Mizati Luxury Alloy Wheels, Inc. (Pink Sheets: MZTI), designs, markets and distributes custom alloy wheels for passenger cars, sport utility vehicles, vans and light trucks. Headquarters in Walnut, California, Mizati operates out of their new 16,000 square foot warehouse to distribute three (3) unique brands of luxury wheels (Mizati®, Hero™ and Zati™) through a network of 425 dealers and distributors in North America.

Wheel Lots, CA LLC, a wholly owned subsidiary of Mizati Luxury Alloy Wheels, is their new retail store chain division for custom luxury alloy wheels on a rent-to-own basis. After opening their first Wheel Lots location in Upland, CA in mid-2007, plans call for a second store in Los Angeles by year-end with 6 more store openings planned throughout Southern California in 2008.

Investment Highlights

• Strong annual revenue growth with $4.2 million in fiscal 2006 (ending 12/31), up from $3.1 million in fiscal 2005.
• Quarterly revenues increased by 34% to $1.6 million in Q2 2007 from $1.2 million in Q2 2006. (as the # of dealers & distributors more than doubled)
• Gross margins increased to 11.6% in the 2nd quarter compared to 9% in the corresponding quarter in 2006.
• Triples the size of their operational infrastructure with the purchase of a 16,000 square foot warehouse for $2.75 million.
• 2005 and 2006 net earnings of $100,885 and $41,745, respectively.
• MZTI expanded into the Rent-To-Own (RTO) segment with the opening of their first 3,000 square-foot Wheel Lots store in Upland, CA in July 2007.
• MZTI successfully expanded into the international market by preselling orders to its distributor in Mexico (representing over 7,000 dealers).
• New Private Label and organic sales initiatives have already secured $4 million in orders for FY 2008.

Company Overview

Mizati is an innovative, fast-growing designer, manufacturer and wholesaler of custom luxury alloy wheels. Mizati employs a low-cost, no-borders business model by combining their exclusive original equipment manufacters (OEMs) in China with direct distribution channels in the U.S. With numerous suppliers and manufacturing relationships in China, Korea and Taiwan, Mizati has quickly established themselves within the U.S. automotive market segment with dozens of unique, high-end wheel designs that are aggressively priced for high volume sales and capturing greater market share.

The Company utilizes various sales channels including; wheel and tire distributors, automotive catalogs, the Internet and most recently, their wholly-owned Rent-To-Own (RTO) Wheel Lots stores. Mizati products are sold at over four hundred outlets throughout 15 states within the U.S., through such high profile distributors as Firestone, Discount Tire, America’s Tire and Lee Schwab Tire Centers.

Mizati wheels come in three different brand lines for cars, trucks and SUV’s, with a total of 33 unique styles and designs. The Company’s design team and OEM’s plan the introduction of three new alloy wheel rims every year to augment their current premium selections.

Mizati Luxury Alloy Wheels has experienced rapid growth over the last three years by driving sales/revenues from $625,742 in 2003 to $4.17 million in fiscal 2006.

Recently, Mizati Wheels (OTC: MZTI) has set a new precedent for all other wheel manufacturers in the U.S. by becoming the first wheel exporter, wholesaler and manufacturer to open a company owned Rent-To-Own (RTO) store in North America.

On July 27, 2007, MZTI opened a new 3,000 square-foot Wheel Lots store in Upland, CA. The new facility is located in the Inland Empire area, which is the 14th largest metropolitan area in the U.S. with a population exceeding 4 million people.

Mizati has a $1 million credit-line which provides them with the capital to continue their build-out expansion for a chain of their own Rent-to-Own (RTO) stores.

While the new RTO segment is still in the early 'first store' stage, MZTI will open their second Wheel Lots store in Los Angeles, CA by year-end (as announced in October ’07), with 6 more store openings planned for Southern California during 2008.

This disciplined and strategic approach with a vertically integrated structure in the RTO segment will provide Mizati with a significant advantage over competitors in terms of distribution. Additionally, the RTO segment will improve MZTI's gross margins since wheels will be distributed internally, effectively cutting out the middleman for any store location areas.International Expansion into Mexico

Mizati Wheels has entered into a key relationship with a Mexican distributor that services over 7,000 retail stores. The Company has secured orders for FY 2008 from this distributor for 24" and 26" rims. Expansion into the Mexican market is a natural extension of the Company’s current customer base as approximately 55% of Mizati’s domestic sales come from the Latino market.

This burgeoning automotive aftermarket in Mexico and South America offers Mizati with tremendous growth potential, especially from their strategically located brand new 16,000 square foot warehouse facilities in Southern California. The Company is projecting FY 2008 revenues of $4 to $5 million from this neighboring country alone.

Media Launch Starting Soon

Mizati Luxury Alloy Wheels will be launching a new media campaign that includes print, radio, and television. The radio and magazine campaigns are set to launch in the Fall of 2007, including print ads in DUB Magazine, the premier publication addressing urban automotive lifestyles.

The DUB publication features hip hop stars, pro athletes and other celebrities who continue to be the pulse of the urban automotive market.

A regional TV campaign is scheduled to commence by the second quarter of 2008 with a targeted focused on the Latino market in Southern California.

Tailor Made

In an effort to tailor demand for its distributors, MZTI is also developing a Private Label that it plans to introduce in 2008. The idea behind the Private Label is that the Company will cater to the specific demands of its distributors by providing specific designs upon request. This arrangement creates a mutually beneficial relationship between Mizati and its distributors and establishes an exclusive customer service platform for the Company.

