CARTRIDGE WORLD UNIT - FDD UFOC ITEM 1 Detail

Prior Business Experience. Predecessors. Affiliates, and Other Information

As of July 31, 2007, a transfer of all ownership interests in CWNA was completed through an Australian private equity group, Wolseley Partners Pty Limited headquartered in New South Wales, Australia, and CWNA became a wholly-owned subsidiary of Cartridge World International, Inc. ("CW International"), a Delaware corporation formed in July 2007. CW International is a wholly-owned subsidiary of CW Group Holdings Pty Ltd ("CW Holdings"), which was formed in New South Wales, Australia in July, 2007 and has as its principal business address Level 8, 56 Pitt Street, Sydney, Australia NSW 2000. Neither CW International nor CW

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Holdings have offered franchises in any line of business. CW International and CW Holdings do not currently sell products/services to Cartridge Worid Franchisees in the United States, but have the right to do so in the future.

CWNA''s affiliate, -Cartridge Worid Australia Pty. Ltd. (XW Australia"), js located at \sj
located at 39 Charles St., Norwood, South Australia 5067. CW Australia .was formed in New
South Wales, Australia in July, 2007 under the name CW Austnewco Pty Ltd and purchased the
assets of Cartridge Worid Pty Ltd. (CW PTY), our predecessor, as of July 31, 2007. CW PTY
first began franchising in 1997 under the name Australian Cartridge Co. and changed its name
in 1999 to Cartridge World Pty. Ltd. CW PTY licensed to CWNA the rights to grant master
franchises in the United States and other parts of the world using the Cartridge Worid Marks _t
and System. /Ks_ of December, 31. 2007. CW PTY had ^E_^Master Franchises ^operating in
Australia and other countries throughout the world, as well as two company-owned Cartridge
Worid retail Stores in Australia. �W PTY is no longer a CWNA Affiliate._____________________________ ,

CWNA has a wholly-owned subsidiary, Cartridge World Holdings, which is a Luxemburg company with a principal place of business in that country ("CW Luxemburg") and which purchased all of the stock of Cartridge Worid, Ltd. ("CW UK") and Cartridge Worid France, SARL ("CW France") in March, 2006. CW UK and CW France are Master Franchisees of CW Australia and have been Ijcensed to grant _U_njt_ Franchises in their .respective territories _since_,-2000 and 2004, respectively. As of December, 2007. CW UK has approximately 279 Unit����� -j Formatted: Font: u pt Franchises operating in its territory, which is comprised of the United Kingdom, Cyprus, Malta, and the Channel Islands, and is registered in England and Wales.� CW France, a French company, has approximately JJXIJnJt Franchises in France, which js its territory. CW France^ and CW UK also sell ink, compatible cartridges and related consumables to Cartridge Worid Unit Franchises in their respective territories.

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As of December 31, 2007, there are . 629 Unit and 23 Master Cartridge Worid / Franchises that .operating in the United States and jts territories. We have 1 Master Franchisee each in Mexico, Central America, and the Caribbean as of the same date. ^The first Cartridge^ -Worid Master Franchisee began offering Cartridge Worid Store Unit Franchises in the U.S. in February 2003.

We do not own or operate any Master Franchised Businesses, but pur �00 Jias an
interest in a partridge World ^Master Franchise (See Items 2 and 20 of this Disclosure
Document).____________________________________________________________________________ "

We .will grant .Cartridge World Store Unit Franchises jn states or smaller geographic areas in which no Master FranchiseejsHcensed to operate. j<Vs of March 1.2008. those states^ include Louisiana, New Mexico and Arkansas. If we grant a Master Franchise for any of the V listed states, we plan to assign any existing Unit Franchises to the applicable Master \ Franchisee. If a Master Franchise is terminated or reacguired, we also can choose to grant Unit Franchises in the former Master Franchisee''s territory.�� We are currently marketing Unit Franchises in Canada and may possibly grant one or more Master Franchises or Area Development Agreements in that country. We do not own and operate any Cartridge Worid Stores. We do not offer franchises in any other line of business, but we reserve the right to do so. We also maintain a warehouse for products that we sell to Unit Franchisees.

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Cartridge World North America. LLC � Master, California -DP�.4/1/08����� Page 3

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This Disclosure Document describes the Jermsi on_ which wel currently offer Cartridge World Master Franchises in this state. All money amounts described in this document are in U.S. Dollars. If we grant you a Cartridge World Master Franchise, you will have � contractual relationship only with us and only you and we will be parties to the Master Franchise Agreement. CW International and CW Holdings will have no obligations to you, and you ��n look only to us for performance under the Franchise Agreement.�� We may have offered Cartridge World Master Franchises in the past, or may currently offer Cartridge World Master Franchises in other states or countries, on economic and/or other terms which differ from those _ty offered .under this Disclosure Document _There may be instances w^ / vary, the terms on which we offer franchises to suit the circumstances of a particular transaction� / '' and as permitted by law. _We uigeyou to car^^^

.Disclosure Document, with independent adyisore who can provide legal, business _and/qry economic guidance, such as lawyers and/or accountants.

_ _ _ _ _ _ _ _ _._ �_ _. � _. _ ______ _�_.______________ �������������� _ _ _. _ _ _________ __''

JWe do not guarantee your successor any level of sales _vo[uj^e, profits (if any) or1 otherwise. _ �, -
Any volume, profit and possible success are primarily dependent on your sales ability and
efforts as an independent business operator, as well as your proper use of the Cartridge World
System. The Cartridge World concept is relatively young in the United States and our systems
and methods for, working w|th Master Franchisees and Unit Franchisees js relatiyejy new and
our business model is evolving..______________ ____________________________________________ ^

Master franchising poses special risks, since your possible success will depend, among \
other things, on your abilities to market, motivate, support and retain Unit Franchisees and to
maximize their business volume.^For all of''these reasons, the purchase of_a_ Cartridge World
franchise is a speculative investment�� Significant investment beyond that outlined in this \
.Disclosure Document may be required tosucceed, and there are no guarantees of success..___________ \