SOURCE: Artfest International, Inc.

May 20, 2010 14:19 ET

Artfest International, Inc. Increases Revenues by $383,432 for the First Quarter Ended March 31, 2010 as Compared to the Same Period in 2009

Company Files Its 10Q With the SEC for the First Quarter Ended March 31, 2010

DALLAS, TX--(Marketwire - May 20, 2010) - Artfest International, Inc. (OTCBB: ARTS) is pleased to announce that the Company has generated $852,432 in operating revenue in the first quarter ended March 31, 2010 as compared to $469,000 in operating revenue for the first quarter ended March 31, 2008, which is an increase of 82%. 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 (CSD), 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. 

Artfest International reported total assets of $5,839,968 for the first quarter ended March 31, 2010 as compared to $346,854 for the first quarter ended March 31, 2009, which is a 1584% increase. Based on Artfest's direct sales model, combined with the acquisition of CSD, ArtChannel Gallaries increased its sales due to the addition of sports and memorabilia territory rights, which created sales to its new members during the first quarter. CSD, which accounted for more than half of Artfest International's first 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 avenues 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 International has enabled CSD to expand its business model during the first quarter beyond its relationship with over 40 professional and college teams with the signing of a letter of intent with CBS College Sports to provide custom framed alumni player autographed memorabilia for the online auctions at CBS college partner teams including; Auburn, Iowa, Florida State, South Carolina, TCU, and UCLA. In addition, the company also signed an agreement with Jump TV USA Holding Company to provide major college alumni player autographed memorabilia for Jump TV's online auctions. Due to the large amount of fraud and falsification of authenticity in the collectables and art community, Artfest has developed a state of the art RFID technology that enables Artfest to validate reproduction numbers, replace damaged goods, and verify provenance. Artfest intends to roll out its RFID technology on all of its products in the 3rd Quarter 2010. 

"We are excited about the progress that Artfest International has made during the first quarter and we look forward to continuing to increase shareholder value through strengthening our relationships with both artists and sports teams in order to increase sales of our artwork and sports memorabilia," stated Edward Vakser, CEO of Artfest International, Inc.

The Company recently announced that all Artfest International Shareholders of Record as of April 15 will receive 1 share of Artfest Direct valued at $10 per share for every 1000 shares they own of Artfest International (ARTS) on the record date. Artfest Direct, Inc. was recently issued its CUSIP number, and is in the process of completing the distribution of the dividend. The Company expects the distribution to be completed within two weeks time.

Artfest International's First Quarter 10Q can be found at: http://www.otcmarkets.com/pink/quote/quote.jsp?symbol=ARTS

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.

Contact Information

  • Contact:
    Investor Relations
    1 407-389-5900