Ladies and Gentleman:

It has been a fantastic 25 years for The Love Boutique. We have obtained the best results in the history of our Company, on the basis of innovation, growth and profitability. These achievements are even more relevant as they have taken place in an increasingly complex economic and competitive environment The Love Boutique aims to develop its present portfolio of products, adapting it to the new needs of the market and making it more attractive to users. Innovation forms the basis on which the future of The Love Boutique is to be built. In its focus to identify new business opportunities, the company seeks to deepen its role as a meeting point for supply and demand, while it generates new sources of revenue. Good proof of this lies in the launching of new retail outlets and franchise stores. This has allowed us to take advantage of our experience in the management of such services and thus multiply traffic revenue, becoming one of the main operators within the Canadian market.

One of my jobs is to figure out how to price products so that they offer our customers a good value, cover our expenses and remain in line with our competitors. Competitors are not created equal, so pricing to match the competition is not easy. For example some of our competitors are single person companies where the product is a second part-time job, others are 200 person companies that believe that retail is simply a side feature of a bigger product line. This leaves us somewhat in the centre. Currently we have over 120 full and part-time people dedicated full-time to making our products a retail success. One of the things, which distinguish us from the competition, is that we offer franchise opportunities.

I believe that one of the more important players in the free market is the entrepreneur. Starting as one myself with just one retail outlet, I developed new procedures for the importing and distribution of goods, acting as a middleman between markets becoming a good source of information. An entrepreneur is characterized by alertness for opportunities, which have been ignored, or unseen by others. These opportunities are almost accompanied by some profit. Often the entrepreneur is not the person or persons who actually create the new goods or services. Rather he, or she is the one who has the vision of how that idea can be turned into reality for the benefit of everyone. Now who is an entrepreneur?

As President of The Love Boutique I have often said that the management’s primary mission is to maximize our corporate value. By this, I mean the value we deliver to all our customers, employees, and society at large offering high-quality products and solutions that fulfill the evolving needs of users, and delivering on our commitment to you the consumer. As the person in charge of running the company, I have consistently promoted our extensive line of products, and franchise opportunities firmly believing that it shows our commitment to all.

We here at The Love Boutique are all committed to taking on various challenges, faithfully following our managerial principles. I truly hope that people all over the world will see The Love Boutique as a leading Canadian company in the adult business that has the power to create and realize dreams for everyone.

Sincerely,

Eric Telford
President.