Industries International, Incorporated

Address:	4th Floor Wondial Building, Keji South 6 Rd. Shenzhen High-tech Industrial Park, Shennan Blvd. Shenzhen, P.R. China C/O 15260 Ventura Boulevard, Suite 1060 Los Angeles, CA 91403
Tel No.:	(818) 382-9706
Fax No.:	(818) 382-9701
Web Site:	www.industriesintl.com
Corporate Email:	dbarker@irintl.com
Contact Person:	Darren E. Barker
Position:	Vice President, IRI

COMPANY DATA

Traded Market:	OTC BB
Traded Symbol:	IDUL
Outstanding Shares:	21.8 million
Public Float:	3.1 million
52 Week High:	$ 6.80
52 Week Low:	$ 1.01
Present Price:	Click Here

INTRODUCTION

Industries International, Incorporated is a Shenzhen, China-based holding company whose subsidiaries focus on the R&D, manufacture and commercialization of telecommunication equipment and lithium and Li-ion batteries. Founded over 10 years ago, the Company has grown internally and through acquisitions to post revenues topping $54 million in 2002, up from $28.5 million, or nearly 24% per year, in three years. The Company's telecommunications products are sold at over 5,000 locations throughout China. Its lithium and Li-ion battery products are sold to consumers and original equipment manufacturers in China, Hong Kong, Taiwan, U.S., Singapore, and New Zealand, among other countries. The Company has more than 1,300 employees.

The Company was privately held until February 2003, when it completed a reverse merger to create the current Industries International. In May 2003, the Company acquired Li Sun Power International Limited for $15 million (6 times net income) giving it majority ownership of Wuhan Lixing Power Sources and adding lithium batteries to the Company's business mix. Li Sun is a fast-growing firm, which saw sales nearly double, from $9.9 million to $19.3 million, between 2001 and 2002.

PRODUCTS AND SERVICES

(1) Telecommunications Equipment

Through a subsidiary, the Company designs, develops and manufactures telecommunications equipment for the Chinese consumer market under the Wondial brand. Wondial was the first cordless telephone manufacturer in China and has seen its share of the phone market increase from 14.9% in 1999 to 18.2% in 2001. Primary products include corded and cordless telephones with a range of options from the basics to the latest high tech features. IDUL is leveraging its proprietary R&D to expand its telecommunications equipment to include digital cordless telephones, multi-function videophones and other communications products.

Products are manufactured at IDUL's own factory, which has received ISO 9001 certification. IDUL's current distribution network includes over 5,100 point-of-sale locations including China's major telecommunication companies (e.g., China Telecom, China Unicom, China Railway Communications, etc.) and major nation-wide chain retailers (e.g, WalMart China, Sam's Club, Carrefour, etc.) in 28 provinces in China, covering more than 200 cities.

(2) Lithium batteries

Through the Li Sun Power subsidiary acquired in May 2003, IDUL is now one of the largest lithium and Li-ion battery manufacturers in China. Li Sun is a pioneer in the lithium and lithium-ion (Li-ion) market niche, with battery types including button-type, cylindrical, and power sources. Products are marketed for use in a wide range of electronic products such as mobile phones, calculators, PDAs, laptop computers and hybrid electric vehicles. Additionally, IDUL manufactures battery testing equipment, utilized internally for its own products and sold in both domestic and overseas markets.

COMPANY SUBSIDIARY

Chart

( in www.industrialintl.com, hit investor and get the chart )

* Since 1995, TsingHua University Enterprise Group has been involved in more than 70 high-tech companies. Companies have tended to focus on Internet infrastructure, technology, software development, and supercomputing.
** Hong Kong and Shanghai Bank (NYSE:HSC).

MANAGEMENT

Dr. Kit Tsui, Chairman of the Board and Chief Executive Officer

Dr. Tsui began his career in 1988 with the Planning Commission of Huangshi City, Hubei Province, China. He next worked for the U.S. Trade Department of Shenzhen Electronics Group, an importer and exporter, as a manager. From 1991 to 1993 he worked for Shenzhen Jingkong Chaoying Industry Co., Ltd., and in 1993, he established Shenzhen Wonderland Communication Science and Technology Co., Ltd. Dr. Tsui is primarily responsible for the Company's strategic planning and corporate development. He holds a doctoral degree in economics from Wuhan City University.

