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Author Topic: Great Year ahead for VNTB!
Murnak
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Anniversary Letter to Shareholders from Robert Corr, President of V-Net Beverage

January 28, 2005 10:57:00 (ET)


BLUE ISLAND, Ill., Jan 28, 2005 (BUSINESS WIRE) -- V-Net Beverage, Inc. (Pink Sheets: VNTB-News):

Dear Shareholders:

On 27 January 2004, I took charge of V-Net Beverage, Inc. as new president. Armed with over thirty years of experience in the natural beverage industry, I came to V-Net with the goal of transforming it into a profitable and respected company capable of delivering to consumers healthful and innovative products. In just one year, the company has made remarkable strides in positioning itself toward that end.

1) Our three popular selling products--Ginseng Rush(TM), Ginseng Rush XXX(TM) and Rush Herbal Cola(TM)--continue to obtain new placements in the marketplace. Thus, we expect a momentous 2005 as sales further accelerate.

2) V-Net's commitment to genuine ginseng and honest marketing of this extraordinary herb is evinced by our publicized "Truth in Ginseng Challenge." At V-Net we use pure Wisconsin-grown American ginseng (Panax quinquefolius), in advertised quantities, in our beverages. Other brands tout ginseng on their labels. We are testing their claims by employing High Performance Liquid Chromatography (HPLC) on sample beverages. These tests will specify quantity, potency, species and origin of the ginseng they use, if any. We believe consumers should be alerted to brands with specious ginseng claims or little to no ginsenoside (ginseng's active ingredient).

Long revered in the Orient for its homeostatic and restorative properties, ginseng is just beginning to reveal its secrets to modern science. For example, in research conducted at Southern Illinois University School of Medicine and funded by National Cancer Institute and U.S. Department of Defense, ginseng has demonstrated remarkable abilities to slow growth of cancer cells and defeat cancer-cell resistance to chemotherapeutic drugs.

http://news.siu.edu/news/January05/011105kj4109.html

The public's rush to ginseng is prompting V-Net to launch its own label of high-potency ginseng capsules and extract, all with 10% certified ginsenoside content, in the first quarter 2005.

3) We continue with development of Allimax Nutraceutical Water(TM) and endeavor to produce a completely stabilized drink. It is targeted for production first quarter 2005. As more studies confirm garlic's role in relieving cold symptoms and defeating a broad range of microbes, we are also pursuing other means to meet the demand for allicin, garlic's active ingredient. These include allicin capsules and allicin extract on our own label.

4) In 2004, we partnered with Fire Mountain Beverages (Pink Sheets: FRBV) to provide additional marketing and product distribution for V-Net's products on the west coast. FRBV currently sells flavored vitamin-water at thousands of locations. The arrangement will expand V-Net's marketing base for its specialty beverages, including allicin and electrolyte waters.

5) V-Net has recognized an exciting opportunity in the herb-infused wine category. We have therefore purchased a 5% stake in California's Meritage Wine Brokerage, a thriving full-service importer & distributor of fine wines from around the world. In this way, V-Net establishes a foothold in the licensed and regulated U.S. wine market. V-Net, which supplies Meritage with botanicals for their herb-infused specialty wines, has an option to purchase an additional 35% of the wine brokerage.

6) V-Net has inked an agreement with Micro Labs (OTC-BB: MLAR), developer of a patented sublingual spray delivery system which promises 90% nutrient retention rate. Under the agreement, V-Net will develop and supply botanicals, like allicin and ginseng, to Micro Labs as new items in the sublingual spray product line.

7) We are forging an agreement with Gray's Brewing Co., Janesville, WI to develop jointly ROCK HARD RUSH(TM), a pleasant tasting ginseng- and botanical-infused malt beverage. This product is expected to compete toe-to-toe with Budweiser's B-E(TM) by Anheuser Busch.

8) V-Net has received broad USPTO Class-32 Trademark Application protection for its new e-Water(TM), a specialty water charged with 70-plus dissolved colloidal electrolytes, derived from a unique fulvic-acid enriched mineral source in Utah. Fulvic acid is an organic acid which binds to crucial trace-mineral ions and renders them bio-available. It also helps remove harmful heavy metals and "free radicals" from bodily systems, and balances and energizes cell life. We look forward to bringing this exciting item to market in the near term. We intend to expand upon our electrolyte 'e' line of beverages. e-Water(TM) is only our first entry in this genre.

9) V-Net is growing. We are adding staff to develop efficiencies in distribution and marketing systems and to strategically grow our brands. Our relationship with our master distributor has been strengthened over the last few months, and we are working to add new channels of distribution.

I extend my appreciation to our loyal shareholders for their support, and will make myself available, when possible, for your salient comments and suggestions.


Stay with us in 2005. It's going to be an exciting year for V-Net.
Robert J. Corr, President, V-Net Beverages, Inc.

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