SOURCE: Artfest International, Inc.

November 20, 2009 09:00 ET

Artfest International, Inc. Posts Net Profit for the Third Quarter 2009

Company Files Its 10Q With the SEC for the Third Quarter Ending September 30, 2009

DALLAS, TX--(Marketwire - November 20, 2009) - Artfest International, Inc. (OTCBB: ARTS) is pleased to announce that the Company has generated $896,404 in operating revenue in the third quarter ending September 30, 2009 as compared to $4,000 in operating revenue for the third quarter ending September 30, 2008, which is an increase of 22,310%. Artfest International, Inc. also reported net income of $7,397 for the third quarter ending September 30, 2009 versus a loss of $29,862 for the same period in 2008. 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.

Artfest International reported total assets of $3,421,019 for the third quarter ending September 30, 2009 as compared to $537,445 for the third quarter ended September 30, 2008, which is a 536% increase. Based on Artfest's direct sales model, combined with the acquisition of CSD, Art Channel Galleries increased its sales due to the addition of sports and memorabilia territory right, which created sales to its new members during the third quarter. CSD, which accounted for nearly half of Artfest International's third 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.

The relationship with Artfest International has enabled CSD to expand its business model during the third quarter beyond its home game auction relationship with the 13 professional and college teams, with the signing of an agreement with Jump TV USA Holding Company to provide major college alumni player autographed memorabilia for Jump TV's online auctions. CSD recently solidified its partnership with NeuLion, (formerly Jump TV) to target the $1 Billion online sports auction market. CSD and NeuLion jointly host bi-weekly auctions for sports teams, which include The Ohio State University and The University of Georgia amongst others. During the third quarter, Artfest International also diversified its overall product line by signing an agreement with Nature's Sleep, Inc. and Mattress 4 You to distribute Nature's Sleep's Visco Memory Foam Mattress. The Company will assume the responsibility for the production of a Nature's Sleep Visco Memmory Foam mattress Infomercial.

"We are excited about the progress that Artfest International has made during the third 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.

Artfest International's Third Quarter 10-Q 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.

This press release contains "forward-looking" statements. These statements involve risk and uncertainties that could cause actual results to differ materially. There is no assurance the above described transaction will be completed. There can be no assurance of the ability of the company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future. The above and additional factors are discussed in detail in the company's filings with the SEC or found on www.pinksheets.com.

Contact Information

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