ARTFEST VIDEO!

Check out the latest Artfest International Video:

Artfest Expo Center Open House
Event and Galleries Tour - Posted June 18th 2009
 

  Other Artfest International Video Links:

• Artfest Expo Center Open House Event and Galleries Tour - Posted June 18th 2009
   
• What can you do in 3 1/2 Minutes? See what Cristobal Ortega can do! Live Art brought to you by Art Channel TV - Posted June 16, 2009
  
• Cristobal Ortega paints in person brought to you by Art Channel TV.  - Posted June 16, 2009
  
• People speak about Art Channel Galleries - June 11, 2009
   
• Moscow at the Palomar Artfest Event - brought to you by Art Channel Galleries  - Posted May 7, 2009
  
• Artfest International Corporate Profile. Produced by Edward Vakser - Posted February 19, 2009

Letter from the CEO Q3 2009

Updated: Wednesday, 01 July 2009 08:00

ARTFEST INTERNATIONAL, INC.
Artfest Expo Center
13342 Midway Road, Suite 250
Dallas, TX 75244
Phone: 877-278-6672 ~ Fax: 866-534-2847
info@artfestinternational.com

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 "ARTS." 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 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.

Sincerely yours,

Edward Vakser
Chairman and CEO
Artfest International, Inc.
13342 Midway Road, suite 250
Dallas, TX 75244

What we Do

Artfest International, Inc. is poised to provide services to hundreds of thousands of buyers who indulge their passion for art, home decor and other items of value. 

Artfest International, Inc.'s e-commerce site, MyArtfest.com, and marketing group, MyArtfest Services, will soon support the needs of galleries, wholesalers, artists, private collectors, and designers who provide products and services in the art and home decor industries.  As a consolidator of top quality vendors and items MyArtfest.com and MyArtfest Services will provide a comprehensive network of Internet and physical location opportunities to increase sales.

Our two-pronged attack is designed to:  
       · Display an almost unlimited collection of art and items of value
       · Help buyers easily locate, select and buy "that perfect item"
       · Offer sellers an easy-to-use, efficient way to expand their reach

Our revenue model is driven primarily by online buyer and seller subscriptions (enhanced by add-on and cross-sell purchases.)  Our secondary revenue stream is to rent our lists and to provide marketing tools to help our members pull buyers into online and brick-and-mortar purchasing opportunities.  Fee structures are based on member type and chosen services.

MyArtfest.com looks like a regular Internet art gallery, but operates as a referral service.   Now, galleries, wholesalers, artists, and private collectors have an additional advertising and marketing venue that has Artfest working to make them more successful.  MyArtfest.com isn’t just another Internet store.  It is a consolidator of goods and resources for introduction to like-minded buyers and sellers.  Once the introduction is made, the parties work together to consummate the sale--giving the member full control of the transaction details.

MyArtfest Services provides ways to integrate the needs and activities of MyArtfest.com registered business and artists members who maintain conventional, independently-owned and operated retail establishments.  MyArtfest Services helps them to better serve our mutual customers.   This includes providing access to the MyArtfest.com marketing database, providing announcement services of special events, and other marketing tools that create a network marketing environment opportunities.
Artfest International's unique "bricks and clicks" business model will allow worldwide consumers, artists, retailers, and wholesalers to interact with commerce in mind.

Who We Are

Artfest International, Inc. has been in the art business as gallery owners and operators since 2003.  From this experience, we discovered an unfilled need for businesses and individuals, centered on the industries of art and home decor, to have a more comprehensive way to expand their marketing presence beyond their physical locations and company websites.  

Directors and Executive Officer
 
Edward Vakser, President, Chief Executive Officer, and Chairman of the Board 

Edward Vakser, who was the President and Chief Executive Officer of ACHI since 2004 now holds the same position with us.  For the past 24 years, Mr. Vakser has been involved in a multitude of enterprises including owning the second largest staging company in North Texas and producing some of the largest corporate and entertainment industries events.  He has been awarded several growth and performance industry awards.  For over 10 years, Mr. Vakser has been working on several intellectual property concepts including ACHI, 3D Concert, Wrestling, Ultimate Fighting and Extreme Sports, along with a multitude of art, recording, and performing artists. Edward Vakser currently serves as ARTS President, CEO, and Chairman of the Board.

