| Dear   clients 
                    
                      | DEFIS always innovates for you!
 DEFIS developed a counter cigarette making machine that uses standard cigarette   tubes.  Customers carefully slide the tubes into the machine, and then put   200 grams of   tobacco into the tobacco hopper.  The Start Button is pressed and the machine   produces fresh cigarettes at a low price, matching any customer   tastes.
  Small PLC controller provides a state of the art   automat MAGIC-CIG® is a revolutionary and unique system to   manufacture   cigarettes   |   
 
 
 
 Machines’ advantages  and particularities
 Many reasons explain the popularity of Groupe DEFIS’  products. The cigarettes are fresh and manufactured according to customers’ needs.  They can choose their tubes, tobaccos, as well as the compaction degree. The machines are generally installed in big urbanized  centres, close to customers, therefore facilitating customer retention.
 
 Nowadays, manufacturing cigarettes does not require a  factory equipped with expensive ambient air control systems, sophisticated machines,  and expensive manpower or syndicated employees.
 Installing machines in various areas of a metropolis is  suitable to serve a target market. Some users only manufacture “cigar imitation” or  flavoured cigarettes. These cigarettes are sold at a very high price, either by  snobbery or simply in accordance with customers’ likings.
 
 The exploitation fees of the machines are insignificant.  The machines are connected into a residential outlet of 115 or 220 volts,  according to countries.  With these machines, customers are sure to get fresh,  natural and additive free products, a little like the coffee grinding machines  we find in certain food chains. While the machine automatically produces cigarettes,  some merchants offer their customers a coffee, present them a promotional video  or let them do their shopping.
 Knowing well the habits of their customers, others  prepare the cigarettes in advance.
 
 Machine users do not have to compound with cigarettes  suppliers who impose their selling conditions and, sometimes, the market laws. Every machine can be manipulated to fit in narrow  passages, like residential doors. Generally, two people can move the machines,  which are assembled on rollers.
 The  technology
 
 There is no similar machine on the market: the concept  is unique.There are electrical or hand machines, that smokers  use at home for their personal needs. Groupe DEFIS’ machines are rather  destined to commercial or even semi-industrial markets.
 
 The machines’ equipment and diverse machine-made parts  are conceived and manufactured with the best of care, according to the rules of  art, based on a 30 years experience in machinery construction for aircraft,  pharmaceutical, food and other industries.The machines’ material and various components are  carefully selected, according to the highest quality standards.
 
 Electrical, electronic or pneumatic parts used for the  production of the machines are standard and available on the world-wide market.The cigarette production concept is unique and patent  pending. All of the equipment manufactured by Groupe DEFIS can  run 24 hours a day, seven daysa week. However, it is recommended to clean them  on a daily basis. This operation only requires a few minutes.
 
 The standard equipments of the machine are suitable  for producing king size cigarettes. The length of the filters and tubes can  however vary from +/- 3/8 inches, or approximately 10 mm, depending on supply  sources.The modules of the tobacco preparation must be changed  in order to produce longer cigarettes.
 No blocking  or unjustified interruptions
 
 Thanks to the new technology, cigarette manufacturing  machines are highly reliable. They can produce cigarettes without interruption.  Deformed tubes, which have unfortunately been misplaced in the machine, are  ejected by an air jet, thus preventing any blocking. The machines are  programmed to interrupt all activity after three consecutive stops, for  example, if the tubes are damaged or if the tobacco is to damp. The machines  are equipped with an automatic cleaning cycle, which activates at the end of  the production. They also have a starting cycle to rapidly load every element in  order to produce good cigarettes.
 Fabricated  according to construction standards
 
 The machines are fabricated in conformity with  packaging machine construction standards. Groupe DEFIS can also conform to  particular standards in force in certain countries.
 The market
 
 The tendency in the general market favours the use of  our machines in tobacco stores. Customers produce their own cigarettes,  purchasing their tubes and tobacco in tobacconist shops. They can sell tobacco  products in bulk and not cigarettes, which allows them to bypass laws and the  cigarette taxation system in force in some states.
 The owner of the machines collects an amount to its  customers. Customers therefore produce their own cigarettes, and there is no  labour taxe. Nowadays, there is a wide opening of the African, Asian,  European or South American markets.Even if, in these countries, the cost of a pack of  cigarettes is often derisory, producing cigarettes using semi-industrial  machines is still advantageous, because the cost of raw materials is  proportional to the selling price of finished products. The investment return for the buyers is very short and  varies according to the machines usage (from 6 to 8 weeks, depending on the selling price of the  cigarettes and the number of usage hours).   Our clientele
 
