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EPS does not plan to abandon the current business site with the acquisition of the new facility. All production and warehouse operations will be switched to the new site. The current site will continue as the corporate offices including sales. In addition, the facility will be used on a more regular basis for conducting training seminars. In addition, the demonstration center for the sale of laboratory equipment will be expanded. C. Availability of Labor The labor pool in central Texas is exceptionally good for EPS. Technical training is available through the Technology Department at Southwest Texas State University located in San Marcos. Several EPS employees are now taking work related courses at Southwest Texas. A number of Texas universities have specific programs for training students in various aspects of the photographic industry. V. SALES PLAN A. Pricing Policy EPS products are sold at a "professional net" price. This means that they are generally not discounted. It is seldom necessary to mark down a product for clearance since most products are built or acquired specifically for a particular customer. With the current devaluation of the US dollar, EPS is making a concerted effort to increase international sales. The major international photographic convention occurs every other year in Koln, West Germany. EPS has a large booth reserved in which to present the full line of products. EPS also plans to begin active marketing in Australia in early 1989. Products sold through international distributors for export are discounted 20-30%. B. Distribution Policy The vast majority of products sold for domestic consumption are sold direct to the end user. Most products sold for export are sold through distributors. C. Promotion Strategy EPS plans to make a major change in promotion strategy beginning immediately. Until now, most promotional funds were spent on advertising in trade journals and on trade shows. EPS is now experimenting with conducting an extensive array of training seminars, both at the EPS learning center in San Marcos as well as in key cities throughout the United States. Attendees who are also prospects for the purchase of a wide variety of EPS equipment, pay between $50.00 and $150.00 for the seminars. The cost of producing seminars should be nearly self liquidating. Experience has shown, however, that photographers who fully understand the creative, marketing and profit potential of EPS products including the Scene Machine, are extremely