Larry D. Ditto, Ph. D., Director 
 
Larry D. Ditto has been involved with ARTI since early 2005 as its then CEO and was later appointed President and Chairman of the Board of Directors.  In 1979, Mr. Ditto became President, CEO, and 50% owner of a business that provided group purchasing programs for nursing homes.  He specialized in negotiating agreements with suppliers forpurchasesof hundred of millions of dollars.  The company was sold in 1996 to its largest competitor, and he accepted a work/consulting agreement with the new owners.  His contract ended in 2006.  In 1967, Mr. Ditto completed an MA in elementary administration and entered the doctoral program at Michigan State University as a teaching fellow. Mr. Ditto currently serves on the ARTI Board of Directors.

How It Works

Artfest revenue models are driven by online buyer and seller subscriptions, enhanced by add-on cross-sell purchases, and services that include list rental and marketing tools to help our members pull buyers into purchasing opportunities.  Fee structures are based on member type and chosen services.

MyArtfest.com will launch first. It serves as a concierge, a referral service between artists, private collectors, interior designers, retailers, wholesalers, and gallery operators who buy, sell and trade valuable art and home décor. This subscriber service offers e-commerce visibility and convenience.  Subscribers can post items for sale or trade, search for their perfect item, and post information about themselves.  New items will be uploaded regularly and fresh artists and galleries constantly featured so buyers will have reason to return again and again to MyArtfest.com.

Four member types are structured with prices and features specific to their needs.


~Business members can buy and sell.  They can post an unlimited number of items for durations of 1 to 90 days.  Their subscription-based membership runs for 90 day increments with an automatic renewal by credit card.  Members can opt-out at any time.  Business members are defined as those holding a retail license and a physical and/or Internet presence.  
 
~Artist Members can buy and sell.  They can post and unlimited number of items for durations of 1 to 90 days.  Their subscription-based membership runs for 90 day increments with an automatic renewal by credit card.  Members can opt-out at any time.  Artist members are defined as those only selling their own works. 

~Private Collectors can buy and sell.  There is no registration or subscription fee for these members.  They "pay as they go" for each 90-day posting and a referral fee when they wish to contact a Seller. The per occurrence-per item price is much higher than the subscription rates so private collectors are defined as buyers who primarily want to buy, but will also occasionally sell items that no longer fit in their home or matches their design plan.

~Designer Members (pending)

 
Auto-renew subscription fees will pay for base services while add-on fees, such as premier placement of an item and attention-getting icons, color and bolding will be charged on an opt-in basis.

Buyers and sellers will find a simple, one page registration process that takes only a minute to sign up. Although it is not required to register if all they want to do is view listings on this site, the site will encourage them to take advantage of all the other free features that registering has to offer. 
  
At launch the site will have these features for sellers: 

• "My Account" pages allow sellers to edit account settings any time...day or night.
  

• Link to their web-page.  A unique seller information page will be a post launch enhancement.
  

• "Listing" process is very simple to use. The site guides the user through each step of the process which only takes a minute or two before the listing is live on the site.  Multiple photos can be loaded.
  

• "My Active Listings" page shows a list of  sellers "Active Listings" on the site, as well as the opportunity to edit those listings.
  

• "Browse by thumbnails" feature allows for the first photo uploaded to be displayed as a thumbnail image in the New Items section of the home page – visible to visitors browsing the site. 
  

• "Seller's Other Listings" link is conveniently located on each listing display page for potential buyers to view all of the sellers other listings that are currently active on the site.
  

• "Listing Extras" features allow additional indicators to listing to attract more attention from potential buyers while they are browsing the site.
  

• "Attention Getters" feature allows sellers to draw special attention to their items by selecting one of the attention getter icons. 
  

• "Featured Listing" status gives the option to give listings some additional exposure on the home page feature section and at the top of all browse listing pages.
  

• "Better Placement" feature gives listing priority (higher placement within table) over other listings within that same category. 
  

•  

• "Bolding" feature bolds the text in the listing and changes the background color for additional attention.
  

 At launch the site will have these features for Buyers: 

• "My Account" pages allow buyer to edit your account settings any time...day or night.
  
• "Listing Favorites" allows buyer to keep a list of "Listings to Watch". They can add as many listings as they want and delete them any time within the personal account pages.  
  
• "Advanced Search" page allows buyer to narrow their search or expand their search to meet exact specifications. 
  
• "Messaging System" gives buyer the ability to communicate with sellers directly from this site without having to open up their email application. When the seller replies to their message through the Message System, that message will be stored on the site for them to retrieve later. 
  
• Seller's Other Listings" link is conveniently located on the ad display page for buyer to view all of a particular seller's listings that are currently active on the site. 
  
