March 27, 2006 Update
The housing projects being built by Axia Group, Inc. in the town of Batticoala in Sri Lanka have
continued to impress everyone in that country and we will soon be celebrating the first families to move
into their new homes. I have attached some recent photos of the homes so that you can see the quality
and attractiveness of the homes we are building. It is a wonderful feeling to see this beautiful new
village spring up on the very ground the tsunami had destroyed over a year ago.
The success of this project has been largely due to the efforts of Raj Janan, the Director of Operations
for Axia Building Technologies, Ltd. Tirelessly he has worked with the Sri Lanka government, the
nongovernmental organizations, the people of Sri Lanka and our vendors to complete this project and
win over the respect of so many people and organizations.
Based on his success and proven capabilities, I have asked Janan to take on the role of President of
Axia Group and tasked him with continuing his efforts to work with these and other opportunities in Sri
Lanka, India and other countries in Southeast Asia. As has been written about in other letters and press
notices, Janan was born in Sri Lanka and has worked, traveled and studied extensively throughout Asia
and the rest of the world.
Janan introduced Axia to the Sri Lankan company MicroCars, Ltd. As discussed previously, our joint
venture in Sri Lanka is with a division of MicroCars, called MicroConstruction. Our Sri Lankan partners
have been steady and resourceful throughout this entire process.
MicroCars has developed some revolutionary designs for new cars and an innovative approach to
manufacturing which allows an underdeveloped company like Sri Lanka to build and market affordable
cars for its people. If you are interested, I again invite you to visit their website at
www.microcars.lk to
learn more about this remarkable company. During the last several months, we have been talking with
MicroCars about how we could become involved in helping them expand and perhaps play a larger role
in the region. This will undoubtedly be discussed during our upcoming trip to Sri Lanka.
Unfortunately, due to the elections in Sri Lanka in December and work that we had to do here, we have
postponed our business trip to Sri Lanka. We decided it would a better use of our time to travel there
when new cabinet members had settled in and priorities would be more in our favor. We hope to send
our delegation there in April or May.
Thanks again for your support.
Jeff Flannery
CEO
26 March 2006