ARS NETWORKS, INCORPORATED
1207 Delaware Avenue, Suite 410
Buffalo, New York 14209

Telephone (716) 332-6143

September 3, 2004

To Our Shareholders:

The purpose of this information statement is to inform the holders of record of shares of our common stock and preferred stock as of the close of business on the record date, August 13, 2004 that our board of directors has recommended, and that the holder of the majority of the votes of our stock intend to vote in favor of resolutions which will accomplish the following:

1. Amend our articles of incorporation to increase the number of our authorized shares of common stock to 10,000,000,000 shares to be effective on or before November 15, 2004.

2. Amend our articles of incorporation to change our name from "ARS Networks, Incorporated" to Green Mountain Capital Inc. to be effective on or before November 15, 2004.

3. Amend our articles of incorporation to effect a reverse stock split of our common stock on the basis of one post-consolidation share for each 1,000 pre-consolidation shares to be effective on or before November 15, 2004.

4. Approve the following ARS Networks, Incorporated Stock Plans:

(a) Stock Plan for the Year 2004 No. 2, adopted by our directors effective May 3, 2004 with 390,000,000 shares of our common stock in the aggregate authorized for issuance under the Plan;

(b) Stock Plan for the Year 2004 No. 3, adopted by our directors effective June 9, 2004, with 700,000,000 shares of our common stock in the aggregate authorized for issuance under the Plan.

We have consenting shareholders, Sydney Harland, Mark Miziolek and Ronald Moodie our President and CEO, CFO and Corporate Secretary respectively, who hold 69,297 shares of our common stock and 2,500,000shares of our preferred stock. Each share of our preferred stock outstanding entitles the holder to 200 votes of the common stock on all matters brought before all of the shareholders. Therefore, Messrs. Harland, Miziolek and Moodie will have the power to vote 500,069,297 shares of the common stock, which number exceeds the majority of the issued and outstanding shares of the common stock on the record date.

Messrs. Harland, Miziolek and Moodie will vote in favor of the amendments to our articles of incorporation and for the approval of the Stock Plans. Messrs. Harland, Miziolek and Moodie have the power to pass the proposed resolutions without the concurrence of any of our other shareholders.

We are not asking for a proxy and you are requested not to send us a proxy.

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Originally posted by pick em low:
someone explain why a reverse split is so bad... total value remains the same, so why does everyone freak out? Yes, I guess that means they can start issuing more shares again, so dillution, but it doesn't mean they will.

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