[BG Capital Group] July 10, 2001 Volume 1 Issue 4 [Image] Dear Investor A top analyst at an equity research firm has initiated independent coverage on the Neptune Society and we at Investors Edge believe the Neptune story and the company's success is well worth a little investigation. Key among the analysts findings were: A 67 % Increase In Revenues Over The Same Period In The Prior Year A 55 % Increase In Gross Margins Over The Same Period In The Prior Year An $8 Target Price, $9 Takeover Price, And An 'Aggressive Buy' Recommendation The Neptune Society is a solid company with experienced management, predictable profits, 'Pre-Need' contracts that have an annual compound rate of 32.7% from 1998 to 2000, and a $40 million trust fund that is expected to exceed $74 million by 2004. The Neptune Society was recently relisted on the OTC BB with the trading symbol NTUN and is now seeking to be listed on the NASDAQ for higher visibility and broader market exposure. Banyan Capital Markets LLC, an equities research firm, has issued an in-depth report on the Neptune Society. Highlights of the report are listed below followed by Banyan's press release and contact information. [Image] ------------------------------------------------------------------ * * * H I G H L I G H T S * * * Of The Research Report And Key Investment Considerations * The Neptune Society® is the only public “pure play” in the cremation segment of the death-care services industry and the company benefits from extensive goodwill from its reputation and high visibility brand name built during its 27-year history. * The compelling value proposition for cremation is its simple, dignified, environmentally friendly and economical ($799 to $1,299) alternative to traditional burial service ($5,000+). The cremation industry is taking market share away from traditional burials, increasing from six percent in 1975 to 24 percent in 1998 (0.55 MM cremations) and projected to reach 38.2 percent by 2010 (1.0 MM cremations). The $15 billion annual death care services industry is highly fragmented with the top six companies having a 25% market share and numerous acquisition opportunities available. * The Neptune Society serves customers in 35 major metro areas with 16 offices located in 6 states (CA, FL, WA, OR, NY and IA), excluding the corporate offices and a dedicated “call center” with 20 telemarketers in Tempe, AZ. One part of the company's business model includes opening offices in new locations (that meet stringent growth criteria) and making selective acquisitions. * The Neptune Society's new management team, assembled since 1999, has substantial industry expertise. The management has implemented a multi-pronged marketing strategy focused on selling “Pre-Need” cremation plans. Including direct sales over their Web site, the strategy also includes direct mail of approximately six million pieces being sent in 2001 and the support of five sales managers with approximately 200 independent, commission- only sales representatives providing follow-up. ------------------------------------------------------------------ FOR IMMEDIATE RELEASE COMPANY CONTACT: Gary R. Loffredo, Director (800) 535-7935 BANYAN CAPITAL INITIATES COVERAGE ON THE NEPTUNE SOCIETY WITH AN $8 TARGET PRICE, $9 TAKEOVER PRICE AND AN ‘AGGRESSIVE BUY’ RATING -Top Analyst Reports On Strong Brand Name, Effective Marketing And Growth In Cremation Demand- Deerfield Beach, FL, July 10, 2001 – Banyan Capital Markets, LLC announced today that it has initiated coverage of The Neptune Society®, (OTC BB: NTUN), with a 12-month, $8.00 per share target price, a $9.00 per share takeover price, and an ‘Aggressive Buy’ rating. “The Neptune Society is the only ‘pure play’ public company focused solely on the cremation segment of the death care services industry,” said Louis M. Fischler, CFA, and VP of Investment Banking And Research at Banyan. “We feel that The Neptune Society® name has tremendous brand equity due to its industry leadership over its 27-year history. “Also, Neptune’s fiscal first quarter results showed strong revenue growth and a significant improvement in operating cash flow, net of non-recurring and non-cash expenses, versus last year’s first quarter. The Neptune Society has developed a highly-effective, multi-pronged marketing program for selling “Pre-Need” cremation contracts that consists of direct mail campaigns, telemarketing (using its own call center), direct sales by independent contractors, and a new Web site.” The $15 billion death care services industry is highly fragmented with the top six companies holding only a 25 percent market share. Traditional burials, which actually declined in the first quarter of 2001, are losing market to cremations. The Cremation Association of North America estimates the market share for cremation will increase from approximately 26 percent to over 36 percent in 2010, or approximately 1 million cremations per year. “This growth can be attributed, in large part, to the average cost of a cremation only being 15 to 25 percent of the average cost of a traditional burial, as well as to greater acceptance by the general public based upon religious, environmental and other