StonePoint Group Limited

COMPANY DATAINTRODUCTION | OPERATING DIVISION | EXISTING CLIENTS 
MANAGEMENT | FINANCIAL STATUS | NEWS UPDATE | INVESTMENT HIGHLIGHTS | CHINESE

Address:  Suite 31 - 1480 Foster Street
White Rock, B.C.
V4B 3X7
Tel No.:  (604) 538-3461
Fax No.: (604) 538-3407
Toll Free No.: 1-888-677-5188
Web Site:  www.stonepoint.net 
Corporate Email: athompson@stonepoint.net 
Contact Person: Allan Thompson 
Position:  Investor Relations

COMPANY DATA

Traded Market:  TSXV 
Traded Symbol: SP 
Outstanding Shares:  38.45 million 
52 Week High: $ 0.37 
52 Week Low:  $ 0.18 
Present Price: Click Here 

INTRODUCTION

StonePoint Group Limited was incepted in 1992, it has become a leader in the development and delivery of premium quality water and beverage products. Rather than distributing its own branded product, StonePoint focuses on delivering private and custom labeled products to major retailers across North America.

By partnering with independent manufacturers that maintain and operate their own facilities, StonePoint realizes faster turn-around time, lower costs and unmatched dependability for its customers. In addition, the Company's network of over 25 production facilities provides unparalleled geographic coverage.

This approach also enables StonePoint to focus on delivering a number of critical value-added management services including: (1) freight and distribution logistics, (2) inventory control, (3) brand strategy development, (4) packaging design, (5) production innovations, and (6) quality assurance programs.

OPERATING DIVISION

Through its three business units, StonePoint has developed a unique business model to capitalize on the fastest growing segment within the beverage industry - the retail consumer market.

Private Label Division. StonePoint is emerging as an industry leader in the private label sector, providing redeveloped and new product incubation and implementation strategies to release premium quality private label water and beverage products to major North American retailers. The Company's state-of-the-art communications systems enables customers to track their orders live, from purchase to time of delivery.

Custom Label Division. StonePoint specializes in providing custom-labeled products, packaging and support services for a wide variety of organizations including hotels, restaurants, charities, golf clubs, health centers and trade shows. Complete integrated services support orders from 100 to 100,000 cases.

Brand Partnership Division. StonePoint specializes in developing and implementing unique brand creation programs for businesses in the beverage industry. Through its strategic alliance with award-winning brand communications agency, Taylor│Sprules, StonePoint is able to create memorable and robust proprietary brands to increase consumer loyalty and shelf recognition. The combination of branding expertise with product development, distribution and production management expertise makes StonePoint the ideal partner for any company researching, developing or managing a beverage brand.

EXISTING CLIENTS

StonePoint has supplied bottled water and carbonated beverages to businesses across North America, ranging from small local retailers to some of the largest multi-national corporations in the world. These clients include:

- The Gap l 7-Eleven
- Marriott Hotels l Safeway
- Macy's l Avon Cosmetics

MANAGEMENT

With over 100 years of combined professional experience in the beverage retailing, manufacturing, distribution and financial industries, StonePoint's team brings deep knowledge and focus to the very foundation of every business practice. Constantly in search of better solutions, the team deploys its considerable talents to every aspect of its clients' needs.

Ted Konyi - Chief Executive Officer
Mr. Konyi has a proven record with an admirable list of business successes achieved over a period of 20 years. Prior to joining StonePoint, Mr. Konyi was President and CEO of Maxwell Mercantile, a private merchant banking company.

James Borkowski - Chairman and Director, Business Development
Since the inception of the Company in 1992, Mr. Borkowski has been responsible for overall corporate operations, managing new product development and branding programs, providing impetus for new idea development and product innovation, research and development.

Aubrey Ryals - Senior Vice President, Technical and Manufacturing Operations, Director of International Operations
With over 40 years of experience in the beverage industry.

Paul Kirkman - Executive Vice President
Mr. Kirkman has over 20 years of experience in the beverage industry. Prior to joining StonePoint, Mr. Kirkman specialized in brand line extension, sales growth and new product development and release for a number of the nation's largest water and beverage leaders.

Bob Mueller - Executive Vice President, General Counsel
Mr. Mueller is a qualified Lawyer and Professional Engineer. He is a recognized industry specialist, with extensive experience in premium water bottling and bottled water plant dynamics.

FINANCIAL STATUS

StonePoint has a very successful 2001 fiscal year, ended December 2001. The Company has met management expectations, and has successfully achieved its primary 2001 goals of diversifying its revenue sources and growing its customers base. During the year, StonePoint completed the acquisition of a custom label bottled water manufacturer, increased sales through the addition of several high-profile customers, and strengthened the management team to position the Company for continued growth.

Fiscal 2001 revenues were US$12.04 million, representing an increase of 4.8% over revenues of US$11.48 million in fiscal 2000. Increased revenues, coupled with the additional required growth expenses resulted in net earnings of US$74,200 prior to the one-time write-down of goodwill, which reduced earnings to US$(2.17) million, or a loss of US$(0.06) per share - a US$2.48 million decline from 2000 net earnings of US$0.31 million, or US$0.01 per share.

Gross profit for the year ended December 31, 2001 was US$1.18 million (9.8% margin), as compared to US$1.31 million (11.4% margin) for the same period in 2000.

The Company anticipates fiscal year 2002 sales revenues to exceed $20.0 million.

NEWS UPDATE

On March 19, 2002, StonePoint Group Limited announced that it has signed a manufacturing agreement with Target Corporation (NYSE:TGT, www.target.com) -America's third largest general merchandise retailer - to supply private labeled bottled water to Target retail stores nationwide. Target operates nearly 1,100 retail stores across the United States.

Target's private labeled bottled water launched in April, and established under Target's grocery and produce brand, Archer Farms Market.

INVESTMENT HIGHLIGHTS

Established Profitability. StonePoint has recorded three consecutive quarters of profitability, having posted net earnings of $239,039 on revenues of $9.84 million during the first three quarters of 2001. For its fiscal year 2002, the Company expects to exceed over $20.0 million in sales revenues.

Integrated Services. By combining branding expertise with product development, distribution and production management, StonePoint offers a one-stop solution for businesses looking to research, develop or manage a beverage brand.

World-Class Customers. StonePoint has supplied bottled water and carbonated beverages for many of North America's largest retailers, including 7-Eleven, the Gap, Marriott Hotels, Macy's, Safeway, and Avon Cosmetics.

Low-Risk Business Model. StonePoint has partnered with network of over 25 manufacturers that maintain and operate their own facilities. As such, the Company avoids the capital-intensive ownership of bottling plants, while gaining flexible regional and multi-product capabilities.

Aggressive Growth Strategy. With strong cash flow, and a solid bottom line, StonePoint is now positioned for unprecedented growth. The Company will continue to acquire new clients and grow organically, while actively pursuing acquisition opportunities that increase business volume and create economic efficiencies.

Dynamic Industry Growth. According to the IBWA, consumers are choosing bottled water for its taste and purity. Having grown at double-digit rates throughout the 1990s, the bottled water represents the fastest growing segment of the beverage industry.

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