New Century Companies, Inc. (OTCBB: NCNC)

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Symbol: OTCBB: NCNC

Address:
New Century Companies, Inc.
9835 Santa Fe Springs Rd.
San Fe Springs, CA 90670
(562) 906-8455

www.newcenturyinc.com

Top Investment Highlights

New Century Companies, Inc. is involved in the re-fabrication of outworn machine tools using state-of-the-art Computer Numerically Controlled ("CNC") machines.
Customers can expect a lower turn-around rate of 2-4 months for their machines, as opposed to the usual 9-12 months required to manufacture new machines and tools from scratch.
By using recycled machinery, customer costs are 40-60% lower than buying new, and often these machines are pure recycled iron, allowing them to be more stable than newer machines.
Using recycled iron is not only pocket-friendly, but is also eco-friendly, which helps this company stay up on the latest trends towards resource conservation.
With a detailed corporate strategy involving three stages of development, the company has accomplished the first and is already engaged in the other two.

Corporate Overview

Founded in 2001, New Century Companies, Inc. has immersed itself in the manufacturing arena. Marketed under its "Century Turn" line, it deals in the creation and re-fabrication of machine tools used by manufacturing companies. New Century utilizes a method of operation known as Computer Numerically Controlled ("CNC") machine tools, which can achieve accuracy down to 1/10,000 of an inch, resulting not only in precise and fine-tuned machinery but in economic efficiency as well. Because these are computer-driven machines, labor costs are lower.

Technology

With clients like Rolls Royce, Pratt & Whitney and General Electric, the company has to meet high standards for quality and precision. Its machines can measure down to 1/10,000 of an inch, which is very important in such applications as jet engines. At engine speeds of over 10,000 revolutions per minute, every measurement counts: If a jet engine is not perfectly circular it can easily detach from an aircraft.

Specializing in utilizing old, recycled metal, New Century not only cuts costs for customers, but also shortens turn-around rate. Customers can expect an average drop in cost of 40- 60% compared to buying new. The average wait after the purchase of new machine tools is 9-12 months. When compared to an average turn-around of 2-4 months from New Century, it is easy to see why buying recycled machinery is quickly becoming the standard. Normally, recycled machinery will also have higher concentrations of iron than newly-fabricated alternatives, making it more stable.

The company uses highly sophisticated machinery to produce circular steel tools. With machinery like horizontal/vertical turning lathes and boring mills, the company can remanufacture and replace castings, realign machines, and add electrical and mechanical enhancements. By utilizing a computer-directed tool, raw steel can be transformed into precise circular instruments used in such applications as jet-engine components, vehicles, construction materials, windmill bearings, firearms, and numerous military instruments. The computer controls allow repeated operations to be performed to produce specific parts while not having to be personally attended to or serviced. This allows for minimal human error while maximizing operational speed. One of these machines operates quickly enough to triple the output of a manually- controlled alternative. With constant advances in technology, these machines will only become more productive. And when completed, these tools become "like new" machines at a fraction of the price, while helping to conserve resources.

The Tools

Horizontal and Vertical Turning Lathes
The horizontal turning lathe is relatively new to the metal-working industry. These machines efficiently produce metal rings up to 72 inches in diameter with a maximum turning weight of 5,000 lbs. Precision is achieved with a laser-tuning and alignment process that measures to 1/10,000 of an inch. This tool is used to produce fine-tuned parts used in aircraft engineering. Vertical turning lathes are capable of turning cylindrical parts using the CNC device to increase productivity and cost 40-60% less than comparable newer machines.

Boring Mills
This tool is used to increase the size of a previously bored hole in a machine or device. Because of the shape of the instrument, larger and heavier parts can be bored with more precision than older generations of horizontal turning machines. This instrument can produce metal rings up to 20 feet or more in diameter. This tool also allows cutting precision up to 1/10,000 of an inch.

Corporate Strategy

On May 25, 2001, the company merged with New Century Remanufacturing, Inc. After merging, the companies renamed themselves as New Century Companies, Inc. It aims not only to keep expenses lower by recycling used metal, but to keep labor low using computer- controlled devices. With only 36 full-time employees, New Century provides turn-around rates months before other companies that are more laborintensive. The company plans to become the leading provider of Computer Numerically Controlled machinery through natural growth and strategic acquisitions.

There are three phases to its strategy:

Phase 1:
Higher profit requires higher output, which in turn, requires larger working facilities. In 2002, the company moved into a large facility that can now produce over 100 machines yearly, which tripled its previous accomplishments. Before moving into the larger facility, it was hard for the company to take larger orders, turning a majority of potential customers elsewhere. Now the company has the ability to capture multiple machine orders allowing over 60 inch machines into their warehouse. This larger facility also allows for a higher inventory making certain turn-around rates instantaneous.

Phase 2:
While New Century primarily markets its products through direct sales and other independent distributors throughout the American continent, there are plans to market itself in industrial trade magazines, trade shows, and the Internet as well. Its focus is set on advertising its new horizontal and vertical boring mills. These tools are designed around its tooling changer that allows for a wider range of tooling heads, which increases the efficiency, precision, and stability of the machines.

Phase 3:
In addition to its own growth as a company, plans are being made for other future prospects. The company hopes to use a "roll-up" strategy, where the company can merge with, or acquire, other similar companies and metal ring manufacturers. By employing this method, its hopes are to attract the attention of leading companies by increasing revenue and income significantly within a short period of time.

Management

David Duquette
Chairman of the Board, President and Director
After founding New Century Remanufacturing, Inc. in 1996, the company merged into what is now known as New Century Companies, Inc. Since May, 2001, he's led the "CNC" machine tool manufacturing company. He studied electrical engineering at the University of Wisconsin and has been in the machine tool manufacturing business ever since.

Josef Czikmantori
Secretary and Director
Czikmantori, with a Romanian technical background, has been secretary and director of New Century since 2001. In 1986, he left his country and moved to Los Angeles where he joined Duquette as cofounder of the company.

Steve Werkheiser, Sr.
Chief Financial Officer
With an MBA in Finance and over 25 years of senior executive experience in financial planning, strategic planning, and business valuations, he has lead the financial-end of New Century. He previously worked for 23 years as a senior consultant for Northrop Grumman Corp. and is currently on the Board of the Anderson School of Management Alumni Los Angeles.

This corporate profile is based upon information provided by management of New Century Companies, Inc. The information is not intended to be and shall not constitute, an offer to sell or solicitation of any offer to buy any security. It is intended for information only and to increase awareness of New Century Companies, Inc. services. Safe Harbor Statement: The statements in this document relating to future product availability, collaboration and partnership and positive direction are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the aspects anticipated by these forward-looking statements may not, in fact, occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties, demand for New Century Companies, Inc. products, the future market price of New Century Companies, Inc. common stock and the Company's ability to obtain necessary future financing. EQUITIES Magazine was paid by New Century Companies, Inc. to write and print this profile. Before investing in any security, you are strongly advised to review all public filings of the issuer of such security, which can be found at www.sec.gov, as well as the warnings published by the Securities and Exchange Commission at http://www.sec.gov/investor.shtml.