Strategic Sourcing Capabilities

EB has developed an attractive business model that is built around strategic sourcing, primarily from Asia. The Company's outsourcing strategy often provides EB with a cost advantage over its smaller competitors and allows EB to eliminate significant overhead, including machinery, personnel, and facilities, and to increase cash flow.

The Company features an in-house staff of 62 engineering, merchandising, quality control, and distribution personnel located in Hong Kong, as well as 20 additional quality control personnel in mainland China.

EB has a network of over 100 factories in Asia and has strong relationships with all of its top suppliers. The Company's relationships with many of its key suppliers have been in existence for over 10 years. These supplier relationships, together with the Company's competitive bidding process and its ownership of all tooling for products designed by the Company, allow EB to source products at compelling prices and provide the flexibility to service its retail customers. EB's long-standing relationships with high quality Asian suppliers also provide the Company with a competitive advantage as the time required to develop such relationships acts as an effective barrier to entry.