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Investor Insight Initiates Coverage on Psychic Friends Network Inc. With a Price Target of $2.55 Per Share

HONG KONG, HONG KONG -- (Marketwire) -- 12/04/12 --

Editors Note: There are 7 photos associated with this press release.

Investor Insight announced today that is has initiated coverage on Psychic Friends Network Inc. (OTCBB:PFNI) with a $2.55 target price, commenting that "the upside potential is sizable," with the outstanding marketing opportunities and distribution pipelines available to the firm offering huge membership growth potential.

Company Overview - Summary of Opportunities

The Psychic Friends Network (OTCBB:PFNI) first hit the airwaves back in the 1990s, and was a huge cash-generation success story. Circumstances beyond the company's control compromised its status as a going concern at the end of that decade. With new technologies, better marketing apparatus, and a more efficient advertising structure, PFNI is back to recreate the magic.


--  The rapid globalization that has occurred over the past 10 years opens
    international markets to service firms like never before. The potential
    for penetration in overseas venues is impressive.  
    
--  The proliferation of mobile communication devices makes connecting to
    customers easier, more economical, and more fluid than ever imaginable
    in the '90s.  
    
--  Video interfacing options personalize the connection between customer
    and advisor to a level not possible with the telephone.  
    
--  Advances and streamlining in the area of payment options help tighten
    verifiable commerce exchange, significantly lower delinquencies, and
    increase cash flow and income capture. 
    
--  A myriad of marketing avenues through multimedia platforms and bundling
    partnerships with successful services firms should help catapult the
    company's image to new heights of recognition in the popular culture.  
    
--  In the past decade, the psychic/astrological space has expanded its
    footprint in the realm of popular culture making now a more optimal time
    than ever for the company's re-establishment. 
    
--  The industry as a whole has expanded to over $2.5 billion in revenue. It
    is highly fragmented, with few recognizable players, leaving the door
    open for a firm like PFNI to gain immediate traction, and capture
    sizable market share. 
    
--  The management team that propelled the firm in the '90s is back with its
    past experience, vast customer databases, and an even stronger stable of
    industry contacts. 
    
--  Lower cost structure, opportunities for partnerships with brick and
    mortar shops, and increases in the potential for advertising revenues
    all help bolster the claim that the company is re-engaging the market
    place at the perfect time. 
    
--  The firm expects to generate revenues from a variety of sources
    including its benchmark phone network, advertising on its website and
    social media platforms, mobile app subscriptions, PSMS text content
    (daily horoscopes, for example), and video interfacing on mobile and
    website platforms.  
    

Potential Sources of Revenue for the Company

PFNI is in its developmental stage, and thus is in need of substantial funding to capitalize on the huge potential revenue opportunities that exist in the current marketplace. Estimated costs for the coming year are approximately $1.2 million; real money-but a fraction of potential revenues awaiting the model 12-18 months out.

The company is already beginning to make strides in the right direction with an appearance at the Daytime Emmys this past summer, a recent presentation at a San Francisco investors conference, the launching of its tricked-out 2.0 version website, and the development of its mobile app platform.

Based on PFNI's ability to secure the proper financing, and execute on its game-plan, the upside potential is sizable. In a sense, the stock can be viewed as a long-term option, with no time decay or expiration date. Applying the company's aggressive projection for sales and net income, we arrive at a valuation of $2.55 on a 15x forward P/E basis. In the near term, we believe that the "option" value of owning the firm's revenue stream potential would be reasonably enumerated at $.80 to $1.00.

The Numbers Indicate a Very Promising Future for PFNI

Second chances abound in life-relationships, sports, etc. - but in the business world they are quite rare. Ideas typically have one shot at success; a window opens only briefly. It is not often that an idea, a business schematic, is afforded an opportunity to come to the starting line with the knowledge that its model has worked in the past, and can work again. That is what I believe the folks at the Psychic Friends Network (PFNI) are looking at today. They are in possession of a proven formula, a cash producing business model, that has been deployed before, experienced smashing success, but whose life cycle was cut short by external forces beyond their control - and more important, forces that are no longer relevant.

