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Hunter - Based on my call with Paul yesterday, this is what I think he suggested we send to him so he could forward it to the CEO. He said just a few general paragraphs to show what we could help with and that he could then use this to set up a meeting with DiFusion and gauge their interest in pursuing. It seems to me they have to raise this additional $10m round first before really acting on a China strategy and Paul thought he had a couple of potential investors for that. Not sure if we want to help get involved in that or not.

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Paul-

Good talking to you yesterday. I wanted to get back to you on how we might be able to help DiFusion. From the materials you sent us it looks like DiFusion has two immediate needs, business development and raising capital. Given their recent patent filing in China, this looks to be a particularly ripe market for them on both fronts.

On the business development advisory side, we have a number of relationships in China that could potentially help DiFusion market their products in hospitals and medical centers throughout China. However, before doing so we would want to make sure that DiFusion’s patents are well protected and that they have well thought through strategy to find the right local partner in China. China presents a great opportunity as far as a potential market is concerned, but as you know there are a number of possible pitfalls whenever you try and access the Chinese market. Through our knowledgable partners on the ground in China we can help DiFusion avoid as many of them as possible.

On the capital raising side, our investment banking affiliate, RSP Investments, can help DiFusion source and vet potential Chinese M&A partners. In addition, to potential investors who have already approached DiFusion, we have relationship with at least one or two more of the largest private equity and investment companies in China and they could potentially be a good match for DiFusion.

Let us know if you need anymore information. We are happy to provide more and can make ourselves available to meet DiFusion when they are next in DC.

Best,

(Not sure if you want it to come from you or me)


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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