Over the years, Dr. Tsui has developed and maintains working relationships with companies such as CITIC Group, Qinghua University, HSBC, Motorola, Toshiba and Samsung. He has put these connections to use on behalf of Industries International, engaging famous economists Zhuoji Xiao and Fureng Dong, chemist Quanxing Zha, and lawyer Yi'ning Li - all of whom are pioneers and authorities in their respective fields - as economic consultants to and independent directors to the Company.

Dr. Tsui's extensive experience working with the government has yielded relationships with many key government officials and commercial banks. The government has honored Dr. Tsui for his accomplishment, naming him among the Top 10 M & A awards of China, Distinguished entrepreneur of Shenzhen, and one of the Best 5 executives in the financial system. Dr. Tsui is 40 years of age.

Weijiang Yu, President and Director

Mr. Yu began his career with Design Institute of Hainan Iron & Steel Company. From 1997 to 1999, he was appointed as General Manager of Yixiang Chemical Engineering Company of Erzhou, Hubei. From 1999 to 2002, he was employed as Vice General Manager and Chairman of Shenzhen Wonderland Communication Science and Technology Co., Ltd. Mr. Yu has been awarded the Hubei Distinguished Entrepreneur Award for his achievements in the telecommunications industry. Mr. Yu is primarily responsible for general management and market development. Mr. Yu graduated from Hubei Huangshi Academy in 1994. Mr. Yu is 31 years of age.

Guoqiong Yu, Chief Financial Officer and Treasurer

In the early 1990s, Ms. Yu was employed by Taike New Technology Development Company as its Financial Manager. From 1994 to 2002, she was employed by Shenzhen Jintian Industry Co., Ltd., a public company, in the capacity of financial supervisor. From 2002 to the present, Ms. Yu has been Chief Financial Officer of Shenzhen Kexuntong Industry Co., Ltd., the Company's major subsidiary. Ms. Yu is 44 years of age.

COMPANY MARKET POTENTIAL

(1) Rapidly growing telecommunications market in China

The Ministry of Information Industry forecasts the number of fixed income line telephone subscribers to increase at a compound average annual rate of 13% over the next eight years and exceed 490 million by 2010. The new subscribers will need telephone equipment, and IDUL's technological advances and distribution networks should allow it to successfully capitalize on this rapidly growing market.

(2) Cordless phone sales increase

According to Dataquest Inc., cordless telephones represent over 60% of the total residential telephone market in the U.S. and European countries and approximately 80% in Japan. Yet the Company estimates that cordless telephone usage among phone subscribers in China is only 7.2%. As the number of telephone subscribers in China grows, so will the number of cordless phone users. The Company conservatively estimates that some 3 million customers each year - 10% of the more than 30 million new subscribers - will buy cordless phones. The Ministry of Information Industry expects cordless phone users to comprise 30% of general phone users by 2010, driving annual cordless phone sales at a 23% annual growth rate from 3 million in 2002 to over 15 million by 2010.

(3) Increasing demand for personal electronics drives growth in the battery market

IDUL estimates the global market for primary, disposable/non-rechargeable batteries was approximately $11.5 billion in 2000 and is expected to reach approximately $13 billion in 2003, with lithium batteries having an estimated 10% share or over $1 billion. In 2001, the market for Li-ion batteries had the largest growth among other types of rechargeable batteries. Li-ion batteries are becoming the preferred choice for portable telecommunication devices, especially compared to NiD and NiMH batteries, due to their high energy density and immunity to memory effect. The demand for Li-ion batteries is principally driven by Bluetooth applications, cordless telephone, mobile phones, PDAs and digital cameras.

(4) Gaining potential access to 20% of the world's electronics production while cutting cost

In June 2003, IDUL announced a memorandum of understanding to acquire Top Goal Technology Ltd., thereby giving it 70% ownership of Hong Kong based Sinotech Electronics Ltd. and Fine Capital International Ltd. Sinotech and Fine Capital distribute semiconductors, microchips and micro-control units (MCUs) for Toshiba, Hynix, and Samsung in Hong Kong and China. These companies also provide software and hardware support, including design and development of integrated software solutions for MCU manufacturers.

