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ARTFEST INTERNATIONAL, INC.
OTCBB: ARTS
Artfest Expo Center
13342 Midway Road, Suite 250
Dallas, TX 75244
Phone: 877-278-6672 ~ Fax: 866-534-2847
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November 18, 2009 Dear Shareholders, I am very pleased to be able to communicate directly with our loyal shareholders and to give you an update on our impressive progress to date. Artfest International, Inc. was created to connect the passions of galleries, artists, investors, decorators, designers and private collectors--wherever they are, on a global scale. Through its 52,000-square-foot Expo Center in Dallas, Texas, MyArtfest.com (social networking and e-commerce venue), MyArtfest Services (marketing services), and Art Channel, Inc. (a television network avenue for art programming and marketing) Artfest is poised to serve as the leader in the art ,memorabilia ,sports and home decor industries. Our mission is to increase our subscriber’s sales by providing top-quality marketing tools, items-of-value and relationships that expand their customer base and physical reach. The Company has successfully secured capital for future growth of the Company and acquisitions with the signing of an investment banking agreement with Delaney Equity Group, LLC. Delaney Equity Group is facilitating a $5 Million equity line of credit with a private group of investors, which has enabled the Company to complete the acquisition of Charity Sports Distributor, Inc., (CSD) a vertically integrated Texas-based custom framing company, which specializes in the design, production, and distribution of authentic framed autographed sports and entertainment collectibles and art pieces. CSD is in the gift, novelty, collectable and memorabilia business and operates souvenir shops and game day auctions at major league stadiums such as the Dallas Cowboys, Atlanta Falcons, The Texas Rangers, Dallas Stars, and the Dallas Mavericks and 27 college sport venues such as Auburn, Iowa, Florida State, South Carolina, and UCLA. To see merchandise, arrange for an auction at your next charitable event or receive information on the next event being held, visit the company's Web site: www.csdsportsframing.com. CSD had annual sales of over $3.3 million in 2008 and through the acquisition Artfest also received approximately $1.2 million in sport memorabilia, which will be available for sale on the Company's Web site www.artchannelgalleries.com. Artfest also continues to position itself at the forefront of the multi-billion dollar RFID technology curve by establishing the worldwide "gold standard" for the arts and sports collectibles industry through its own RFID solution. According to a report written by the research firm of IDTechEx out of Cambridge, Massachusetts, the RFID market will increase to $27.1 Billion in 2016, a tenfold increase from the RFID market size in 2006. Art and collectibles that are embedded with Artfest International's RFID technology allows consumers and investors to connect to a database that displays the parameters of that particular collectible, where it was purchased, when it was purchased, and for what amount it was purchased. If it is a limited edition piece, it allows the consumer to see what number of the limited edition they purchased. The Company's RFID technology also allows artists or athletes to see how many pieces or items were produced and/or sold. The information on the RFID chip can be read either through an iPhone, PDA, and/or with Artfest's reader package. According to Nicholas Forrest, an art market analyst, 10% to 40% of artwork on the market is fakes. Artfest recently announced it has completed the acquisition of 100% of the assets of Luxor International, Inc. of Frisco, Texas, a privately held company, for $5,000,000. The assets being acquired include approximately 750 works of art expected to be appraised between $9 million to $12 million. Many of these works of art may be viewed at the following Web site: www.luxorartmuseum.com. In support of this acquisition as well as better positioning the company for earnings per share and a future listing to the AMEX or NASDAQ exchanges, Artfest restructured its share capitalization by completing a 50 to 1 reverse split and is currently trading under the symbol ARTS. As CEO, I want to reinforce that I have prioritized two key initiatives for Artfest. Number one is to continue with our plans to grow revenues through marketing and selling limited edition, signed and numbered fine art and collectibles to collectors, dealers, artists, decorators, designers, private collectors and investors. Secondly, and just as important, is to continue with our aggressive merger and acquisition campaign to expand our current portfolio. If we are successful in achieving these goals, I, as CEO of Artfest International, believe that our revenues will grow significantly and this growth will be favorably reflected in our share price. In closing, I want to thank each of you for your patience and continued support of Artfest International. I encourage you to contact our investment relations group regarding any questions you might have about the Company and where you can sign up to have press releases emailed directly to you right after they are released to the wire service. Also please be a regular visitor to our Websites at www.artfestinternational.com , www.artchannel.tv and www.artchannelgalleries.com to read any news or information on events that we are releasing on a regular basis. Regards, Edward Vakser
CEO Artfest International, Inc. Safe Harbor Statement: The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.
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