1. MediaLoft Annual Report 2002

2. 2002: A Banner Year Overall sales set new record Overall sales set new record 3 new locations 3 new locations CD sales up CD sales up Café business up Café business up Expanded video offerings Expanded video offerings Increased market share Increased market share

3. The reviews are in Modeled on the bookstore café, MediaLoft takes the concept to new heights. Business Day, August, 2002

4. 2002 Sales by Division Overall product sales up 22% Overall product sales up 22% MediaLoft East sales up 25% MediaLoft East sales up 25% MediaLoft West sales up 21% MediaLoft West sales up 21%

5. Reasons for our growth More titles More titles Expanded café offerings Expanded café offerings Surge in book demand Surge in book demand Our knowledgable sales staff Our knowledgable sales staff Our experienced managers Our experienced managers

6. Forecast for 2003 75 new employees 75 new employees Sales up 32% Sales up 32% Expanded CD and video offerings Expanded CD and video offerings Increase in online sales Increase in online sales Another record year Another record year