----

ational

| FINANCIAL                STATEMENTS                                                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
|     Balance                Sheets - September 30, June 30, and March 31, 2004 and                2003           | F-3    |
|     Statements                of Operations and Accumulated Deficit During the                Development Stage | F-4    |
|     Statements                of Cash Flows                                                                     | F-5    |
|     Notes                to Financial Statements                                                                | F-7    |

----

ational

|  ASSETS                                        |   | **For                the Six Months** |   |
|-----------------------------------------------------|--------|--------------------------------------------|--------|
|                                                |   |                                       |   | **ended                June 30,** |   |
|                                                |   |                                       |   |   |   |   |   |
|                                                |   |                                       |   | **2004** |   | **2003** |   |
| Current                Assets:                      |   |                                       |   |   |   |   |
| Cash                                                | $      | 6,157                                      |   | $ | 19,446 |   |
| Prepaid                Expenses                     |   | 6,498                                      |   |   | 0  |   |
| Loan                Receivable (Notes 5 & 8)    |   | 50,000                                     |   |   | 50,000 |   |
| Other                Assets                         |   | 995                                        |   |   | 0 |   |
|                                                |   |                                       |   |   |   |   |   |   |   |   |
| Total                Current Assets                 |   |                                       |   |   |   | 63,650 |   |   | 69,446 |   |
|                                                |   |                                       |   |   |   |   |   |   |   |   |
| Property                and Equipment, at cost less |   |                                       |   |
| accumulated                depreciation             |   |                                       |   |   |   | 22,693 |   |   | 25,888 |   |
|                                                |   |                                       |   |   |   |   |   |   |   |   |
| TOTAL                ASSETS                         | $      | 86343                                      |   | $ | 95,334 |   |

|                                                                           |   |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   |   |   |   |   |
|   LIABILITIES                AND STOCKHOLDERS'                EQUITY |   | **For                the Six Months** |   |
|                                                                           |   | **ended                June 30,** |   |
|                                                                           |   |   |   |   |   |
|                                                                           |   | **2004** |   | **2003** |   |
| Current                Liabilities:                                            |   |   |   |   |   |   |   |
| Accounts                Payable                                                |   | $ | 110,913 |   | $ | 107,200 |   |
| Loans                Payable (Notes 9 & 11)                                |   |   | 65,436 |   |   | 17,325 |   |
|                                                                           |   |   |   |   |   |   |   |
| Total                Current Liabilities                                       |   |   | 176,349 |   |   | 124,525 |   |
|                                                                           |   |   |   |   |   |   |   |
| Long                Term Liabilities:                                          |   |   |   |   |   |   |   |
| Note                Payable - Auto (Note 10)                                   |   |   | 23,038 |   |   | 28,237 |   |
|                                                                           |   |   |   |   |   |   |   |
| TOTAL                LIABILITIES                                               |   |   | 199,387 |   |   | 152,762 |   |
|                                                                           |   |   |   |   |   |   |   |
| Stockholders'                Equity:                                           |   |   |   |   |   |   |   |
| Common                Stock - $.00001 par value - 40,000,000                   |   |   |   |   |   |   |   |
| shares                authorized, 22,582,500 and 19,832,000                    |   |   |   |   |   |   |   |
| shares                issued and outstanding at                                |   |   |   |   |   |   |   |
| March                31, 2004 and 2003, respectively                           |   |   | 198 |   |   | 198 |   |
| Additional                Paid-in Capital                                      |   |   | 178,790 |   |   | 121,099 |   |
| (Deficit)                accumulated during developmental stage                |   |   | (292,032 | ) |   | (178,725 | ) |
|                                                                           |   |   |   |   |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                      |   | $ | 86,343 |   | $ | 95,334 |   |

