1. Macro Market Size Macro trends indicate a huge potential for Shoe Skins beyond Children’s Shoes Market size in Volume Sales: Growing at CAGR of 5.1% during year 2001-06 & expected to grow at 6.4% during year 2006-11 Children’s market represents 22% of overall US footwear market Volume sales are growing at a higher rate than value sales Both Children’s and Women’s footwear market is expected to grow at a faster rate compared to Men’s market

2. Macro Trend Analysis Summary TrendDescriptionFavorableUnfavorable PoliticalRegulatory Environment _________ EconomicalEconomic Down Turn _________ SocialGoing Green √ SocialObesity √ TechnologicalOnline Shopping √ TechnologicalOnline Social Networking √

3. Macro Market Summary Overall Assessment: Favorable Easy access to large customer base Opportunity for effective/focused marketing Favorable social trends to re-usable and fitness related products