----

| Nevada                          |   | 13-3367421          |
|---------------------------------|--------|---------------------|
| (State or Other Jurisdiction of |   | (I.R.S. Employer    |
| Incorporation or Organization)  |   | Identification No.) |

| Large accelerated filer o | Accelerated filer o         |
|---------------------------|-----------------------------|
|                      |                        |
| Non-accelerated filer o   | Smaller reporting company x |

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|                                           | PART I.  FINANCIAL INFORMATION                                                                                                         |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                                           |                                                                                                                                        |   |
|                                           |                                                                                                                                        | Page(s) |
| Item 1.                                        | Consolidated Financial Statements                                                                                                           |   |
|                                           |                                                                                                                                        |   |
|                                           | Consolidated Balance Sheets, June 30, 2009 (unaudited) and December 31, 2008                                                                | 1 |
|                                           |                                                                                                                                        |   |
|                                           | Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) for the Three and Six Months Ended June 30, 2009 and 2008 |  2 |
|                                           |                                                                                                                                        |   |
|                                           | Consolidated Statements of Cash Flows (unaudited) for the Three and Six Months Ended June 30, 2009 and 2008                                 |  3 |
|                                           |                                                                                                                                        |   |
|                                           | Notes to the Consolidated Financial Statements (unaudited)                                                                                  | 4-15 |
|                                           |                                                                                                                                        |   |
| Item 2.                                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                 |         16 - 20 |
|                                           |                                                                                                                                        |   |
| Item 3.                                        | Quantitative and Qualitative Disclosures About Market Risk                                                                                  | NA |
|                                           |                                                                                                                                        |   |
| Item 4.                                        | Controls and Procedures                                                                                                                     | 21 |
|                                           |                                                                                                                                        |   |
|                                           | PART II.  OTHER INFORMATION                                                                                                            |   |
|                                           |                                                                                                                                        |   |
| Item 1.                                        | Legal Proceedings                                                                                                                           | 21 |
|                                           |                                                                                                                                        |   |
| Item 2.                                        | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                 | 21 |
|                                           |                                                                                                                                        |   |
| Item 3.                                        | Defaults Upon Senior Securities                                                                                                             | 21 |
|                                           |                                                                                                                                        |   |
| Item 4.                                        | Submission of Matters to a Vote of Security Holders                                                                                         | 21 |
|                                           |                                                                                                                                        |   |
| Item 5.                                        | Other Information                                                                                                                           | 21 |
|                                           |                                                                                                                                        |   |
| Item 6.                                        | Exhibits                                                                                                                                    | 22 |
|                                           |                                                                                                                                        |   |
| Signatures                                     |           23                                                                                   |
|                                           |                                                                                                                                        |   |
| Certification Under Sarbanes-Oxley Act of 2002 |                                                                                                                                        |

----

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|                                                                  |         |
|-----------------------------------------------------------------------|--------------|
| Consolidated Balance Sheets                                           | 1            |
|                                                                  |         |
| Consolidated Statements of Operations and Comprehensive Income (Loss) | 2            |
|                                                                  |         |
| Consolidated Statements of Cash Flows                                 | 3            |
|                                                                  |         |
| Condensed Notes to Consolidated Financial Statements                  | 4 – 15 |