In fact, various developments in the marketplace over the past 10 years make for a more attractive landscape than PFNI could ever have imagined in the 1990s.

A Brief History of PFNI

The Psychic Friends Network was launched as a concept in 1990. If you were born prior to the mid-1980s, you know the name. It's astonishing brand recognition was achieved in a very short time window through a targeted system of infomercials, print, radio and direct mail marketing that would be the envy of many Fortune 500 companies. That marketing mechanism produced $4 of revenue for each $1 in advertising expenditure.

This outstanding marketing-to-revenue conversion ratio fueled rapid growth. From 1993 to 1999, PFNI generated more than $1 billion in revenue, delivering psychic advice and daily horoscopes on topics ranging from financial matters and relationships to health, family and career concerns.

PFNI's network of outsourcing, and at-home employment, was low cost. Their state-of the art (at the time) telecom system was efficient. Their celebrity-centric marketing scheme was attention getting. At the peak of its popularity, the operation was averaging 14,000 calls and nearly $600,000 in revenues each day.

In the mid-1990s, a group of activists sought to address the 900-number business in the telecommunications industry. Government, never an institution to miss out on an opportunity to meddle in the affairs of the private sector, started down a road that would eventually render the business environment in which PFNI operated so hostile that the company was forced into "retirement."

By the latter part of the 1990s, the FCC restricted telecom companies from enforcing payment from customers for delinquent bills, and prohibiting firms such as MCI and AT&T from suspending service for non-payment of services. Essentially regulatory changes allowed telecom customers to retain their phone service...while not paying 900 number charges. The progression was easy to forecast: Telecom firms began to withhold fees owed to service venders such as PFNI, eventually pushing the firm into bankruptcy in late 1998. Although originally intended to cripple the seedy phone sex business, the laws served as a death blow to otherwise legitimate operators in the arena. In the end, theirs was a very solid overall business model, undone by outside forces.

It is important to note that most businesses and industries die out due to declining demand for product or service. This is clearly not the case with PFNI, its industry, or business model. And in the interim, revenues in the space have more than doubled in the U.S. alone.


Fast Forward to 2012:                                                       
The 21st Century Version of a Winning Concept                               

In 2009, the original management team secured $400k in capital to begin a revitalization of the concept. A reverse merger in the beginning of 2012 raised an additional $780k. The re-launch has begun: PFNI, with an experienced team, has the potential to regain its standing, and use its hallmark brand to gain significant market share in a multibillion-dollar marketplace.

Consider this: In the '90s, the firm was able to generate enormous revenues with only the telephone system and television advertising. The world is a very different business environment today-one that should prove to be quite advantageous to a services concern such as PFNI, whose sole focus is the overall experience of its customers. Imagine the possibilities today. Let's examine the variables:

Market Overview


--  Market expansion: The market for psychic services has grown to an
    estimated $2 billion annually in the U.S. alone and more than $2.5
    billion around the world. PFN has the brand recognition and management
    team know-how to capture a sizable portion of that business. 
    
--  International markets: During the 1990s, the company only had market
    presence in the U.S. and Canada. The global business construct has
    changed since then. E7 nations (China, India, Brazil, Mexico, Russia,
    Indonesia, and Turkey) account for a full half of the population of the
    planet...but only 20% of the GDP. G7 nations are 11% of the
    population...yet account for 50% of the global GDP. This is changing.
    Purchasing power and disposable income in E7 nations is rising
    dramatically. Culturally, many of these nations are quite receptive to
    the astrological theme (for example, Eastern Europe, China & India).
    Advances in the technology of advertising and multimedia communication
    and content distribution make breaking into these new markets attractive
    and relatively low cost. These growth opportunities overseas were not
    even on the table back in the '90s. Economists project the E7 will
    surpass G7 nations in GDP around 2030. This could be the largest area of
    growth in coming years. The new website, up less than a month, has
    already experienced hits from individuals in 52 different countries. The
    possibilities in overseas venues are enormous.  
    
