SOURCE: Artfest International, Inc.

August 24, 2010 07:08 ET

Artfest International, Inc. Increases Revenues by 748% for the Six Months Ended June 30, 2010 as Compared to the Same Period in 2009

Company Files Its 10Q With the SEC for the Second Quarter

DALLAS, TX--(Marketwire - August 24, 2010) - Artfest International, Inc. (OTCBB: ARTS) is pleased to announce that the Company has generated $1,424,412 in operating revenue in the six months ended June 30, 2010 as compared to $167,885 in operating revenue for the six months ended June 30, 2009, which is an increase of 748%. Artfest International, Inc. also reported a gross profit of $834,124 for the six months ended June 30, 2010 versus $166,885 for the same period in 2009. The increase in operating revenue is due to the increased sales of art and sports memorabilia through the Company's wholly owned subsidiary, Charity Sports Distributor, as well as through events held at Artfest International's 52,000 square foot facility in Dallas, Texas, and direct sales activity through its Art Channel, Inc. and Art Channel Galleries, Inc. subsidiaries. 

Based on Artfest's direct sales model, combined with the acquisition of CSD, ArtChannel Galleries increased its sales due to the addition of sports and memorabilia territory rights, which created sales to its new members during the second quarter. CSD, which accounted for more than half of Artfest International's second quarter revenue, is a vertically integrated custom framing company that specializes in the design, production and distribution of authentic framed autographed sports and entertainment collectibles and art pieces. CSD's distribution channels include business to business (B2B) and business to consumer (B2C) sales, charity fundraising auctions, professional and college sports teams' pro shops, e-stores, online auctions and a revolutionary in-game silent auction concept known as Home Game Auction.

Artfest recently announced that its wholly owned subsidiary, Art Channel TV, has moved its production, master control and broadcast operations to Maximedia Studios. Maximedia is one of the leading television and recording production facilities in the Dallas area. Art Channel TV will now be operating out of a 33,000 square foot facility, which will help meet the future demands as the Company is in various stages of production of various projects such as "Thomas Kinkade's Impressions of Israel Collection" and "Rhupert TV." Maximedia Studios has an impressive list of clients from "American Idol" to the Jonas Brothers and Mariah Carey, Kenny Chesney, Shakira, and Sister Hazel.

"We are excited about the progress that Artfest has made during the first six months of this year and we look forward to continuing to increase shareholder value through sales and key acquisitions," stated Edward Vakser, CEO of Artfest International, Inc.

Artfest International's Second Quarter 10Q can be found at: www.sec.gov.

About Artfest International, Inc.

Artfest International, Inc. 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.

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