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providers are measured. Northstar is currently providing several major automotive OEM <br /> • manufacturers parts which are found on both foreign and domestic passenger cars. The <br /> company also continues to provide MIL-spec parts to its military contractors as well as <br /> consumer products for customers such as 3M, K-Tel and many others. <br /> Cedarbrook had, as its legacy, a long list of customers which covered government <br /> agencies, consumer products and automotive business dating back to 1978. Northstar <br /> strives to improve on Cedarbrooks successes by providing a die casting service that <br /> accommodates smaller runs at very competitive pricing. <br /> There are many die casting companies in the upper mid west, however most major <br /> companies, due to their high investment costs, focus their marketing efforts toward <br /> obtaining business that requires long runs and high dollar volume. Most other companies <br /> lack a focus and find themselves struggling to get whatever is available and never <br /> achieving the process improvement that will make them more competitive. <br /> Objectives <br /> Northstar's projected revenues for fiscal year 1997 are expected to be $3.5 million with <br /> annual growth projected at 25%per year through 2002. We feel that this growth is <br /> sustainable can be financed internally. It is also felt that within 5 years, Northstar Die <br /> Casting will be in a suitable position for further expansion, an initial public offering or <br /> profitable acquisition. Our objective, at this time, is to propel the company into a <br /> prominent market position. <br /> Capital Requirements <br /> According to the opportunities and requirements of Northstar Die Casting, described in <br /> this business plan, and based on what we feel are sound business assumptions, our first -. <br /> year requirements for growth will be funded primarily through asset based lenders backed <br /> by the company's substantial sales and accounts receivable. This method of financing will <br /> continue through the first half of 1998 where upon conventional bank financing will be <br /> secured. <br /> To accomplish this goal we have developed a comprehensive plan to intensify and <br /> accelerate our marketing and sales activities, manufacturing, quality control and customer <br /> service. To implement these plans we will require the following: <br /> A new facility that will allow us to provide machining and casting without the <br /> space restrictions currently facing the company. <br /> Maximize sales with an extensive campaign that includes increasing our effective <br /> sales representative population while improving customer perception and overall <br /> company visibility through trade publication and interne advertising. • <br />