The Company’s 3D film production group, Action 3D Productions, LLC (A3D), exploits an entertainment industry niche that benefits from few competitors, low production costs, a 10-15 year distribution life and valuable corporate sponsorship opportunities. A3D produces specialized 3D and 4D ride-films (“Films”) for world-wide distribution to over 250 exhibitors, including: Theme Parks, Science Museums and Casinos. Exhibitors pay A3D annual licensing fees ranging from $50,000-$125,000 (multi-film packages are less) to show each film.

A3D completed its first 3D Film, “Monster Trucks 3D” in the first quarter of 2007. “Monster Trucks 3D” is in distribution as of June 2007 and is projected to gross more than $4 million in licensing fees, more than $7 million in merchandise sales and earn $300,000 in sponsorship income. In addition to creating the “Monster Trucks 3D” ride Film, A3D also created valuable monster truck characters Tmaxx X:Drive and Havoc. These characters are the basis of a toy and merchandise line created by the Brand Asset Group which will be sold to audiences at each 3D theater and on the Web. A3D plans to produce three films during the next four years.

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