California Department of Corporations Join Forces With Federal Trade Commission, 10 States and Other Federal Agencies to Launch Major Assault on Business Opportunity and Work-at-Home Scams.

SACRAMENTO, Calif. -- The California Department of Corporations (DOC) announced today Project FAL$E HOPE$, a state and federal sweep by regulators and law enforcement agencies targeting bogus business opportunities and work-at-home scams. The crackdown includes more than 100 law enforcement actions by state and federal agencies in 11 states, including the California Department of Corporations, the Federal Trade Commission (FTC), the U.S. Department of Justice, and the U.S. Postal Inspection Service. In California the DOC initiated enforcement actions against illegal franchise businesses that offered or sold business operations for hypo-allergenic cats, home delivery of pet products, rental of margarita machines, mall coffee kiosks, blended juice cafes, health fitness and nutrition centers, among others.

"The registration requirement of California's Franchise Investment Law helps prevent misappropriation, mismanagement, and misrepresentation in connection with the offer and sale of franchises," said California Corporations Commissioner Preston DuFauchard. "By forming inter-agency alliances, we can strengthen our enforcement efforts and protect the public from the sale of unregistered franchise businesses."

"Bogus business opportunities trample on Americans' dreams of financial independence," said FTC Chairman Deborah Platt Majoras. "If a business opportunity promises no risk, little effort, and big profits, it almost certainly is a scam. These scams offer only a money pit, where no matter how much time and money is invested, consumers never achieve the riches and financial freedom promised."

Project FAL$E HOPE$ includes actions by DOC and other states, new cases announced yesterday by federal law enforcement in addition to developments in existing cases, and criminal convictions, as well as new education materials for advertising sales staff on screening ads for bogus business opportunities. (The State Enforcement List is attached.)

A new guide for publishers offers them help to screen out deceptive ads for business opportunities. The alert, "Ads for Business Opportunities: How to Detect Deception," suggests advertising sales staff to give an extra look at ads that make claims such as:

* No risk! Guaranteed

* Quick and Easy!

* Earn $2,000 a month

The alert warns that legitimate business ventures involve risks, start-up businesses require a lot of work to get off the ground, and that the law requires earnings claims in ads be accompanied by the number and percentage of previous purchasers who achieved the income. (Visit www.corp.ca.gov to view the guide.)

California leads the nation in franchised businesses, encompassing more than 80,000 businesses that provide 2 million jobs and produced economic output worth $187 million, according to a 2004 report by the International Franchise Association Educational Foundation.

The Department of Corporations is California's investment and financing authority and is responsible for the regulation, enforcement, and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending, residential mortgage lending, payday lenders, check sellers, bill payers, and debt reduction services. Consumers should contact the department to check on the status of the companies, investments or other services they are considering and the licensing status of the person. Contact the Department of Corporations toll-free Consumer Resource Center at 1-866-ASK-CORP (1-866-275-2677) or visit its Web site at www.corp.ca.gov.

                      STATE ENFORCEMENT LIST

Arizona

      1.    The Results Group, LLC, Edward Longoria, Amber Halverson,
            Arizona parties, lawsuit filed alleging violations of
            Arizona Consumer Fraud Act, Arizona Attorney General
            (11/29/06)

California

      2.    The Pet Pantry International, Inc. and Pet Products
            Delivery, Inc., Nevada parties, Desist and Refrain Order,
            California Department of Corporations (4/3/06)

      3.    Golden Bridge Coffee, Inc. and Jainn Hwa Wang, California
            parties, Amended Desist and Refrain Order, California
            Department of Corporations (11/3/06)

      4.    Allerca, Inc. and Simon Brodie, California parties, Desist
            and Refrain Order, California Department of Corporations
            (11/2/06)

      5.    Integrative Bio Health Management, Inc., IBHM, Inc., d/b/a
            5R Health, Jong Ki Kim, Jong Hag Kim, California parties,
            Desist and Refrain Order, California Department of
            Corporations (9/13/06)

      6.    Eureka Education, Inc., and Taesuk "Andrew" Lee,
            California parties, Desist and Refrain Order, California
            Department of Corporations (7/20/06)

