China 3C, a leading distributor of consumer and business electronics in Eastern China, engaged Hawk Associates in October 2006 to handle their investor relations program in the United States.

At the time of the engagement, China 3C had a market cap of $66 million and average daily trading of 61,000 shares. The stock was trading at $1.50.

The company was virtually unknown on Wall Street or among American retail investors. There was no significant institutional following or support.

Hawk CEO Frank Hawkins visited the company in Shanghai that month to learn the story and understand the company's markets and business strategies. Hawk then developed and began to implement an IR strategy to attract investors and build valuation for CHCG.

China 3C was introduced on the Hawk website with an investment profile. A new no spam email alert program quickly began attracting new subscribers.

At the request of the company, Hawk nominated two senior American business executives, one a prominent Wall Street veteran, who were added to the board of directors.

In January, Hawk set appointments and managed a two-week road show for the CEO in New York and Boston. The tour began with an invitation only presentation at the Cornell Club followed by one-one investor meetings for the next two weeks. The meetings included financial analysts, hedge funds, institutional holders interested in retail and China, brokers, journalists and newsletter writers.

By the end of the first week, several major New York investors had already taken large positions in the company.

Over the next several months, Hawk worked closely with institutional investors and financial analysts in a dedicated outreach effort. Hawk managed the company's press releases and conference calls.

The Hawk website, which featured China 3C, recorded heavy traffic as investors interested in a strong China growth story were attracted to the company and its highly promising results. Large numbers of individual investors also were attracted to the stock. Hawk handled an increasing number of emails and investor calls.

By early June 2007, the company's market cap had risen to $366 million. The stock was trading at $6.94 with average daily trading of 347,195 shares.

The company subsequently decided to engage another party for investor relations.

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As a matter of written company policy, neither Hawk Associates nor its employees trade in the shares of the companies it represents. At no time during the service to China 3C, did Hawk or any of its employees own any China 3C stock. Hawk continues to hold a warrant agreement that expires in 2011