Growing Revenue Opportunities via

Innovation & ExportApril, 2014

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Did You Consider ???

Planned or unplanned, How Are The Opportunities For Export ?

Short Term or Strategic - - Reaction or Take Action –

how does one look at export opportunities ?

Seeking Collaborators ? Your quest for export success depends on others

U.S. Gov’t – Dept. of Commerce Financial Chain of custody

PG 2LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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About Us

PG 3LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

Founded in 1979 in Van Nuys, CA• Manufacturer – Proprietary

135+ Products Design, develop, and commercialize

• More than 800,000 Microphones in use

Use distribution channels of warehouse stocking distributors

• Exports to 44 Countries • Without significant focus

• Exceptions: Canada and Mexico • Through Stateside distribution as well as in-

country.

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Int’l Sales Objectives

50% Growth over 2 years (L.A.) 2011 USD 80K. / 2012 USD 1.2M 2013 USD 300K. / 2014 USD 2.4M (projection)

Maintain Gross Margin Burden rate includes market expansion budget

Collateral materials Commission FTE & infrastructure Home office support T & E / Misc. G&A

PG 4LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Sales & Marketing

Sales Representative agents

Commission only Three Levels in Distribution Channel

Stocking Distributors to Integrator Non-stocking to Integrator Integrator direct

With assist by Distributor

Project(s) vs. demand mgmt. via inventory and availability

PG 5LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Sales & Marketing

Marketing Collateral Materials Trade expositions Project visitation Distributor visits

Training / Demonstration Project technical support

Special product considerationsWT (SWOT)

Overcome cultural barriers In-Country Presence

Manage financial credit risk COD, Progress Pay, CC, and Net 30 OAC

PG 6LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Short Term (1-24 MONTHS)

Disciplined Focus: Prioritizing North American Verticals Mexico Gateway to L.A. Canada

Products to export ALL, as appropriate

Stocking distributors shelve hi-demand hi-turn inventory

Key Factors: Market Accessibility / Bilingual Acumen / Cultural

Sensitivity Collateral materials in Spanish

Technical Services in Place Bilingual

Geographic Proximity Security Market Acceptance on Audio

PG 7LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Mid-Term Exports (25 to 48 months)

Western Europe & Middle East Identify Distribution Channels

U.S. Department of Commerce Gold Key International Trade Administration

Key Consideration Factors Purchasing Power of Markets Myriad New Construction Inclusion of Audio in Security

PG 8LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Long Term Strategy

Markets 2018 and Beyond: R.O.W. Expansion to new markets will follow success in

existing short term export markets Requests for Quotations Distribution Channel Management

Staffing requirements Diversity / Cultural Sensitivity / Language

Collateral Materials / In-country Requirements Technical Services

Code / Standards / Regulatory oversight

PG 9LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Partners in common cause

U.S. Department of Commerce: www.doc.gov & http://trade.gov http://trade.gov/cs

LA Chamber: http://lachamber.org &

http://www.lachamber.com/webpage-directory/global-initiatives/advocacy-council-globalinitiatives/

District Export Council of So. California http://www.decsocal.org/ & http://

www.decsocal.org/ExportAssistanceForm.html

California Mfg. Technology Consultants www.CMTC.com & http://www.cmtc.com/exportech

PG 10LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458

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Thanks for Your Auditory Attention

PG 11LOUROE ELECTRONICS® | 6955 VALJEAN AVE. VAN NUYS CA 91406 | PH: 818-994-6498 | FAX: 818-994-6458