      7.    Beyond Juice d/b/a Beyond Juice, Inc., O.L.D., Inc., David
            Funk, Sally Kline, Morrie Friedman, Nevada parties, Desist
            and Refrain Order, California Department of Corporations
            (4/28/06)

      8.    Ads Unlimited, Inc., d/b/a Welcome To the Neighborhood,
            Benjamin Gilbert, Kid Sodhi-Gilbert, California parties,
            Citation of $2,500 and Desist and Refrain Order,
            California Department of Corporations (8/14/06)

      9.    The Cure Service Group, Inc., Lisa Bongi, Rick Stonell aka
            Rick Stowell, California parties, Order Denying
            Effectiveness of current Franchise Registration
            Application and Revoking Current Franchise Registration,
            Desist and Refrain Order, California Department of
            Corporations (4/5/06)

     10.    Laurent Perron d/b/a The Margarita Man, Texas party,
            Desist and Refrain Order, California Department of
            Corporations (12/6/06)

     11.    Imergent, Inc., Stores Online, Inc., and Galaxy Mall,
            Inc., Stipulated Final Judgment and Permanent Injunction,
            Delaware and Wyoming parties, California Attorney General
            (9/13/06)

     12.    Vend Direct, Vending Services of America and Gary Luckner,
            lawsuit alleging violations of California's business
            opportunities statutes and unfair and deceptive business
            practices, Colorado parties, California Attorney General
            (12/11/06)

Connecticut

     13.    Candy King, Stanley Gladstone, Consent Order, permanent
            C&D, administrative fine of $25,000 against Candy King and
            $7,500 against Gladstone, Candy King barred for five years
            from offering biz ops in Connecticut, Candy King must
            offer rescission for approximately $100,000 to affected
            Connecticut purchaser-investors, Gladstone barred for five
            years from acting as an officer or director of any entity
            selling biz ops in Connecticut, Florida parties,
            Department of Banking, Securities & Investments Division
            (4/26/06)

     14.    Tax Recovery Group, Inc., permanent C&D from sales of
            unregistered tax service biz ops and notice of intent to
            fine issued, Colorado party, Department of Banking,
            Securities & Investments Division (5/19/2006)

     15.    Regal Nails, LLC, Stipulation and Agreement, payment of
            $3,000 fine for unregistered business opportunity sales in
            Connecticut, Louisiana party, Department of Banking,
            Securities & Investments Division (11/28/06)

Florida


     16.    On-Site Corporation, Settlement Agreement, administrative
            fine of $3,000, Idaho party, Florida Department of
            Agriculture & Consumer Services (6/9/06)

     17.    Global Resources, Inc., Stewart Pope, default judgment,
            injunction, judgment of $960,000.00 (plus court costs),
            Florida parties, Florida Department of Agriculture &
            Consumer Services (6/13/06)

     18.    American Cash Machine, LLC, Settlement Agreement, payment
            of $2,000, Florida party, Florida Department of
            Agriculture & Consumer Services (6/21/06)

     19.    Energy Automation Systems, Inc., Settlement Agreement,
            payment of $2,000, Tennessee party, Florida Department of
            Agriculture & Consumer Services (6/28/06)

     20.    Crown Beverage Systems, Informal Settlement Agreement,
            payment of $1,000, Ontario, Canadian party, Florida
            Department of Agriculture & Consumer Services (8/24/06)

     21.    U.S. Vend Technologies, LLC, a/k/a Vend-It-All, a/k/a
            U-Turn, Settlement Agreement, payment of $500.00, Idaho
            party, Florida Department of Agriculture & Consumer
            Services (10/5/06)

Indiana

     22.    Global Venture, default judgment entered on January 9,
            2006, permanent injunction against defendants and
            employees prohibiting conduct in violation of Indiana
            Business Opportunity Transactions Act and Indiana
            Deceptive Consumer Sales Act, payment of $17,647,
            cancellation of defendant's business opportunity contract
            with the Sheryl E. Stutz Trust, Florida party, Indiana
            Attorney General's Office

