In February 1996, the Registrant acquired its interest in Wuxi CSI and soon thereafter sold all its operating assets
and liabilities to Regal (New) International, Inc. ("New Regal"), a company formed by such purpose by Harle-
quin Investment Holdings Limited. After these transactions the business of the Registrant changed, since the
business as previously conducted was dis- posed of and the liabilities of the Registrant were assumed by New
Regal. The following information is presented to reflect the historical business and operations of the Registrant for
the year ended December 31, 1995. Since all of the assets and liabilities relating to the business of the Registrant
dur- ing the fiscal year ended December 31, 1995 have been sold and assumed re- spectively, the following
information should be considered for historical purposes only and does not in any way reflect the current business
and opera- tions of the Registrant.
ITEM 1 - DESCRIPTION OF THE BUSINESS PRIOR TO FEBRUARY 19, 1996
The following discussion is intended to describe the business of the Registrant during the twelve (12) month
period ending December 31, 1995 and the period from December 31, 1995 to February 19, 1996.
RECENT FINANCIAL PERFORMANCE AND SIGNIFICANT EVENTS
During the Second Quarter of 1995, the Registrant sold equipment per- taining to a certain product line. The sale
resulted in a gain of $300,000.
On December 18, 1995 a conditional Joint Venture Agreement between Mardec Berhad, a company
incorporated in Malaysia, and the Registrant was consummated. Subject to various conditions and approvals,
specific machinery and equipment and technical knowledge of the Registrant, will be transferred to Malaysia. The
Joint Venture is to manufacture products for the interna- tional oil and gas industry. The Registrant's 49% equity
interest was con- tributed in the form of an agreed upon value for the transfer of machinery and equipment and
technology. This joint venture interest was transferred to