ASIMCO Technologies is working with its China based customers to continually lower their costs by localizing component production in China.  The Company is also working with its international customers to lower costs through China sourcing initiatives. Over the longer term, ASIMCO Technologies' strategy is to work with its customers to develop new products that meet the needs of the rapidly growing China market as well as take advantage of the cost and technological advantages of China production. As the China automotive market continues to expand over the coming years, technology that does not currently exist in China will be transferred from developed economies. ASIMCO Technologies will use a variety of means such as joint ventures, strategic alliances and acquisitions to gain access to product, process and materials technologies needed to build its business. In addition, ASIMCO Technologies is placing increased emphasis on enhancing its own product development and research and development capabilities. The Company's broad list of product and process capabilities, combined with its presence in and knowledge of the China market, are solid building blocks for proactive research and development activity. In all of its products and capabilities, ASIMCO Technologies' strength with respect to its China based competitors and customers is that the Company has the ability to obtain whatever technology is required to meet its customer's requirements. For international customers, ASIMCO Technologies' presence in China, as well as its understanding of the requirements of global customers, make it a unique China supplier. For both China and international customers, ASIMCO Technologies' management system, which ensures quality, service and on-time delivery across a broad range of products, makes it an important strategic supplier in China.  ASIMCO Technologies supplies products to the heavy duty, international and passenger car markets: Heavy Duty: Heavy Duty products, particularly components and systems used in diesel engines, represent the Company's historical core market. China's heavy duty market is projected to grow substantially in coming years, both in terms of number of vehicles and in terms of truck and engine size. ASIMCO Technologies has significant market shares in China for most of its key heavy duty products, and supplies its customers with a wide range of products. A key part of ASIMCO Technologies' market strategy is to continue to build its strength in this market, serving both its China and international heavy duty customers. The Company also expects to benefit as its China heavy duty customers penetrate markets outside China. International: In 1998, ASIMCO Technologies established its export activity. This has proven to be an excellent way for ASIMCO Technologies to build an additional market, as well as to prepare the Company's operations for the increasing quality standards in China.  The Company will continue to build its export activity and international customer base in order to augment its presence in the China market. Passenger Car: ASIMCO Technologies enjoys excellent relationships with leading assemblers in China, as well as with global assemblers seeking to establish and grow their assembly operations in the country. China's passenger car market is expected to grow substantially in the future, and most of ASIMCO Technologies' products and capabilities have passenger car applications. In particular, ASIMCO Technologies will leverage its strength in the diesel engine market to serve what it believes will be a growing market in China for passenger cars powered by diesel engines.