----

|                                              |                                               |                                                               |                                       |                                       | June 30, 2009   |                       |  December 31, 2008 |
|---------------------------------------------------|----------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------|--------------------------------------------|-----------------|----------------------------|-------------------------|
| Current Assets                                    |  Unaudited                                    |                                                               |                                       |
|                                              | Cash                                               |                                                               | $                                          | 409,409                                    |            | $                          | 64,967                  |
|                                              | Short-term investments                             |                                                               | 152,405                                    |                                       |            | 128,553                    |
|                                              | Accounts receivable (net of reserve for doubtful   |                                                               |                                       |                                       |            |                       |
|                                              |                                               | accounts of $0 and $0, respectively)                               |                                       |  2,453,769                            |            |                       |  4,493,107         |
|                                              | Income tax refund receivable                       |                                                               |        -     |                                       |            | 25,091                     |
|                                              | Prepaid taxes                                      |                                                               | 154,740                                    |                                       |            |      - |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               | Total Current Assets                                               |                                       |  3,170,323                            |            |                       |  4,711,718         |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
| Property, Plant and Equipment (net of accumulated |                                               |                                                               |                                       |                                       |            |
|                                              | depreciation of $33,146 and $30,963, respectively) |                                                               |  4,858                                |                                       |            |  7,041                |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
| Other Assets                                      |                                               |                                                               |                                       |                                       |            |
|                                              | Deposits                                           |                                                               | 10,433                                     |                                       |            | 16,928                     |
|                                              | Deferred tax assets                                |                                                               | 189,222                                    |                                       |            | 166,709                    |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               | Total Other Assets                                                 |                                       | 199,655                                    |            |                       | 183,637                 |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               |                                                               |                                       | Total Assets                               | $               |  3,374,836            |                    | $ |  4,902,396 |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
| Liabilities and Stockholders' Equity              |                                               |                                                               |                                       |                                       |            |
|                                              | Current Liabilities                                |                                                               |                                       |                                       |            |                       |
|                                              |                                               | Accounts payable and accrued expenses                              | $                                          |  1,632,187                            |            | $                          |  3,022,783         |
|                                              |                                               | Income taxes payable                                               |                                       |        -     |            |                       | 93,260                  |
|                                              |                                               | Related party advances                                             |                                       | 38,400                                     |            |                       | 38,400                  |
|                                              |                                               | Accrued liabilities - Kaire Holdings                               |                                       | 237,045                                    |            |                       | 237,045                 |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               |                                                               | Total Current Liabilities                  |                                       |  1,907,632 |                       |                    |  3,391,488 |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              | Stockholders' Equity                               |                                                               |                                       |                                       |            |                       |
|                                              |                                               | Convertible preferred shares: $0.0001 par value, 50,000,000 shares |                                       |                                       |            |                       |                    |
|                                              |                                               |                                                               | authorized, 974,730 issued and outstanding |                                       | 98              |                       |                    | 98 |
|                                              |                                               | Common stock: $0.001 par value, 900,000,000 shares authorized,     |                                       |                                       |            |                       |                    |
|                                              |                                               |                                                               | 4,504,214 issued and outstanding           |                                       |  4,504     |                       |                    |  4,504 |
|                                              |                                               | Additional paid-in capital                                         |                                       |  1,346,231                            |            |                       |  1,346,231         |
|                                              |                                               | Accumulated other comprehensive income/(loss)                      |                                       |  7,024                                |            |                       | (8,718)                 |
|                                              |                                               | Retained earnings                                                  |                                       | 109,347                                    |            |                       | 168,793                 |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               |                                                               | Total Stockholders' Equity                 |                                       |  1,467,204 |                       |                    |  1,510,908 |
|                                              |                                               |                                                               |                                       |                                       |            |                       |                    |   |   |
|                                              |                                               |                                                               |                                       | Total Liabilities and Stockholders' Equity | $               |  3,374,836            |                    | $ |  4,902,396 |

