Creative Personal Care & OTC Manufacturing since 1963...

Sleek and sexy, organic and earthy, fanciful and funNo matter what demographic group you are targeting, Cosway Company creates the right products and branding to reach your market. We have the creative solutions to meet every manufacturing challenge. For over 40 years Cosway Company Inc. has provided full-service, fully integrated personal care manufacturing for our customers. We partner with forward thinking companies to develop high quality, innovative product offerings that become the brands so familiar to today's consumer. We provide our customers with exceptional Turn-Key service from Concept, R&D, Package Development and Procurement, Manufacturing and Quality Assurance. Our corporate strategy is simple: to provide top quality, innovative personal care products positioned for the target market, at cost-effective prices and provide them within competitive lead times. We take our commitments to our customers very seriously. Cosway Company understands that success can only be achieved by helping our customers meet the ever-changing needs of "their" consumers. We treat each customer as a partner, and this is the basis for our success. We look forward to helping you bring your next personal care product line to market.
COSWAY - A Business For Yourself But Not By Yourself
COSWAY allows you to sell its products and recruit more members to build your network, and hence continuously develop and expand COSWAY's sales and distribution network. In return, COSWAY pays you a "bonus" which is a percentage of the sales volume generated by you and your group. When your network and sales grow, your COSWAY income can easily exceed the income from your regular job. COSWAY also supports you with training, promotions, logistics as well as control and administrative services. With COSWAY, you have the opportunity: to be where you want to be, to do what you want to do and to have what you want to have.

Cosway Corporation Limited ("Cosway") is a hybrid consumer marketing company that blends the best features of a global network marketing system with the convenience and reach of a wide retail chain. The business began in 1979 as Cosway (M) Sdn. Bhd. ("Cosway M"), a multi level marketing ("MLM") company, and was acquired by Berjaya Group in 1994. In December 2009, Berjaya Holdings (HK) Limited (a subsidiary of the Berjaya Group) completed the acquisition of Cosway M and eCosway.com Sdn. Bhd. ("eCosway") and subsequently changed its name to Cosway Corporation Limited.

Cosway currently markets over 1,900 consumer products solely through our in house brands. The core product categories comprise of health and nutritional supplements, personal care products, water filtration systems, cosmetics and fragrances, skincare, body shaping lingerie, home and car care and food and beverage. Unlike typical MLM companies, Cosway sources almost all of its products from independent manufacturers, leading researchers and ingredient suppliers and as such, the Group is able to capitalise on the advanced technological and scientific innovations of the global manufacturing and research community. Cosways' products are available at 1,480 exclusive stores located at hypermarkets, high density residential developments, major shopping malls and housing areas throughout Asia and Australia. Growth has also seen an impetus with the recent introduction of our "Free Store" concept, which allows entrepreneurial Cosway members to manage company-owned outlets (hence "free" to the members). These store operators profit from both a commission on sales and with the network marketing system, operators also benefit from multiple levels of commission through sales generated by a hierarchy of members whom they recruit. We are presently operating in nine countries which are grouped as follows:

y y y

Malaysia, Singapore and Brunei Hong Kong, Macau and Taiwan Other Countries, consisting of Thailand, South Korea, Indonesia and Australia

Members are also able to conveniently shop and recruit online through our eCosway website (www.eCosway.com), while useful corporate information is also available on the website for investors and the public.

Established in December 1979, Cosway (M) Sdn Bhd is a Malaysian-based and leading multi-level network marketing company in Malaysia, distributing a wide range of superb quality consumer products through an extensive network of members and sales centres throughout Malaysia. Headquartered in Wisma COSWAY, a 26-storey building located in the middle of Kuala Lumpur premier Golden Triangle, it has a paid up capital of RM155 million. Cosway started expanding its operation in the international arena in 1995 and has since spread its wings to Brunei, Indonesia, The Philippines, Thailand, Brazil, and Mexico. COSWAY brings together 5 Principles of Marketing in a unique, mutually supportive system that has proven to be highly successful in helping its members and their business-building efforts.

