The fresh, natural-themed SMART(fx) trademark brand represents an unconventional yet high quality and deliciously revitalizing product. The distinctive logo and packaging have played a large part in motivating discerning consumers to seek it out and ask for it by name. SMART(fx) beverages and SNAX have earned that status due to a look, feel, taste And quality that remain new, evoking natural goodness and appealing taste in a simple presentation that allows its makers to offer premium products at a reasonable price.

Future growth plans include the launch of new products every year.

In 2003, SMART(fx) , is on the threshold of a major milestone in its dynamic history. While Toronto, Canada will remain the beach-head and International Headquarters for SMART(fx) , the company has established a U.S. base in Los Angeles, California. SMART(fx) is well received in the U.S., while the US $7 billion alternative beverage market, and the burgeoning US $500 million natural snacks market hold the key to unlocking the true potential of SMART(fx) to establish itself as a North American household name.

Acknowledged as a truly smart alternative 'for vital minds and active times' by consumers, the media and the food and beverage industry, SMART(fx) is a success story on many levels. Due to truly original products and flavors, a well-thought out distribution strategy, and highly cost-conscious management style, few Canadian food and beverage businesses can claim as steady a build of brand, or as solid a foundation for future growth. Indeed SMART(fx) is consistently featured in industry write ups announcing the coming of a new age in North American foods and beverages, and the company has become known in the business as a vocal advocate of the manufacturing of natural products in Canada.

Product Research & Development

SMART(fx) Original and the family of all natural products that followed its lead were created by instinct - a strong personal connection to consumer trends that was researched and anticipated by a core group of committed leaders. Beyond imagining the formula for the juice-based drinks, the SNAX, and H20, the makers of SMART(fx) have become experts and advocates in alternative foods and beverages, as well as leaders in effective grass-roots marketing - a proven strategy that is increasingly popular among even the most established North American corporations, from cars to banking.

Innovations, including recipe ideas and promotional items, are conjured by other stakeholders as well. Ideas are generated by everyone from sales agents, to consultants, to management and investors, and along with industry professionals, refined by those closest to the end consumer.

SMART(fx) has a strong network of relationships with suppliers for sourcing the very particular raw materials and ingredients that have resulted in award-winning products and which ensure the quality and viability of future creations.

Product safety and quality is guaranteed and meets all Health Canada requirements, and those of the Federal Department of Agriculture in the U.S. All labeling in Canada is bilingual and includes nutritional facts.

Tastes Good, Looks Good

Jump-at-you graphics and colours echo throughout items that support sales agents and retailers in creating a SMART(fx) world of in-store advertising, including tent cards, shelf poppers, vinyl cooler and floor stickers, posters, display units and vehicle graphics.

Consumer consciousness of SMART(fx) is also very successfully raised through high-energy in-store demos conducted by sales and/or demo agents. Demos are a key activity for gaining new fans, and giving a pat on the back to the already converted for choosing SMART(fx) as their daily alternative to typical sugar-based beverages.

Further heightening awareness of the much-loved SMART(fx) brand, a line of colorful, high-quality fabric apparel is available by order through the SMART(fx) website at www.naturaldrink.com. Men's and ladies t-shirts, polo shirts, fleece vests, caps and jackets are true to the company's vision of attractiveness through goodness.

Sales Marketing and Distribution

SMART(fx) - made with added herbal or functional ingredients for energy and vitality -- was founded on the premise that an entirely new product was needed in the market to fulfill the growing consumer demand for healthier alternatives to sugar, sodium and chemical-laden refreshment. It was thought that for such products to truly make inroads across Canada and beyond, they would need to be marketed through a self-serving distribution system that ensured complete focus on its uniqueness and quality. A small number of dedicated sales, management and business professionals have lived and breathed life into this concept through sheer will and an uncompromising determination to see it succeed by pounding the pavement on a daily basis for the past six years to place SMART(fx) beverages and SNAX in thousands of key accounts, high-visibility community events and functions, and major organizations such as Loblaws, which claims that SMART(fx) is its number-one-selling single serve natural beverage, and has included it in its vast warehousing operation. A group of equally committed entrepreneurs and creative professionals, some who are also founding investors, form the core advisory team that helps sustain the company's vision of establishing a classic institution of the future, which is sure to reap not only financial but also life-enhancing rewards.

The SMART(fx) culture begins and ends with a passionate belief that if you want to do something right, you've got to do it yourself. To this end, sales are achieved through a proprietary distribution system entirely managed and supported by an efficient home office team and a network of SMART(fx) Area Managers and Co-ordinators across Canada and in key cities in the U.S.

The SMART(fx) team tend to demonstrate an above-average commitment to achieving not only sales goals, but also a dedication to educating consumers and retailers in their own territory about choosing SMART(fx) as an alternative to traditional refreshments.

The makers of SMART(fx) believe in a hands-on approach to building the brand from the ground up, to the point of achieving a solid foundation so that other distributors are able to bring SMART(fx) into their account base, further expanding the SMART(fx) sales and service pipeline. Today the SMART(fx) brand of products is perused by some of North America's top distribution companies because of market recognition and the quality and obvious success of SMART(fx) , creating unlimited possibilities for the future.

Corporate Systems

SMART(fx) is a well-oiled machine of efficiency. In addition to maintaining strict inventory control, a centralized production and warehousing system allows orders to be filled across North America on a just-in-time basis.

The cost of doing business is streamlined thanks to a company-wide state-of-the-art computer system running integrated software that efficiently processes new account information and holds a customer database, which seamlessly integrates with customer service. The company also has in place a highly user-friendly telecommunications system that allows it to operate virtually 24-7, for order-taking, and to be accessible at all times to customers and the people with whom it does business.

Further use of available technologies will include the capability of conducting online commerce by late 2003.

The Future's So Bright…

SMART(fx) meets all U.S. regulatory import requirements, and what's more, is designated Kosher, providing it with the quintessential seal of approval in the vast and lucrative U.S. food and beverage industry. The universally recognized Kosher certification means that SMART(fx) has received valuable third-party endorsement verifying that what appears on the label is what is in the product, and that the contents are the quality they purport to be.

Additional financing will be used to fully implement the next generation of SMART(fx) marketing through an extensive 'real estate' program. The objective of the real estate program is to establish a retail foothold in which SMART(fx) is not just on display, but is a presence as tangible and essential as the bricks and mortar of the place where it's being sold.

To this end, management has established an excellent relationship with a Mexico-based manufacturer of floor and counter-top refrigerator coolers, branded exclusively with the SMART(fx) logo and colours.

Also part of the program is the manufacturing of unique SNAX display units. Product visibility and sales for the SNAX are greatly enhanced with a custom designed; spring-loaded, three-tier metal trays painted bright SMART(fx) orange.

This exciting evolution of the marketing and distribution strategy will include every SMART(fx) sales territory, and will dramatically boost market presence and consumer drive.

The Future's so Bright...

The old adage, "How do you eat an elephant? One bite at a time!" still rings true today. The philosophy of expanding SMART(fx) one customer, one retailer, and one territory at a time is what allows us to manage and sustain our growth. Building each territory, i.e.; Toronto, Los Angeles, Seattle, Montreal etc., on a solid foundation, providing excellence in service and sales is a key ingredient of SMART(fx) . The 'territory partnerships' that are created will continue to be a vital part of the distinction of SMART(fx) as a North American leader for natural beverages and SNAX. In other words, it is the people that make SMART(fx) great!

CRAVE IT! DEMAND IT!

For more information, call 1-800-784-1350 or visit www.naturaldrink.com

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