The following is an OCR version of the current investor letter, in case anyone is interested. If there any "typos" please blame me and not the company. I think that all the OCR problems are cleaned up but proofing is not my forte.
Jeff
SAFARI ASSOCIATES, INC.
64 Edison Street, Amsterdam, NY 12010
Voice: 518-842-6500 Fax: 518-842-6657
August 27, 1998
Since our last letter to stockholders, there have been some very positive developments in our business. Your Company now has four new wholly owned operating subsidiaries. We have been granted an exclusive license to make, use and sell Smith & Wesson single-use and conventional cameras and Smith & Wesson recoil pads. Your Company acquired all of the issued and outstanding stock of Shoothru Inc., through which we now market unique self-sealing reactive pistol and rifle targets. We are presently negotiating new relationships in order to increase our product line with more unique products that will fit into our distribution network.
SMITH & WESSON CAMERAS
This Company is licensed by Smith & Wesson Corp., to exclusively make, use and sell Smith & Wesson single-use and conventional cameras. It is now producing Smith & Wesson single-use cameras for sale to federal, state and local law enforcement agencies. There are over 20,000 police departments In the United States. We believe that with proper marketing, many of these police departments will purchase Smith & Wesson single-use cameras to be issued to all of their field personnel and that the Smith & Wesson single-use law enforcement cameras will become standard equipment for law enforcement agencies throughout the United States. Smith & Wesson has been an American tradition as a law enforcement supplier since 1852. It is known for its high standards of quality and innovation. At $4 50 each, law enforcement agencies cannot afford not to arm themselves with Smith & Wesson single-use cameras. Law enforcement is a growth industry, which we are penetrating with our Smith & Wesson cameras and Shoothru self-sealing targets.
We are now dealing with a major camera manufacturer in the Orient to design and produce a 35mm time and date camera that we intend to sell to law enforcement agencies to supplement the single-use camera Our plan is to sell to law enforcement agencies and tie in a two year agreement to supply the agencies with photographic film. We recently commenced marketing the Smith & Wesson Law Enforcement Camera by direct mail, fax and advertising. Preliminary results have been very promising. Our direct mail and faxing is directed to about 1,000 law enforcement agencies a month. Enclosed is an article reviewing the Smith & Wesson Law Enforcement Camera that appeared in the June, 1993 issue of Law & Order Magazine. This magazine is read be law enforcement personnel throughout the United States and has resulted in sales and inquiries. We use this article in our marketing by direct mail and faxing.
SAFARI CAMERA CORPORATION
Over 76 million single-use cameras were sold in the United States in 1997. Approximately 20 million of these cameras wire produced in the Orient, predominantly China. Fuji has commenced a legal action in the United States Trade Commission to stop these cameras from entering the United States as they allegedly violate Fuji patents. Because of the uncertainties caused by this lawsuit, retailers and importers are purchasing fewer of these cameras. Safari Camera Corporation is taking advantage of the Fuji lawsuit, which does not apply to Safari Camera Corporation. Safari has established a national field rep organization to offer its cameras to retail stores and as premium and promotional cameras. The market for single-use cameras has grown 1900% since 1985 and is projected to grow 2O% a year for the next five years Automobile insurance companies are now recommending that every vehicle be equipped with a single-use camera Safari Camera Corporation intends to penetrate this new market Your Company is now producing private label single-use cameras for the Price Chopper food chain, the New York State Museum, the Battleship New Jersey Foundation which is dedicated to bringing the Battleship New Jersey home to New Jersey and the Cape May-Lewes Ferry which is operated by the Delaware River and Bay Authority.
SMITH & WESSON RECOIL PAD COMPANY
This subsidiary has an exclusive license from Smith & Wesson Corp to make, use and sell recoil pads under the Smith & Wesson name The Smith & Wesson recoil pad is vastly superior to any other recoil pad now on the market. Recoil pads are affixed to rifle and shotgun buns to reduce the impact caused by recoil when rifles and shotguns are fired. Our marketing includes selling to rifle and shotgun suppliers. distributors, gunsmiths and owners of rifles and shotguns who want to replace existing recoil pads.
Within the next four months, we will be distributing a self-adhering recoil pad that is without competition. The new recoil pad will adhere to any outer garment worn by the shooter and can be removed, moved and will adhere to any other garment. The "Stick-On" recoil pad is approximately 3/8' inch thick. It is believed that the new Stick-On recoil pad is appropriate for mass-market merchandisers such as Wal-Mart, Kmart and Sports Authority. When in full production, and after marketing, the recoil pad market can be a high profit revenue source.
SHOOTHRU. INC.
Shoothru lnc., was acquired by Safari Associates Inc., in January, 1998. This Company distributes Shoothru self-sealing knock down and knock down-spring back targets. Shoothru Inc, has these targets manufactured targets will replace steel knock down targets that are now being used by law enforcement agencies, shooting ranges and individuals throughout the United States and Europe. Steel knock down targets cause many injuries by reason of the spatter, fragmentation and ricochet that results when a bullet strikes the target. It is expected that the use of steel knock down targets will be prohibited by law within the next three years.
Shoothru Inc., has commenced marketing of its targets to federal and state law enforcement agencies, shooting ranges and individuals. With proper marketing, it is expected that this will be a very substantial profit center.
Your Company is actively pursuing mergers, acquisitions and other arrangements for the purpose of increasing its product line and sales potential. We will make you aware should any of these ongoing negotiations result in any of the foregoing.
We are now preparing our financial statements so that the Company can file with the baited State Securities and Exchange Commission to become a Reporting Company
Finally, your Company has a new website at www.safariassociates.com. If you wish you can email any inquiries you may have by using the email on the website or simply email SAFR1@aol.com.
SincereIy,
Morton Berger
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