Under the Radar Looks at Eastbridge Investment Group

September 20th, 2007 - By: Lee Anderson, J.D., M.L.S., Staff Analyst

If your partner has invested $2M of their own capital in an enterprise, would you believe they were at risk?Yes, in a big way.

If your partner has experience working with a nation that has the fastest growing GDP in the world, would you trust that partner?Yes, in a big way.

If the fastest growing nation in the world had a ONE PARTY system in which the government's ability to get behind a program meant virtual success, would you want to be involved in that program?Yes, in a big way.

If you knew that Goldman Sachs has targeted a specific niche for mergers and acquisitions, would you want to know what that niche is?Absolutely.

That's what you get with EastBridge Investment Group. They have targeted small and medium enterprises in China to take them public, and, guess what? The government of China has targeted these same small and medium enterprises (SME) for growth. And who has taken notice besides EastBridge? The largest investment firms of the United States are on the hunt for SME's in China for mergers and acquisitions.

China, a Bull Market for Small and Medium Enterprises

EastBridge Investment Group focuses on small and medium enterprises (SME) in China and India. Many of the small and medium enterprises in China have limited international experience and infrastructure. EastBridge is able to level out the traditionally steep learning curve and reduce the relatively high costs of hiring outside experts. EastBridge provides reliable and qualified resources to high performing enterprises who are in good financial health, with limited downside risks and strong strategic options.

The goal is to continue setting up wholly owned subsidiaries as EastBridge Investment Group enters new business sectors. At the same time, EastBridge Investment Group aims to continue locating companies for listing services on the U.S. stock market. Most of the wholly owned Chinese subsidiaries will be spun off as publicly trading U.S. companies in 12 to 18 months.

Global Financial Firms Actively Searching for Asian Buy Outs

EastBridge Investment Group is developing precisely the kind of firms targeted by global financial firms in China.

Many global financial firms, concerned that the recent market turmoil will slow deal-making, are considering pulling back on deals and new hires EXCEPT for China. For these firms recruitment is very high - they are beginning the hunt for SME's in China. If you know what "Ni hao" (Chinese for hello) and "Ebitda" mean, you may be well on your way to landing an investment banking job and find yourself well in the middle of the greatest hunt in the world - SME's that are on the road to development in China.

EastBridge Investment Group is developing the very companies these investment bankers will be pursuing: HSBC, UBS and Goldman Sachs, are the three Western banks that are especially active in China.

If you want to participate in this great hunt, EastBridge Investment Group provides a diversified portfolio of companies that represent the best SME's in China. EastBridge's shareholders will receive stock certificates or electronic notification just prior to the subsidiaries and listing clients going public.

EastBridge Investors will ultimately own a diversified portfolio of rapidly growing Chinese and Indian international companies traded on U.S. stock exchanges.

SMEs Have Been Officially Urged to Become Frontline Players

The Chinese government is encouraging privately run small and medium sized enterprises (SMEs) to put greater emphasis on technological innovation and play an increasingly important role in China's economic growth in the years to come.

Wang Liming, vice-director of the SME Department under the National Development and Reform Commission, said the nation is actually doing all it can to help SMEs expand at home and abroad.

He believes Chinese SMEs will become a new force driving the future growth of the economy. By the end of last year, more than 42 million SMEs had been registered in China, representing more than 99 percent of the country's total number of enterprises. SMEs contributed more than 60 percent of the country's gross domestic product (GDP) in 2006.

Many heavyweight Chinese companies have developed from SMEs in the past decades, including Haier, Lenovo, Hisense and Huawei.

Guangdong, which borders the Hong Kong and Macao special administrative regions, has the largest number of SMEs on the Chinese mainland. Its SMEs have played an increasingly important role in local economic growth in recent years.

By the end of June, Guangdong registered around 400,000 privately run SMEs with a total investment of more than 500 billion yuan. The province's SMEs currently employ more than 3.8 million people from around the country.

"Chinese SMEs have now entered a new era of fast development," Wang noted. He urged them to seize every opportunity for further upgrade and to try to increase their presence in both the domestic and international markets.

SMEs are the Beneficiary of Preferential Governmental Policies

These policies involve taxation, land use rights, loans, financing, employment, foreign trade and the expansion of international cooperation.

SMEs on the Chinese mainland will be able to enjoy many more preferential policies for development in the near future.

SMEs have been officially encouraged to expand investments in technical innovation, to improve the quality of their products, to build their own brand names, and to further raise their competitive capacity. This is precisely the expertise EastBridge Investment Group brings to the table.

SMEs have also been officially encouraged to further expand cooperation with their foreign counterparts as well as their investments abroad, to actively participate in international competitions and to increase their presence in the world market. The Chinese government has been ordered at all levels to help SMEs overcome difficulties in financing and development.

Last year, the China Banking Regulatory Commission issued a notice urging banks and other financial organizations to revamp their loan policies and give SMEs additional financing.

By the end of June there were 778,641 SMEs application for bank loans.

EastBridge Investment Group Corporation hallmarks of reliability are:

• The management team and the larger shareholders have contributed close to $2,000,000 in paid-in capital
• As a non-manufacturing financial services company, EastBridge's expenses are predictable and manageable
• EastBridge focuses exclusively on developing small-to-medium-sized companies to facilitate their participation in the U.S. public markets
• EastBridge has developed a business model that unites well-positioned companies of India and China with the capital markets of the United States
• EastBridge is able to generate revenue through a number of different revenue streams, such as stock equities or cash incomes
• EastBridge has been engaged by four Chinese companies to take them public in the United States
• EastBridge has distributed two stock dividends to its shareholders as of July 11, 2007
• Shareholders of record received on June 11, 2007, 5 million shares, on a pro-rata basis, or five percent of the common stock of Fiber One Ltd., Hong Kong, China (EastBridge Investment Group's subsidiary servicing the fiber optics industry in China)
• Shareholders of record on July 11, 2007 received 5 million shares, on a pro-rata base, or five percent of the common stock of Nanotek Inc., an Arizona Corporation. (EastBridge Investment Group's high tech company in the electronics and chemical sectors)
• Depending on the complexity and size of each project, EastBridge Investment Group is compensated 10-25% stock ownership in the client company for the listing service.

Disclosure: Pentony Enterprises LLC was compensated 430,000 restricted shares directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. Pentony Enterprises currently holds no shares.