• "Tell-a-Friend" link on each listing display page allows buyer to quickly send a listing's details to a friend using the site's messaging system. No need for email! 
  
• "Browse by thumbnails" allows buyer to browse the site previewing thumbnail images of listings without having to first click through to the listing details page. 
  
• "Contact Seller" link is easily located on each listing page for buyer to contact the seller directly with any questions concerning their listing. The listing ID is automatically included in the message that is sent.

Features for Sellers and Buyers:
 

• "Tell-a-Friend" link on each listing display page allows visitors to quickly send a listing's details to a friend using the site's messaging system. 
  

• "Contact Seller" link is explicitly located on each listing page for buyers to contact sellers directly with any questions they may have concerning the listing. The listing title and ID is automatically included in the message that is sent for quick reference.

Our Software

MyArtfest.com and MyArtfest Services are built on a platform of Geodesic Solutions Enterprise software.  It is the most feature rich classified and auction application in the market. We chose it because the code is “open” or unencrypted to allow for features of our business development model to be incorporated. Only the file or files necessary to control the software's license key are encrypted. This ultimately provides a large jump forward to achieving the functionality we need. It is Internet based software which means we can administer our site from virtually anywhere in the world, as long as we have an Internet connection.
 
The software's admin control panel assigns html templates to the various pages within the site. There are a wide variety of switches and modules allowing us to turn features on and off with ease.  In additional the HTML based functionality gives us total design flexibility just as we would have would when setting up a typical static HTML website.
 
Software features:

• High Traffic Capability - Ability to handle extreme amounts of traffic due to its database functionality.       
  

• Unlimited Listings - Scalable to a virtually limitless number of listings.       
  

• Unlimited Users - Scalable to a virtually limitless number of users.       
  

• Unlimited Categories – We can any number of categories.       
  

• Unlimited Subcategories - Allows any number of subcategories.       
  

• Unlimited Category Specific Questions - Allows as many questions per category as desired.   
  

• Seamless Updates - Site design and settings are stored in the database, allowing receipt and implementation of software updates seamlessly without affecting existing changes.      
  

• Hosting Portability - Your MySQL database and files can be backed up and moved to a different host without losing any data...site design, users, listings, everything can be moved.      
  

• Dynamic Extra Pages - Allows creation of extra pages to use for additional content.   
  

• Intelligent Thumbnail Scaling - Specify thumbnail image sizes within the software's admin panel.        
  

• Unix or Windows - Has capability to run on both Unix/Linux and Windows web servers.
  

• Zip/Postal Code Proximity Search - Can be integrated with the GeoProducts ZipSearch Addon, which allows site visitors to perform proximity search (in miles) based upon a Zip Code entered.            
  

• PHP Source Code NOT Encrypted - Gives full access to the PHP Source Code so that edits, enhancements, and feature additions can be made to the software.      
  

• Enhanced Email Settings - To take advantage of either our server's Standard SendMail configuration or SMTP configuration.       
  

• Copy categories, Subcategories and Category Specific Questions from one category to another saving valuable hours of setup time.       
  

• Template Design Flexibility - Template based platform allows for complete flexibility in design layout. The template's html is built from the opening html tag to closing html tag, allowing our own meta data to be laid into the template.      
  

• Module Based Features - Each feature (module) of the software has its own specific tag, which allows move/edit/deletes that tag anywhere within the template that we want the feature to be displayed.      
  

• Create Unlimited Templates - Develop individual templates for unlimited number of pages. No PHP experience is required. Create an unlimited number of templates to assign a unique template for every page if you want to, including on a category by category basis.  
  

• Additional Sortable Fields - These fields can be set up to be used as 'sortable columns' (sort listings) while browsing the site's categories.

• Meta Tags - Eenter meta tags through the admin panel so that the meta tags are applied across all pages of the site.

• Page Titles - Unique titles are dynamically produced for each page by the software based upon the page of your site that the visitor is browsing. For example, if a visitor is browsing the 'Paintings' category, 'Paintings' will be displayed in the browser's page title. If the visitor is viewing a listing, the actual title of the listing will be used for the browser's page title.

• Page Linking - Every page of the software has a distinct URL that can be 'linked to' from other websites. This includes individual categories, subcategories, listings, etc. 
  

• Editable Text Areas - Every piece of text displayed on the site has a 'text area' associated with it. Since it is a 'text area' and not a 'text field', you can enter 'html' into that area which may be used to improve search engine effectiveness. 
  

• Search Engine Friendly URLs - The software uses 'mod-rewrite' on the server to display our site's URLs in a .html format rather than a .php format. It does this through the SEO Addon, included with our Enterprise Editions. 
  

