BG Capital Group July 24, 2001 Volume 1 Issue 6 [smallerNeptune.jpg] Dear Investor: The Stewart Report, A Prestigious West Coast Newsletter, Initiates Coverage Of The Neptune Society And Issues A 'Strong Buy' Press Release The Stewart Report is a special situations financial newsletter that has been the focus of feature stories in Barron's, Money magazine, The New York Times, Investor's Business Daily, Entrepreneur magazine and Fortune. "We are excited to have garnered the attention of The Stewart Report." Marco Markin CEO & President of the Neptune Society ____________________________________________________________________ ____________________________________________________________________ FOR IMMEDIATE RELEASE COMPANY CONTACT: Gary R. Loffredo, Director (800) 535-7935 Neptune Society Leads As Death-Care Stocks Buck Market Trend DANA POINT, Calif., July 24 /PRNewswire/ -- In recent weeks, one of the market's most progressive sectors has been the death-care industry with national mortuary chains such as Service Corp International, Carriage Services and Stewart Enterprises, Inc. having risen to within a few points of their 52-week highs. However, it's The Neptune Society (OTC Bulletin Board: NTUN), the nation's only cremation specialist and the only death-care provider with a brand name familiar to consumers nationwide that seems to be at the forefront of the latest move, allowing it to buck today's downdrafts in both the Dow Jones Industrial and Nasdaq Composite averages. Neptune's price resiliency and strong volume have been attributed by some observers to The Stewart Report, a West Coast research letter that initiated coverage on the stock this week. Moreover, Stewart believes expanding awareness of Neptune's intention to list on a senior exchange will carry the stock higher still. The Stewart Report's analysis of The Neptune Society highlights its niche opportunity in the marketing of pre-need cremation services, payments for which have generated a rapidly growing company trust fund that presently totals more than $40 million. Analyst J. David Stewart says the trust fund which has already endowed the Neptune network with a 13-year backlog of business in the midst of its best operating year ever, will likely grow to $99 million by year-end 2005. Stewart also sees a string of steadily improving operational years, thanks to a diverse set of socio-economic factors presently coming into play. These include the aging baby boomer population, the expanding geographical range of American families, new consumer attitudes towards land usage as it relates to traditional casket funerals, and an increasing cost consciousness in death-care planning. 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. 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 close to 60,000 active contracts and nearly $40 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. ### _______________________________________________________________________ _______________________________________________________________________ Highlights Of The Stewart Report *** Key Investment Considerations *** The Neptune Society® is positioned for the market maturation of the "Baby Boomers" and the "Graying of America." A compelling value proposition for cremation is its simple; the average funeral runs from $10-15,000 and the average cremation runs $1-3,000. That's a $9-12,000 spread. The $15 billion death-care industry has recently survived a five-year shake-out by attrition, acquisition, or merger that has left the U.S. with only four publicly traded chains and 22,000 independent mortuary operators. 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 Neptune Society received a 'Strong Buy' recommendation from J. David Stewart of The Stewart Report with the stock under $8 and a 6-12 month target price of $17.50. The Neptune Society has 18 locations in 7 states with strategic growth initiatives to add to those numbers in 2001 as they expand to meet demographic concentrations. The company also has a dedicated "call center" with 20 telemarketers in Tempe, AZ. The Neptune Trust Fund to facilitate 60,000 'Pre-Need' contracts sold and not fulfilled approximately $40 million strong. It is estimated the Trust will reach $99 million by 2005. "The Neptune Society offers the industry's best price leverage due to its petite market cap of less than $50 million." To date, 2001 is breaking all company records with estimated gross sales for the year at $18 million, new 'Pre-Need' contract sales estimated at 10,000, and 'At-Need' sales and administrative fees coming from an estimated 7,000 fulfillments. ____________________________________________________________________ Recent Events Of The Neptune Society Cremation service revenues were $2,242,000 for the three months that ended March 31, 2001 compared to $1,328,000 in 2000, nearly double the same period last year. The Neptune Society provided 6,639 cremations in 2000 and has already provided 5,098 in the first five months of 2001, that is double the same period last year with a very conservative projected total for 2001 to be approximately 7,400. 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. The Neptune Society recently received an 'Aggressive Buy' recommendation from Banyan Capital Markets with a target price of $8.00. The company has a guaranteed 13-year business backlog. Due to the nature of the company's business, it is virtually recession-proof. ____________________________________________________________________ For more information, contact: Gary R. Loffredo (800) 535-7935 Corporate Investor Relations [neptune.gif] The Neptune Society Corporate Headquarters 3500 W. Olive Suite # 1430 Burbank, CA 91505 Telephone: 888-637-8863 E-mail: [1]info@neptunesociety.com Visit The Neptune Society on the Web: [2]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 [3]here Click [4]here for Financial Chart For Trading Technicals click [5]here For current stock quote click [6]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 References 1. mailto:info@neptunesociety.com 2. http://www.neptunesociety.com/ 3. http://www.sec.gov/cgi-bin/srch-edgar?text=Neptune+Societyfirst=1993&last=2001&mode=Simple 4. http://www.cnbc.com/stock/dtq.html?sym=ntunqq=t 5. http://quotes.barchart.com/techrept.asp?sym=ntun 6. http://finance.yahoo.com/q?s=ntun.ob&d=v1