     23.    Imergent/Stores On Line, lawsuit filed on January 13, 2006
            for violations of Business Opportunity Transaction Act and
            Indiana Deceptive Consumer Sales Act, for injunctive
            relief, restitution, and other relief, Utah party, Indiana
            Attorney General's Office

     24.    Sunshine Candle Corp, lawsuit filed on February 10, 2006
            for violations of the Indiana Business Opportunity
            Transactions Act and the Indiana Deceptive Consumer Sales
            Act, for injunctive relief, restitution, and other relief,
            New York party, Indiana Attorney General's Office

     25.    Holiday Enterprises & Holiday Ink, lawsuit filed on
            August 9, 2006 for violations of the Indiana Business
            Opportunity Transactions Act and the Indiana Deceptive
            Consumer Sales Act, for injunctive relief, restitution,
            and other relief, Georgia parties, Indiana Attorney
            General's Office

     26.    Nelson Baker d/b/a Sparetime Enterprises, Consent Judgment
            entered on August 11, 2006, consumer restitution of $2,390
            and $300 costs, contract between Defendant and Peter and
            Reeta Willis declared void, Ohio party, Indiana Attorney
            General's Office

     27.    People's Health Choice, Inc., Consent Judgment entered on
            August 25, 2006, costs of $872.15, consumer redress of
            $1,127.85, contract between defendant and Shirley Baker
            declared void, California party, Indiana Attorney
            General's Office

Kentucky

     28.    Tosh Farms, LLC, Tosh Farms General Partnership,
            Pig Palace, LLC, and Shiloh Hills, LLC, Assurance of
            Voluntary Compliance, Tennessee party, Kentucky Attorney
            General's Office (9/13/2006)

     29.    National Snack Products, Inc. and Dennis Roberts, TRO
            issued against defendants to cease from offering business
            opportunities in Kentucky and refrain from destroying or
            concealing records or assets, Minnesota parties, Kentucky
            Attorney General's Office (10/20/06)

Louisiana

     30.    Dreamlife, LLC, d/b/a Power Plus MPG and Dreamlife
            Products, and Brent Holland, Petition for Injunctive
            Relief, Louisiana parties, Louisiana Attorney General's
            Office (12/6/06)

Maryland

     31.    Coffee Beanery, Ltd. and Kevin Shaw, Consent Order,
            Michigan parties, Maryland Attorney General's Office,
            Securities Division (9/12/06)

     32.    Aussie Pet Mobile, Consent Order, California party,
            Maryland Attorney General's Office, Securities Division
            (1/25/06)

     33.    Carpet Network, Inc., Consent Order, New Jersey party,
            Maryland Attorney General's Office, Securities Division
            (2/9/06)

     34.    Emerald Coast Mfg., Inc., dba Java Jo'z Coffee, Agreement,
            Florida party, Maryland Attorney General's Office,
            Securities Division (2/10/06)

     35.    Humitech Franchise Corp., Consent Order, Texas party,
            Maryland Attorney General's Office, Securities Division
            (2/28/06)

     36.    Online Outpost Licensing Corp., Agreement, Florida party,
            Maryland Attorney General's Office, Securities Division
            (2/28/06)

     37.    KaBloom Franchising Corp., Consent Order, Massachusetts
            party, Maryland Attorney General's Office, Securities
            Division (3/16/06)

     38.    Daily Grind of Winchester, Inc., Agreement, Virginia
            party, Maryland Attorney General's Office, Securities
            Division (3/29/06)

     39.    Multicorp Franchising, Inc., Consent Order, Maryland
            party, Maryland Attorney General's Office, Securities
            Division (4/7/06)

     40.    The Dale Group, d/b/a Blind Brokers Network, Consent
            Order, California party, Maryland Attorney General's
            Office, Securities Division (4/24/06)

     41.    Commercial Property LLC and William Stredney, Arizona
            parties, Consent Order, Maryland Attorney General's
            Office, Securities Division (5/1/06)

     42.    Mailcoups, Inc., d/b/a Supercoups, Consent Order,
            Massachusetts party, Maryland Attorney General's Office,
            Securities Division (5/16/06)