--  Rough economic times: Hardship and uncertain times drive people to seek
    outside advice, sometimes from unconventional sources. The U.S. is
    immersed in the longest period of economic stagnation and the most
    anemic "recovery" seen since the 1930s, and globally, things are equally
    bleak. Most economists forecast that an unwinding of the debt crisis,
    and a true global economic recovery, will be years in the making. In
    times of uncertainty and strife, people seek out alternative sources for
    advice, direction, comfort, and consultation. In fact, according to a
    recent report from IBISWorld Market Research, over the five years from
    2007 to 2012, while most other industries were suffering the ill effects
    of an economic downturn, the psychic services industry grew at an
    average annual rate of 2.0% to an estimated $2.1 billion. Like a cloud's
    silver lining, global financial problems create a very solid economic
    environment for the new launch of PFNI's business endeavors.  

Technology and New Media                                                    

--  Technological innovation: The world is a very different place than it
    was a mere 10-12 years ago, and we communicate in a much different
    manner. PFNI marketed, and generated massive revenues, utilizing only
    the telephone, basic television, and the mail system. Imagine what
    opportunities await the company in today's environment. The creation,
    and exponential growth of social and new media platforms such Facebook,
    Twitter, Skype, satellite radio, the internet, internet video, mobile
    apps, etc., should equate to a significantly larger addressable
    audience, and near endless global potential client pool. 
    
--  Mobile device market: Advances in mobile technology present enormous
    opportunity for content- and service-driven firms such as PFNI. Branded
    content can be accessed over the web by any mobile device-and there are
    a great many of them in today's marketplace. As of Q3 2012, there are
    82.2 million smartphone users in the U.S. alone. That number is expected
    to grow substantially in the coming years, both in the U.S. and
    globally. To capitalize, PFNI is currently working on the design and
    implementation of various mobile applications. These include apps that
    will be downloadable from third-party stores such as iTunes, the Android
    app store, and Blackberry. Streaming content capability could provide
    live interfacing on the go. Free downloads of apps, coupled with short
    trial periods and subsequent subscription fees, will form the backbone
    model for monetizing this end of the business. The firm also plans to
    provide a simple fee-based text service through its PSMS platform, where
    daily horoscopes and other customer-specific content is sent to members
    via text messages. Discounted monthly packages could prove to be an
    attractive member retention option.  
    

For customers with specific advisors they wish to speak with, text and mobile app options will allow them to schedule appointments with their selected advisor, when that advisor is unavailable - rather than waiting on hold or terminating a connection. This represents another example of technology - unavailable even 10 years ago - streamlining the client/advisor process.

Bill-to-mobile will provide customers with a direct payment option through their existing mobile service provider. Data estimates relating to the explosion of mobile application technology use is all over the map, but one thing is certain: the near parabolic trend.

Technological Advances


--  Better method of payment: Gone are 900 numbers and the collection of
    payment through third-party telecommunication companies. Refinements in
    the credit card payment process (as well as the advent of PayPal, debit
    cards, text pay, bill-to-mobile, etc.) have helped streamline verifiable
    commerce exchange for all potential platforms such as web chat, phone,
    Skype, mobile apps and others. This will not only make it easier for
    clients to make payments, but from an accounting perspective, will aid
    in significantly lowering delinquent accounts receivables levels, and
    thus increase actual Cash Flow (CF), and net income. Some estimates
    project that close to 50% of all service commerce is now conducted over
    the web-up 10-fold in the past decade in large part to the ease and
    security of payment.  
    
--  A more personal touch: Video interfacing of the kind provided by Skype,
    Apple's FaceTime, and website video chat formats, brings clients face to
    face with their advisors in a personal manner far exceeding that of past
    decades, enhancing the personal connection of clients and their chosen
    psychic. For tasks such as card reading, the actions of the advisor can
    now be viewed live, furthering fortifying the experience. Rather than
    the reputation of "fortune tellers," these individuals serve as
    therapists and trusted advisors, a relationship that benefits from an
    increased human touch. To provide some perspective: Skype alone has
    recently reached 70 million downloads on Android mobile platforms, has
    recorded a peak of 38 million simultaneous users, and logged an
    impressive 115 billion minutes in the prior quarter. People have become
    quite comfortable with the use of this medium. 
    
