Frank Waddell

Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB)

Hello again, Brian. A couple more questions if you don't mind...

Your new linear heat detectors are highly recomended for companies in the Iron & Steel Industry. Are there any other industries where your new linear heat detectors are highly recommended that will provide additonal growth? Is there any legislation in the works (or that has already been approved) in either China or abroad in these other industries for those linear heat detectors?

Thank you,

Frank

Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB)

Hello, Brian. Thank you for taking the time to answer my questions.

1.) It was recently annonunced that approximately 80% of the Iron & Steel manufacturers are not compliant with new legislation creating ~$800 million dollar market opportunity for this industry. Given your company's bid success rate of +50% for the iron & steel industry, would it be realistic to assume that CFSG can get at least 30% of this opportunity? Do you have the capacity to meet this large opportunity?

2.) Do you believe China's abundant low-cost labor resouces will give CFSG a competitive advantage against non-chinese companies when bidding on international contracts? Will this allow chinese suppliers, such as CFSG, to compete more effectively on pricing while maintaining your high margins?

3.) It is my understanding that China's LHD standards are set higher than internationaly accepted UL standards. Do you believe that this situation will make it more difficult for other fire safety companies (both large and small) to compete with CFSG in the Chinese market due to their non-compliance?

Once again, thank you.