Swimwear is a $13 billion worldwide market

The Company is a wholesaler and retailer of high-end swimsuits and resort wear which appeals to fashion-conscious consumers. Its swimsuits typically retail for $150 to $300. According to New York research firm NDP Group, sales of two-piece swimsuits grew 20.5% in 2006, following 18.8% growth in the previous year. A $12.9 billion market in 2006, fashion swimwear is forecast to grow to a $13.5 billion market over the next few years. Women’s swimwear represents approximately 70% of the total market. Children’s swimwear is expected to account for approximately 14% of the market by 2012.

Flagship stores & new product lines accelerate revenue growth

In October 2007, Inca Designs launched its new line of “Inca Junior” children’s apparel for boys consisting of lightweight shirts, tunics, shorts, and lounge pants. Inca Girl is a collection for girls ages 3 to 11. The Company also introduced a new line of home accessories, which includes luxury silk pillows, embroidered towels, table cloths and other items. In the future, Inca may introduce its own jewelry, footwear, intimate apparel, fashion accessories and furniture lines.

In addition, Inca recently opened a flagship store on New York’s Upper East Side. A second store, located in Miami’s South Beach area in the exclusive Gansevoort Hotel, will be opened soon. Inca plans to open two more stores in key resort locations this year as well as in Atlanta, Las Angeles, Dubai, Macau, London, St. Tropez, Hawaii and Mexico. It expects to open between 4 and 10 new retail stores by 2010.

In addition to increasing its brand visibility through Inca-branded retail outlets, the Company enhances its profit potential since apparel sold in Inca stores will command a higher margin. Inca generates gross margins of around 70% on swimsuits sold through third-party retailers.

Differentiated apparel at affordable prices

The Company’s branded, high quality apparel retails at prices below other designer brands and competitive with contemporary high-fashion brands such as Theory, Diane and others. Because its prices are affordable, Inca apparel appeals to a broad cross-section of consumers. This in turn helps drive significant sales volume and solidifies brand loyalty across an economically and demographically diverse customer base.

Strong Media Coverage

Advertisements in leading fashion magazines can cost hundreds of thousands of dollars per ad. Inca has been able to achieve the same level of visibility without spending a dime. The Company’s apparel has been featured in multi-page stories in Glamour, Cosmopolitan, Lucky, Elle, Town and Country, Travel & Leisure, the Sports Illustrated Swimsuit issue and numerous other national and international publications. Hollywood celebrities such as Kelly Ripa, Kate Hudson, Carmen Electra, Jennifer Aniston, Selma Hayek, Kathy Hilton, Hillary Swank and Vanessa Hudgens have been photographed wearing Inca apparel. In addition, the Company’s fashions have received TV exposure on MTV’s House of Style, E! Fashion File, Good Morning America and the Oprah Winfrey Show.

Strong Revenue Growth

Inca has already booked approximately $500,000 in sales in early 2008 and anticipates to reach the $3 million milestone in annualized sales over the next 12 to 18 months.