--  The Website (PsychicFriendsNetwork.com): The new site had its soft
    launch in early October of this year and the 2.0 version is anticipated
    to be fully operational by Q1 2013. It will provide the hub from which
    all web and social media based traffic/business is conducted. Live audio
    and video chat, instant messaging, and communication forums are a few of
    the features that will provide a significant upgrade to customers from
    the competition. Online merchandise vending and gift card sales provide
    an additional revenue stream. And finally, advertising on the site
    itself should prove profitable. 
    

Brand Building                                                              

--  Marketing Efficiencies: As discussed above, PFNI's opportunities for
    conducting business and providing core services to clients will be
    enhanced dramatically. So will expanded and more diverse marketing and
    advertising avenues. All of the new technology pipelines, available for
    distribution of services being discussed in this report can be used to
    develop sophisticated, targeted marketing programs. The firm plans to
    use this to broaden the demographics of their prior customer base,
    target and capitalize on various international markets, and rapidly take
    revenue and client participation levels to heights exceeding those of
    the '90s era.  

With that in mind, it is important to remember PFNI's past successes. During
its peak call volume periods in the 1990s, 14,000 calls per day were coming 
into the firm's operation. In retrospect, it's astonishing to think nearly  
90% were generated through good, old-fashioned television advertising.      
Today, the few serious competitors in the marketplace advertise almost      
exclusively on the internet. Yet infomercials remain extremely effective,   
and PFNI was essentially the king of them in the past-winning multiple      
awards and ranking in the top 40 infomercials for 178 straight weeks,       
according to the industry's Jordan Whitney Greensheet.                      

--  Marketing Distribution Channels: The hi-tech communication age was in
    its infant stages in the 1990s. Few at that time could have imagined the
    magnitude of expansion/reach we see today. Multimedia and communication
    platforms such as Facebook, which reaches nearly 700 million users
    worldwide, and Twitter, with over 500 million subscribers, are two
    recognizable leaders. Cell and smartphone use is skyrocketing along with
    the use of various multi-media apps that accompany them.  
    
--  The Potential for Bundling: The potential for targeted partnerships,
    which could further refine PFNI's marketing focus, is highly promising.
    Affiliate-driven traffic, banner ads programs, and algorithmic email
    distribution could further enhance the marketing strategy of the
    company. A potential example would be a partnership with Match.com (10
    million+ members) or eHarmony (20 million+ members) for the relationship
    angle. Another would be the top-rated late-evening radio show in the
    country, Coast to Coast, a forum focused on the supernatural that
    attracts over 4.5 million listeners in the U.S. every night. Finance,
    health, and career are other areas of possibility. 
    
--  Targeted Marketing: The company expects to see their marketing to
    revenue conversion ratio expand from the previous mark (4 to 1) to an
    even healthier 5 to 1. Utilizing a focused, yet comprehensive approach
    implementing the old print, radio, direct mail and affiliates, with the
    exciting new opportunities in the social media and mobile app area.  
    
--  Celebrity Endorsements and Popular Culture: The astrological/psychic
    space has gained legitimacy in popular culture in the past decade. Shows
    such as Medium, The Ghost Whisperer, and The Housewives series, along
    with numerous cable psychic/supernatural themes, post impressive
    followings. Movies such as The Gift, Sixth Sense, AfterLife, and dozens
    more pertaining to the psychic realm draw millions of viewers. World-
    renowned psychic personalities such as John Edwards, Ron Bard, Barbara
    Powell and James Van Praagh are more successful today than ever.
    Hollywood and the entertainment industry has long been fertile ground
    for the psychic realm, and today there are more celebrities than ever
    whose profiles are have been linked to the space: household names such
    as Brad Pitt, George Clooney, Angelina Jolie, the late Patrick Swayze,
    Sarah Jessica Parker, Tori Spelling, Cameron Diaz, Denise Richards,
    Heidi Montag, Chelsea Handler, and Brett Butler, to name just a few. 
    

