[BG Capital Group] June 20, 2001 Volume 1 Issue 2 [Image] Dear Investor Over the last year, investors have often suffered through the daily roller coaster of the stock market, a roller coaster whose wheels rest soundly in the tech sector. Investors have been watching their positions dwindle as common sense returned to the market and words like “revenues” and “earnings” once again had meaning. Today, the market seems abuzz with the pursuit of a catchy phrase, “upside potential.” We assume that means future profitability and growth. In contrast to the carefree tech run of the recent past, upside potential must now be combined with a sturdy business plan tested over more than a quarter. You just can’t add “dot com” to a word and hand it to the public. So, while investors still welcome the sex appeal of a story that could be the next eBay, logical investor’s are also finding enthusiasm for companies with balance sheets that confirm their business plans. We believe we’ve found a company with just that sort of promise. The Neptune Society (OTC: BB: NTUN) is a company entrenched in an industry that many of us never realized was quite so profitable, though ultimately, all of us will eventually need. What does this company do? Well, more than likely you’ve seen the ads on television. The Neptune Society provides cremation services in the death care industry; an industry that locks in profits on “Pre-Need” revenues, an industry on the cusp of the aging Baby Boomer generation. The Neptune Society is a company with a record of predictable, positive income results based on a $40 million trust, 55,000 active contracts, and nearly 1,500 appointments scheduled for goods and services every month. According to Neptune chief operating officer (COO) David Schroeder, The Neptune Society has come a very long way. “As a whole, we are very encouraged by our sales. Our revenues are up, our operating efficiency has improved, and we set a record in May for Pre-Need sales and cash collected. Another important factor in our success is in our market share. Across the industry, some companies have experienced up to a 12 percent drop in market share while our market share has increased two to five percent. Our unique management and marketing structure has been extremely effective in delivering results.” Lou Fischler, a top analyst at Banyan Capital Markets, has written an in-depth research report his firm has issued to initiate coverage on The Neptune Society. He took time to talk to us this week. “The company has a good story to tell. Management took a fragmented group of partnerships and unified them into one efficient, consolidated, public company. Taking over the operations and financially engineering them into one operating company is impressive. They can now start to focus on accelerating their marketing, producing growth, and implementing their business model. “The company’s true operating adjusted cash-flow for the first quarter was approximately $500,000. Now with its operating structure firmly in place, it is positioned to concentrate more of its resources to drive Pre-Need sales and generate more and more cash flow. Because of Neptune’s revenue recognition policy and significant non-cash expenses, its reported financial results tend to understate its real operating performance. As a result, cash flow is more relevant in determining value than net earnings for this company. The management at the Neptune Society has jumped some very high hurdles and landed on its feet. The company is a major player in its industry and its year-over-year numbers are outstanding.” Sound Interesting? Take a look at these bullet points: The Neptune Society offers new investors and current shareholders a fundamentally sound business model and four unique elements that are significant to growth. EXISTING ASSETS When the trust was established in 1988 its beginning marker was $0. In 1994 it had risen to $16 million and now, in 2001, the total pre-funded cremation arrangements exceed $40 million. With Neptune's continued expansion, estimates for the fund are $74 million by 2004. SALES The trust supports a growing bottom line. Cremation costs 50-80% less than traditional burials and Pre-Need contracts at the Neptune Society have grown at an annual compound rate of 32.7% from 1998 to 2000 with a historical cancellation rate for Pre-Need services at less than one percent. REVENUES In addition to the company’s main channels of revenues, the Neptune Society also benefits from sales that include registration services like a travel rider that ranges from $50-300, and is immediately recognized as revenue and an 8% interest charge in California and Oregon on Pre-Need installment programs SOLID MANAGEMENT During the past two years, a talented group of four senior executives has been recruited to operate Neptune. Collectively, these executives possess substantial functional expertise and over 100 years of combined experience in the cremation industry. Marco Markin became the first member of Neptune’ current management team when he became a member of Neptune’s Board of Directors in June 1999 and its President and Chief Executive Officer (CEO) in September 1999. David L. Schroeder was recruited to be Neptune’s Chief Operating Officer (COO) on June 1, 2000, and became a Director and its Secretary in November 2000. Rodney M. Bagley became a Director, the Chief Financial Officer and the Treasurer of Neptune in November 2000. Gary I. Harris became Neptune’s National Sales Manager and a Director in March 2000. [Image] Contact The Neptune Society Management: 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 We welcome investors to keep an eye on the Neptune Society. Watch for a research report to be issued by Banyan Capital Markets. 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. 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