     43.    A Nanny on the Net, Consent Order, North Carolina/Virginia
            party, Maryland Attorney General's Office, Securities
            Division (5/22/06)

     44.    Champion Child, Inc., d/b/a Stretch-N-Grow, Consent Order,
            Florida party, Maryland Attorney General's Office,
            Securities Division (5/23/06)

     45.    Quiznos Franchising, LLC and Quiznos Franchising II, LLC,
            Consent Order, Colorado parties, Maryland Attorney
            General's Office, Securities Division (7/27/06)

     46.    Lady of America Franchise Corp. and Charles Cavuoto, Order
            to Show Cause, Florida parties, Maryland Attorney
            General's Office, Securities Division (8/4/06)

     47.    GNC Franchising, LLC, Consent Order, Pennsylvania party,
            Maryland Attorney General's Office, Securities Division
            (8/15/06)

     48.    Coffee Heaven, LLC and James "Jay" Cummings, Final Order
            to Cease & Desist, Florida parties, Maryland Attorney
            General's Office, Securities Division (8/16/06)

     49.    Midwestern Enterprises, Inc., d/b/a InkRX and InkRX.com,
            Consent Order, Wisconsin party, Maryland Attorney
            General's Office, Securities Division (9/21/06)

     50.    Teen Golf Adventures, LLC, d/b/a Total Golf Advertures,
            Consent Order, California party, Maryland Attorney
            General's Office, Securities Division (11/1/06)

     51.    United Business Solutions, Inc., d/b/a UBS Group, Order to
            Show Cause, Iowa party, Maryland Attorney General's
            Office, Securities Division (10/5/06)

     52.    Slim and Tone, LLC, Consent Order, Pennsylvania party,
            Maryland Attorney General's Office, Securities Division
            (11/29/06)

Texas

     53.    Bio Performance, Inc. and Lowell Mims and Gustavo Romero,
            Petition for Temporary Restraining Order, Temporary
            Injunction and Permanent Injunction and Asset Freeze,
            Texas parties, Texas Attorney General's Office, Consumer
            Protection & Public Health Division (May 17, 2006)

Washington

     54.    Smart Advertising, Inc. and Brad Lober, Final Order to
            Cease & Desist, Arizona parties, Department of Financial
            Institutions, Securities Division (5/18/06)

     55.    Press-A-Print International, LLC and Brent Overfelt,
            Consent Order to Cease & Desist, Idaho parties, Department
            of Financial Institutions, Securities Division
            (10/11/2006)

     56.    Global Resources, Inc., Stuart Pope, and John Maginnis,
            Statement of Charges, Florida and Washington parties,
            Department of Financial Institutions, Securities Division
            (10/23/2006)

     57.    Holiday Enterprises, Inc., Richard J. Morrell aka Nick
            Morrell, Andrew DeVoe, and Sherri Albano, Statement of
            Charges, Georgia and Florida parties, Department of
            Financial Institutions, Securities Division (11/22/2006)

Wisconsin

     58.    Keith Walls and David Riley, Summary Order of Prohibition
            and Revocation of Exemptions, Arizona parties, Department
            of Financial Institutions (6/22/06)

     59.    Accutax LLC, Consent Order of Prohibition, Arizona party,
            Department of Financial Institutions (7/13/2006)

     60.    DEI Franchising Systems, Inc., Summary Order Revoking
            Registration, New York party, Department of Financial
            Institutions (7/13/2006)

     61.    Fastbucks Franchise Corp., Summary Order Revoking
            Registration, Texas party, Department of Financial
            Institutions (9/12/2006)

     62.    Garagetek, Inc., Summary Order Revoking Registration, New
            York party, Department of Financial Institutions
            (5/15/2006)

     63.    Midwestern Enterprises and Adrian Anderson, Consent Order
            of Prohibition, Michigan parties, Department of Financial
            Institutions (5/15/2006)

     64.    UBS Group, Inc. and Johnathan Ahlf, Summary Order of
            Prohibition, Iowa parties, Department of Financial
            Institutions (6/22/2006)