Ann: Fluence First Aspira Project in South Africa, page-19

Good morning, lilac. Assuring you no offence taken. No apology needed whatsoever.

I am giving difference to China because it was China who first gave FLC their biggest break for which I am grateful for. If you remember, iTest gave FLC its first bulk order worth US$45m over 3 years. Now, it takes a brave madam Chairwoman in iTest, an enterprising one at that, to put their careers on the line to give a foreign coy in FLC that first break. I don't see the same enterprising spirit in any of FLC's western markets and that is fuelling my frustration at the western markets. In fact, they are really slow off the mark.

China's bravery, and embrace of new technology is setting off a chain reaction IMO. We see that in Cambodia as a case in mind in point, and now Vietnam and the Philippines. These countries have seen China do it, and are emboldened. They now know that leap-frogging technology chains is the way to make the quantum leap to improve people's lives. That same mindset unleashed by China is spreading to Africa, Ghana and Ethiopia in particular. So what works in China has ramifications and implications for the so called third world markets. (India is too anti China to do what China does. I am not putting my hopes there).

For all of China's malfeasance on the humans rights front and short comings on their administration, I am heartened that China market is pushing for the Aspiral micro. For the first time, we have the possibility of MABR being a consumer product in the rural sector. The Chinese market is that big that FLC's Israeli engineers have to accede to their request. I don't expect the same market feedback from the Western markets because MABR hasn't managed to breech barriers that the West (namely USA) has imposed to beat off competition. I believe once Aspiral micro takes off, which I believe it will after it is officially launched in Shanghai in Sept, many rural sectors in Asia and Africa will follow suit. Again, what the China market validates in Aspiral Micro has ramifications for the rest of the African and Asian world.

In summary, I don't see China as a standalone market anymore for FLC. I see China as a beach head as well as an inroad. Once it penetrates there, it will spread to other Asian and African countries. Hence, my constant mentioning how important the China market is for FLC.