Status Update Communication

Nihao Mr Cheng Yang,

We are writing to give you an update. Your second location recently opened and it had one of the best openings in the San Diego markets history. The location has had almost 300 guest each week. It is doing really well and we are very excited about the grand opening. The location had a line out the door and required us to institute a voucher system so customers who couldn't be seen could come back. Every stylist was working and all the seats were filled.

Your first location has stalled in growth. We are working on a new marketing strategy for it and may use the same grand opening strategy we used for Fallbrook to increase the guest count. The location has good potential, it has just not been bringing in the expected new guests.

Your current combined bank balance is $102,213.

We have started receiving RFE's for investors who filed around the same time as you, so we are expecting yours very soon.

Hope all is well.



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