LULU'S AUTOBAHN FUELS AND LULU'S OSTRICH RANCH
BUSINESS AND FINANCIAL PLAN FOR A GAS STATION AND CONVENIENCE STORE (C-STORE) E-Mail is lulusostrich@sanmarcos.net

FROM - IMST CORP - 281 398 0679 P.1

WILLIAM R. HAYWARD        of         LULU'S CONOCO

Based upon the specific proposed site development strategies recommended by IMS, the following sales and volume projections are provided;

|.                               Average Monthly volume Projections        .|

|                                               |   Year 1   |    Year 2    |     Year 3    |

|Gasoline Volume(Gallons)  |  83,878    |     86,478    |    88,382     |

|Inside Sales (Dollars)           |  $38,858  |     $39,958  |    $40,745  |

Note:  Mobile, Coastal, and Conoco Fuels Est. are higher which were 100,000 Gallons/Month of Fuel and $50,000/Month in sales from C-Store.**

CONCLUSION AND SUMMARY

The existing retail facility has been unable to adequately serve the trade area's demand due to operational and design standards Oat are not current with industry standards, The proposed raze and rebuild will create a facility environment conducive to the increased capture of the targeted traffic patterns. The planned expansion of Interstate 35 will also positively Impact the site due to the realignment of the Frontage Road off ramp to the north. This realignment will enhance existing visibility/reaction ratios.

Volume penetration levels are restricted by several physical site characteristics as well as the competitive environment. The site's position along the southbound Frontage Road eliminates access to northbound traffic volume. The site's position north of Walnut Avenue restricts direct access to the destination traffic generators associated with the Interstate 35/Walnut Avenue interchange. Interstate 35 is 2 highly competitive corridor with a strong established base of major branded gasoline units located between San Antonio and Austin. The H-E-B (Map #2) negatively Impacts anticipated gasoline margins.

It is recommended that the available land behind the existing store be utilized to achieve improved site layout. The existing building will be eliminated. A new generation convenience store consisting of approximately 2,475 square feet will be developed. This action will significantly improve on-site movement and encourage the capture of household convenience store sales from the targeted residential base.

The anticipated project cost have not been provided by the developer.  It must be determined whether an adequate return on investment exists in the short term based on the volume projections provided in this evaluation.

**This did not come from IMS.