----

|                                                          |                                  |                          |                                              |                        | Three Months Ended June 30, |           | Six Months Ended June 30, |
|---------------------------------------------------------------|---------------------------------------|-------------------------------|---------------------------------------------------|-----------------------------|-----------------------------|----------------|---------------------------|
|                                                          |                                  |                          |                                              |                        | 2009                        |           | 2008                      |   | 2009 |   | 2008 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |
| Revenues                                                      | $                                     |  4,097,624               |                                              | $                           |  4,417,318             |           | $                         |  6,603,869 |   | $ |  8,803,724 |
| Cost of Goods Sold                                            |                                  | (3,798,801)                   |                                              |                        | (4,045,294)                 |           |                      | (6,190,357) |   |   | (7,968,226) |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  |                          | Gross Profit                                      |                        | 298,823                     |           |                      | 372,024 |   |   | 413,512 |   |   | 835,498 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
| Operating Expenses                                            |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |
|                                                          | Administrative expenses               |                          | 102,494                                           |                        |                        | 163,217        |                      |   | 212,920 |   |   | 331,975 |
|                                                          | Rent                                  |                          |                                              | 12,398                      |                        |           | 20,536                    |   |   | 24,323 |   |   | 40,739 |
|                                                          | Salaries and wages                    |                          | 105,147                                           |                        |                        | 101,988        |                      |   | 267,034 |   |   | 250,487 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  | Total Operating Expenses      |                                              | 220,039                     |                        |           | 285,741                   |   |   | 504,277 |   |   | 623,201 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  |                          | Income/(loss) from Operations                     |                        | 78,784                      |           |                      | 86,283 |   |   |  (90,765) |   |   | 212,297 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
| Other Income/(Expenses)                                       |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |
|                                                          | Interest income                       |                          | 145                                               |                        |                        |  1,977    |                      |   | 696 |   |   |  6,029 |
|                                                          | Interest expense                      |                          | -                                                 |                        |                        | (5,833)        |                      |   | - |   |   |  (10,833) |
|                                                          | Forgiveness of debt                   |                          | -                                                 |                        |                        | 26,000         |                      |   | - |   |   | 26,000 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  | Total Other Income/(Expenses) |                                              | 145                         |                        |           | 22,144                    |   |   | 696 |   |   | 21,196 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  |                          | Net Income/(loss) before Income Taxes             |                        | 78,929                      |           |                      | 108,427 |   |   |  (90,069) |   |   | 233,493 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
| Income tax expense/(benefit)                                  |                                  |  (26,836)                |                                              |                        |  (63,318)              |           |                      | 30,623 |   |   | (118,893) |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  |                          | Net Income/(loss) available to common shareholder |                        | 52,093                      |           |                      | 45,109 |   |   |  (59,446) |   |   | 114,600 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
| Comprehensive Income                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |
|                                                          | Unrealized gain/(loss) on investments |                          | -                                                 |                        |                        |  (19,447) |                      |   | 15,742 |   |   |  (19,447) |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
|                                                          |                                  |                          |                                              | Comprehensive Income/(loss) | $                           | 52,093         |                      | $ | 25,662 |   | $ |  (43,704) |   | $ | 95,153 |
|                                                          |                                  |                          |                                              |                        |                        |           |                      |   |   |   |   |   |   |   |   |
| Earnings per weighted average share of common stock - basic   | $                                     | 0.01                          |                                              | $                           | 0.01                        |           | $                         | (0.01) |   | $ | 0.03 |
| Earnings per weighted average share of common stock - diluted | $                                     | 0.01                          |                                              | $                           | 0.01                        |           | $                         | (0.01) |   | $ | 0.02 |
| Weighted average shares outstanding - basic                   |                                  |  4,504,214               |                                              |                        |  4,504,214             |           |                      |  4,504,214 |   |   |  4,504,214 |
| Weighted average shares outstanding - diluted                 |                                  |  5,478,944               |                                              |                        |  5,387,460             |           |                      |  4,504,214 |   |   |  5,386,953 |

