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Re: None

Thursday, 05/18/2006 12:07:55 PM

Thursday, May 18, 2006 12:07:55 PM

Post# of 286279
**My notes, to the best I could get them** These are my opinion, listen to the call yourself, but here is a very rough copy of what was said in a nutshell.

Authorized share authorization was made to such a level to ensure no further authorized shares would be needed.

2nd onfile sb 2, could give company up to 20million , bringing outstanding shares to 9billion.

gag order will remain, due to number of inquiries by share holders, done at transfer agents request. too many inquirires, JF will announce count monthly.

676000 in rev's, increase from 403k, prev year.

1.6 mil rev projection for year.

assets over 12m
7m cash avail
3m inventory
remain fixed assets.

700000 debt, inc long term, and acct payable. incl golden gate, expecting improvements.

1st sb2 fully funds.
2nd sb2 allows for full marketing plans etc.

2006:
growing expanding dist centers and membership, relationships, movie studios, etc.

gzfx, not startup, but growth company;

dist center:
now shipping from Maryland.
orlando online in 3 to 4 weeks.

by holiday; open in sacramento
dallas, seattle chicago and maybe 1 or 2 more as needed. in lower 48.
Goal to be deployed by holiday, anticipating strong holiday.

RandD.:
gnf entertainment: digital dist, and content: 1. beginning, launched TVnetwork, is R&D, to expand into digital distribution, learning how content aquisition works, how to be avail for rental via digital delivery.

Company is focused on rent by mail, but is gearing up for digital delivery for future due to the direction towards that distribution in the future. What's included to get content rights.
Approaching RandD, similarly: managed growth, cost consciencous, low cost currently. Moving forward, when clearly defined, then will

Looking at expansion in other english speaking countries. (overseas).

2006. commitment to day one inventory: having stock on hand on day one, new release etc, focusing on game market, xbox great impact on business. Compettion is 3 to 4 weeks behind gzfx waiting for used copies.

Platforms:
hd dvd is in stock and beginnigng to ship: BlueXXXX looking to get instock:

Nintendo, holiday launch, gearing up for those launches, will have day one inventory.

TV series to be available, friends, seinfield, etc.

Marketing:
Strategic relationships: partnerships where it makes sense, retailers, off and online. manufacturers, 'coupons' electronics, offers in boxes, sub based companies, target audiences, partner with co registration who are promoting themselves. looking at organizations, non profit org/s, fund raisers, gift cards, dvd boxes, offering svc's to share in rev's that way.

Advertising: heavy online, search engine, next quarter, affiliate, online program: Massachusetts, tv ads. in conjunction w dist ctr.
also; next couple weeks, ad's in DC/gaithersberg, as DC's open; TV will run around those openings.

Research:
better understand lifestyle: whta they do, effort to better target cust's. strategic parters etc.

LA conference:
met with developers, and manuf. what's coming up, software, and games, hardware: preparing now for holiday, prepurchasing.

Holiday:
150 xbox titles on market by holiday, PS3 will open with 20 to 30 titles, Will have games in hand, shipping 7days ahead of game release.

shipping:
commitment to decreasing inbound and outbound shipping times.

8-10 dist ctrs cover 48states in 24 to 48 hrs by holiday guarantee delivery to 48hrs in conjunction with postal svc agreements and targets.

"growth"
want to be leader in download world. Future of business in addition to what they are doing today.
HDEF, blueray, PS3, XBox 360, will go to gzfx. they will have inventory. good relationship with companies.

Commitment to additinal platforms, handhelds, cellular, wireless gaming nad movies, Ipod, portable technologies, watching all avenues that it can be delivered to. want relationship regardless of dist channel. want it mail, digital (cell, ipod) deliver to TV, etc. looking into and committing to as per Chip:

Email questions:
sub count, anticipated:
company policy membership during filings with Q's as per legal, its growing, continues to grow, cannot release as per legal constriants. Not missing 100% shipping ratios. Revenue, gross profit, and breakeven is important..

Eric:
gnf commercials; revenue, RandD: are getting small rev's from commercials. Yes small amt of rev is getting from tv channnel:

for chip:
cananda circuit city: exp United kingdom:
Circuit city relatinship is fine, cannot give future comment on CC. looking into expand in europe etc, beit aquisitions, or startup.