PRODUCT
Extensive range of quality products to meet every need. COSWAY distributes a wide range of exclusive, quality products from established manufacturers all over the world. These products are readily in demand as they fulfil the everyday needs of consumers. y y y y y Home Care Personal Care Food Auto Care Healthcare

Fashion

PROMOTION

All-year-round excitement makes recruitment and selling easier. COSWAY believes in aggressive, attractive promotions to help members recruit, sell and retain customer loyalty. Bi-Monthly Promotions - Members can look forward to exciting offers and bargain buys all-year-round. In addition to COSWAY's regular products, these promotions also feature gifts, food items and innovative products at lower-than-retail prices. Great Redemption Programme - Members love this! Hundreds of valuable gifts can be redeemed totally free or below-cost by collecting Redemption Coupons based on sales. Rebate Vouchers and Discount Coupons - Further examples of great value and incentives available for COSWAY members. Training and Product Demonstrations - Conducted regularly throughout the country to help members train their network of downlines

PHYSICAL DISTRIBUTION
COSWAY products are made available wherever you are. COSWAY products are made available through hundreds of stockist centres located throughout the country. This network ensures there will be a centre close to where members work or live.

PLAN
A lifetime of income earnings. The COSWAY Bonus Plan is a compensation plan that has no rival. Besides its unlimited income potential, the unique "No-Breakaway" feature ensures that the income a member builds today lasts long into the future. So long, in fact, that many members will their COSWAY income to their children.

Those you introduce into COSWAY form your 1st level members. Those whom your 1st level members introduce into COSWAY form your 2nd level members. Those introduced by your 2nd level members become your 3rd level members, and so onwithout limit and without 'breakaway'. Incredible as it may sound, it's possible! Anyone who wants to succeed will find the Cosway Good Living Plan a tremendous business opportunity. In the shorter term, our Silver Bonus and Silver Incentive bring you quick returns for your efforts. And in the longer term, if you are really out to reach the top, our Gold Bonus and Gold Incentive will be your continuous money-spinner

EASY ! It's remarkable how little it takes to make a fortune! REWARDING !

For a start, let's look at what you don't need. y y y y y y NO NO NO NO NO NO CAPITAL INVESTMENT REQUIRED HOLDING OF STOCKS FINANCIAL RISK EXPERIENCE NECESSARY NEED TO QUIT YOUR JOB PAPERWORK.

JOIN THE ESTABLISHED & FLOURISHING DIRECT SELLING COMPANY !

All it takes is a little effort, a little time, a little commitment and you're on your way to enjoying Cosway Good Living! A member of the Direct Selling Association of Malaysia, Cosway has been on the up and up since its incorporation in August 1979. It is one of the leading and fastest-growing direct selling companies in Malaysia. Be part of a prospering business and soon. you too will find personal prosperity!

BUILD YOUR GROUPS & KEEP THEM FOREVER!

The Cosway Good Living Plan rewards all your efforts immediately and continuously. Reap returns from your personal sales and increase your gains by forming new groups of members. Everyone you introduce into Cosway becomes a member of your group. Everyone these new members and their groups subsequently introduce become part of your group too. There is no 'breakaway' in the Cosway system. This means that Cosway does not set a level after which the groups you worked so hard to build are 'broken away from you. The members of your group will always remain with you. And, there is absolutely no limit to the number of members in your group. You are thus assured of continuous, unlimited growth!

HOW YOUR GROUP STRUCTURE GROWS

Those whom you introduce into Cosway form your 1 st level members. Those whom these members introduce into Cosway form your 2nd level members. Those whom your 2nd level members introduce form your 3rd level members. And so on..without limit and without 'breakaway'.