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|                                               |                                                         |                                              |                                            |                                             |  2009 |          |  2008    |
|----------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|--------------------------------------------------|------------|---------------|---------------|
|                                               |                                                         |                                              |                                            |                                             |       |          |          |
| Cash flow from operating activities:               |                                                         |                                              |                                            |                                             |       |
|                                               | Net income/(loss)                                            | $                                                 | (59,446)                                        |                                             | $          |  114,600 |
|                                               | Adjustments to reconcile net income/(loss) to net cash used  |                                              |                                            |                                             |       |          |
|                                               |                                                         | in operating activities:                          |                                            |                                             |       |          |          |
|                                               |                                                         |                                              | Depreciation expense                            |                                             | 2,183      |          |          | 2,678 |
|                                               |                                                         |                                              | Write off of accrued liabilities                |                                             | -          |          |          | (26,000) |
|                                               |                                                         |                                              | Preferred shares issued for payment of interest |                                             | -          |          |          | 10,833 |
|                                               | Changes in operating assets and liabilities:                 |                                              |                                            |                                             |       |          |
|                                               |                                                         | Decrease in accounts receivable                   |                                            | 2,039,338                                        |       |          |  599,693 |
|                                               |                                                         | Decrease in inventory                             |                                            | -                                                |       |          | 3,618         |
|                                               |                                                         | Decrease in income tax refund receivable          |                                            | 25,091                                           |       |          | -             |
|                                               |                                                         | (Increase) decrease in prepaid taxes              |                                            | (154,740)                                        |       |          | 15,002        |
|                                               |                                                         | (Increase) decrease in deposits                   |                                            | 6,495                                            |       |          | (10,432)      |
|                                               |                                                         | Increase in deferred tax asset                    |                                            | (30,623)                                         |       |          | -             |
|                                               |                                                         | (Decrease) increase in income taxes payable       |                                            | (93,260)                                         |       |          |  201,935 |
|                                               |                                                         | Decrease in accounts payable and accrued expenses |                                            |  (1,390,596)                                |       |          | (276,865)     |
|                                               |                                                         |                                              |                                            | Net cash generated byoperating activities        |       |  344,442 |          |   |  635,062 |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
| Cash flow from investing activities:               |                                                         |                                              |                                            |                                             |       |
|                                               |                                                         |                                              |                                            | Net cash used in investing activities            |       | -             |          |   | - |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
| Cash flow from financing activities:               |                                                         |                                              |                                            |                                             |       |
|                                               |                                                         |                                              |                                            | Net cash provided by financing activities        |       | -             |          |   | - |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
|                                               |                                                         |                                              |                                            | Net increase in cash and cash equivalents        |       |  344,442 |          |   |  635,062 |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
|                                               |                                                         |                                              |                                            | Cash and cash equivalents at beginning of period |       | 64,967        |          |   |  210,082 |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
|                                               |                                                         |                                              |                                            | Cash and cash equivalents at end of period       | $          |  409,409 |          | $ |  845,144 |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
|                                               |                                                         |                                              |                                            |                                             |       |          |          |   |   |
| Supplementary disclosures of cash flow information |                                                         |                                              |                                            |                                             |       |
|                                               | Cash paid during the year for                                |                                              |                                            |                                             |       |          |
|                                               |                                                         | Interest                                          | $                                               | -                                                |       | $             | -             |
|                                               |                                                         | Taxes                                             | $                                               |  248,000                                    |       | $             | 3,712         |
|                                               | Unrealized gain/(loss) on short-term investments, net of tax | $                                                 | 15,742                                          |                                             | $          | (19,447)      |

| •   | Issued 92,500 shares of Series A Convertible Preferred Shares in lieu of payment of promissory notes valued at $250,000 and related accrued interest valued at $27,500. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

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| Computers and equipment  | 3-5 years |
|--------------------------|-----------|
| Furniture & Fixtures | 5-7 years |

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|   | • | Level 1—Valuations based on quoted prices in active markets for identical assets.  Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly.  Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or other inputs that are observable or canbe corroborated by observable market data for substantially the full term of the assets or liabilities. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------|

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----

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|                          | 2009   |     | 2008   |
|-------------------------------|--------|----------|--------|
| Furniture and fixtures        | $      | 14,552   |   | $ | 14,552 |
| Computers and equipment       |   | 23,452   |   |   | 23,452 |
|                          |   | 38,004   |   |   | 38,004 |
| Less accumulated depreciation |   | (33,146) |   |   | (30,963) |
|                          | Total  | $        | 4,858  |   | $ | 7,041 |

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| Year ended December 31, |   |    |
|-------------------------|--------|---------|
| 2009                    | $      | 50,747  |
| 2010                    |   | 103,849 |
| 2011                    |   | 107,483 |
| Thereafter              |   | 187,119 |
|                    |   |    |
|                    | $      | 449,198 |

