PROVEN PRODUCT

Smart Kids Publishing (SKP), a Division of Smart Kidz Media, Inc., has had great success in creating innovative children's books and media products that are generally targeted at young children--from infants to grade school children. Our book products are sold through retailers, distributors, specialty markets, schools and directly to consumers at our bookstore website. Our products have sold millions of units over the past several years in ``bricks 'n mortar`` stores and our Smart Kidz trademark has increased in brand awareness and acceptance among our distributors and target markets. Many of our titles have attained the coveted ``evergreen`` status—books that are timeless and continue to sell in the marketplace.

SKP has been successful using chip technology and integrating light and sound chips into children's products to make the end product fun and interactive for children—yet affordable for parents. Over the years, SKP has created, produced and developed hundreds of children's books, videos, songs, interactive games, toys and other media products.

PROVEN TRACK RECORD OF SALES

We know what is required to make a children's media successful in the marketplace. Our greatest strength is finding sophisticated technologies and incorporating these technologies into our media products. As our track record shows, our products sell extremely well in the mass and retail markets. As an example, our light and sound chip books generated $8 - $10 million in annual sales through retail and mass market stores. Over the past 30 years, our products have generated over $200 million in sales revenue.

OUR WAREHOUSE & FULFILLMENT CENTER AND SALES OFFICES

Our main warehouse, order processing and fulfillment center is located in Nashville, TN. Since our warehouse is in the middle of over 65% of the US population, our standard delivery time is only one and two days. The 172,000 Sq Ft facility has approximately 60,000 Sq Ft assigned to primary pick pack fulfillment functions and remainder of the facility (112,000 Sq Ft) is used for bulk storage. Our data file management staff assures that our mailing lists, customer files and inventory files are kept up to date and managed properly. Our order information system processes orders, ship the order, sends invoices, and secures tracking numbers to assure receipt of shipment.

Our sales office is also located in our Nashville Warehouse & Fulfillment Center. With an in-house sales team of three professionals handling key national retail accounts, plus an independent sales rep force of over 100 salespeople, we are able to reach a high percentage of retailers around the US. Our sales team has well established relationships with the national book retailers and wholesalers like Barnes & Noble, Borders, Books-A-Million, Baker & Taylor, CBA stores and almost all of the independent book stores. Our sales team also services large chain stores like Target, K-Mart, Wal-Mart, Sam's Club, Toys R Us and Meijers.

OUR GLOBAL OFFICES

Through our Hong Kong office we are able to manufacture sophisticated products at affordable price points to make them competitive in the marketplace.