Marketing manager : JEFF L. Fassbinder Administration manager : A nnie Lai Since June 1997 Business items : 1.wholesaler　 2.Innovation 3.Marketing 4.Channel management 5.Customer service

Annie Lai JEFF L. Fassbinder

Marketing/Sales Manager Memo:
　I would like rightto first personally than k each and every Ace employee for this past years efforts.Each and every one of you are a collective of individuals with differing talents,each of which plays apart in the total success of Ace. Having said that, I would like to let you all know that Mr. Lai would like to personally thank each and every one of you for your efforts this past year. Although we have endured natural disasters such as Katina and Rita, we have managed to surpass our previous years profit margin. Even if we did not meet all of our company goals, we still were able to achieve many smaller internal goals that enabled us to increase gross marginalong with enhancing our total profit by 6 percent. This was managed in an economy of decreased consumer confidence combine with soaring natureal resources such as gasoline and natural gas. Despite these natural occurrences we pulled together to help achieve goals in each and every department.In the coming year we will continue to have many more new goals which will help make Ace and Thunder Tiger a distributor and a manufacture that is known not only domestically but internationally. Nextyear we asa company will strive to harness all of the new products which Thunder Tiger will release and utilize these to make next year oneof successand victory.
Again, thank you all for your loyal support and continued efforts.
Wishing you and your family a Merry Christmas and a Happy and prosperous New Year! With Warmest Regards,Jeff L. Fassbinder Marketing/Sales Manager Ace Hobby Distributors,Inc