 Our main customers live in Pakistan,  India, Mexico, Central and South   America, Morocco,  Algeria,  etc. For the present, Groupe DEFIS does not accept orders  from Asian countries, but is rather looking for buyers interested in buying  copyrights to manufacture the machines in their designated countries. These  buyers must protect their market from plagiarism and insure post purchase service  on their territory. The parties will sign non-competition and loyalty clauses,  aiming at developing a solid and transparent partnership. Most customers have our old technology, which is still  very reliable. Last November, Groupe DEFIS sent its first new machine to Seattle, to a bulk distributor, who will insure the  commercialisation of the Magig-Cig-25 model in the United States, mainly in tobacco  stores.
 
 Most customers want to remain anonymous for various  reasons: anti-tobacco groups’ pressure, governmental sells controls, environments  more or less controlled by groups claiming territory exclusivity, family values  or illicit uses, of which Groupe DEFIS has no knowledge, etc.
 The  competition
 
 Group DEFIS does not really have competitors, as  similar machines do not exist.
 There are rapid and sophisticated industrial machines,  requiring specialized manpower and sold at a clearly higher cost. Different,  the cigarette fabrication process of the competition favours the rolling  method, which consists in using a paper strip wrapped around the tobacco, the  filter being pasted on the cigarettes’ tips. Coming from certain Asian or Latin American countries,  these machines are often fragile and capricious. Moreover, they require  specialized manpower to run.
 Machines’ particularities
 
 All our models are built on a well-tried, reliable and  durable guiding principal. Most of the parts are interchangeable, modular,  normalized and standardized equipments. The main parts are highly precise, with  an unparalleled finish and hardness, in order to ensure the quality, resistance  and durability of the machines. Since the machines are based on a modular  fabrication, they are easy to assemble, and their various modules are easy to  reach. Different types of safety barriers can be added  conformingly to customers’ needs. Covering can be made of steel, representing a  cigarette shape, Lexan panels or in wood like nice cabinet with many access  doors to the machines’ various sections.
 Easiness for  the operators
 
 Operating the machines is a child’s game. After a few  hours of training, operators master all the programs and operation or  maintenance modes of the machines. A touch screen displaying messages guides  them in the choice of options or productions.
 Tobacco  by-products
 
 The machines can also be used with products as  diversified as herbs, in replacement of the tobacco. Certain herbs are  non-toxic and nicotine free. The leaves or herbs must be in the form of  filaments of ¼ inch and ½ inch, or 6 and 12 mm, which suits perfectly the cigarette  fabrication process. The humidity level of the tobacco or other related  products must be between 14 and 16%. This level can be lesser with no harm to  the machines. However, dry products may not stay compressed in the cigarettes’  tubes.
 Environment and  ambient air
 
 The machines do not require a particular environment.  The ambient temperature of a house will not influence their operations. However,  it is recommended to avoid very dry humidity levels in order to prevent the  creation of static electricity. A simple small residential humidifier is  suitable if the house is equipped with an electrical air heating system.
 No  maintenance
 
 The mechanisms used to produce cigarettes are  conceived and fabricated according to the rules of art. Their life span is about  25 years. Users must respect the manufacturer’s orders concerning cleaning and  maintenance. The choice of the pneumatic components is guaranteed for millions  of cycles. The controls and electronic parts do not wear down, but can however  be replaced, if need be or at the time of a normal breakdown. They are  available in every industrialized country, through the manufacturer. Most components used in the machines are standard  products on the market.
 Taxes and  laws in force in the countries
 
 According to the laws in force in their country at the  time of the transaction, customers must conform themselves to perceive excise  taxes on tobacco and selling taxes of the product. It is highly recommended  that future distributors inquire on the laws in force in their country. Groupe  DEFIS can, in no case, be held responsible for any legal omission on the part  of its customers.
     
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