Singer/actress Dionne Warwick became the iconic face of the PFNI in 1990s,  
creating a memorable presence via infomercials and television ads. The field
lends itself well to the eclectic Hollywood crowd, and the company's early  
efforts toward reaching out to this influential audience - such as the      
readings done at the VIP lounge at the 2012 Emmys-bode well for cultivating 
a longer-term celebrity passion and following.                              
                                                                            
Additional Points to Consider                                               

--  Advertising Revenues: A less sexy, but potentially fruitful avenue for
    net revenue growth for PFNI is advertising income. The company should be
    able to generate steady income streams with the sale of ad space on all
    of its media and social networking platforms. Cross-selling within the
    psychic/astrology industry, coupled with derivative interest market ads,
    could develop into a cash cow for the firm. 

--  Regulatory environment: The 900 number issues that challenged the
    company in the past are gone. They are replaced by 800 number calling,
    and the various internet, social media, and mobile platforms discussed
    in this piece.  

--  Bricks and mortar approach: There are thousands of "mom and pop" psychic
    shops throughout the U.S. The potential opportunity for PFNI here isn't
    in the roll-up of the individual physical locations, but rather the
    employment of these individuals for their time and expertise. Providing
    a fiber-optic pipeline into these locations, connecting them to the PFNI
    secured grid, would be an interesting business twist. It could be sold
    as an optimization of these individuals' time (i.e., better utilization
    of their downtime.) It would also tap into a wealth of experienced
    psychics and readers in the pursuit of expanding PFNI's competency
    drove.  

--  Lower cost structure: Technology and improved operations can be
    anticipated to help the company realize a lower cost structure. 1) lower
    fulfillment costs, 2) lower cost of sales, 3) off-book independent
    contractor employee payment structure, 4) and improved technological
    efficiencies-all combine to enhance and streamline the cost environment.

--  Customer data: Customer stats from the past should provide a solid
    benchmark for early forecasting, establishing a sound floor from which
    to build. Average annual revenue per customer in the 1990s was $350-400,
    80% of which was recorded in the first 6 months of the relationship.
    Retention rates were an astonishing 75%. It is not unreasonable to
    consider that branding, a focus on enhancing customer loyalty (i.e., a
    lengthening of that 6-month figure), and more personal interfacing
    options, will grow all customer data metrics this time around.  

What Stays the Same                                                         

--  Management Team: The management team is returning, and with it, their
    core competencies in the media arena. Basically, PFNI retains every bit
    of the intellectual capital that developed the successful model in the
    first place, returning to the stage with new and improved marketing and
    implementation tools. 

The company will have its vast customer/member database at its disposal.    
Coupled with a new array of data mining tools and enhanced targeted         
marketing options, this should allow the company to be significantly more   
efficient in their marketing strategy, and to utilize social media          
technology to optimize demographics.                                        


--  The phone: Enormous opportunities exist for the new launch of PFNI, but
    the one-on-one call service is still a core concept of the business
    model. Customers call from whatever environment they are comfortable,
    and can be connected to the specialist of their choosing, or area of
    specific expertise (tarot, astrology, relationship advice, money,
    career, dream, past life, etc.) This allows an individual to establish
    an ongoing, lasting relationship built on comfort and trust. Changes to
    the customer initiation and psychic compensation process to a "softer"
    scalable approach should be beneficial for the critical long-term
    customer recapture rate, and thus, the long-term health of the firm.  

