19th October 2006, Shanghai1

2 EUROPEAN EXCELLENCE TM JUST PERFECT

19th October 2006, Shanghai3 The trade mark EUROPEAN EXCELLENCE became public at the European confederation of manufactures and retailers of musical instruments (CAFIM) meeting, 16 th September 2005 in Paris

19th October 2006, Shanghai4 to keep the market share and support of „brand“ sales tradition + brand + know-how = European Excellence WHY EUROPEAN EXCELLENCE?

19th October 2006, Shanghai5 WHY EUROPEAN EXCELLENCE?...differenciates between musical instruments and semifinished products from EU countries and the others… …reduces the risk of selling a forgery… …proof of origin… …to assure customer peace of mind...

19th October 2006, Shanghai6 the support of global trends great investments in: - work safety, - ecology, - employee education etc. WHY EUROPEAN EXCELLENCE?

19th October 2006, Shanghai7 inforcement of European identity - job maintenance (production, services, education…) - R&D (sound research costs, design, patented construction…) WHY EUROPEAN EXCELLENCE?

19th October 2006, Shanghai8 1. final customers - players 2. distributors, dealers, retailers 3. lobbyists, EU legislators Who will we reach?

19th October 2006, Shanghai9 1.To final customers: -long term investments -lifetime quarantee -minimum service costs -environmentally friendly product -production process under EU legislation supervision -protection against forgery Certification process of EEX 1001 : 2006 declare

19th October 2006, Shanghai10 2. to distributors, dealers: selling price - purchase price - promotion - transport -stocking - service = YOUR PROFIT cheap goods: 60 % price = 5 European Excellence: 100 % price = 30 Considered margin 30 % To get the same profit, you need to sell 6 cheap instruments in comparison to 1 European one!!! Certification process of EEX 1001 : 2006 declare

19th October 2006, Shanghai11 Survey in EU countries results of retailers - 100% want to sell EEX products - 82,7% believe that the final customer will appreciate the trademark EEX - 87% believe that the trademark EEX leads to an increase of their margin

19th October 2006, Shanghai12 3. to lobbyists, EU legislators: - respects EU legislation in the area of work safety, staff protection - keeps employment in Europe - supports recovery of natural resources - refuses to use child labour etc. Certification process of EEX 1001 : 2006 declare

19th October 2006, Shanghai13 What will happen, if we do not do it? - loose markets, at least in Europe - decrease of profit from sales - thousands of people will loose their jobs - unable to prevent the deforestation - brain-drain and reflux of sophisticated know-how - let people produce in an unhealthy environment - polute the atmosphere and nature etc.

19th October 2006, Shanghai14 We do not have to do anything, survival is not compulsory. W. Edwards Deming

19th October 2006, Shanghai15 1. Certification process EEX 1001 : 2006 is coverd by CAFIM and its Certification Authority (Consortium EEX) To realize EEX project and gain money from the EU founds for worldwide marketing drive. 2. The conditions of EEX 1001 : 2006 (i)the products must be made in the EU countries (ii)at least 61 % of materials are of EU origin (iii) the membership of CAFIM How it runs?

19th October 2006, Shanghai16 If you meet the requirements you can ask the Certification Authority (Consortium EEX) for this Certification on following web sides: www. cafim. org How will it be organized ?

19th October 2006, Shanghai17 What the producer receives? Certification (products, product-lines) Required amount of stickers (holograms) Certified products, product-lines will be published on web sides for customers