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Our financial statements for the year ended December 31, 1999 as restated contain a statement that losses from operations, a working capital deficit and a retained deficit, raise substantial doubt about our ability to continue as a going concern. The notes to the financial statements describe management's plan to address these concerns, which include: - Our raising 3,000,000 through a private placement of our securities in January 2000, - Our raising 2,100,000 through a private placement of our securities in March 2000, - The receipt by us of a commitment from the January 2000 investor to provide an additional 2,000,000 in private placement funding contingent on our achieving certain sales benchmarks for the first two quarters of 2000; - Our currently negotiating to raise an additional 15,000,000 via a private placement with a plan to pay off the Company's term loan with the proceeds; - Our having received a waiver from our credit facility lender for violations of certain covenants included in the loan agreement; - Our reducing portions of our fixed overhead expenses, including executive salary reductions of 1,300,000; - Our management having revised its marketing strategy and plans to reduce advertising expenditures; and. - Our management intends to focus additional efforts toward developing its e-commerce operations to generate additional revenues.

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