September 2005
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KMC Expanding China Controls Business

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New Paris, Indiana - In order to satisfy continued product and service demands throughout China, KMC Controls announces today a significant expansion of its existing business. KMC Development Company Ltd, has brought on new management personnel, relocated its headquarters, and is now expanding three branch offices.

KMC Development has recently opened its headquarters in Tianjin. This location was chosen due to large growth potential. Tianjin is, in fact, a municipality directly administrated under the Central Government. As previously announced, Mr. Charlie Shum is Chairman of KMC Development.

Branch offices are now being expanded in Beijing, Shanghai, and Shenzhen. The importance of Beijing is obvious due to, among other factors, the upcoming Olympic Games in 2008. The latter two cities were chosen because they, like Tianjin, have good growth potential and designations as Special Economic Zones.

Recently, Chinese premier, Wen Jiabao, made an important related announcement. In his speech, he noted that the Binhai New Area for development in Tianjin is critical to China’s envisioned economic growth. It was noted as one of many important geographic areas currently experiencing rapid development including Zhujiang Delta, Guangdong, Shenzhen, Changjiang Delta, and the Shanghai Pudong areas. The expansion plan of KMC Development Company Ltd is both indicative of, and a market-sensitive response to, this growth.

CatNet Systems To help manage this growth Mr. Shum is augmenting his controls-related management staff. He has hired a new General Manager, Jerome Zhu, who will also work from the Tianjin headquarters. Mr. Zhu earned his undergraduate, graduate, and doctorate-level degrees from Southwest Jiaotong University. For over 18 years he has worked for various development and controls companies in both technical and management capacities.

Also joining the KMC Development staff is Wun Fook Ming as Technical Director. Training and technical support functions will represent the majority of his efforts at the various branch offices. Mr. Ming has worked with KMC and other digital products for more than 20 years.

About KMC Controls:

KMC Controls (formerly Kreuter Manufacturing Company; www.kmccontrols.com) has been designing and manufacturing HVAC controls and building automation products for nearly 35 years. KMC remains the only privately held controls manufacturer with a full line of pneumatic, electronic, and digital products. Its intellectual property includes dozens of patents and its professional affiliations include the BACnet Manufacturers Association. KMC maintains regional sales offices throughout the U.S. and is represented by value-added, authorized installing contractors and wholesalers throughout North America as well as authorized distributors worldwide.

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