Management Team

Company Profile

Yes, we are different! We chose to be. XQ´S products are meant to be taken notice of and create excitement and public curiosity. XQ´S design attracts the consumer, both smokers and ”snus”ers, to give it a try! It is the design that shows XQ´S completely unique quality, the flavors do the rest! The design, such as form and color, gave the products their value and help with spontaneous positioning in stores, because they are pleasing to the eye.

A well thought out strategy for exposing the products, from consumer packaging to original and fresh display ideas, gives XQ´S a leading edge in competing with other products on the market. XQ´S products are also regulated to comply with the new laws, regarding exposure in stores, in the near future.

FLAVORS

XQ´S flavors are the most ”with-it” flavors of ”snus”; for example, Ginger, Licorice och Winter. XQ´S is what we call ”Sweden’s best-tasting ”snus””. We feel that we can gain market shares by not tasting or smelling like regular ”snus”. We offer a product that smells AND tastes good. We feel that dippers want the same thing! XQ´S makes you kissable!

FOR SMOKERS AND DIPPERS

Our product is directed to a wide variety of people, both smokers and dippers being our target group. XQ´S mini pouches are smaller than conventional ”snus” pouches and are therefore suitable for Women. It feels comfortable under the lip. The package fits in a cigarette packet. If we look at only cigarette smokers in Sweden, the potential for new consumers is enormous.

HISTORY, MOTIVATION AND GOALS

Swedish XQ’S was founded in 2003 as a privately owned company. The original idea was to construct a company that produces and sells tobacco free products. The vision was to build up XQ´S and begin selling our products on the Swedish market, and then continue into other markets, such as the U.S.A, and so on.

SHAREHOLDERS

Lars Danielsson
Ägir Invest AB
Texcel International AB
Antony Norman
Narva Invest AB
Wicanders BV
Stadsjämten AB
Laura Wandry-Mattson
Paul Sgutt Taicher
Jonas Pettersson
Christer Johansson

INFORMATION ABOUT XQ`S

XQ´S is a stock company managing business under the

General Corporation Act 1975:1385.

Organization’s Number: 556646-7428.
Date of Registration: September 1, 2003.

The company has been in business since the above date. The Board of Directors is located in Sweden. The company’s name is Svenska XQ´S AB (Swedish XQ´S, AB.) and it’s address is Solna Business Center, Svetsarvägen 15,2tr, SE-171 41 Solna, Sweden.

XQ´S Corporate Bylaws stipulate that the company shall work within the area of tobacco-free substitutes, with the capability to pursue similar types of business.

XQ´S will create and fulfill the merit for its owners and, over a period of time, optimize its assets. Its vision is to build a strong financial business operation internationally with tobacco free substitutes and alternatives to smoking.

XQ´S is not dependent on industrial, commercial or financial contracts, patents, licenses or new manufacturing processes. There are no other relationships of essential significance in the company’s business operation or profitability other than what should be expected of a ”snus” company working in the international market.

MEMBERS OF THE BOARD

Antony Norman Chairman of the board
Lars Danielsson, President
Per Thunander, Board Member
Johan Sigvardsson, Board Member

PRODUCTION AND GOALS

Production in Cebu , Philippines
After careful inquiry and investigation, along with an exploratory trip during the month of June, 2004, the decision was made to start a factory in Cebu. Christer, XQ’s tobacco expert, moved to the Philippines in October of 2004, with his wife and daughter. XQ’S rents a large, modern building, which is used as both a factory for producing Snus and a home for Christer and his family. It is built on a large piece of property that allows authorization and the possibility for expansion at a rate necessary to meet XQ’s needs.

TARGET GOALS

XQ´S goal is to reach the status of becoming a medium to large, independent ”snus” company by the year 2011.

XQ`S EVOLVEMENT:

- raise daily sales through contacting new potential customers
- establish new markets and export to each one
- develop new products within its area
- continue to create new ideas and be one step ahead
in its branch.

STATISTICS

In Sweden, as of 2007, there were more than 1,200,000 snus users between the ages of 16-84, twenty percent being women.

Of the male dippers that use ”snus” daily, 52% are previous smokers. The amount of women dippers has grown 300% from 1991 to 2007, sixty-eight percent being previous smokers.
Swedish Match, the largest producer on the market, sold 193,000,000 cans of ”snus” during 2007, just in Sweden.

PRODUCTS

SALES  & STORE CHECK

U . S . A .

In January of 2005, XQ´S established a working relationship with one of the U.S.A.’s best selling nicotine-free, loose ”snus” companies, Smokey Mountain. The company’s products, are sold in over 25,000 stores across the U.S.A. and they are established in large chains such as Wal-Mart and 7-ELEVEN, amongst others. This relationship can effectively and more quickly help XQ´S, become established in the United States, putting us in direct contact with the company’s distribution channels. A contract between Smokey Mountain and XQ’S was signed in the summer of 2005 making XQ’S the new producer of Smokey Mountains own line of ”pouch” nicotine free snus. The products were tested for new flavors and produced by XQ’S in the Philippines. The new flavors are Wintergreen and Arctic Mint. XQ’S even designed the packaging and the snus can for the new products.

THE FUTURE OF XQ`S

Swedish XQ’S expects to expand rapidly during the year 2010. XQ’S plans to introduce a new product line that will attract cigarette smokers wanting to cut down or quit smoking. The new product is considered a “down-stepping” product, and will be a strong competitor to pharmaceutical products such as Nicorette and Nicotinell.

The product is due to start selling on the European and Russian market during 2010.

MARKETING & HOMEPAGE

Conversion Kings AB is the exclusive partner in all of the marketing efforts for XQ’S International AB. Conversion Kings works in collaboration with XQ’S to expand the awareness of its excellent product line on the Internet through various measures including pay per click, organic search engine placement, email marketing and through various “web 2.0” properties. The goal of the partnership is to bring clarity to the internet user about the benefits of the XQ’S products and also to allow for an easy, safe and secure way to find the products in local stores and/or order online.