NEWS UPDATE

On May 07, 2004, Industries International Incorporated announced that it has completed the sale of surplus equipment used to manufacture analog and digital cordless and traditional corded telephones. The purchaser was the Company's Chairman and CEO, Dr. Kit Tsui. The sale is a result of INDI's decision to focus on its much more profitable telecommunications products distribution business, rather than its lower-margin manufacturing operations. The Company is no longer using the assets in its manufacturing business operated by its 95% owned Shenzhen Kexuntog Industrial subsidiary, and it has closed the facility where the equipment was located.

On March 22, 204, Industries International, Inc. announced that its wholly-owned subsidiary, Broad Faith Limited, received a $20 million order from U.S. based Unical Enterprises, Inc. to manufacture BellRPhones by Northwestern Bell Phones and Mountain Bell brand cordless telephones.

On March 02, 2004, Industries International Inc. announced that it has successfully completed a private equity financing in the amount of $5.8 million. IDUL intends to use the proceeds towards financing its proposed acquisition of a leading Hong Kong-based software company.

On February 25, 2004, Industries International Inc. completed a private equity financing pursuant to which it raised gross proceeds of $5.8 million. The financing was arranged by HPC Capital Management Corporation, an investment banking firm. The transaction was a unit offering pursuant to which the Company sold a total of 2,521,745 shares of common stock together with warrants to purchase an additional 756,530 shares of common stock. The price per unit was $2.30 and the warrant exercise price is $2.70 per share. Eleven investors participated in the transaction.

On February 20, 2004, Industries International, Inc. announced that it has received the exclusive right in China to produce the country's first button-type lithium-ion battery. The battery will be produced by INDI's wholly-owned subsidiary, Li Sun Power, one of China's leading battery manufacturers. The Company has obtained a state patent for the new product and will be the only Chinese firm authorized to manufacture this type of battery during the patent period.

On February 11, 2004, Industries International, Inc. announced that it has received nearly 14 acres of public land, through a government land grant, enabling the Company to move ahead with an expansion of its battery production in the face of rising customer demand. The Company noted that the new manufacturing facility is expected to be on line during the third quarter of 2004.

On February 03, 2004, Industries International, Inc. announced that it expects a revenue increase of 28% for the fourth quarter ending December 31, 2003. It also said it expects to accelerate its trend of profitability with up to a 57% increase in earnings for the fourth quarter ending December 31, 2003. The Company projects fourth-quarter sales of $17.8 million, a year-over-year increase of 28% from $13.9 million in the fourth quarter of 2002. On a sequential basis, the projected fourth quarter 2003 sales would represent a 13% increase over the $15.8 million in sales for the third quarter of 2003. For the full year 2003, the Company projects $59.4 million in revenue, a 10% increase over net sales of $54.1 million for 2002. Earnings are also expected to rise sharply year-over-year. The Company's projected net income for the fourth quarter of 2003 is $1.44 million, or $0.06 per diluted share, up 57% from $920,000 in the fourth quarter of 2002.

On December 11, 2003, Industries International, Inc. announced that its wholly-owned subsidiary, Li Sun Power, has been awarded a technology patent ( Patent No. 03254599.1-China ) for its recently introduced battery control system for electric vehicles.

On December 09, 2003, Industries International, Inc. announced that it has initiated a program to buy back up to 500,000 shares of its outstanding common stock. At least 200,000 will be purchased as part of this program before the end of this month.

On October 28, 2003, Industries International, Incorporated announced that its wholly-owned subsidiary, Li Sun Power, has been granted authorization to work with the Chinese People's Liberation Army (PLA) and has received initial orders for its lithium-ion batteries. Specific sales terms of the new agreement were not disclosed for confidentiality reasons. Initial revenues from the shipments to the PLA, which will begin immediately, will be recognized during the fourth quarter ending December 31, 2003. The Company noted that this contract represents the first of many new contracts for the Company's lithium-ion batteries currently in the pipeline.