considerations,” said Mr. Fischler. According to the report, The Neptune Society achieved a 67 percent increase in revenues in Q1-2001 versus Q1-2000. As a percentage of revenue, the company also increased its gross profit margin by 55 percent and improved its EBITDA by $742,000. About Banyan Capital Banyan Capital Markets, LLC is an NASD member broker-dealer that provides investment-banking services to middle market and early stage private and public companies. It recently started a division to provide equity research for its clients including the portfolio companies of Banyan Capital Partners, Inc., an affiliated “principal venture capital(TM)” firm. About the Neptune Society Headquartered in Burbank, CA., The Neptune Society Inc. is one of North America’s largest cremation specialists, and is the only publicly traded company dealing solely in cremation services. The Neptune Society, operating for nearly three decades with locations in California, Florida, New York, Washington, Iowa, Oregon and Arizona has provided thousands of cremation services and currently has in excess of 60,000 active contracts and approximately $37 million in trust in its unique Pre-Need program. The Neptune Society’s goal is to provide a simple, dignified and economic alternative to the traditional funeral burial service system. Safe Harbor This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers/Investors are cautioned that the forward- looking statements are inherently uncertain, including statements related to the Company’s business strategy, success of its acquisitions, its ability to implement its current business and growth strategies, the ability to implement acquisitions and start up offices into its existing operations, its ability to obtain sufficient financing to fund its proposed growth, the Company’s ability to develop its brand name and effectively market its services and the Company’s expectations for future success. Actual performance and results of operations may differ materially from those projected or suggested. The forward-looking statements contained herein represent the Company’s judgment as of the date of this release, and the Company cautions the reader not to place undue reliance on such statements. These forward-looking statements should not be reprinted, reiterated nor considered an inducement for investment. Neptune Society is a registered trademark of Neptune Society Inc. ### ------------------------------------------------------------------ For a complete copy of the research report Click Here or Banyan Capital Markets (954) 571-7900 12403 Rockledge Circle, Boca Raton, FL 33428 or Gary R. Loffredo (800) 535-7935 Corporate Investor Relations [Image] Contact The Neptune Society Corporate Headquarters 3500 W. Olive Suite # 1430 Burbank, CA 91505 Telephone: 888-637-8863 E-mail: info@neptunesociety.com Visit The Neptune Society on the Web: Click here We invite you to investigate the Neptune Society, trading symbol NTUN, by using the following links. Links to more information: Recent SEC Filings click here Click here for Financial Chart For Trading Technicals click here For current stock quote click here Disclaimer: The information contained herein is based on news releases or other reports written and disseminated entirely by the subject company. Any information, opinions or analysis regarding the subject company to which Investors Edge has provided a link or other detail are provided by sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. This report is for information purposes only and should not be used as the basis for any investment decision. Although Investors Edge has not been compensated for dissemination and posting of this information, Investors Edge, its owners, agents affiliates and employees may from time to time have either a long or short position in securities mentioned. This constitutes a conflict of interest as to our ability to remain objective in our communication regarding the subject company. Write or call Investors Edge for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934. Investors Edge and its owners, agents and employees are not investment advisors and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. Information contained herein may not be reproduced in whole or in part without the express written consent of Investors Edge (Copyright 2001.) Safe Harbor Statement: This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers/Investors are cautioned that the forward- looking statements are inherently uncertain, including statements related to the Company’s business strategy, success of its acquisitions, its ability to integrate its current business strategies into its existing operations and the Company’s expectations for future success. Actual performance and results of operations may differ materially from those projected or suggested. The forward-looking statements contained herein represent the Company’s judgment as of the date of this release, and the Company cautions the reader not to place undue reliance on such statements. These forward-looking statements should not be reprinted, reiterated nor considered an inducement for investment. 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