1.Diversification: Mangosa seeks to grow its operations as a diversified producer of export quality agricultural products. Mangosa began diversifying its revenue base away from mangoes approximately four years ago in order to minimize risks associated with the dependence on a single crop. Thus Mangosa has developed a Diversified Products Program (DPP) under which Mangosa currently grows mango, asparagus, and papaya. Its DDP diversification program includes other pilot crop trials for which Mangosa conducts experiments in order to determinate how suitable other crops may be adaptable to its soil type and prevailing climactic conditions at its farm and to determine how profitably Mangosa may be able to grow these crops. These efforts are complemented by its ability to identify market trends that may offer a price premium, its ability to negotiate time-volume supply agreements with large distributors or consumers of agricultural products and its ability to identify seasonal products that complement its existing crop portfolio and which may allow the Company to better utilize its harvesting and processing capacity.

2. Identifying and Targeting Crops and Markets that Offer a Price Premium: Mangosa constantly evaluates market trends to identify products and markets that pay a premium based on key product attributes and which may allow the Company to differentiate itself from other producers. Mangosa has identified the organic products market as a segment that may be well suited to its current agricultural practices and technological expertise. This market segment commands a clear market premium over the non-organics foods segment. The consumption of the organic food products has grown by more than 20% per annum over the last 5 years. The largest markets for organic foods are the United States , Europe and Japan , most of which Mangosa already has marketing experience. Mangosa is currently in the process of turning its mango farm into an organic one. Preliminary studies are encouraging based on the fact that Mangosa currently employs minimal amounts of herbicides or pesticides, the fact that the fertilizers Mangosa employs are ecologically friendly and the fact that Mangosa does not employ genetically improved or modified seeds. Mangosa estimates that it may take the Company approximately 3 more years to complete the process of turning its mango production into an organic one, at which point Mangosa should be able to attain sustainable preferential prices for its mango fruits. It is important to bear in mind that once Mangosa begins the conversion and certification of its mango production, it may be able to obtain a price premium over standard fruit prices. Retailers accept and pay a premium for the certified grading of “Nutri-Clean” from growers that have stopped using pesticides and herbicides even though they have not yet attained organic grown certification.

3 Year-old Tommy Atkins mango Tree.
(Normally this first crop is destroyed before
it is developed to assure better future crops)

3. Identifying and Entering into Supply Agreements with Large Distributors or End-Users: The ability to enter into supply agreements with large distributors or end-users of agricultural products removes the risk associated with price fluctuations due to over supply for that product. Entering into contractual supply agreements with large, reputable distributors or end-users for a product assures the Company of a guaranteed or base price. Such agreements allow the Company to eliminate many of the market risks associated with large-scale farming and allow Mangosa to sell its products at a price that is attractive to the Company and to plan the growth of its farm with far more certainty than would otherwise be possible. Moreover, agreements of this type are likely to result in increase export volumes over time as the market continues to grow, provided Mangosa continues to supply its partners with high quality product within the stipulated crop periods.

4. Pre-Negotiated Supply Agreements: Mangosa has entered, and will continue to actively seek, seasonal and long-term supply agreements with buyers in the US and Europe that allow the Company to sell an important portion of its harvest at a pre-agreed price. This practice removes a significant portion of the uncertainty associated with bringing to the market a large harvest without knowing in advance what volumes and

prices it may be able to get. The contracts Mangosa has made through Crif Inc. with wholesalers and distributors set a floor price at which Mangosa knows it can cover costs and make a profit and also allow for higher prices based on market conditions. Mangosa is thus able to sell its harvest at a guaranteed minimum price at which Mangosa is able to make a profit when market prices are soft, while retaining the ability to share in higher prices when market conditions are more attractive.

Mangosa has committed its 2004 mango crop through a supply contract with Crif Inc. who in turn has firm contracts to supply mangoes to the following companies: Fresh Directions, Planet Produce, Del Monte, Central America Produce, Happco and Miami , therefore assuring for its product a price that is attractive to the Company. Moreover, agreements of this type are likely to result in increasing volumes of exports over time as the market continues to grow, provided Mangosa continues to supply its partners with high quality products within the stipulated crop periods.

Asparagus
Asparagus is a hardy perennial. Asparagus is native to the

Mediterranean and was eaten by the ancient Greeks

Asparagus plants are naturally either male or female. The female plants bear seeds, which take considerable energy from the plant and sprout new seedlings, which cause overcrowding in the bed. Male plants produce thicker, larger spears because they put no energy into seeds and have no weedy seedling problem.

As noted, asparagus plants are dioecious (either solely male or solely female). The female plants develop more spears or stems than the male plants, but the stems are smaller in diameter. With normal open-pollinated varieties, gardeners plant both male and female plants in an approximate ration of 1:1. After the first year, small red berries form on the female plants. These then fall to the ground, sprouting plants that essentially become perennial weeds in the asparagus bed.

Papaya
Papaya is an herbaceous plant with a soft stem which may grow as tall as 8 meters. It normally flowers in 9-12 months producing either male or female, hermaphrodite flowers. The male plants do not produce fruits but at rare times develop fruit. The papaya is a cross pollinated plant and the economic life of the plant is usually 3 years. The tree may produce as much as 100 fruits and each fruit may weigh up to 2-3 kilograms.

The papaya is widely grown in the tropics and sub tropics. It is believed to be native to southern Mexico and neighboring Central America . It is now present in every tropical and subtropical country. Papayas have exacting climate requirements for vigorous growth and fruit production. They must have warmth throughout the year and will be damaged by cold temperatures. Cold, wet soil is almost always lethal. Cool temperatures will also alter fruit flavor. That is why the soil and climatic conditions at the Fatima farm are very suitable for papaya growth.

Fruit: There are two types of papayas, Hawaiian and Mexican. Mangosa is planting the Hawaiian varieties. These are the papayas that are commonly found in supermarkets. These pear-shaped fruit generally weighs about 1 pound and have yellow skin when ripe. The flesh is bright orange or pinkish, depending on variety, with small black seeds clustered in the center. Hawaiian papayas are easier to harvest because the plants seldom grow taller than 8 feet. Mexican papayas are much larger than the Hawaiian types and may weigh up to 10 pounds and be more than 15 inches long. The flavor is less intense than that the Hawaiian papaya. A properly ripened papaya is juicy, sweetish and somewhat like a cantaloupe in flavor, although musky in some types. The fruit (and leaves) contain papain which helps digestion and is used to tenderize meat. The edible seeds have a spicy flavor somewhat reminiscent of black pepper.