AVVA TECHNOLOGIES Inc.

Incorporated in 1993, AVVA Technologies, through its wholly-owned subsidiary, AVVA Light Corp., develops and manufactures energy efficient, illuminated products. In response to AVVA’s desire to become more competitive, the company combined a number of technologies into a proprietary system to support the light emitting diodes (LED’s) Microbrite brand light source creating their innovative edge-lit products. The company has since been an active participant in the US$9 billion sign industry.

The LED light source is designed to produce little to no heat, which effectively lengthens its lifespan to a minimum of 10 years. In addition, the light efficiently consumes electricity through a 12-volt power supply. The sign is made of clear acrylic or glass, whereby the message is etched on using a computercontrolled router, laser or by sandblasting. When the product is assembled, the LED light shines through the acrylic or glass face, which refracts on the etched design producing a clear and detailed image. The overall product offers customers the benefits of a slim, clear, indestructible profile design, uncomplicated installation and low maintenance. AVVA has capitalized on increasing environmental concerns regarding energy efficiency and consumption as well as escalating electricity prices by expanding their markets worldwide.

AVVA presently targets 3 industries; namely the point of purchase, architecture, as well as gaming and casino sectors, which contributed approximately 60% of revenues in fiscal 2000. The company has supplied 450 casinos with their edge-lit products worldwide and currently holds a 70% market share in the gaming industry with the edge-lit table limit signs within North America. Additional contracts are currently being negotiated with some of America’s largest casinos. AVVA was awarded a ‘Certificate of Excellence’ and was acknowledged as one of the top 20 producers of gaming products and technology by the American Gaming Summit.

AVVA’s objective for fiscal 2001 was to remain profitable and develop new products. This goal was achieved by controlling manufacturing expenses, and increasing market share through non-exclusive distribution contracts within the U.S. Approximately 90% of the revenues in fiscal 2001 came from export sales from countries such as Europe, South and Central America, the Middle East, the U.K., and North America. AVVA has designed illuminated products for many high profile, “blue-chip” customers including Evian, McDonalds, Bacardi, and Seattle’s Best Coffee.

In January 2001, the company launched a new website and e-commerce site (www.mylightsite.com), designed by Kamloops, B.C.-based MediaWave Communications, which offers select products for retail sale.

On April 30, 2001, the company announced a significant new contract worth $500,000 to supply a multinational technological company with point-of-purchase edge-lit signs for the North American marketplace. It is anticipated that this contract will lead to a long-term relationship and with this client’s global presence, will allow AVVA to penetrate into new markets attracting new clients in other countries.

On June 26, 2001 AVVA made sales to two of North America’s largest casinos totaling over $225,000 for slot toppers and table limit signs.

AVVA plans on achieving substantial growth through the development of new products and markets, and strategic acquisitions and mergers. The successful completion of an acquisition of a profitable company would allow the company to effectively utilize its tax loss carryforwards of $5 million and enhance shareholder value.