The above diagram shows how your first 2 groups are formed y y Group A - Member A and all his members Group B - Member B and all his members

HOW YOU EARN \$$$ AS A COSWAY MEMBER

Through 3 main activities: y y Using Cosway products yourself Selling Cosway products to others

Introducing new members to Cosway

You will prosper in 5 profitable ways: y y y y y SALES PROFIT SILVER BONUS SILVER INCENTIVE GOLD BONUS GOLD INCENTIVE

SALES PROFIT

For every Cosway product you personally sell, you enjoy a Sales Profit of up to 20% of the catalogue price. SALES PROFIT [N] products [T] products 20% of catalogue price 15% of catalogue price

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SILVER BONUS To qualify for the Silver Bonus, you only need to sell RM50.00 of Cosway products a month. QUALIFICATION FOR SILVER BONUS Personal Sales RM50 nett invoice value (all products)

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Your Silver Bonus is based on the Silver Volumes you and your group make. You will receive the nett amount after the Silver Bonuses due to the members of your group are deducted.. SILVER BONUS Silver Volume (SV) 100 250 400 600 800 1,000 1,250 Silver Bonus % 3% 5% 7% 9% 11% 13% 15% Silver Volume (SV) 1,500 1,750 2,000 2,250 2,500 3,000 & above Silver Bonus % 17% 18% 19% 20% 21% 22%

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SILVER BONUS (EXAMPLE)

Group

Silver Volume (SV) A B C D E 250 400 600 700 800 2,750 SV

Silver Bonus %

Silver Bonus RM

YOU (250 SV)

5% 7% 9% 9% 11%

12.5 28.00 54.00 63.00 88.00 RM245.00

Your Total Silver Volume Your Gross Silver Bonus Your Nett Silver Bonus SILVER INCENTIVE

= 250SC + 2,750SV = 3,000SV @ 22% = RM660 - RM245.50

= 3,000SV = RM660.00 = RM414.50

To qualify for the Silver Incentive, you need either: y y A single group with a Silver Volume of 1,5000 or more a month Or, a series of groups whose silver Volumes caan be combined with your own Silver Volume to achieve 1,500 per month.

Once you have obtained your qualification, you will receive a Silver Incentive of RM200 for each of your other groups with a Silver Volume of 1,500 or more a month.

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SILVER INCENTIVE Each Groups's Silver Volume 1,500 or more Silver Incentive RM 200

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SILVER INCENTIVE(EXAMPLE 1) Group A B C Silver Volume 1.500 1,500 2,000 Silver Incentive Qualification RM 200 RM 200 RM 400

YOU

Silver Incentives due to you

To qualify for Silver Incentives, you need a single group with a

Silver Volume of 1,500 or more. In this example, Group A's Silver Volume provides you with the qualification for Silver incentives on your Groups B and C. SILVER INCENTIVE(EXAMPLE 2) Group A B C D E Silver Volume 1,500 1,500 1,500 500 500 Silver Incentive RM 200 RM 200 RM 200 RM 600

YOU (500 SV)

Silver Incentives due to you

You can also qualify for Silver Incentives by having a series of groups whose Silver Volumes are combined with your own Silver Volume to achieve 1,500 or more. In this example, your Silver Volume is combined with Group D's and Groups E's Silver Volumes to provide you with the qualification for Silver Incentives on your Groups A, B and C. GOLD BONUS To qualify for the Gold Bonus, you only need to sell RM 100 of Cosway products a month QUALIFICATION FOR GOLD BONUS Personal Sales
Note:

RM100 nett invoice value (all products)

This minimum sales level qualifies you for both the Silver bonus and the Gold Bonus.

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Your Gold Bonus is based on the Gold Volumes you and your group make. You will receive the nett amount after the Gold Bonuses due to the members of your group are deducted.

GOLD BONUS Gold Volume (GV) Gold Bonus % Gold Volume (GV) Gold Bonus %

1,000 2,000 3,000 5,000 7,500 10,000 15,000 25,000 35,000 GOLD INCENTIVE .

2% 3% 4% 5% 5.5% 6% 6.5% 7% 7.5%

50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 250,000 & above

8% 8.5% 9% 9.5% 10% 10.5% 11% 11.5% 12%

To qualify for the Gold Incentive, you need either y y A single group with a Gold Volume of 15,000 or more a month Or, a series of groups whose Gold Volumes can be combined with your own Gold Volume to achieve 15,000 or more a month

Once you have obtained your qualification, you will receive a Gold Incentive for each of your other groups with a Gold Volume of 15,000 or more a month, as shown below.

