China Nutrifruit Group (CNGL)

Key financial targets with regards to the reverse merger transaction:

In connection with the Share Exchange Agreement, management entered into a 'make good agreement' and has placed shares in escrow to secure its obligations to meet specific 'Earnings per Share' targets for 2009 and 2010. If the targets are not achieved, a number of shares derived from a formula will be transferred pro-rata to the investors in the private placement.

Earnings targets:

1. $13.9 million in net income for 2009. (This would imply Earnings Per Share of .40 )

2. $18.5 million in net income for 2010. (This would imply Earnings Per Share of $0.53 for 2010)

GeoTeam Note: We are assuming that these targets use the 2007 tax rate of 12%.

Earnings targets adjusted for a fully taxed situation:

1. $11.4 million in net income for 2009. (This would imply Earnings Per Share of 0.33 )

2. $15.2 million in net income for 2010. (This would imply Earnings Per Share of $0.43 for 2010)

Source SEC form 8-K ( August 14, 2008 )

On August 15, 2008 FHTI announced the closing of a stock exchange transaction with  Fezdale Investments Limited and a related private financing transaction. Fezdale will operate through its consolidated indirect Chinese subsidiary to execute the business plan of those subsidiaries. Fezdale’s subsidiary Daqing Longheda is an industry leading processor of specialty fruit products with its operations being located in the Peoples Republic of China.