Attractive initiation plans (free minutes packages, etc.) assist in getting 
potential interested parties in PFNI's door. Past data suggests that 75% of 
initial callers become return customers. The implementation of an attractive
bonus structure for advisors, which rewards independent contractors for     
return customer percentage rates (rather than minutes per call), and        
customer-friendly policies of periodically informing clients of their minute
totals (chat time) as well as money-back satisfaction guarantees, further   
the firm's move to better foster client trust. What could be more important 
for a steady cash flow than return customer loyalty?                        

--  The Psychics: The firm takes pride in employing the best individuals in
    the business, and plans to re-initiate that philosophy going forward.
    The utilization of mobile app, voice-over-IP (VOIP), and various social
    media tools can allow the firm to employ the talents of psychics all
    over the world-to customers all over the world.  

Competition

The industry is estimated to generate revenues upward of $2 billion in the U.S. alone. The composition, however, is extremely fragmented. The largest organized participant is Keen, owned by Yellow Page Holdings and AT&T (ironically enough, one of the phone companies that helped drive PFNI into bankruptcy).At the next level down, CA Psychics and Hollywood Psychics are successful enterprises that operate in the fertile ground of the West Coast. And then you have thousands of brick and mortar shops, online "reading" sites, and public fair venues garner business around the country.

These all lack the benefits of scale and organization, though, that PFNI has proven successful at implementing in the past, and is intent on replicating in the near future.

Moreover, even with PFNI absent from the industry for close to 12 years, how many of those competitor names can an average person on the street cite? Short answer: None. PFNI represents a sizable edge in today's brand-centric world.

Financial Review

Below are income statement projections for the company. The estimated growth pattern is sharp. However, as depicted in the second small exhibit, the history of the business model suggests such expectations have some precedence. These are ambitious estimates, and are certainly no guarantee of success. However, if proper forward funding is secured, and many if not all of the business avenues discuss in this report are successfully executed by management, these projections could easily be met-or possibly exceeded.

Risks

Although the business concept is a proven one, the re-engagement of PFNI is, in all respects, a development stage entity. Its success as a going concern will depend largely on its early stage execution. That, in turn, is almost completely dependent on the firm's cash reserves. The company recently received the third and final installment of a $780k financing package through Right Power.

With much work to do in the launching of various tech platforms, more funding will be needed in the intermediate term. The company currently has no lines of credit or other bank financing arrangements. Generally, they have been financing operations to date through the proceeds of the private placement of debt and equity instruments, and the financial backing of officers, friends and family members. The company's intention is to finance forward expenditures in a similar fashion. This will not only require new investment interest in the fledgling concern, but will be dilutive to existing shareholders. Many of these new issues may require senior rights, and privileges to the existing investors.

This additional capital is imperative to the development of the company. No matter how outstanding the potential for a business idea, it needs cash to fuel it. If necessary financing is not made available on acceptable terms, the firm may be unable to take advantage of prospective new business opportunities, and the wealth of potential revenue pipelines in its sights. In my estimation, a combination of equity, debt, and the initiation of bank credit should be aggressively pursued by management.

The company estimates expenses for the coming critical 12-month period to be approximately $1.2 million. It could be a delicate balance, in the coming months, between initial revenue streams and additional funding. I believe they should and can get there. The opportunities 12-18 months out are extraordinary, in my opinion. However, one cannot discount the going-concern risk.

The estimated cost of initial launch is shown in the chart below. Not insignificant, but a fraction of the potential revenues available to the firm's model.

The Coming Year

Developments are beginning to happen quickly for PFNI, and opportunities abound. The "soft" launch of the company's website, PFNI 2.0, has just taken place. It will serve as the "nerve center" of the company's operations. Targeted test market trials are scheduled to begin before the end of Q4 2012. The critical important mobile app platform launch is scheduled to occur within the coming 3 months. By all indications, the initial investment capital infusions are being allocated to good use.

A coordinated press release program, designed to draw attention to rapidly developing events on the company's calendar, is also being initiated. A targeted marketing campaign is taking form, and will pick up momentum in Q1 2013. The company recently operated spot locations at the 2012 Emmy Awards in Los Angeles, and presented at an investors conference in San Francisco. All of these are positive first steps in the focused approach of returning PFNI to the pop-cultural center stage.

