During the past few days, we have received calls and emails about what steps the company may or may not be taking in reference to the stock price issue. Please remember that we do not have any direct control over what the stock price is. We can take steps that may give the market comfort that we are headed in the right direction. We can keep everyone informed. But as we have discussed, there are many factors that affect a stock price, many of which are out of our control or influence.

First, these issues will be discussed in detail at the stockholders meeting. That is the appropriate forum at this time. We will address some of these issues briefly below.

Second, the company, its attorneys, its accountants and its advisers have been looking for a solution to the stock price issue for a long time.

At the top of the list is making sure the business works and we begin to generate revenues. As we have stated previously, the implementation of our business plan is a long term process.

Over time we have examined and continue to examine various methods to address this critical issue, including stock buy back programs, preferred stock plans, bonds (including "junk bonds"), promotional programs, stock incentive plans, acquisitions, restructurings, reverse stock splits, forward stock splits, buying programs, several financing possibilities, including structured financing agreements, and others. There are good and bad elements to each of them. Some require registration statements. Others require the infusion of outside capital. Some, like a reverse, may seem like the simple solution, but there are many things to consider, including the effect on our current stockholders. We have continued to resist doing a reverse. We have been looking into a bond type program that would result in a stock buy back since last year. Any program like that would require a registration statement. Any registration statement being considered must be prepared and looked at very carefully. Filing these statements are time consuming and expensive. We are currently preparing an S-1 registration statement in connection with a funding transaction. We hope to have a concrete plan in place as a result of this registration process in time to discuss in detail at the stockholders meeting on May 13th.

We are open to any ideas. if someone has a suggestion, please let us know. We will do our best to respond to all of the inquiry subjects at the stockholder meeting. All questions we receive will be part of the items discussed.

Remember, we are a small company with limited resources. The film business is a risky business. Investing in stocks, especially those as volatile as stocks that trade on the pink sheets and or the bulletin board, is also very risky. There are no guarantees. These stocks have to be watched very closely.