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ARTFEST INTERNATIONAL, INC.
Artfest Expo Center
13342 Midway Road, Suite 250
Dallas, TX 75244
Phone: 877-278-6672 ~ Fax: 866-534-2847
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Dear Friends and Shareholders,
I am very pleased to be able to communicate with our loyal shareholders directly and to give you an update on our impressive progress to date. Artfest International, Inc. (Artfest) is a publicly traded Over The Counter Bulletin Board company under the symbol "ARTI." Artfest prints, markets, and sells limited edition, signed and numbered fine art and collectibles to its Members, which include collectors, dealers, artists, decorators, designers, private collectors and investors. Artfest drives membership through its proprietary direct-sales e-commerce venue, syndicated TV programming, brick and mortar galleries, online auctions, and membership awards programs. Membership is free and includes a member branded, direct-sales e-commerce Web site having full back office support including a merchant account, just-in-time inventory, and fulfillment. As recently announced, Artfest is in the process of establishing the worldwide "gold" standard for how art and collectibles are marketed, tracked, and valued through its RFID technology. During the Company's nationwide teleconference on June 23rd, I was able to update the financial community about Artfest’s $5 Million Equity Line of Credit that the Company recently finalized with Delaney Capital, as well as the status of its acquisition of Charity Sports Distribution, Inc. and what impact the acquisition will have on the Company. Delaney Equity Group is facilitating a $5 Million equity line of credit with a private group of investors, which will enable the Company to complete the acquisition of Charity Sports Distributor, Inc., 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. Delaney Equity Group, LLC is a boutique broker dealer and market making firm specializing in trading Over the Counter, U.S. listed equities and International securities for a select group of hedge funds, professional traders, accredited investors and financial institutions. Delaney Equity Group possesses extensive experience in executing large trades in thin markets with minimal impact on share price and is recognized for providing clients with superior executions, premier trading tools and support and exceptional client service. Delaney Equity Group will also be providing services to Artfest, such as advising on the formation and implementation of corporate goals, the financial structure of the Company, reviewing possible joint ventures and/or merger and acquisition candidates, and attending and giving presentations at investor road shows. In addition to the acquisition of Charity Sports Distribution, Inc., the Company recently announced that it is looking to acquire organizations that fit into its overall business model and have synergies with its current subsidiaries, Art Channel Galleries and The Art Channel TV. Some of the merger and acquisition candidates that the Company is currently evaluating are in a variety of sectors within the art, memorabilia and media industries, such as art galleries, sports memorabilia companies, television networks, production companies, printers and manufacturers, and frame manufacturers. Through these acquisitions, Artfest International is looking to expand its presence in Los Angeles, New York, Dallas, Chicago, Orlando, and Miami. On June 17, 2009, the Company secured the licensing rights to the ostrich character, Rhupert, created by D. Arthur Wilson. Rhupert was just approved to be the official logo and D. Arthur Wilson, the official artist, for World Peace Project (www.worldpeaceproject.org). Art Channel Galleries(TM) (www.artchannelgalleries.com), owned by Artfest International, is planning on funding and producing four, 30 minute, pilot episodes of Rhupert. As CEO, I want to reinforce that I have prioritized two key initiatives for Artfest. Firstly, 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 your 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 web sites at artfestinternational.com, artchannel.tv, artchannelgalleries.com, and csdsportsframing.com to read any news or information on events that we are releasing on a regular basis. Sincerely yours, Edward Vakser
Chairman and CEO
Artfest International, Inc.
13342 Midway Road, suite 250
Dallas, TX 75244 Forward-Looking Statements: This Shareholder Letter includes forward-looking statements that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company does not undertake to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this Letter.
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