----

ation

|                                                          |   | **For                the Six**  |       | **February                21, 2002**  |   |
|---------------------------------------------------------------|--------|---------------------------------|------------|---------------------------------------|--------|
|                                                          |   | **Months                ended** |       | **(Inception)                to**     |   |
|                                                          |   | **June                30,**     |       | **June 30,                2004** |   |
|                                                          |   |                            |       |                                  |   |   |   |
|                                                          |   | **2004**                        |       | **2003**                              |   |   |   |
|                                                          |   |                            |       |                                  |   |   |   |
| Revenues                                                      |   | $                               | 30,164     |                                  | $      | 9,221 |   | $ | 19,764 |   |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
| Cost                of Revenue                                |   |                            | 2,061      |                                  |   | 23,698 |   |   | 167,803 |   |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
| Gross                Profit (Loss)                            |   |                            | 28,103     |                                  |   | (14,477 | ) |   | (48,039 | ) |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
| General                and Administrative                     |   |                            | 82,467     |                                  |   | 55,892 |   |   | 243,993 |   |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
| (Deficit)                Accumulated - Development Stage      |   | $                               | (54,364    | )                                     | $      | (70,369 | ) | $ | (292,032 | ) |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
| Weighted                average number of common shares       |   |                            |       |                                  |   |   |   |   |   |   |
| outstanding                - basic and fully diluted          |   |                            | 22,582,500 |                                  |   | 19,832,000 |   |   |   |   |
|                                                          |   |                            |       |                                  |   |   |   |   |   |   |
| Net                (Loss) per share - basic and fully diluted |   | $                               | 0          |                                  | $      | 0 |   |   |   |   |

----

national

|                                                    |   | **For                the Six**                                               |    | **February                21, 2002**  |   |
|---------------------------------------------------------|--------|------------------------------------------------------------------------------|---------|---------------------------------------|--------|
|                                                    |   | **Months                ended**                                              |    | **(Inception)                to**     |   |
|                                                    |   | **                        June 30,** |    | **June 30,                2004** |   |
|                                                    |   |                                                                         |    |                                  |   |   |   |
|                                                    |   | **2004**                                                                     |    | **2003**                              |   |   |   |
|                                                    |   |                                                                         |    |                                  |   |   |   |
| Cash                Flows from Operating Activities:    |   |                                                                         |    |                                  |   |   |   |   |   |   |
| Net                Income (Loss)                        |   | $                                                                            | 54,364  |                                  | $      | (70,369 | ) | $ | (292,032 | ) |
| Adjustments                to reconcile net (loss) to   |   |                                                                         |    |                                  |   |   |   |   |   |   |
| net                cash (used) by operating activities: |   |                                                                         |    |                                  |   |   |   |   |   |   |
| Depreciation                                            |   |                                                                         | 2,564   |                                  |   | 3,830 |   |   | 10,224 |   |
| (Increase)                Decrease in other assets      |   |                                                                         | (995    | )                                     |   | 0 |   |   | (995 | ) |
| Increase                in loan receivable              |   |                                                                         | 0       |                                  |   | 0 |   |   | (50,000 | ) |
| Increase                (Decrease) in accounts payable  |   |                                                                         | (7,362  | )                                     |   | 0 |   |   | 110,912 |   |
| Increase                in prepaid expenses             |   |                                                                         | 0       |                                  |   | 0 |   |   | (6,498 | ) |
| Net                Cash (Used) by Operating Activities: |   |                                                                         | (60,157 | )                                     |   | (66,539 | ) |   | (228,389 | ) |
|                                                    |   |                                                                         |    |                                  |   |   |   |   |   |   |
| Cash                Flows From Investing Activities:    |   |                                                                         |    |                                  |   |   |   |   |   |   |
| Purchase                of Equipment                    |   |                                                                         | (3,200  | )                                |   | (29,717 | ) |   | (32,917 | ) |
| Net                Cash Used by Investing Activities:   |   |                                                                         | (3,200  | )                                     |   | (29,717 | ) |   | (32,917 | ) |

