At 14:00 PM of  Oct 08, 2009 at the meeting room of Sao Ta Foods Joint-Stock Company located at Km 2132, National Road 1A, Ward 2, Soc Trang city, Soc Trang province, Administrative Board has proceeded the meeting with attendance of all members (07 members) and the representative of Supervisory Board.

The meeting has discussed and adopted the following contents :

1.Characteristics of situation:
- It is main harvest season of black tiger shrimp, raw material volume increases.
- Situation of labors shortage is more severe in peak season.
- Global economy is still in difficulty, consumption force hasn’t recovered so selling price is still low.

2. Difficulties and advantages:
-          Equipment is showed in downgrade while operating at high capacity which affects to product quality and make loss ratio up. This matter is not new, as in 2008 the company focuses on equipping the system of scales, but not pays appropriate attention to upgrade the equipment.
-          Consumption level is slow, but the Company has to buy raw material in harvest season that leads to high volume of stock and lacks of cold storages. Even the products processing has been finished under signed contracts but customers haven’t wanted to receive the goods due to hard consumption.

3. Effected tasks:
            Operations of two factories are stable. Vegetable factory is gradually accustomed to new task which is the background to expand new products in future, management gradually accumulate good experiences in works. Currently, shrimp factory focuses in processing shrimps but also starts to approach fish processing, and has new products which potentially bring significant progression in business in future…. Vegetable factory got accustomed to processing sweet potato, okra, paprika and will come to process eggplant and sticky taro…
            The Company has withdrawn its name from the pangasius project in Cai Con Industial Zone because the government can’t determine when the land is transferred. Depending on later specific situation, the Company maybe find another area to build a medium-sized fish factory which should be far away Cai Con Industrial Zone to attract more labors.

 * Production and Business Outcome in the 3rd quarter, 2009 is as follows :

- Processing volume : 2,574 M/T of shrimps; 350 M/T of vegetable products.
- Consuming volume : 1,904 M/T of shrimps; 106 M/T of vegetable products.
- Consumption Turnover :  About USD 18 million.
- Production and Business effect: profits just reach over VND 1 billion. The reasons of unachievable business effect are that loss ratio in processing is high but consumption price is low and processing fees trend to increase.
Total consumption volume of shrimps in the first 9 months is 3,910 M/T (equivalent to 87% over same period of 2008), Grand total turnover reaches about USD 37 million USD equivalent to 89.3% over same period of 2008. Total profit is over VND 4 billion.

4. Stagnant tasks needed to pay attetion to:

-          Personnels: some professional staffs are off-work, but recuitment and new training are not in progression. If this situation lasts for a long time, the Company will encounter difficulties. Reinforcement of directly co-working personnels to have inheriting staff is survival matter of the Company.
-          Invesment of material facilities: At the time being, the Company’s facilities and equipment have been backward in comparision with its competitors and there will be new factories opened in near future.
-          Business strategy: we have set up unclear business strategy, still heavy in Band-Aid measures.
-          Finance : remains stagnancy of hard debts which affect heavily to business effect

5. Tasks should be done in future:

-          Board of Directors should assess cerefully the situation, determine clearly on primary products, markets and customers to concentrate its human forces and facilities approriately. Business strategy focuses on horizontal affiliation (and vertical one if safe) to expand consumption network. Administrative Board continues to find strategic investors to sell treasury shares to enhance affiliation, and strength of the company’s operation. Code Approval to Russian market will be overcome and the program of U.S market recovery built.
-          From above-mentioned tasks, re-check facilities, equipment to determine investment list appropriately, economically and effectively. The investment will be developed right now to ensure new equipment and facilities available for processing in 2010 shrimp harvest season. Taking note in operation measures after Can Tho bridge will be completed in 2010.
-          Continue to collect debts of investment.

6. Reinforcement of the Company’s Board of Directors:
-          Mrs. Duong Ngoc Kim – General Director of the Company – due to not so good health, she has applied for resignment many times and now she would like to resign from the position of General Director of the Company. She can’t undertake this position longer due to her health.   
-          Pursuant to the Company’s Charter, authorities and rights of Administrative Board, the meeting has agreed to nominate and accredit Mr. Ho Quoc Luc- The chairman and General Director of the Company with 100% of adopted votes. Mr. Ho Quoc Luc will assume the position of General Director in replacement of Mrs. Duong Ngoc Kim from Oct 20, 2009.    

Administrative Board agrees in100% of above-mentioned contents.

The meeting closed at 16 :30 PM of the same day and the Minutes has been read for the Administrative Board’s hearing.