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ALLIANCE MERCANTILE INC.

AMI is such a diversified company that we sell virtually every channel of distribution in Canada; Our National distribution model makes us a National company, giving us an advantage over regional competitors; Our Financial strength allows us to "invest" in new market development through lower pricing/profits making us a very fierce competitor; SO – we can hit every market, with singular distribution pricing, at highly competitive pricing: as well we have the infrastructure to manage all marketing, promotional, coop, rebate and consolidation aspects of customer management.

Lean and Mean – we are a unique company in that our overhead costs are one of the lowest across all trade level sectors. This gives us the ability to be extremely competitive, and work in commodity based markets. Our staff is lean, and broad spectrum in knowledge of our operations.

We have developed unique customized computer systems that allow us to manage large amounts of data through an "Exception" reporting structure.

We are extremely well financed, as well as asset rich in property and inventory. We have built our supply chain structure on the basis of location for delivery time cycles, 3 month inventory levels so as to be the warehouse for our customers and improve their turns.

Technical expertise – we are leaders in materials knowledge, safety standards, and manufacturing with key focus on Rubber, Woven fabrics, synthetic fibers, laminates and compounds.

We have a global awareness and knowledge of competitiveness as well as supply.

AMI does not sell "Me Too" products. Every product we offer is either A) produced by us, B) designed by us and contracted to be produced to our specification, or C) produced by one of the top 2 global manufacturers of the wares of which we have an exclusive joint venture or distribution agreement.

Alliance also owns the trademarks and patents on its proprietary lines. These product lines are procured through MIK's factories off shore as well as through exclusive manufacturing and distribution contracts for North America.

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