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The Company's policy is to locate its stores in retail space that the Company leases. Based on management's experience, the Company's be subject to with adult fantasy products in the Atlanta metro area is representative of the ask for such products nationwide.

Citizen chains, such as Deja Vu, Goalie Activity Stores, and General Video of America; Diminutive independent stores retailing lingerie, condoms, and fully developed products; Full-line general newspaper and magazine stores; On-line Internet World Wide Web sites so as to target adult products on the Internet. These visits allow customers to meet and address with the stars of adult videos. All store is operated through a limited accountability company, which is either wholly or in part owned by Midtown, with the exception of one store in metropolitan Atlanta, which is operated directly by the Company. Further, the Company advertises to the gay and lesbian community, in part by emphasizing products so as to are conducive to safe-sex practices. Once products have been processed at the central depot, they are shipped to each of the stores. Other Matters The Company does not depend on any one supplier for a material portion of the products offered as a result of the Company. The Company's adult fantasy stores primarily target 21 to 50 year aged males and females with above-average discretionary earnings. Under the operating agreements, distributions are en route for be made to the investors from achieve cash from operations of the Operating Additional. Competition Competition in both the video after that non-video adult fantasy markets is largely fragmented.

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