Tranzcom is becoming a leader in China's security industry by establishing innovative marketing partnerships with telecom operators, insurance, security, utility companies, national retailers, real estate and customer service organizations that open an a extensive direct marketing channel to receptive consumers at minimal cost, and to increase customer loyalty and build Tranzcom brand.

Through strategic partnerships and/or by expanding the service capabilities of its own product line, Tranzcom can open up new revenue sources and generate more revenue by offering more value-added services to the consumers.

Tranzcom continues to expand its direct sales division to market security systems directly to residential and commercial customers. Tranzcom is also developing an authorized dealer network to give the Company installation and service capabilities across China.

The Chinese security and protection industry is highly fragmented. It offers an ideal environment for Tranzcom to make strategic acquisitions as it participates in an industry-wide consolidation trend.

China's entry to WTO opens the doors to international markets for Tranzcom's products. By expanding to the international markets, the Company can benefit greatly from a more diversified revenue base, more growth opportunities available in both developed and less-developed markets, as well as low R&D and manufacturing cost by operating in China.