CorpHQ Posts Year-End Financial Results for Fiscal Year 2003.

Business Editors

REDONDO BEACH, Calif.--(BUSINESS WIRE)--May 3, 2004

OTC Company to Begin Voluntary (Non-EDGAR) Reporting and Updates

CorpHQ, Inc. (OTC:COHQ) today reported that it has posted its 2003 Annual Report with audited financial statements at http://www.pinksheets.com/quote/quote.jsp?symbol=COHQ. The information highlighted in this press release is contained in, and qualified in its entirety by the full text of, the Voluntary Report referenced above, and all readers are encouraged to consult the full report which includes, among other things, risk factors and other information necessary for a complete understanding of the company.

CorpHQ Inc. operates as a holding company and business incubator; the Company organizes, invests in, and provides comprehensive management support and a variety of resources to high-potential companies. CorpHQ also acquires interests in and provides consultation to selected companies that are synergistic with its invested companies. Since 2001, CorpHQ has developed significant interests in five portfolio companies, which are in various stages of development.

Today CorpHQ announced its financial results for the fiscal year ended December 31, 2003. Revenue for the year ended December 31, 2003 increased by 16% to $1,251,027 from $1,048,159 in the year ended December 31, 2002. General and administrative expenses increased approximately 328% to $464,292 in the year ended December 31, 2003 from $109,277 for the year ended December 31, 2002. CorpHQ had net income of $730,077 for the year ended December 31, 2003 compared to net income of $873,769 for the year ended December 31, 2002, a 17% reduction.

The reduction in net income was expected, and resulted from various operational factors concerning the management of CorpHQ's portfolio companies. Management expects that quarterly operating results will fluctuate significantly due to many factors, including the generation of revenue from the consulting unit and the Company's ability to liquidate investments. Management projects that the great majority of cashflow will be generated by the liquidation of investments and the planned cycle for building portfolio companies to the initial stages of liquidity is projected by management as 18-24 months after CorpHQ's initial investment in each such portfolio company.

Steve Crane, co-founder and CEO of CorpHQ stated, "This is a proud day for everyone here at CorpHQ. When we redirected our business strategy back in 2001, our shareholders overwhelmingly supported our plan to 'lay low' while we focused on business and rebuilt the company."

"Now that we have re-emerged as a company that is executing its strategic plan, we needed to find a way to let the world see our progress. Becoming a fully-reporting company along with the high cost of Sarbanes Oxley compliance is not an optimum use of our resources at this stage of our development. So, the logical step was to voluntarily post our financial results on the Pink Sheets where our stock is traded," added Crane.

Crane continued, "We have used a format that we believe will be acceptable to investors, and while this is not a filing required by, or in exact conformity with, the reporting requirements for publicly-trading companies under the Securities Exchange Act of 1934 and the SEC regulations promulgated thereunder, we are very serious about the information it contains. Both our outside accountant and I have provided personal certifications similar to that which is required of fully-reporting companies. Further, it is our intent to continue to post quarterly and annual reports on a regular schedule similar to those required by the 1934 Act."

"The bottom line is that we are doing this for two reasons - first, we promised our shareholders back in 2000 that when the company was ready to re-emerge to the public that we would find a way to tell the world our story again. And, secondly, spending up to $300,000 a year, or more, of our shareholders' capital on SEC reporting and Sarbanes Oxley compliance is not a prudent use of capital for a company of our size," added Crane.

"I have donated a significant amount of my time over the years as an advocate for small public companies, most recently with the CEO Council," said Crane. "Both our legal counsel, Ken August of the August Law Group, in Irvine, CA, and I believe we have a good relationship with the regulatory community and sincerely hope that together we can find a way to bring Voluntary Reporting to the mainstream as an alternative for all small public companies who would otherwise be burdened by the costs of strict 1934 Act and related reporting requirements, but who still desire to keep their shareholders fully-informed about company developments."

About CorpHQ, Inc.

Since the inception of its predecessor company in 1993, CorpHQ, Inc. has evolved from an innovative online marketplace and virtual corporation for small and home-based businesses into a business consulting organization and holding company comprised of established and emerging companies. The CorpHQ companies address vertical market segments in the Consumer Products, Services and Technology industries. For additional information please visit the Company's website at www.corphq.com.

Forward-Looking Statements 

Any statements made in this press release which are not historical facts contain certain "forward-looking statements", as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

This press release is available at www.corphq.com and http://www.pinksheets.com/quote/quote.jsp?symbol=COHQ.