Based on this strategic position, we are expecting to continue to be profitable while doubling our 2007 sales.
Grace Wang, V.P. of Investor Relations, Mizati

Mizati Luxury Alloy Wheels sales have hit record highs each consecutive year since 2003. Total revenue for fiscal year 2006 was $4,162,915, an increase of 35%, compared to $3,077,126 in 2005. Mizati's revenue growth this year is 325%.

Grace Wang, V.P. of Investor Relations commented, "2006 was a significant year for Mizati. We positioned ourselves as a leader in the specialty automotive equipment industry. In 2007, we broke new ground by generating revenue in South American markets, as well as our significant entry into the Rent to Own markets. Both of these markets are in addition to expected organic growth from domestic distributions. Based on this strategic position, we are expecting to continue to be profitable while doubling our 2007 sales."

Since 2006, Mizati has moved into a larger facility, secured its first international sales orders in South America, and most notably, made the strategic decision to open a retail chain of Rent-To-Own (RTO) wheel and tire stores under the name "Wheel Lots."

"Today most people want their vehicle to reflect who they are. Custom wheels are more popular than ever, and in most cases are more expensive too. We are launching RTO stores to make our wheels available to a broader customer base," noted CEO Hazel Chu, "car lovers usually prefer the flexibility to switch into a new design when there's not as much financial strain."

The Rent to Own industry isn't just about furniture and appliances anymore. According to Mizati, Americans spent $6.7 billion on RTO transactions in 2006 at over 8,300 stores. The wheel and tire business has been the RTO industry's latest success story. There are about 225 wheel and tire RTO stores in the United States, some integrated with traditional RTO stores, and others as stand-alone wheel and tire stores. The Mizati management team made its decision after months of careful market examination. "From research data, stand-alone RTO wheel and tire stores are bringing in approximately $75,000 per month and higher. This is an excellent opportunity for us to expand our sales, our brand, and our margins," said Chu.

Mizati also finalized a lease on its first Wheel Lots rent to own location, a 3,000 sq ft space in San Bernardino County, CA.

CEO Hazel Chu said, "After months of researching and planning, it is rewarding to implement our new business model. The building is in a great location, and once we add our Wheel Lots touch it will be a shining example of Mizati's commitment to quality and dedication to customer service. Our future Wheel Lots store will be equipped with top notch automotive tools, such as tire changer/balancer, compressor, pad lifts and will be consisted of a show room for our varieties of wheel designs."

Mizati is aiming towards the end of Q2 for the store's official opening. "We plan to add two additional Wheel Lots stores by the end of the year," added Chu.