$ERNI ~ Business Strategy Our acqu

Our acquisition strategy involves identifying industries with solid potential, researching emerging market trends, and determining well-performing commerce sectors to allocate the company's resources. Each market the company enters must be characterized as profitable, growing, and in high demand. In line with this strategy, Rewards Nexus' acquisitions so far were selected because of their remarkable potential for success and long-term sustainable growth.

The key elements of our business strategy include the following:

Create a huge network of retailers and consumers

Rewards Nexus links small and medium businesses in a united network for the promotion of sales, to compose products, combine markets, promote one another, obtain strong brand recognition, unite their powers, and acquire enormous negotiation force. The network will serve a large consumer base and will reward consumers for preferring the network. The network will create trust and loyalty while still allowing customers to make their own choice. As a result, this system will gradually develop into a social network that supports powerful commercial and social transactions.

Emphasize superior service and value to our customers

The value proposition of Rewards Nexus comes from the extensive experience and knowledge of its managers and employees. We provide the kind of service that sustains long-lasting relationships; these allow us to respond more efficiently and proactively to our customers' needs. We consider all our customers as partners and we treat them with the same level of integrity and respect that we treat ourselves. We believe in teamwork and collaboration. We work together to find the best solution that can really work for every business and for every type of consumer.

Capitalize on opportunities in the retailing sector

• As the slow growth of the economy continues and U.S. consumer spending has continued to lag, retailers are expected, slowly but surely, to make a comeback.


• Coalition loyalty programs have proved to be very successful around the world, but this model has had considerable difficulty making head way in the U.S. given the fragmented market and the resources required to get such programs up and running. This is about to change. As compelling value propositions become harder to come by, the importance of coalition loyalty programs increases.


• Given that it will take several years for the US economy to fully absorb the overhang from the imbalances occurred by the financial crisis and recession in 2008-2009, we assume that participation in rewards & incentive programs will further increase in the future.


• Over 95% of Americans carry a mobile device, the majority of which are Smart Phones. This shift represents a huge opportunity for Rewards Nexus Inc. Unique mobile experiences will enable consumers to interact with the company's brands through applications designed for iPhone and Android devices as well as through social media sites. For the retailer, connecting with the mobile device - and the consumer using it - is a core to our strategy.