----

|                                                      |   | **For                the Six**                                         |   | **February                21, 2002**  |   |
|-----------------------------------------------------------|--------|------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                      |   | **Months                ended**                                        |   | **(Inception)                to**     |   |
|                                                      |   | **                       June 30,** |   | **September                30, 2004** |   |
|                                                      |   |                                                                   |   |                                  |   |   |   |
|                                                      |   | **2004**                                                               |   | **2003**                              |   |   |   |
| Cash                Flows From Financing Activities:      |   |                                                                   |   |                                  |   |   |   |   |   |   |
|                                                      |   |                                                                   |   |                                  |   |   |   |   |   |   |
| Issuance                of Common Stock                   |   |                                                                   | 0      |                                  |   | 1 |   |   | 198 |   |
| Increase                in loans payable                  |   |                                                                   | 19,823 |                                  |   | 45,562 |   |   | 88,475 |   |
| Increase                in contributed capital            |   |                                                                   | 49,691 |                                  |   | 70,099 |   |   | 178,790 |   |
|                                                      |   |                                                                   |   |                                  |   |   |   |   |   |   |
| Net                Cash Provided by Financing Activities: |   |                                                                   | 69,514 |                                  |   | 115,662 |   |   | 267,463 |   |
|                                                      |   |                                                                   |   |                                  |   |   |   |   |   |   |
| Net                Increase in Cash                       |   |                                                                   | 6,157  |                                  |   | 19,406 |   |   | 6,157 |   |
|                                                      |   |                                                                   |   |                                  |   |   |   |   |   |   |
| Cash                at Beginning of Period                |   |                                                                   | 0      |                                  |   | 40 |   |   | 0 |   |
|                                                      |   |                                                                   |   |                                  |   |   |   |   |   |   |
| Cash                at End of Period                      |   | $                                                                      | 6,157  |                                  | $      | 19,446 |   | $ | 6,157 |   |

----

tional

| **Note                1 - History and organization of the company**                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| The                Company was organized February 21, 2002 (Date of Inception) under                the laws                of the state of Delaware to operate a retailing business through                its                wholly-owned subsidiary. The Company has limited operations and in                accordance with SFAS# 7, the Company is considered a development                stage                company.                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Note                2 - Accounting policies and procedures**                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| The                Company maintains a cash balance in a non-interest-bearing account                that                currently does not exceed federally insured limits. For the purpose                of the                statements of cash flows, all highly liquid investments with an original                maturity of three months or less are considered to be cash equivalents.                There were no cash equivalents as of June 30, 2004. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Fixed                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Property                and equipment are recorded at historical cost. Minor additions and                renewals are expensed in the year incurred. Major additions and renewals                are capitalized and depreciated over their estimated useful lives.                Depreciation is calculated using the straight-line method over the                estimated useful lives as follows:                                                             |

|   |   |   | Computer                equipment | 3                years                                           |   |   |
|--------|--------|--------|-----------------------------------|------------------------------------------------------------------|--------|--------|
|   |   |   | Automobile                   |                    5              years |   |   |
|   |   |   | Office                equipment   |                                                             | 7years |   |   |

