management team, and will employ candidates for other key positions, should it be required. We would prefer to use outside consultants and professional teams on a project basis, and according to each entity’s specific strengths. Sagren Pillay is the managing member of the corporation. Sagren has been involved in company management for the past fifteen years. David Larkan is a registered and practicing accountant. David graduated and was articled with KPMG, prior to going into private practice. He also holds a CEA qualification. David has been in the accounting profession for the past 22 years and in the property industry for seven years.

397 North Coast Road Briardene Durban Vat no; Cygnet Financial Services CC Reg no; 2006/014207/23 Tel no: +2731) Fax no: +2731) G mail: PO.BOX 3731 Durban 4001 DCCC no; /06