KOM Information Memorandum KOM Defined Terms KOM Challenge Series Calendar and Event Costs to 2012 KOM Summary Bullet Points KOM SWOT Analysis

Section 9(3&4)

'Youthful Exuberance Lifestyle Programme' KOM Challenge Series -

* King of the Mountain Club Jersey

* King of the Mountain Individual Climber Jersey

Section 1 highlights that road cycling, particularly amongst Type-A High Achievers, is on the cusp of surpassing golf as the preferred sport.

Section 13(A(b) provides a link to bicycles.net.au which lists URLs to >300 bicycle clubs and ride groups across Australia. Dozens of smaller ride groups of from say 6 to 2 dozen friends and neighbours marshal, particularly on Sunday and Saturday mornings, that would order a colourful, classy bicycle jersey if -

(A) it had the imprimatur of YELP to reduce Fifteen Problems which included Climate Change and Obesity, as well as assisting the Disabled;

(B) it displayed their ride group name eg Cyclops, Muggaccinos, Caffeine Junkies etc; and

(C) they can order them easily and cheaply (ie say 20% cheaper than for an Australian garment maker to produce in isolation).

Section 13(A)(f)(ii) "Quotations to manufacturer 70 bicycle jerseys from Australian suppliers" evidence that bicycle jerseys cost about $95 each for small orders of say 30 jerseys. Although BikeSportz of Melb charges $113.25 per jersey for Semi-Custom club jerseys manufactured by Santini in Italy and $140 for a Full Custom jersey.

The Event Organiser considers that he can get the unit price for an Australian manufactured bicycle jersey down to $75 per jersey for the Four Types of KOM Challenge Series Jerseys due to the forecast quantities required for the Inaugural Annual KOM Challenge Series:

   520     Qualifier Jerseys

     31      Age Division Winner Jersey

     50      Individual Climber Jerseys

   600      Club Jerseys

1,211

Rob Lloyd, M.D. of "RT Screen Printing & Graphics Pty Ltd" Unit 7 / 20 Tucks Rd Seven Hills NSW 2147 (02) 9838 0322 0419 481 063 will print the name of a cycle group eg. Caffeine Junkies for -

(a) set-up cost $71.50 incl GST;

(b) plus -

* $3.03 ea (incl GST) on jerseys in one colour on one side; or

* $5.15 ea (incl GST) for one colour on both sides.

Cycle jersey cloth (textiles) is printed by sublimation in one process. The section of the Club Jersey for the particular club or group name will be a light colour enabling RT Screen Printing to use a water based ink that soaks in instead of sitting on top of the material.

The Event Organiser will source at least 20 recreational bicycle groups in cities throughout Australia (by end 2011) to order a 'YELP' KOM Challenge Series Club Jersey (at $80 per jersey plus postage which is 20% less than for small order which also bears their ride group name - over printed by RT Screening). The average order would be 30 jerseys x 20 recreational bicycle groups = 600 Club Jerseys.

Ride clubs will be attracted to a professionally designed jersey with their ride group's name which is 20% below the cost of a one-off order by their ride group.

Therefore, in addition to thousands of Climbers in the Annual KOM Challenge Series in 7 Australian cities wearing a Qualifier Jersey or Age Division Winner Jersey, by end-2012 at least 20 bicycle groups across Australia could purchase a Club Jersey as their club/group jersey, thereby evidencing hundreds of recreational cyclists wearing one of Four King of the Mountain Challenge Series Jerseys.

There would also be a demand for an Individual Climber Jersey because -

(A) $75 is below market [sell for $5 less due to not having to over print a club name in Australia]

(B) not every Cyclist rides in a group or club; and