----

|                                                                           | For the Three Months Ended June 30, |
|--------------------------------------------------------------------------------|-------------------------------------|
|                                                                           | 2009                                |   | 2008 |
| BASIC EARNINGS PER SHARE OF COMMON STOCK:                                      |                                |   |   |   |   |
| Net earnings available to common stockholders                                  | $                                   | 52,093 |   | $ | 45,109 |
|                                                                           |                                |   |   |   |   |
| Weighted average common shares outstanding                                     |                                | 4,504,214 |   |   | 4,504,214 |
| Basic earnings per share of common stock                                       | $                                   | 0.01 |   | $ | 0.01 |
|                                                                           |                                |   |   |   |   |
| DILUTED EARNINGS PER SHARE OF COMMON STOCK:                                    |                                |   |   |   |   |
| Net earnings available to common stockholders                                  | $                                   | 52,093 |   | $ | 45,109 |
|                                                                           |                                |   |   |   |   |
| Weighted average common shares outstanding                                     |                                | 4,504,214 |   |   | 4,504,214 |
| Effect of dilutive securities:                                                 |                                |   |   |   |   |
|                                                                           | Options                             |   | - |   |   | - |
|                                                                           | Convertible preferred stock         |   | 974,730 |   |   | 974,730 |
| Weighted average common shares outstanding after effect of dilutive securities |                                | 5,478,944 |   |   | 5,478,944 |
|                                                                           |                                |   |   |   |   |
| Diluted earnings per share of common stock                                     | $                                   | 0.01 |   | $ | 0.01 |

|                                                                           | For the Six Months Ended June, |
|--------------------------------------------------------------------------------|--------------------------------|
|                                                                           | 2009                           |   | 2008 |
| BASIC EARNINGS PER SHARE OF COMMON STOCK:                                      |                           |   |   |   |   |
| Net earnings (loss) available to common stockholders                           | $                              | (43,704) |   | $ | 114,600 |
|                                                                           |                           |   |   |   |   |
| Weighted average common shares outstanding                                     |                           | 4,504,214 |   |   | 4,504,214 |
|                                                                           |                           |   |   |   |   |
| Basic earnings/(loss) per share of common stock                                | $                              | (0.01) |   | $ | 0.03 |
|                                                                           |                           |   |   |   |   |
| DILUTED EARNINGS PER SHARE OF COMMON STOCK:                                    |                           |   |   |   |   |
| Net earnings (loss) available to common stockholders                           | $                              | (43,704) |   | $ | 114,600 |
|                                                                           |                           |   |   |   |   |
| Weighted average common shares outstanding                                     |                           | 4,504,214 |   |   | 4,504,214 |
| Effect of dilutive securities:                                                 |                           |   |   |   |   |
|                                                                           | Options                        |   | - |   |   | - |
|                                                                           | Convertible preferred stock    |   | - |   |   | 974,730 |
| Weighted average common shares outstanding after effect of dilutive securities |                           | 4,504,214 |   |   | 5,478,944 |
|                                                                           |                           |   |   |   |   |
| Diluted earnings/(loss) per share of common stock                              | $                              | (0.01) |   | $ | 0.02 |

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| (a)   | One half of the Purchase Price amount ($800,000) shall be paid in common shares of IPL Group, Inc. as of the closing date based on a per share value of $1.75, or 457,143 shares.  Such shares shall bear the appropriate restrictions.  These shares are being held in escrow for the July 1, 2009 closing. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | One half of the Purchase Price amount ($800,000) shall be paid in Series B Convertible preferred shares which will be convertible into shares of IPL Group, Inc. common shares on a one for one basis.  The preferred shares shall be valued at $2.00 per share, and will be exercisable pursuant to the terms and conditions specified in the purchaseagreement.  These shares are being held in escrow for the July 1, 2009 closing. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · Continue growing revenue and profits through the existing business;                                                                                                                                                                                                                                                                                                                                         |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · Meet the challenge of the declining world economy while maintaining revenue and profitability - our goal will be to  focus closely on product mix, improve our gross margin and develop new projects with existing clients;                                                                                                                                                                       |
|   | · Expand the supply network for our products;                                                                                                                                                                                                                                                                                                                                                                 |
|   | · Expand our current business model to include other areas that fall within our distribution expertise such as packaging that uses plastic and acrylic material.                                                                                                                                                                                                                                              |
|   | · Due to the turndown of the economy the business environment was very tough in 2008 and continued through the second quarter of 2009.  As a result IPLO had to increase its aggressiveness in 2009 to achieve upward opportunitiesin helping customers achieve savings by offering cost reductions in product and transportation costs through its just –in-time inventory delivery program. |

