Eternal Image Inc (fka ETNLQ)

[Stocky Stockerton]

From: http://www.eternalimage.net/investors.asp

"July 18th, 2007

Update: Audit Status & General Business Conditions

James Parliament, Chief Financial Officer of Eternal Image Inc said “We continue to work diligently on the audit. We have responded to the auditors request for additional clarification on the financial statements that we have already sent. The majority of the questions that the auditors have had are in the area of stock transaction verification. Coordinating the gathering of necessary documentation to support fairly stated financial statements has been an unanticipated and time consuming task. We will keep the investor community updated as details warrant”.

Clint Mytych, Chief Executive Officer of Eternal Image Inc. said “2007 is going to be a very exciting year for us now that we are booking sales. The second half of 2007 is going to be even more exciting as we expand our distribution base, increase our product portfolio, and continue taking restocking orders. Currently, there is a large backlog for our products due to increased demand and awareness”. "