Company Overview 2007 Distributors Conference 19 th -21 st April 2007

Company Overview

Philosophy of Building & Investing for the Future “It will happen” 10 years of Bambino Mio

End of UK market growing Roll out plans from national accounts in the UK Increasing number of distributors Need to support potential growth Significant orders from China Employment of ‘experienced staff’ to manage this growth

What actually happened in 2005 Stores never came on board LCA report Launch in international markets takes time

Problems this created Overstocked by around £500,000 (725,000 euros) Carrying costs of anticipated business that did not happen

2006? Year of consolidation Rationalisation Move production to Easter Europe Core customers Home market needs to be strong Recruitment of new specialist staff

International 2006 With more experience in export we are able to continue to work with distributors to build up their market: New marketing initiatives Market visits Conference Cologne Increasing Sales means more attention to Bambino Mio

2007- Where are we now? “It is finally happening”

In the first 3 months of 2007, orders are up 65% against the first 3 months of 2006.

Over the same time International orders are up over 150%

2007 UK: Mothercare (208 stores) Babies R Us (71 stores) John Lewis Boots (.com) Sainsbury’s (450 supermarkets) – swim nappies Still the majority of our UK business is with the 200+ independents 5% of all babies in the UK wear Bambino Mio nappies 33% of the reusable nappy market in the UK. Retail value of the market is estimated at around £10m

2007 International: In 2006 export accounted for 25% of our business. - Estimate for 2007 nearly 40% Only 3 of our 33 distributors were not up year on year, in the first three months of distributors were up by more than 100%

Stock situation

New markets for 2007 Japan Belarus Israel Poland India

Number of distributors: 33 Countries now sold in: 60

Highest sales (purchases from Bambino Mio) 1. France 2. Australia 3. Czech Republic 4. Belgium 5. UAE

Highest sales per birth 8. Norway 7. Belgium 3. Malta 4. Iceland 5. Czech Republic 6. Estonia 1. Slovenia 2. Latvia 9. Australia 10. Sweden

Next 12 Months Continue to build on the growing sales

United Kingdom Secure position as number one brand Grow existing accounts Continue to be an example for distributors Benefit from greater awareness of environmental issues

Product Development Continue to focus on cotton nappies and associated products Improve existing Look at a few new associated products

Marketing/Promotions Continue to develop new tools Website Closer links with marketing and our distributors

International Sales Work to increase the sales of existing distributors New export team growing in experience Own accounts Visits More regular communication Cologne Next conference early 2009