GLOBAL

To increase our market share in Malaysia and in accordance with the Development Agreementfor Malaysia with GNC Inc, we intend to open a total of 11 more GNC retail outlets in Malaysia by31 December 2004. In order to do so, we will aggressively look for suitable locations,concentrating ®rst on the capital Kuala Lumpur and eventually, on all the main cities of Malaysia.BruneiAs at the Latest Practicable Date, through our Group's associated company Victoria House (B),we have opened our ®rst GNC retail outlet at SupaSave Gadong in Bandar Sri Begawan. VictoriaHouse (B) is in the process of executing an agreement with GNC Inc to allow us to open 2 moreGNC retail outlets in Brunei by 31 December 2004.PRCThrough our wholly-owned subsidiary Victoria House (C), we have, in December 2002, enteredinto a Development Agreement with GNC Inc relating to the establishment and operation ofGNC retail outlets in the PRC (excluding Hong Kong, Macau and US military bases therein).Currently, we are in the process of registering various nutraceutical products in the PRC as suchregistration is required before we can sell those products in the PRC market. We have engagedAPCO Asia Ltd, to undertake on behalf of Victoria House (C), the product registration of up to300 nutraceutical products in the PRC. It is also the intention of our Group to embark on anaggressive outlets-opening programme in the key cities in the PRC including Shanghai, Beijing,Guangzhou and Shenzhen once we obtain the registration for a suf®cient number ofnutraceutical products. Depending on the legal environment in the PRC, we intend to enter intojoint ventures to operate retail outlets in these cities and to appoint sub-distributors in thesecities to distribute nutraceutical products directly in the PRC.Asia-Paci®cWe have, on 1 December 2003, acquired USB which has the GNC franchise rights and businessin respect of 12 existing GNC retail outlets in certain US military and naval bases in Japan andKorea. As at the date of this Prospectus, of the said 12 GNC retail outlets, 8 are located in USmilitary and naval bases in Japan and 4 are located in US military bases in Korea.It is the intention of our Group to open more GNC retail outlets in other US military and navalbases in Japan and Korea as and when such opportunities arise. For more details, please referto pages 64 and 83 of this Prospectus.We also intend to continue to actively survey and study the possibility of acquiring other GNCfranchises for territories in the Asia Paci®c region as and when such opportunities arise.. Wholesale Distribution BusinessWe intend to market third party international brands and our proprietary L.A.C. brand ofnutraceutical products through our existing distribution network around Asia:±PRCWe have in December 2002 entered into a Distribution Agreement with GNC Inc in relation to theexclusive distribution rights for GNC products in the PRC (excluding Hong Kong, Macau and USmilitary bases therein). Our Group intends to appoint sub-distributors and wholesalers in variouskey cities in the PRC to undertake the distribution of nutraceutical products once productregistration in the PRC for those products are obtained.21