|                                                                                                                                                                                                                                                                                                                                                     |   |                       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                     |   |                       |   |
|                                                                                                                                                                                                                                                                                                                                                     |   | **2004**                   |   |
| Property                and Equipment consist of the following:                                                                                                                                                                                                                                                                                          |   | **June                30** |   |
|                                                                                                                                                                                                                                                                                                                                                     |   |                       |   |
| Automobile                                                                                                                                                                                                                                                                                                                                               |   | $                          | 29,717 |   |
| Office                equipment                                                                                                                                                                                                                                                                                                                          |   |                       | 3,200  |   |
| Less-accumulated                depreciation                                                                                                                                                                                                                                                                                                             |   |                       | 10,224 |   |
|                                                                                                                                                                                                                                                                                                                                                     |   | $                          | 22,693 |   |
|                                                                                                                                                                                                                                                                                                                                                     |   |                       |   |   |
| Impairment                of long-lived assets                                                                                                                                                                                                                                                                                                           |
| Long-lived                assets held and used by the Company are reviewed for possible impairment                whenever events or circumstances indicate the carrying amount of                an asset                may not be recoverable or is impaired. No such impairments have been                identified by management at June 30, 2004. |
|                                                                                                                                                                                                                                                                                                                                                     |   |                       |   |   |
| Revenue                recognition                                                                                                                                                                                                                                                                                                                       |   |                       |   |   |
| The                Company recognized revenue and gains when earned and related costs                of                sales and expenses when incurred.                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                     |   |                       |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Advertising                costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| The                Company expenses all costs of advertising as incurred. There were                no                advertising costsincluded                in selling, or general and administrative expenses in 2004 or                2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Loss                per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |
| Net                loss per share is provided in accordance with Statement of Financial                Accounting Standards No. 128 (SFAS # 128) "Earnings Per Share". Basic                loss                per share is computed by dividing losses available to common stockholders                by the weighted average number of common shares outstanding during                the                period. The Company had no dilutive common stock equivalents, such                as                stock options or warrants as of September 30, 2004 or                2003.                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Reporting                on the costs of start-up activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |
| Statement                of Position 98-5 (SOP 98-5), "Reporting on the Costs of Start-Up                Activities", which provides guidance on the financial reporting of                start-up costs and organizational costs, requires most costs of start-up                activities and organizational costs to be expensed as incurred. SOP-98-5                is effective for fiscal years beginning after December 15, 1998.                With the                adoption of SOP-98, there has been little or no effect on the Company's                financial statements.                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| The                preparation of financial statements in conformity with generally                accepted                accounting principles requires management to make estimates and                assumptions that affect the reported amounts of assets and liabilities                and                disclosure of contingent assets and liabilities at the date of the                financial statements, and the reported amounts of revenue and expenses                during the reporting period. Actual results could differ from those                estimates.                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Fair                value of financial instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |
| Fair                value estimates discussed herein are based upon certain market assumptions                and pertinent information available to management as of June 30,                2004 and                2003 respectively. The respective carrying value of certain                on-balance-sheet financial instruments approximated their fair values.                These financial instruments include cash and accounts payable. Fair                values                are assumed to approximate carrying values for cash and payables                because                they are short term in nature and their carrying amounts approximated                fair                values or they are payable on demand.                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Income                Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Deferred                income tax assets and liabilities are computed annually for differences                between the financial statement and tax basis of assets and liabilities                that will result in taxable or deductible amounts in the future based                on                enacted tax laws and rates applicable on the periods in which the                differences are expected to affect taxable income. Valuation allowances                are established when necessary to reduce deferred tax assets to the                amount                expected to be realized. Income tax expense is the tax payable or                refundable for the period plus or minus the change during the period                in                deferred tax assets and                liabilities. |

----

| Segment                reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| The                Company follows Statement of Financial Accounting Standards No. 130,                "Disclosures About Segments of an Enterprise and Related Information".                The                Company operates as a single segment and will evaluate additional                segment                disclosure requirements as it expands its operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| The                Company has not yet adopted any policy regarding payment of dividends.                No                dividends have been paid or declared since inception.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Recent                pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| In                June 2001, SFAS No. 141, "Business Combinations", and SFAS No. 142,                "Goodwill andOther                Intangible Assets", were issued. SFAS No. 141 requires that all business                combinations initiated after June 30, 2001 be accounted for using                the                purchase method of accounting, and that identifiable intangible assets                acquired in a business combination be recognized as an assets apart                from                goodwill if they meet certain criteria. The impact of the adoption                of SFAS                No. 141 on our reported operating results, financial position and                existing                financial statements disclosure is not expected to be                material.                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| SFAS                No. 142 applies to all goodwill and identified intangible assets                acquired                in a business combination. Under the new standard, all goodwill and                indefinite-lived intangible assets, include the acquired before initial                application of the standard, will not be amortized but will be tested                for                impairment at least annually. The new standard is effective for fiscal                years beginning after December 15, 2001. The impact of the adoption                of                SFAS No. 142 on our reported operating results, financial position                and                existing financial statement disclosure is not expected to be                material.                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| In                July 2001, SFAS No. 143, "Accounting for Asset Retirement Obligations",                was issued which requires the recognition of a liability for an asset                retirement obligation in the period in which it is incurred. When                the                liability is initially recorded, the carrying amount of the elated                long-lived asset is correspondingly increased. Over time, the liability                is                accreted to its present value and the related capitalized charge                is                depreciated over the useful life of the asset. SFAS No. 143 is effective                for fiscal years beginning after June 15, 2002. The impact of the                adoption                of SFAS No. 143 on the Company's reported operating results, financial                position and existing financial statement disclosure is not expected                to be                material. |