The Company conservatively projects $4 to $6 million in revenue from the Private Label segment for 2008, with commitments valued at approximately $4 million from traditional and Private Label initiatives already.

Additionally, the Company plans to expand its product lines to include performance parts such as mufflers, steering wheels, pedals and more. This related diversification should naturally increase top line growth by providing a broader revenue base.

Increasing Market Share and Improved Margins

At a recent share price of $0.32, MZTI shares are trading at less than 1x projected FY 2008 revenues. MZTI's strategic initiatives for FY 2007 and FY 2008 should enhance brand awareness, and significantly drive revenue and margin expansion. We believe that there is tremendous growth potential in Mexico, the RTO segment, and the Private Label. Given the scope of MZTI's revenue growth initiatives and potential for gross margin expansion, we believe that MZTI deserves a richer valuation and a slightly higher P/S multiple than the publicly traded comps (LKQX and KEYS).

Once again, an important part of Mizati strategy is to gain greater market share and higher margins from the build out of a national network of RTO stores. After announcing the formation of “Wheel Lots” in May 2007, this wholly-owned subsidiary will focus on the rent-to-own wheel and tire business by opening stores in the greater Inland Empire area (opened Aug. '07) and the greater Los Angeles area (announced to open by 12/31/07).

The Inland Empire area in California has a population of 4 million with the greater Los Angeles metropolitan area totally nearly 10 million . Both areas possess an active, growing car culture and are close to the 92,000 seat California Speedway in Fontana that hosts major NASCAR race events including the Busch series and Nextel Cup events.

This strategy offers higher profit margins and allows them to reach a growing number of consumers who desire to finance the purchase of their specialty tire and wheels. Profit margins on products sold through their RTO stores should increase by 50 percent over the current distribution outlets. This vertically integrated strategy allows them to be more competitive delivering product direct to their stores while achieving a price advantage because they function as both wholesaler and retailer. Moreover, there are no franchise fees for their RTO's because they are wholly-owned by Mizati Luxury Alloy Wheels, Inc.

The Rent-to-Own industry began in the 1960s and now generates annual revenues of $6.7 billion. There are 8,200 RTO stores in the U.S, but only 225 of those stores sell specialty wheels and rims.

After launching two rent-to-own stores in the second half of 2007, the Company plans to open six Wheel Lots stores over the next 12 months and a minimum of 10 per year for the next five years. If Mizati is able to execute its RTO strategy it could dramatically increase market share and become a leading player in this growth segment of the Automotive Aftermarket.

Mizati plans to offer over one hundred wheel designs and selections to customers at its RTO’s. But like large players such as American Racing Wheels, it will also offer competitor’s brands and other auto accessories, including high end items such as navigation systems in order to grow its revenue base.

In only three years Mizati has demonstrated that its strategy of using China OEM's to manufacture its rims and wheels and distributing those products through established distribution channels in the U.S. is working. They have shown that they can compete with the larger players on price, quality and styling.

As Mizati continues to expand its product line, management is aggressively executing their corporate plans by already increasing the number of its distributors in 2007 from 300 to 425, with goals of reaching 600 in 2008.

Mizati generated revenues of $4,162,915 in 2006, up from $3,077,126 in 2005. Mizati began its first year of international sales in Mexico during 2007. It currently has sales and distribution agreements in South America and Mexico valued at nearly $4 million for 2008.

Strong Revenue Growth and Profitability

Mizati generated earnings of $41,745 on $4,162,915 in sales in 2006. Though its net income dropped from $100,885 in 2005, the movement into the higher margin RTO segment should boost net income significantly. Since inception, wages and salaries have grown from $59,435 to $306,189 from 2005 to 2006. Gross profit margins in 2006 were 17.8 percent. Management expects significantly higher gross profit during fiscal 2008.

The Company operates in the $2.6 billion wheels, tires and suspension segment of the Specialty Automotive Equipment market. Mizati’s mission is to become the premier brand and designated source for premium wheels and rims (and value-priced auto accessories) in the United States within the next 3-5 years while also gaining a significant presence in several lucrative international markets.

Key Management

Hazel Chu, President and CEO

Ms. Chu founded Mizati Luxury Alloy Wheels, Inc. in 2001 and continues to lead the Company as its President. CEO Hazel Chu leads a team with over twenty years experience in the automotive accessories market. Her focused and disciplined management team has increased revenues by 102 percent annually for the past 3 years. It was Hazel Chu’s passion for automobiles that gave her the ability to recognize the potential for her business in the automotive accessory market. A graduate of California State University, Ms. Chu brings over 10 years of management experience to the Company. Under her visionary leadership, Mizati has transformed from a sketch pad in her college apartment to a rapidly growing, public company that achieved sales of $4.16 million in 2006.

"Custom designed wheels portray a unique personality for car lovers around the globe. Mizati understands this concept and is committed to delivering this individuality to its customers."- Hazel Chu, CEO

Tony Cortez
Sales Manager

Mr. Cortez has lead the sales team at a variety of wheel companies including Savini Wheels, MB Italia LLC and MAS Italy. With strong industry, wheel products and competitor knowledge, Tony Cortez has built scores of new sales channels in both the U.S. and international markets, along with the recruitment and training of numerous top sales professionals for several industry leading corporation.