Artfest International, Inc (fka ARTS)

[EDWARD STEVENSON]

Take for instance the Studio acquisition.

The company deliberately targeted an established facility, one already generating revenues ($500,000 as below). The idea behind this strategic move can be explained quite simply.

An additonal $500,000+ in company revenues ~> greater income ~> appreciation in company value ~> higher market valuation ~> shareholder value.

However the cycle does not necessarily have to follow that particular format.

An additonal $500,000+ in company revenues ~> greater income ~> greater capital for further development/capital for investing opportunities ~> accelerated company growth ~> higher market valuation ~> shareholder value.

Notice that this recording studio is also fit to meet high-end demands. Ultimately, the company would want to acquire a facility that not only generates revenue but one that is reputable and performs to standards of top recording artists and major film, television and commercial requirements of Fortune 500 corporations. The mentioned artists (below) not only dominate the industry but are spread among several genres of music which would indicate that the facility could potentially host just about anyone. That significantly broadens the market in which (one who controls) the studio profits. A well thought out move indeed.


Proposed Studio Acquisition
In August 2008 the Company entered into a Purchase and Sale Agreement to acquire a 35,000 square foot facility located in Dallas, TX that was constructed to handle the demanding requirements of top recording artists as well as the major film, television and commercial requirements of Fortune 500 corporations and their entertainment divisions.. Bands and artists such as the Jonas Brothers, Ice Cube, Miser, Rouge, Justin Timberlake, Miley Cyrus, P. Diddy, Mariah Carey, Usher and others have recorded in the studio. Artfest will be able to develop and produce high quality advertising and programming for traditional as well as Internet television through the Company’s television subsidiary, ArtChannel TV that will bring viewers and advertisers to our art and collectibles direct marketing site as well as to our social networking site, www.MyArtfest.com . The facility currently generates revenues over $500,000 annually and the Company dramatically expects to increase revenues dramatically once the acquisition is completed. The Company is currently reviewing financing options to conclude the transaction during 2009.

Source: 10-K statement: http://pinksheets.com/edgar/GetFilingHtml?FilingID=6541833