Circuit City is "fine, thanks for asking" going forward, agreement is they wont make unsolicited comments about agreements, there are other items working.

Deals with Target: Rule: no employee can post on board. Cannot comment on potential partner, non disclosure rules. (SEC rules too)*brians addition*.

PJ: what doing about inventory on titles in high demand;
constant monitoring; prebook 6to8 weeks ahead, work with vendors on what's expected, and pad with addtnl titles, look at inventory few days later. monitor inventory, on web: when it 'may ship' and demand etc. looking at diff ways to communicate how to inventory is conveyed to cust , 'high demand, available etc' doesnt mean they dont have in stock. most cases they do have title, its a way to let cust know that its in high demand, etc.

financial with CC, cant comment as per agreement with strategic partners.

Rumoring on share count:
stock information center: rumor is outstanding at 9b. 4billion xxx outstanding, and it's on website, accurate as of 1035 cst today.

dist channel near seattle:
aug sept. later in year as roll out dist centers.

Peter:
reverse split: company position: does not plan to do rev split, only ceratin cond's if needed to reverse to qualify for major market, not in best interest of shareholders. Not in plan at given moment, if conditions were right, board etc. IT IS NOT ON THE TABLE AT THIS TIME.

from dana:
concerns; netflix lawsuit patent infringement: NOt at this time, diff business model, video and movies, software is diff, company created and owned, had council on the issue, does not look iike it is a concern.

Consumer report, months ago reported not up to thier standard etc.
when they looked into it, the account that they tried to use to est, prob's with address and function of the account. account problem that they did not try to resolve, something to do with person, credit card or something of the like, they asked CR to issue retraction and they did not.

from bob:
Restore investor conf. set limit on shares: company indicated outstanding potential could be, in comment to auth shares, at this time potential is 9b "if golden gate executes" that would give gzfx 20m in cash.
cap on outstanding is 25billion, not on radar to use them all, could definitely go to 9b. updated on website, and SEC website, will ungag transfer: no, they will make gzfx go to diff tranfer agent because of investors inquiring.
Will report info in historical fashion, by reporting as it happens and not to mislead investors by what "could happen".


Affiliate partner:
working to bring more affiliates online, affiliates@gameznflix.com to get signed up. Managed growth, not wide open, screening involved, cowabunga technologies manages.

Jed:
on tv netflix favors newer cust's to older, not throttling (preference) unbias, no preset rating to customers.

Aafes:
is fine, under nda, agreement, testing, taking longer "everything is fine, when it goes live, they will put out press release".
Military program, set up to thank military family. support military.
Target already commented, thank you very much.
why meeting: live update on what company is doing.

Small growing company, tremendous management team, leading it to next company, "chip" PR 2 weeks ago call was coming, being archived and available for 365 days on website. www.gameznflix.com

Share buyback?
diluted shares to get capitol. At this time they are not looking to buy back shares. Would use the capitol that they raised in doing so. Not at this time.

Pls update on audio book rentals
looking at audio book rental as per chip, getting feedback at this time. Looking into the market: could bring into fold, customers are to ask, request etc.

what will gzfx do to promote to stock : doesnt hire non rev producing people. small company, handle investment relations inhouse, historical nature. will not release business plan due to compettion. unique doing games and movies. cant give up info due to compettion, very small, but are profit driven asap, and move to profit. Appreicate investors,

Built on investors, he has 126million shares. Will hire investment relations: do some to gather and spread info.
Wanting to make company profitable, that will reflect in stock price. Golden Gate relationship, gives mgmnt and company opportunity to grow.
Conservative growth: inventory is key, cash is king, happy customers, customer service improved. Cust svc issues dropped 300%.
Putting plan into place, machine is built and functioning. (talked about satisfying with DC's) do not report to shareholder daily, but in historical fashion. (goal is to be profitable and growth).

Everything is in place to execute plan. Progress in next 18 24 months, focus on mail, eye on digital delivery. signifigant relationships with strategic partners. Want those in place, using them to grow now, and planting seeds to grow in future.

Have financing to execute plan, sustain growth, get inventory from distributors (by having cash). continuing growth quarterly, does not want to pump and dump etc.

Business is in go mode.


Good luck.