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GOLD INCENTIVE Each Group's Gold Volume (GV) 15,000 25,000 35,000 45,000 60,000 75,000 100,000 150,000 WATCH YOUR INCOME GROW! Gold Incentive RM 300 RM 400 RM 500 RM 600 RM 800 RM1,000 RM1,200 RM1,400 Each Group's Gold Volume (GV) 200,000 300,000 400,000 550,000 700,000 850,000 1,000,000 & above Gold Incentive RM1,600 RM1,800 RM2,000 RM2,250 RM2,500 RM2,750 RM3,000

From the few examples given, you can se how selling and recruiting profits you. Sell to enjoy Sales Profits. And, your sales will be included in the calculation of bonuses. Recruit, and Cosway further rewards you with the Silver and Gold Bonuses. When your groups grow, you will receive the Silver and Gold Incentives - the full benefits of the Cosway Good Living Plan will be yours!

The success or failure of multi-level marketing is tied to the success of the products. So, the lifecycle of the products will implicate the lifecycle of the company, Chuah says. That explains why Cosway keeps coming up with new products every other month. For FY09, Cosway had in its stable around 1,750 consumer products ranging from household, skincare and cosmetics categories, to health supplements, food, apparel and lingerie compared with around 1,150 in FY04. The wide range of products in our stable reduces our risk of over-dependence on any one product, and this is one of the key strengths that differentiates us from our competitors, most of which are highly dependent on just several key products to grow, explains Chuah. Besides the wide range of products, he says Cosways success is also due to its pricing strategy. The basic principle is to ensure all our products are priced competitively, he says, adding that this is possible thanks to cost savings resulting from its economies of scale. Cosways products are sourced mainly from established manufacturers within the region. This OEM (original equipment manufacturer) sourcing strategy, according to Chuah, has enabled Cosway to take advantage of external resources and expertise for product research and development (R&D). In that sense, its a win-win solution: Cosway can save on R&D investment and focus its resources on expanding market share, while for the manufacturers, its like striking gold as Chuah puts it. Winning a contract to be a Cosway product supplier will secure them a stable flow of income, he says. Although Cosway prices its products comparatively lower in the market, the company is still able to maintain a healthy margin. Gross profit margin, for instance, has consistently stayed around 40% over the last five years It is important to have a low-price strategy because we are not merely competing against other multilevel marketing companies, but we are also positioning ourselves to compete against all the hypermarkets, discount stores and pharmacies in town, Chuah says, adding that Cosway has managed to raise the stakes of the game with aggressive sales promotion throughout the year.Sending catalogues for promotional products bi-monthly to its members is Cosways direct marketing strategy. In addition, the groups redemption and reward programme has been effective in helping the company retain customers and generate increased repeat sales. osway currently has a global member base of more than 650,000 people. The group claims that the base is growing rapidly with its active recruitment drive to build a diverse and expansive marketing force. Another key to its success is its extensive distribution and retail network that provides consumers with convenient access to its products in all countries that it operates. In Malaysia, for instance, Cosways outlets are now commonly found not only in residential and housing areas but also in hypermarkets, shopping malls and other commercial areas. This new business model of moving away from the traditional direct-selling concept, with stockists acting as the distributor chain, to a free-store concept was introduced in 2008. Chuah says the concept has been a key contributor to Cosways total turnover as it has enabled the company to broaden its sales coverage. In addition, the concept has also enabled the group to manage

its costs better. For instance, the group pays a commission of 10% to traditional stockists compared with 5% for store operators. In total, Cosway currently has more than 1,500 stores, with about half of them based in Malaysia, and the remainder in other major cities such as Australia, Brunei, Hong Kong, Taiwan, South Korea, Indonesia, Singapore and Thailand. It plans to increase the number of stores to around 2,500 by end-2011.