SOURCE: Artfest International, Inc.

October 28, 2009 08:31 ET

Artfest Acquires Luxor International Valued at $10,000,000

Assets Appraised Between $9M - $12M Acquired by Artfest for $5M; Artfest Restructures Its Shares to Support Accretive Acquisition

DALLAS, TX--(Marketwire - October 28, 2009) - Artfest International, Inc. (OTCBB: ARTI) (OTCBB: ARTS), a leading edge arts and sports memorabilia distribution company, announced it has completed the acquisition of 100% of the assets of Luxor International, Inc. of Frisco, Texas, a privately held company, for $5,000,000.

The terms of the deal include 4 million shares of Artfest International valued at $1.00 per share, plus an additional $1,000,000 in cash. The assets being acquired include approximately 750 works of art expected to be appraised between $9 million to $12 million. Many of these works of art may be viewed at the following Web site: www.luxorartmuseum.com

In support of this accretive acquisition as well as better positioning the company for earnings per share and a future listing to the AMEX or NASDAQ exchanges, Artfest is restructuring its share capitalization. Effective today October 28, the company will open trading under the Symbol ARTS, with its shares completing a 50 to 1 reverse split.

"This is a key milestone in Artfest's continued growth both as a publicly traded company, and as a leader in arts and collectibles distribution. The addition of these assets to the company's balance sheet brings us one step closer to meeting listing requirements for AMEX and NASDAQ," stated Edward Vakser, CEO of Artfest International, Inc.

"Some of the works are located here in Texas, where we will be displaying them at our 50,000 square foot gallery, and the other part of this exciting collection is located in San Diego, California. We will also be adding them to our catalogue where they can be previewed and purchased over the Internet," concluded Vakser

"This restructuring of Artfest through a 50 to 1 reverse split will enable the Company to better reflect Earnings Per Share and the asset acquisition will help qualify Artfest for an up-listing to the AMEX or NASDAQ exchange," said Angie Tassan, Artfest CMO.

About Artfest International, Inc.

Artfest International, Inc. is a publicly traded Company under the stock symbol "ARTI." Artfest brings together artists, investors, decorators, designers, private collectors and art galleries. Artfest International's corporate site is www.artfestinternational.com. Artfest's subsidiaries are Art Channel, Inc. www.artchannel.tv, and Art Channel Galleries, Inc. www.ArtChannelGalleries.com, offering the most exciting product and rewards program in the history of direct sales marketing.

Safe Harbor Statement -- This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ARTI does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

Contact Information

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