In addition to the outstanding organic growth opportunities that exist for the company, substantial joint venture, and industry roll-up potential could provide momentum for growth, consolidate a fragmented industry, streamline costs, enhance intellectual capital deployment, and eliminate competition. Put it all together, and it could be a busy year indeed for the folks at PFNI.

Conclusion

At an estimated $2.5 billion globally, the corner of the entertainment industry in which PFN occupies has expanded dramatically during the decade since they took leave of the space. Popular culture has further embraced the astrological and psychic realm. Generally speaking, popularity of this industry grows in periods of economic strife. We are certainly embroiled in exactly one of those periods, with absolutely no end in sight.

Businesses usually fail due to one of the following factors: 1) Their products or services becoming old or obsolete; 2) the population sours to an idea and loses its appetite for said product/service; or 3) the product/service in question is replaced by something better, faster, stronger, more informative, or more entertaining. None of these was the case with the past demise of PFNI in the 1990s. As discussed earlier in this document, the company's fate was determined by an unprecedented shift in the regulatory environment. And more important, those changes are no longer a factor.

The company was an absolute cash machine during its prior run-with little more than two tin cans and a string compared to what is at its disposal technologically today. The marketing opportunities and distribution pipelines available to the firm at present are outstanding, and offer huge membership growth potential. Mastery of this new social, multimedia environment is the key to the company's fortunes.

For PFNI, this is a moment of significant opportunities to regain its dominant market position. As in any business venture, risks are present, and cannot be disregarded-additional funding/investment in operations are imperative to business plan execution. Time will tell, but a look at the numbers and the overall landscape indicates the Psychic Friends Network has all the makings for a uniquely inspiring entrepreneurial second coming.

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General Information: ZIBO advises recipients of all such data to be validated from the issuing company including all statistical information derived from SEC filings, from data sources or financial Information and data from the issuing company contained herein. The reader should seek professional financial advice, verify all claims and do his/her own research and due diligence before investing in any securities mentioned. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D, www.sec.gov, www.otcmarkets.com, www.sec.gov and www.finra.com. ZIBO is compliant with the Can Spam Act of 2003. Investing in micro cap and small cap securities is speculative and carries a high degree of risk. Investors can lose their entire investment.

The Private Securities Litigation Reform Act of 1995: The Private Securities Litigation Reform Act of 1995 provides investors a 'safe harbor' in regard to forward-looking statements. ZIBO cautions all investors that such forward-looking statements in this report/release/advertisement are not guarantees of future performance. Investors should understand that statements regarding future prospects likely may not be realized. This report/release/advertisement does not have regard to the specific investment objective, financial situation, suitability, and the particular need of any specific person who may receive this commercial advertisement. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall substantially. Accordingly, investors may receive back less than originally invested, or lose their entire investment. Past performance is not indicative of future performance.

Compensation and Trading: Because we received compensation for ZIBO's research and/or dissemination of the Information, our publicly disseminated publications should not be regarded as independent. The company has been paid $7,500 for the production of this report by Anna Bell Investments Ltd., a third party which owns an option to acquire 666,666 shares of common stock of PFNI. This document shall not be copied or reproduced in any form without the expressed written and authorized consent of ZIBO.

Full ZIBO Research Disclaimer: ZIBO is a research firm hired by certain companies to provide information about various companies. The report at times can be used to create investor awareness about micro cap, small cap companies and other private and public companies. Readers of our information are hereinafter referred to as "Reader" or "Readers". This disclaimer is to be read and understood before using Information. By using or viewing any Information, you agree that you have read this disclaimer in full, understand it and proceed to use or view Information in agreement that you alone bear complete responsibility for your own investment research, investment decisions and due diligence.