| In                  August 2001, SFAS No. 144, "Accounting for the Impairment of Disposal                  of                  Long-lived Assets",                  was issued. This statement addresses the financial accounting and                  reporting for the impairment                  of disposal of long-lived assets and broadens the definition of                  what                  constitutes a discontinued                  operation and how results of a discontinued operation are to be                  measured                  and presented.                  The provisions of SFAS No. 144 are effective for financial statements                  issued for fiscal                  years beginning after December 15, 2001. The impact of the adoption                  of                  SFAS No. 144 on                  our reported operating results, financial position and existing                  financial                  statement disclosure is                  not expected to be material. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Stock-Based                  Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| The                  Company accounts for stock-based awards to employees in accordance                  with                  Accounting Principles                  Board Opinion No. 25, "Accounting for Stock Issued to Employees"                  and                  related interpretations                  and has adopted the disclosure only alternative of SFAS No. 123,                  "Accounting for                  Stock-Based Compensation". Options granted to consultants, independent                  representatives and                  other non-employees are accounted for using the fair value method                  as                  prescribed by SFAS                  No. 123.                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |

----

| Year                  end                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| The                  Company has adopted December 31 as its fiscal year end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **Note                  3 - Going concern**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The                  accompanying financial statements have been prepared assuming the                  Company                  will continue as a going concern. As shown in the accompanying                  financial                  statements, the Company has incurred a net loss of $292,032 for                  the period                  from February 21, 2002 (inception) to June 30, 2004. The future of                  the Company is dependent upon its ability to obtain financing and                  upon                  future profitable operations from the development of its new business                  opportunities. Management has plans to seek additional capital                  through a                  public offering of its common stock. The financial statements do                  not                  include any adjustments relating to the recoverability and classification                  of recorded assets, or the amount of the classification of liabilities                  that might be necessary in the event the Company cannot continue                  in                  existence. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **Note                  4 - Income taxes**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The                  Company accounts for income taxes under Statement of Financial                  Accounting                  Standards No.                  109, "Accounting for Income Taxes" (SFAS No. 109), which requires                  use of                  the liability method.                  SFAS No. 109 provides that deferred tax assets and liabilities                  are                  recorded based on the                  differences between the tax bases of assets and liabilities and                  their                  carrying amounts for financial                  reporting purposes, referred to as temporary differences. Deferred                  tax                  assets and liabilities                  at the end of each period are determined using the currently enacted                  tax                  rates applied to                  taxable income in the periods in which the deferred tax assets                  and                  liabilities are expected tobe                  settled or realized.                                                                            |
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| The                provisions for income taxes differs from the amount computed by applying                the statutory federal                income tax rate to Income before provision for income taxes. The                source                and taxeffects                of the differences are as follows: |
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|   |   | U.S.                federal statutory rate | 34.00% |   |   |   |
|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|   |   |                                       |   |   |   |   |   |   |
|   |   | Valuation                reserve           |   | 34.00% |   |   |   |
|   |   |                                       |   |   |   |   |   |   |
|   |   | Total                                      |   |   | 0.00%  |        |   |   |
|   |   |                                       |   |   |   |   |   |   |

| As                  of June  30, 2004, the Company has a net operating loss carryforward                  of approximately $292,032 for tax purposes, which will be available                  to                  offset future taxable income. This carryforward will expire in                  2023. |
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| **Note                  5 - Loan Receivable**                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| On                  June 23, 2002, the Company loaned $50,000 to an affiliated company.                  The                  note is due pon                  demand and bears no interest rate (See related party                  transactions).                                                           |

