Circa Pict. & Prod. Co. Intnl Inc. (fka CPPD)

[Bill H]

http://www.qtelevision.com/site/investorinfo.asp

REFLECTIONS OF A CEO

July 29, 2005

To Our Valued Shareholders:



As CEO of a company that has planned gay television for four years, I am now privileged enough to have seen gay television on the air for almost a year. What brings this to mind is that the talent, production people and support staff of the station are now getting ready for the new season.


Last year at this time we had no shows that we produced ourselves - we used tapes that we had purchased, and the station had no identity. Even though we had been in planning, there was no "QTN". Today, everyone in the cable industry knows about Q Television, and most of them know that we have gay programming available 24 hours a day, 7 days a week, with up to 30 hours of live programming and at least 40% of original programming.


Our first anniversary is approaching quickly. We have come a long way since the taping of "Q on the Move" and the hiring of our first talent: Chrisanne Eastwood, Jack E. Jett, Scott Withers and Nick Oram. These are huge milestones that have been reached. Admittedly, mistakes have been made, but the best decision we ever made was to support the gay community in whatever they do, such as events, parades, etc.


We are the official broadcaster of the Gay Games, as well as a major sponsor. As I look at the budget for the next 18 months, I believe that, because of that decision, Q Television is going to be profitable faster than most cable stations. The norm for most cable stations is they are not profitable within their first 3-5 years. However, when they start the turnaround, the profits are unbelievable. When an independent station is sold, the rewards are enormous. Here are several examples of stations that were sold for billions of dollars: American Movie Channel, Bravo and other Black entertainment channels.


This brings me back to the main point. The Gay Games will enable Q Television to be in 150 of the top markets in the United States, and it will be broadcast in 40 countries. It has enabled Q Television to make long term commitments to the countries that are carrying the Gay Games, and help us to negotiate the cable operator contracts. As I reflect further, I believe that Q Television will be profitable by the end of the 2nd quarter of 2006.


The stock is down, and I blame myself for that because I haven't shown the shareholders where Q Television has been and where it is today. We are going to produce a DVD specifically for the shareholders to walk them through the history and the future of Q Television. Those shareholders who are interested, can contact Rich Brown at [e-mail] to obtain a copy.


We will be doing a shareholders’ meeting which we hope to schedule in late summer or early fall. We are aiming to make the meeting interactive so it is viewable from certain hotels in subscriber areas. I will be doing the meeting from the studio in Burbank where there will be room for an audience of 200 people. Shareholders will be able to ask questions through an 800 number and through email. Every question that pertains to QTN will be answered. If you tune in late, you can request a video copy to be sent to you. I am excited to offer our shareholders an opportunity to talk to me directly during this call. Please send an email to Rich Brown ([e-mail]) if you are interested in participating in the meeting and/or with questions you have.


Regards,

Frank Olsen

President and CEO