http://www.FutureVest.com U.S. Headquarters 515 Seabreeze Blvd. · Suite 530 Fort Lauderdale, FL 33316 Tel: (954) 938-8962 Fax: (954) 776-8222 Canadian Headquarters 5919 3rd St. SE, Calgary Alberta · Canada, T2H 1K3 Tel: (403) 252-7766 Fax: (403) 252-7752 E-Trend Networks, Inc. COMPANY PROFILE E-Trend Networks is a distributor of packaged entertainment media, with distribution channels to both online retail e-commerce and traditional bricks and mortar retail outlets. The Company currently engages in "business-to-consumer"(B2C), business-to-business (B2B), and "business-to-business- to consumer"; (B2B2C) relationships and as a result acts as a facilitator, wholesaler, as well as provides third party fulfillment. E-Trend has created its online "entertainment super-site", http://www.EntertainMe.com, to capture e-commerce sales of movies, music and games and more. The products are amongst the top sales categories on the Internet. VHQ Entertainment, the founding Company of E-Trend Networks, is a public company traded on the Toronto Stock Exchange under the symbol (VHQ) OVERVIEW E Trend Networks, Inc. ***INVESTMENT POINTS*** The Company is in the process of building a multifaceted retail empire. E-Trend has parlayed its lead in entertainment-related products to dominate other retail categories. The company has essentially doubled its online offerings in the last year, and we expect further expansion into other categories to continue at a rapid pace. As a result of its partnership with its founding company, VHQ Entertainment, E-Trend will derive incremental business opportunities, as well as extend its corporate branding and reach, through nearly 50 VHQ Entertainment superstores. E-Trend's strategy to leverage the VHQ retail operation will include aggressive in-store marketing and cross promotions and via fulfillment of sales on the VHQ.ca web site and Internet kiosks that are planned for VHQ Entertainment stores. Recently, E-Trend Networks enhanced its competitive and financial position, by announcing the execution of a funding commitment with an institutional investor for the purchase of up to $10 million worth of E-Trend Networks common stock. The use of proceeds will finance the acquisition of assets or businesses, as well as for general corporate purposes, such as expanding its corporate infrastructure, marketing programs and the hiring of additional key employees. At a price-to-sales-ratio that is several times less than that of its competition, as well as the overall sector, one can make a case that, at current levels, E-Trend Networks is severely undervalued. The Company is honing in on profitability. However, minimal losses are expected for the third and fourth quarters of 2001. Moreover, positive earnings are anticipated early to mid 2002. For fiscal year 2002, we are looking for E-Trend Networks to report revenues of $12-14 million. As a result of its expanding operations, E-Trend Networks expects to derive incremental economies of scale and operating efficiencies. Moreover, marketing, product development, and general expenses should increase, however, as a percentage of sales, expenses should decrease. In summary, e-commerce is the most important retailing phenomenon to happen in our lifetimes, and E-Trend Networks, with its corporate partnership, niche positioning, healthy balance sheet, and adroit management team, is well positioned to weather the "dot-com" implosion. The Company has unique and sustainable competitive advantages that should allow it to stand well above its peer group. http://www.StockPicks.com Price Target for ETDN Current Price: $1.80 6 Month Target: $5.00 12 Month Target: $9.50 For More Information http://www.StockPicks.com 3-Months Ended (thousands)March 31 2001 (A)2000 (A) Net Sales$486,705$188,135 Gross Profit$46,573$50,407 Net Loss$(397,967)$(12,973) EPS$(0.09)$0.00 6-Months Ended (thousands)March 31 2001 (A)2000 (A) Net Sales$924,222$188,135 Gross Profit$103,903$50,407 Net Loss$(813,409)$(306.969) EPS$(0.18)$(0.07) QUOTE & BALANCE 3/31/2001 SHEET INFORMATION Price Range$0.65 to $2.50 Shares Outstanding 5,215,730 Market Capitalization $10,952,073 PE Ratio NA Divedend Yield 00.0% Cash Position 791,548 Total Assets $2,722,705 Total Liabilities $1,021,327 Shareholder Equity 1,701,378 Download the full report at http://www.FutureVest.com The information and opinions in this report were prepared by the authors who are employees of FutureVest, Inc. and is current as of the date of this report. This report was prepared from the sources that are believed to be reliable, but we cannot assure you that these sources were complete, timely, or accurate. The investments discussed in this report may not be suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources. Investors should be aware that the market price of the securities discussed in this report might be volatile. FutureVest, Inc. may provide investment-banking services to, or may solicit investment-banking business from the Company, or Companies discussed in this report. Internet stocks are speculative investments. Only those investors whose objectives include speculation should consider purchasing the common shares of E-Trend Networks, Inc. FutureVest, Inc.'s affiliates or ! employees may have a long or short position or hold options on securities or other related investments of the Company discussed in this report. This report is for informational purposes only, and is not intended as a recommendation or an offer or solicitation of an offer to any person with respect to the purchase or sale of the security discussed in this report. This report may not be reproduced, stored in a retrieval system, or transmitted in any form with the prior written consent of FutureVest, Inc. © Copyright 2001 by FutureVest, Inc. THIS MESSAGE IS BEING SENT IN COMPLIANCE WITH PENDING EMAIL BILLS & LAWS: SECTION 301. PER SECTION, PARAGRAPH (a) (2) (c) of S. 1618. This message is not intended for residents in the State of WA, VA & CA. Screening of addresses has been done to the best of our technical ability. To discontinue receipt of further notice at no cost and to be removed from all of our databases, simply reply to message with the word "Remove" in the subject line. If you are a Washington, Virginia, or California resident please remove yourself via email reply. We honor all removal requests.***F14-17 FutureVest FutureVest
