ZHANG, WANG & LEE, L.L.P.1
ATTORNEYS AND COUNSELLORS AT LAW
666 EAST CHANGAN BOULEVARD
BEIJING, P.R. CHINA 100001
TELEPHONE: 010-1234-5678; TELEFAX: 010-1234-5679
WWW..ZWL.COM.CN
VIA E-MAIL & REGULAR INTERNATIONAL MAIL
June 18, 2004
Mr. Fred Olson, CEO
Low Chemicals, Inc.
Anytown, Anystate 30013
The United States of America
Re: Reasons to Invest in China
Dear Mr. Olson:
Your letter dated June 10, 2004 has been received. Thank you for trusting
your inquiry for information upon us. We fully understand your concerns and hope
the following observations would help relieve them.
If you had been a savvy investor alive in the 1880s, you would have seen that
the United States was becoming the industrial powerhouse of the world. You would
have noticed that the Americans were designing factories that could produce
everything from steel to textiles, for less cost than competitors in Europe. You
would have recognized that the settlement of the American West was creating new
markets. You would have seen millions of immigrants and understood that any
country capable of drawing that much new labor was capable of generating that much
more output.
So why didn’t more people leap at the opportunities?
Some did, of course. The United States was attracting more foreign direct
investment than any country in the world. But many people shied away. Why?
Because the United States looked like a dangerous, lawless place where contracts
didn’t mean much more than the paper they were written on, where speculation was
1 Copied and revised from Fred Alger & Company, Inc.’s commercial advertising in the New York Times, page
C16, January 27, 2004. Copyright 2004 by Fred Alger & Company, Inc. Reprinted with permission.

rampant, where devastating economic crashes were frequent and violent labor strikes
were common.
Opportunities don’t always look like opportunities.
You could have done quite well by investing in the United States in the late
19th century. Today, the same thing might be said about China.
After the United States, China is the most dynamic force in the world economy.
In 2003 and 2004, it is estimated that these two countries will account for more than
50% of the world’s economic growth. While the United States is a far bigger
economy, China is growing more rapidly.
But many investors are deterred today, just as their great-grandfathers were
by the uncertain conditions of the U.S. economy in the late 19th century.
Good investors follow good opportunities; great investors discover new ones.
The Chinese economy is growing 8% a year, and even faster in the coastal
regions. New factories are being built to service the domestic market and to produce
goods for sale throughout the world. The economic expansion of places like
Shanghai, a city of more than 10 million people, is in the double-digits, and the
appetite for cars, cell phones, appliances and services increases daily.
China still poses challenges to investors. Its currency doesn’t float and its
legal system has only recently begun to honor intellectual property rights seriously.
But history has proven that focusing on obstacles can mean missed opportunities.
Of course, you have to make the right choices. In 19th century America, most
railroad companies went bankrupt, but some steel companies did quite well. Most
banks issued bad loans, but a few great ones grew exponentially, and survive till this
day. China offers opportunities, but not all of these are obvious.
The bull; the bear; and now the dragon.
We believe that just as the United States became an industrial powerhouse in
the 1890s, just as new technologies fueled growth across industries and across
continents in the 1990s, the emergence of China today is transforming the world
economy. There will be many winners, and innovative American companies doing
business with China stand to benefit enormously.
History repeats itself, but opportunity doesn’t. With our assistance, you can
seize opportunities in China whenever uncovered. For more than 10 years, the
attorneys at Zhang, Wang & Lee have been committed to serving overseas investors

with unmitigated zeal and great professionalism. We are proud of our proven record
in assisting clients investing in the dynamic change in China.
We look forward to hearing from you again.
Sincerely,
Zhang, Deguang
Managing Partner.
Enclosure: Firm Brochure