2. AIM Quarterly Seminar EXIM BANK FINANCING September 25, 2007

3. Ex-Im Bank Ex-Im Bank is an independent U.S. agency. Mission is to support export of US manufactured goods & services, and create & sustain US jobs Established in 1934, Headquartered in DC with 5 regional business development offices (New York, Miami, Chicago, Houston, Long Beach) Most clients are small businesses main products are: –Working capital (Pre-Export Shipment) –Credit Insurance (Post Export Shipment) Short- term Insurance –Single buyer –Multiple buyer policies Medium-term Insurance or Guarantees Long-term Direct Loans Special Policies » Small Business » Environmental » Services » Leases

4. Used by small & medium-size U.S. firms to fulfill international orders. Ex-Im gives guarantee to lending banks who in turn provides working capital loans to U.S. exporters. Funds must be used to make or buy U.S. goods and services (raw materials, equipment, labor) to fulfill export orders. AND/OR to finance export receivables by posting performance bonds (stand-by L/C’s) Exports must be shipped from U.S. and goods must have at least 50% content, services must be performed by US staff. If content is less say 45% -loans can only be supported up to 45%. Working Capital

5. Loans can be “transaction-specific” or “revolving” No minimum or maximum amount Exporter’s financial statements must support size of loan requested Inventory & accounts receivable (L/C’s or insured receivables) are used as collateral Advance loan amounts as high as –75% on inventory –90% on eligible receivables Working Capital

6. Ex-Im offers 90% guarantee to lender including principal & interest (100% if woman/minority-owned). Application Fee is $100 for a final commitment. Ex-Im fee to lender is up to 1.5% of the loan total; lending bank may pass the fee on to the exporter Interest rate negotiated by exporter & lender. Most loans are one year but can be up to three. Owner(s) with more than 20% equity must pledge a personal guarantee Working Capital

7. How to Apply: Preliminary Commitment Application: Call Sharyn Koenig (212) 809-2653 Delegated Authority Lender list go to: www.exim.gov view Lender Locater or Lender Referral Listwww.exim.govLender LocaterLender Referral List Ex-Im “delegated lenders” can approve loan by their loan committee and attach Ex-Im Bank’s guarantee without prior approval Lender “Additional Requirements”: No “deep pockets”-Why is Ex-Im needed for financing to materialize? Smaller loans available through SBA: Call 1-800.U.ASK.SBA or visit www.sba.gov.www.sba.gov Working Capital

8. WCG Increases Borrowing Power

9. Credit Insurance Risk Protection: Protects balance sheet against risks of foreign buyer non-payment Policies can cover a single sale or your entire export portfolio Covers both commercial risk-Insolvency, bankruptcy, protracted default and political risk-War, revolution, insurrection, civil unrest, “transfer risk ” Risks Not Covered Disputes, unless/until they are resolved Cancellation of a sales contract Devaluation of a currency as a political risk- If a default occurs, and buyer asserts it was due to government devaluation of the currency, it is viewed as commercial loss not political loss. Benefits to Exporters Increase competitiveness Able to offer buyer-friendly terms- open account to global buyers Flexible terms helps you secure more global sales Ensures a greater, more stable, cash flow. Banks prefer to lend against Ex-Im backed receivables You can budget premium costs - avoid catastrophic loss

10. Credit Insurance Few Restrictions Military Exports :No Defense Articles or Services 3 Exceptions:1.Humanitarian aid 2.Drug interdiction 3.Dual use items Restricted Countries (political or economic) Ex-Im help is available in many countries but some political/economic restrictions apply. Check the Country Limitation Schedule (CLS) at www.exim.gov X means not availableCountry Limitation Schedule www.exim.gov Foreign Content Goods must be produced in and shipped from US. Services performed by US-based personnel. ST, at least 51% US content, incl. labor but not mark-up MT, at least 85% US content, incl. labor not mark-up Buyer’s Creditworthiness (more later!)

11. How to Apply Ex-Im Bank regional offices and registered insurance brokers can help Insurance brokers can assist with documentation and provide required information to Ex-Im Bank Go to www.exim.gov click on Insurance Brokers to find a list of EXIM registered providers of credit risk insurancewww.exim.govInsurance Brokers Credit Insurance Policy by Buyer Type 1.Small Business Multi-Buyer Basis 2.Small business single- Buyer Basis 3.Multi Buyer Basis 4.Single-Buyer Basis Policy By Term Type 1.Short-Term Policies (up to 180 or 360 day terms) 2.Medium-Term Policies (capital equipment / 1-5 year terms) Other: Special Policies 1. Small Business 2. Environmental 3. Services 4. Leases

12. How To Access Ex-Im Products Banks –Lender Locater Lender Referral ListLender LocaterLender Referral List Working Capital Program –Lenders with delegated AuthorityLenders with delegated Authority Credit Risk Insurance –Insurance BrokersInsurance Brokers Ex-Im Bank Regional Office –Sharyn Koenig, Sr. Bus. Dev. Officer VA Region Tel: (212) 809-2653 sharyn.koenig@exim.govsharyn.koenig@exim.gov