[BG Capital Group] June 15, 2001 Volume 1 Issue 1 [Image] Company History THE NEPTUNE SOCIETY SERVES ALL FAITHS, TRADITIONS, AND CULTURES The Neptune Society® (Pink Sheets: NTUN) is a high visibility brand name that has become the logical option to the traditional funeral and burial. The company has become synonymous with the simplicity, dignity, and economic feasibility of cremation and the scattering of ashes at sea. The company has been in operation since 1972 and has sold more than 80,000 Pre-Need contracts to date. All personnel & facilities of the Neptune Society are licensed and inspected by the governing state. On October 14, 1999, the board of directors elected Marco Markin to the positions of President and CEO. Mr. Markin has an extensive background in the areas of operational management, business development and mergers and acquisitions. Under Mr. Markins direction the Neptune Society has posted a 100% increase in revenues. The company currently operates 18 offices in seven states with gross sales approaching $20 million. The Neptune Society has had extensive, positive press coverage recently with archived stories in The Wall Street Journal, USA Today - Money section, The New York Times On The Web, and the Los Angeles Business Journal. Neptune Revenues [Image] INCOME RESULTS THAT ARE VERY POSITIVE, VERY PROFITABLE, AND VERY PREDICTABLE The Society has four income streams: Recurring trust fund fees and yields, Pre-Need contracts, At-Need contracts, and Non-member contracts. Approximately 50% of the revenues of the Pre-Need plans are placed in a state approved and regulated trust fund. Neptune currently has close to $40 million held in trust from Pre-Need sales. That trust will grow to nearly $50 million by the end of the year 2002. The trust fund maintains its capital base and growth by serving At-Need fulfillment withdrawals having been compensated by the interest generated. Neptune also receives a 4.0% trust management fee. The company has guaranteed book business for 13 years and interest income on Pre-Need sales accrue to Neptune and is realized at the time of fulfillment. Neptune has sold 80,000 pre-need contracts since its inception and its year-over-year sales rate has never been in the red. The company currently has nearly 60,000 active contracts. Currently, new members are being added at a rate of over 1,000 per month, up from only 400 per month in 1998, and Neptune handles nearly 7,000 At-Need cases annually, which makes them the largest cremation company in the U.S. The Industry THE NEPTUNE SOCIETY IS THE COUNTRY'S LARGEST PUBLICLY TRADED COMPANY DEALING SOLELY IN CREMATION The death-care industry generates approximately $15 billion a year. It is however tremendously fragmented with 75% of the market being privately owned and the 6 largest providers comprising less than 25% of the industry. 24% of all Americans have pre-arranged some details of their own funeral and 80% believe pre-arranging is a good idea. Cremation accounted for 26.3% of all funeral services in 1999 with expectations of two out of every five, or 42% by 2010 (according to the Cremation Society of America). The average cost of a typical casket and burial funeral now exceeds $7,000 and the cost of a direct cremation runs from $799 to $1,299. [Image] The Market "THERE ARE ONLY TWO CERTAINTIES; DEATH AND TAXES" -- Benjamin Franklin The growth driver of the post-life market is the U.S. death rate and 72 million aging baby boomers who are now in their 50’s. For the upscale market, some funerals can cost $30,000. The Neptune Society can provide upscale goods and services as well including: memorial services at a Neptune Society chapel and private service sea scattering with clergy and family and friends present. Cremation is the most common form of disposition in England (70%), Japan (98%), and Hawaii (58%) and cremation rates will steadily climb from 15% in 1987 to an estimated 50% by the year 2020. Cremation is taking away market share from traditional burials, increasing from 6% in 1975, to 24% in 1998 and projected to 38% by 2010. The Neptune Society serves customers in 35 metro areas and currently has seven locations in California (including its corporate offices), three in Florida, two in New York, two in Iowa, two in Washington State, one in Arizona, and two in Oregon. The company will be expanding its presence to Colorado, Idaho, Texas, New Mexico, Illinois, Nebraska, and Kansas in the next three years. Neptune Marketing NEPTUNE CONVERTS 25% OF ITS LEADS INTO CONTRACTS With the cost of a cremation being up to one-seventh less expensive than a traditional funeral, baby boomers tend to pre-pay for services. The Neptune society sends out over 3.6 million mailers a year and will send out 6 million in 2001. They receive a approximately 1% response of which 25-28% have been converted into a Pre-Need contract. The company targets adults 54+ that have an income of $30k or more with a mailer and follow up calls are made from a dedicated call center based in Phoenix, AZ that has 20 representatives. Remarkably, statistics prove a closure rate of 70-85% for in-home visits. They set up approximately 1,500 appointments a month through Neptune offices. There is no up selling to traditional casket and burial arrangements. State of Incorporation Florida Fiscal-year-end 12/31/00 Recent Price $3.93 Market Cap $30,127,533 Shares Out 7,666,039 Float 6,056,170 Auditors KPMG, LLP Transfer Agent Interwest Transfer Co Institutional Holdings 15.2% Officers/Directors 5.5% Contact The Neptune Society Management: [Image] Marco Markin, President & CEO 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 Links to more information: Recent SEC Filings click here Click here for Financial Chart For Trading Technicals click here Disclaimer: The information contained herein is based on news releases or other reports written and disseminated entirely by the subject company. 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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. Copyright © 2001 Investors Edge --- You are currently subscribed to investorsedge as: cypherpunks@algebra.com To unsubscribe send a blank email to leave-investorsedge-1655339N@lyris.investorsedge.net