• Included:  GDLibrary  - converts customers' uploaded images to a smaller physical size, thereby condensing the size of the image so that each image uses less disk space and pages will load faster.
  

• Included: IonCube or Zend Optimizer - boosts the speed of PHP scripts and code.

The software has the foundational capability to allow each customer user to add inventory items for sale and manage those items with sales features that enhance visibility. It is designed as a subscription and add-on feature revenue model.  However, it has required significant modification to convert it from the original single-type user to our model of Private Collector, Business, and Artist user.  Each user requires different pricing and feature options.  In addition, we must modify the payment method from one used in an auction environment (like eBay) to a more direct pay for subscription model as we are not handling the cashiering for our users purchase activity.  We have implemented an SSL certificate which is required when using this particular payment structure.  All major credit cards (except American Express) will be accepted at launch.
 
The software has robust search capability, however, its auction-type category layout was insufficient for our business model.  A significant amount of time and money has gone into modifying the search to its first level of improvement and enhancements will continue even after launch. At launch users will be able to search by category and using “power search” they can search by one or a combination of: category, keyword, price range, artist name, dimensions, and location.  The keyword search will read all titles and descriptions and includes matching by whole words, partial word, and by item number. Additional variables can and will be added in after-launch enhancement plans.
 
Category options include Art, Designer Décor, Antiques, Items Wanted and Will Trade options. The site can hold virtually an unlimited number of items for sale.

Television Distribution and Affiliates...

The new television show "Artfest Presents" reaches 20 million potential homes with one of the fastest growing broadcast networks in the industry, delivering the show to viewers through Art Channel's affiliated broadcast stations and cable stations. "Artfest Presents" features the Art Channel artists and programming that is useful, informative, entertaining, and distinctive. Check the distribution list link to find Artfest programming in your local area. You won't want to miss the shows!

Artfest Auctions...

MyArtfest.com is our online revenue and social networking channel.  It looks like a regular Internet art gallery, but operates as a referral service.   Now, galleries, wholesalers, artists, and private collectors have an additional advertising and marketing venue that has Artfest working to make them more successful.  This isn’t just another Internet store.  It is a consolidator of goods and resources for introduction to like-minded buyers and sellers.  Once the introduction is made, the parties work together to consummate the sale--giving the member full control of the transaction details. Visit MyArtfest.com.

Art Channel Galleries...

Art Channel Galleries was founded by a diverse group of professionals, including business owners, entrepreneurs, marketing specialists, artists and technology specialists. Art Channel Galleries is a company built on a foundation of valued shareholders, board of directors and advisors that have the skills to build Art Channel Galleries into a corporate presence on an International level. Art Channel Galleries has the vision, and better yet, a mission to change the way the world buys and collects art!

We take great pride in the products that we provide to our customers we are firm believers in the principle that art is a powerful tool to enhance life and to inspire individuals. We believe that art is for everyone, not for a select few. It is our hope that through our products, many people will find great joy and satisfaction in the collectibles that they receive.

Art Channel Galleries is home to some of the finest artists in the world today, and we are honored by their participation in our Art program. Additionally, we are grateful for the overwhelming response we have received from participating world-renowned artists for our Authenticated Art Channel Galleries Collectibles.

Our Art Collectibles are much more than conversation pieces they are timeless heirlooms that can literally transform the character of a room or office, providing interest and inspiration that are unparalleled.

For more information, visit ArtChannelGalleries.com

Artfest Networks...

The Art Channel mission is to help launch new and existing artists and provide a vehicle that would introduce and educate the public about the arts. The Art Channel covers a wide variety of "All Things That are Creative;" fine art, visual art, music, performing art, spoken and written words, books and multimedia. The Art Channel creates not only a promotional support, but also a financial one. The Art Channel is a vertically integrated solutions provider to assist an artist in creating their product and take it to the market. The Art Channel is supported by a consortium of service providers and vendors that cover and span all aspects of printing, framing, recording, filming/video taping, and multimedia producing and media support.

The Art Channel Network is dedicated to producing television shows, films, special events, and multimedia productions covering all aspects of creative arts and entertainment. The network is based out of Dallas, Texas and will be broadcasting its signal through all distribution outlets that are available, including the Internet. The Art Channel is also involved in developing and producing TV shows and films that are currently being distributed by other networks. The Art Channel also will consider showcasing and distributing works produced by others that share the same production values with the Arts and Entertainment themes.

For more information, visit ArtChannel.tv.