GOLDEN EMBERS

A BRIEF BACKGROUND TO THE COMPANIES

From its early beginnings as one of the first restaurant operations to install a wood fired oven in South Africa in the mid 1980's the Pizza Mania / Golden Embers enterprise has grown continuously.

Tired of having to constantly repair and replace the original Italian imported units, and unable to find an oven which satisfied the desired criteria, it became inevitable that we design, develop and manufacture our own ovens. Using a proven design purchased from one of the leading Italian oven builders, then having it modified and improved by applying the latest in digital modelling techniques and refractory sciences, the first true Golden Embers Oven was installed in 1990. These ovens proved to be so fast, efficient, durable and cost effective that, in 1990, a franchise chain of fast food outlets was developed around them.

Pizza Mania Holdings was established in South Africa in 1990 as the umbrella company managing, administering and operating the Pizza Mania group of franchise retail outlets. Pizza Mania was based in Port Elizabeth, with direct control of six outlets in that city. Outlets in the other states were managed under a franchise licensing agreement with third party individuals, although all proprietary and marketing was executed by Pizza Mania head office. In June 1998 the franchise chain was sold and the focus of the business became the production and distribution of wood fired catering equipment.

In 1994 trade sanctions against South Africa were lifted and Golden Embers imported their first container load of wood fired ovens into Australia. From late 1994 on, Golden Embers started manufacturing all of their Golden Embers ovens in Australia using refractory material imported from South Africa. Initially production facilities were located at St Kilda Rd, St Kilda but rapid market acceptance and growth in demand required that the factory be relocated to larger premises at Seaford in May 1996. A joint venture owned by Golden Embers and Pizza Mania Holdings, the business continued to expand and grow.

In October 1997 the group was restructured and Australian operations consolidated under new management and a new umbrella company, Golden Embers Marketing Pty. Ltd. a wholly owned Australian business, which had acquired all of the trading interests and licenses of Pizza Mania and Golden Embers.

By 1998 the product range had been increased from 2 models of wood fired oven to 24 models and variants, including 4 automatic conveyor models. Other wood fired products and accessories had also been added to the portfolio, including Charcoal Grills, Tandoor Ovens, rotisseries and so forth, together with all of the associated tools and accessories.

In October 1998 Golden Embers Marketing acquired control of the remaining business interests of Pizza Mania Holdings in South Africa and incorporated Golden Embers Holdings (RSA). to oversee and manage the South African operations. The intellectual property, copyright, patents and designs remain the property of Golden Embers Holdings. (R.S.A.) Although Golden Embers is a relatively new player in the Australian market, it has achieved significant penetration of this capital-intensive segment in a very short time. In the space of six years, Golden Embers Ovens have been installed in hundreds of sites across Australia, and South East Asia, and orders are currently in process for several additional units to be installed across the world. In addition, negotiations with several of the larger chains are well advanced and the next twelve-month period should see an enormous increase in the distribution of Golden Embers ovens throughout the region. Those groups which have selected the Golden Embers oven, after rigorous scrutiny and testing, are: Australian Leisure and Hospitality (The hospitality arm of Fosters Brewing), Stewart's Hotels, The Singapore based Dome group of South East Asian restaurants, and the Queensland based Pancake Kitchen group, Brasica Asia Pacific, Coles Myer Let's Eat, Hilton, Radison, Rendezvous, Sheraton, Castaway Resorts, Spargos, King Gourmet and numerous individual outlets and chains.

Golden Embers Marketing Pty Ltd is financially independent, with no borrowings, a strong asset base and dedicated management team. It has several significant contracts and an extremely healthy order book, all of which take it well into the next fiscal year and, with no foreseeable obstacles, the medium to long term future. Golden Embers growth is based firmly on the principal of supplying the best product available and ensuring advantage is taken of the best in design technology and the newest and most advanced refractory technology. By virtue of the strong connections with South Africa, source of the worlds leading refractory materials, it is often amongst the first to have access to the newest technologies and materials, which enhances its ability to stay technologically ahead of the market.

With Golden Embers clients are not merely purchasing the very best Wood Fired Ovens available they are purchasing a commitment to quality and service which is unequalled in this industry segment, so, " Get The Best - Before The Rest"

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Note: More detailed information and a financial overview is available on request, under specified conditions, after entering a non disclosure agreement.

©2000 - Golden Embers Marketing Pty Ltd.