|   | · Expand our service into other areas such as Europe and Australia through the same supplier channel.  Our existing business model copies to other markets naturally. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Three months ending:           | 6/30/2008 |   | 6/30/2009 |   | $ VAR    |   | % VAR  |                                                |
|--------------------------------|-----------|--------|-----------|--------|----------|--------|--------|-----------------------------------------------------|
| Salaries & Related Expense | $101,988  |   | $105,147  |   | $3,159   |   | 3.1%   |   Increase in Salaries                         |
| Rent                           | 20,536    |   | 12,395    |   | -8,141   |   | -39.6% |   New lease offset by negotiated rated credits |
| Insurance Expense              | 20,683    |   | 27,121    |   | 6,438    |   | 31.1%  |   Insurance premiums increased in 2009         |
| Accounting                     | 54,071    |   | 16,508    |   | -37,563  |   | -69.5% |   2007 audit fees paid in 2008                 |
| Travel Expense                 | 57,865    |   | 34,688    |   | -23,177  |   | -40.1% |   Less travel in 2009                          |
| All others                     | 30,598    |   | 24,180    |   | -6,418   |   | -21.0% |   Miscellaneous items                          |
|                           |      |   |      |   |     |   |   |                                                |
| Total Expenses                 | $285,741  |   | $220,039  |   | -$65,702 |   | -23.0% |                                                |

----

| Six months ending:             | 6/30/2008 |   | 6/30/2009 |   | $ VAR     |   | % VAR  |                                                       |
|--------------------------------|-----------|--------|-----------|--------|-----------|--------|--------|------------------------------------------------------------|
| Salaries & Related Expense | $250,487  |   | $267,034  |   | $16,547   |   | 6.6%   |   Increase in Salary plus 2008 bonus paid in 2009     |
| Rent                           | 40,739    |   | 24,323    |   | -16,416   |   | -40.3% |   New lease offset by negotiated rated credits        |
| Professional Service Expense   | 19,570    |   | 1,201     |   | -18,369   |   | -93.9% |   EITF 19 consulting fees, tax prep and footnote fees |
| Accounting                     | 64,071    |   | 31,308    |   | -32,763   |   | -51.1% |   2007 audit fees paid in 2008                        |
| Legal                          | 9,000     |   | 18,000    |   | 9,000     |   | 100.0% |   Legal fees started 2nd Qtr 2008                     |
| Travel Expense                 | 130,721   |   | 72,807    |   | -57,914   |   | -44.3% |   Less travel in 2009                                 |
| Outside Services               | 20,234    |   | 8,455     |   | -11,779   |   | -58.2% |   2008 - Proxy and public filing costs                |
| All others                     | 88,379    |   | 81,149    |   | -7,230    |   | -8.2%  |   Miscellaneous items                                 |
|  Total Expenses           | $623,201  |   | $504,277  |   | -$118,924 |   | -19.1% |                                                       |

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| (c)   | One half of the Purchase Price amount ($800,000) shall be paid in common shares of IPL Group, Inc. as of the closing date based on a per share value of $1.75, or 457,143 shares.  Such shares shall bear the appropriate restrictions.  These shares are being held in escrow for the July 1, 2009 closing. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | One half of the Purchase Price amount ($800,000) shall be paid in Series B Convertible preferred shares which will be convertible into shares of IPL Group, Inc. common shares on a one for one basis.  The preferred shares shall be valued at US$2.00 per share, and will be exercisable pursuant to the terms and conditions specified in the purchaseagreement.  These shares and are being held in escrow for the July 1, 2009 closing. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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