Letter to shareholders Jun/04 Dear valued shareholder, As the CEO of On The Go, I am pleased to provide you with an update on our positive progress over the past few months. Fundamentally, things have never been better for On The Go. We have entered into a number of strategic partnerships that hold the potential to increase our sales. The continued consolidation of operations and resulting cost savings from the economies of scale positions us to have a favorable impact on our bottom- line. I am pleased to share with you a number of On The Go 's recent achievements; from exponential sales growth to new acquisitions, the recent quarter has been immensely exciting and successful for On The Go and our shareholders. The stage has been set for our company to reach a projected $10 million (Cdn.) in consolidated sales for the July 2005 fiscal year end. Some of the key achievements and strategic objectives contributing to our recent and continuing success include: Milestone Financial Results A major highlight of the last quarter was record setting revenues. For the quarter ending January 31, 2004, our company boasted $807,791 in total revenues, a 308% increase over the previous quarter. To put this into perspective, this was a 5,500% increase over the same period in 2003. These record results, which will be explained in detail in the remainder of this letter, clearly demonstrate that On The Go's business plan is not only financially viable but a solid company with excellent growth potential. Baby Care Boom: Acquisitions, sales growth and global expansion On The go recently acquired Vital Baby Innovations Inc., the exclusive Canadian distributor of Heinz Baby Basics Feeding Accessories and distribution rights for Sudocrem, a leading diaper rash cream. Vital Baby's products are sold at more than 3,300 retail locations across Canada, including Wal-Mart, Shopper's Drug Mart, Sears, Zellers, Loblaws, Rexall and numerous other locations. This landmark deal will contribute to On The Go's burgeoning sales growth and broaden our distribution networks and sourcing capabilities. With access to thousands of locations, opportunities to establish new markets are substantial. Following the signing of a distribution agreement with British based company Bibs and Stuff, On The Go is now distributing our signature Padded Training Seat and additional toddler and infant products to the European market. In line with this agreement, On The Go introduced a new design of our Padded Training Seat customized for the European and Australian markets. By meeting the unique needs of our international clients, the potential to expand our global customer base and market share is excellent The Padded Training Seat is also now sold at Scolari's Food stores located across Nevada and is sold hundreds of Shopper's Drug Mart's, the largest drug store group in Canada. The seat, along with our new Baby Bath product, gained further exposure in May when they were displayed at the Juvenile Products Manufacturers Association (JPMA) show in Dallas, Texas. The exhibit attracted thousands of potential customers. Compuquest: Record sales, staff development, major deals and industry awards On The Go's wholly owned subsidiary, Compuquest, an industry leading supplier of computer hardware, software and IT solutions to thousands of companies, including Fortune 100 corporations, has been a beacon of On The Go's moving forward corporate mission. Sales at Compuquest year to date have now surpassed $3 million, an all-time record. This rapid growth has been fuelled by a number of major deals, including a business development partnership with Hewlett Packard to sell their products in the U.S., the shipment of more than $230,000 in computer equipment to a major hotel chain in Whistler, British Columbia, an order for $185,000 worth of "ISP In A Box Solution" equipment to a Caribbean-based ISP and the provision of computers to a worldwide premier car rental agency. Our sales team was recently doubled to meet the growing demand for Compuquest's products and services. The seasoned sales professionals added will serve us well as we build this sector of the business. Compuquest has also received industry recognition, garnering its eighth consecutive Consumers Choice Gold Award in the category of Best Corporate Computer Dealer. Favorable Profiles In May, Lifestyles Magazine, an international magazine with a circulation of 500,000 and an extensive group of high-end brand name advertisers, published a glowing profile of On The Go. The feature article highlights On The Go's products, lauds our sophisticated manufacturing facility, details business objectives and outlines the company's extensive growth opportunities. The successes of the last quarter have set a firm foundation for our company's continued growth. In pursuit of this goal, we are proactively seeking to increase our market share in the baby care, healthcare and Information Technology sectors, expanding our customer base and distribution channels and launching new, innovative products. With a strategic new acquisition and evolving multiple streams of revenue, we are excited about the future and expect to continue our path of growth and development. I believe we have only begun to demonstrate our potential to the marketplace and most importantly, primed to drive shareholder value. As always, we appreciate your support and look forward to reporting on our progress. Yours truly, Stuart Turk CEO
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