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|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| **Note                  6 - Stockholders' Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The                  Company is currently authorized to issue 40,000,000 shares of its                  $0.00001                  par value common                  stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| On                  November 19, 2002 the Company issued 19,685,000 shares of its .00001                  par                  value common                  stock as founders' shares to acquire 100% of the outstanding shares                  of                  Artfest, Inc., a                  Delaware Corporation for a net book value of $197. Artfest provides                  sales,                  marketing, inancial                  and e-commerce systems to the industries of Arts, Antiques, Collectibles                  and Luxury                  Goods. The markets are serviced by artists, dealers, galleries,                  and                  manufacturers of reproductions                  and luxury goods. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **Note                  7 - Warrants and options**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |
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| As                  of June 30, 2004 and 2003, there were no warrants or options outstanding                  to acquire  any                  additional shares of common                  stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| **Note                8 - Leases**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
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| On                March 23, 2003 the Company executed a lease agreement that calls                for the                issuance of Company                stock to the landlord in exchange for rent. The lease will expire                five                years from the commencement date. The terms of the lease call for                a base                rent of $54,660 per year for he                first two years in exchange for 1,000,000 shares of the Company's                stock,                and $72,880 per                year for 3 through 5. The shares are transferrable at the landlord's                discretion and will be tendered                upon landlord's completion of leasehold improvements. The lease also                calls                for additional                rent of 10% of gross sales in excess of $500.000 for years 1 and                2, and 5%                of gross                sales in excess of $1,457,600 for years 3 through 5. |
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| **Note                9 - Related party transactions**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |
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| On                June 23, 2002, the Company loaned $50,000 to an affiliated company.                The                note is due upon                demand and bears no interest rate. The loan is to a company who's                principle owner, Joseph                Walsh, is also the Principal owner Chief Operating Officer, Treasurer,                and                Chairman of                the Board of the Company. (See Note 5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| Office                space and services are provided without charge by the Chief Operating                Officer. Such costs                are immaterial to the financial statements and, accordingly, have                not been                reflected therein.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| The                officers and directors of the Company are involved in other business                activities and may, in the future become involved in other business                opportunities. If a specific business opportunity becomes available,                such                person may face a conflict in selecting between the Company and their                other business interest. The Company has not formulated a policy                for the                resolution of such conflicts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| **Note                10 - Loans Payable**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
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| On                January 5, 2003, the Company purchased a 2002 Chevrolet Avalanche                through                GMAC for                $29,717. The note calls for a term of 5 years at a rate of 5.9% beginning                on February 24, 2003 and maturing on December 24, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| **Note                11 - Short term notes payable**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| The                Company has short term notes payable to non shareholder investors                in the                amount of $20,000 at June 30, 2004.  The notes call for varying                interest rates ranging from 1% to 8% per annum, and contain a stock                payment option payable to the lender's discretion. The notes also                call for                a payment of 3.75% of gross sales from the Company's coffee shop                revenue                at its Grand Rapids, MI. mall location. Included in the accompanying                balance sheet under the following captions: |
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| Current                Liabilities:             |       |       |  **2004** | ** ** |
|-------------------------------------------------|------------|------------|----------------|------------|
| ** **                                      | ** ** | ** ** | ** **     | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
|                                            | ** ** | ** ** |           | ** ** | ** ** | ** ** | ** ** | ** ** | **June                30,** |   |
|                                            |       |       |           |       |   |   |   |   |   |   |
| Loans                Payable - Shareholders     |       | $          |           |       |   |   |   | $ | 45,436 |   |
| Loans                Payable - Non-Shareholders |       |       |           |       |   |   |   |   | 20,000 |   |
| Total                Current Loans payable      |       | $          |           |       |   |   |   | $ | 65,436 |   |

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