Peregrine Industries Inc's Competitiveness

In identifying, evaluating and selecting a target business, we expect to encounter intense competition from other entities having a business objective similar to ours. Many of these entities are well established and have extensive experience in identifying and effecting business combinations. In addition, many of these competitors may possess greater technical, human and other resources than us. As a result of the change in control discussed above, our financial resources are no longer limited solely to the financial resources of our former Management. However, our financial resources may, nevertheless, be less than those of entities competing for advantageous business combination transactions. While we believe there are numerous potential target businesses, our ability to compete in acquiring certain sizable target businesses will be limited. . This inherent competitive limitation may give others an advantage in pursuing the acquisition of a target business. Our Management believes, however, that our status as a public entity and potential access to the United States public equity markets may give us a competitive advantage over privately-held entities having a similar business objective as us in acquiring a target business with significant growth potential on favorable terms.

If we succeed in effecting a business combination, there will be, in all likelihood, intense competition from competitors of the target business that we acquire. In particular, certain industries which experience rapid growth frequently attract an increasingly larger number of competitors, including competitors with increasingly greater financial, marketing, technical and other resources than the initial competitors in the industry. The degree of competition characterizing the industry of any prospective target business cannot presently be ascertained. We cannot assure you that, subsequent to a business combination, we will have the resources to compete effectively, especially to the extent that the target business is in a high-growth industry.