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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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June 7, 2010 Dear Shareholders, I am very pleased to be able to enclose your declared dividend in the form of shares in our subsidiary corporation Artfest Direct, Inc. This corporation is currently a private corporation (not publicly traded); however, we have begun the process to have Artfest Direct become a publicly trading company by registering shares with the SEC and working with a broker/dealer to create a market once we have received an effective registration statement. Artfest International, Inc. will publicly announce this when the Company has completed the going public process. At that time your shares will effectively be under 144 Rules. The shares you received have the following legend on them: “The shares represented by this certificate have not been registered under the Security Act of 1933, as amended. The shares have been acquired for investment and may not be offered, sold or otherwise transferred in the absence of an effected registration statement with respect to the shares or an exemption from registration requirements of said act that is then applicable to the shares, as to which a prior opinion of counsel may be required by the issuer or transfer agent.”
Artfest Direct was created to act as the primary marketing arm of Artfest International, Inc. Its purpose is to enable consumers, through its website, to purchase fine sports art as well as sports memorabilia and collectibles directly from their favorite teams, players, and athletes. The Company announced that Time Warner Cable will be the distribution outlet of Artfest International's "Artfest Direct" program to 550,000 Time Warner Cable customers. Time Warner, Inc. is the second largest cable operator in the country, which will give Artfest International its base for the development of the Art Channel "On-Demand" program, which will book sales through Artfest Direct. Artfest International intends to keep a majority interest in Artfest Direct for the foreseeable future. Artfest Direct is launching this program through its call center, which is now opened, online, and directly through the Company's partnership agreements with Major Stadiums, as well as the hundreds of other professional and NCAA Division I college sports teams across the country. Artfest Direct’s call center operations are based on the direct marketing performance as operate by a number of companies including Herbalife, Mary Kay, Avon, and Tupperware Inc. Artfest Direct is projecting to increase its Membership to over 300,000 over the next three years. Each member that signs up essentially creates their own business. They receive a Replica Website and when their customers go to their site they see the full inventory of products being offered. If they purchase, the item ordered is paid for, packaged and shipped by Artfest Direct. The member gets the credit for the sale. 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 believe that our revenues will grow significantly and this growth will be favorably reflected in our earnings and share price, as Artfest Direct’s revenues and earnings will be reflected in the audited consolidated financial statements of Artfest International, Inc.
In closing, I want to thank each of you for your interest and continued support of Artfest International. I encourage you to contact our investment relations group at (407) 389-5900 regarding any questions you might have about the Company and where you can enter your email address to receive email updates whenever a press release is published. 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. Finally, check out your company’s new website at www.artfestdirect.com. If you would like to sign up as a member, or just find a piece of art or memorabilia that you would like to purchase, please do so. Best 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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