We Do Not Provide Investment Advice: We do not hold ourselves out to the public as an investment adviser and do not otherwise act in the capacity of an investment adviser because we do not engage in the business of advising others as to investing in, purchasing, or selling securities or otherwise acting in the capacity of an investment adviser or performing any of the activities as follows: (a) we provide no financial planning type services to our Readers or any persons; (b) we do not manage financial resources on behalf of any person, including financial management based upon analyzing individual "client" needs; (c) we do not provide any person with general recommendations for a course of activity or specific actions to be taken by a person or "client"; (d) we do not provide any advice to our Readers or any other persons recommending allocation of certain percentages of assets to stocks, penny stocks, life insurance, high yielding bonds, mutual funds, or other securities; (e) we do not provide any of our Readers or any persons with tax or estate plans to their individual needs; (f) we do not provide financial programs for our Readers or any other persons; because we do not engage in any of the foregoing activities, you should not interpret any of the Information even remotely as investment advice (g) our commercial advertisements recommend that a given stock may be an attractive buy/sell, short term trade or a long term investment provided the Reader believes the company has enough cash capital or will be able to raise sufficient capital to meet our forecasts (h) These recommendations are for Information purposes only, and should not be relied upon.

Risks, Suitability and Price Targets: Investing in micro cap and small cap securities is speculative and carries a high degree of risk. Investors can lose their entire investment. Investors should understand that statements regarding future prospects may not be realized. ZIBO does not supervise any outside analyst and does not guarantee any report/release/advertisement to be error-free or factually accurate. Report/release/advertisements include forecasted valuations and forecasted price targets that are accepted securities analysis protocol in the academic community. These valuations, price targets are academically appropriate and include in most cases, assumptions that the company provides and will raise capital to meet the analyst's projections. These price targets and valuations, including business prospects, are theory and should not be relied upon for accuracy or investment decisions. There is no guarantee that the predicted business results for the Company will be met. Under NASD Rule 2711, ZIBO is not defined as a financial analyst. Conclusions prepared by outside analysts are deemed to be reasonable at the time of issuance of the report. All decisions are made by the outside analyst and are independent of outside parties or influence. Neither the analyst's compensation nor the compensation received by ZIBO is related to the specific recommendations or views contained in this report/release/advertisement or note, nor is it related to price performance or volume of shares traded in the referenced security. ZIBO or its affiliates may from time to time perform consulting or other services for, or solicit consulting or other business from any entity mentioned in this report/release/advertisement. Consulting agreements that ZIBO may have with a given company are not related to report/release/advertisements or their distribution. This report/release/advertisement does not have regard to the specific investment objective, financial situation, suitability, and the particular need of any specific person who may receive this report/release/advertisement. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall substantially. Accordingly, investors may receive back less than originally invested, or lose their entire investment. Past performance is not indicative of future performance. ZIBO has not entered into a soft dollar agreement with the referred to Company. ZIBO does not currently have an investment banking relationship with the Company, or a finder's fee agreement with the Company.

Regulation: ZIBO complies with current securities laws, regulations and ethical standards as related to ZIBO's compliance requirements. This report/release/advertisement has been prepared in accordance with the SEC's rules and amendments, Oct 23, 2000, regarding 17 CFR Parts, 240, 243 and 249, (Selective Disclosure and Insider Trading), Regulation FD (Fair Disclosure), 10b5-1, 10b5-2, NASD Rules 2250, 2420, 2710 and 2711 and the Can-Spam Act of 2003.

Disclaimer-Price Targets: Stock prices can be heavily influenced by investor awareness campaigns. In general, we observe the more money spent on such campaigns, the greater the probability for short term price increases post our initiate coverage commercial advertisements. We also observe that our target prices may not be met unless client companies have enough cash or are able to raise capital to meet our forecasts.

The Penny Stock Market is a highly risky market targeted at short term traders. Our reports often times recommend client companies as short term trades and long term investments if an investor believes a company will raise the required capital to meet our valuations and price targets. Our historical performance statistics indicate that short term price increases often times occur after release of our initiate coverage reports. Thereafter, we note that the majority our stock recommendations go down significantly due to profit taking and other market factors beyond our control.

The ZIBO Price Target, if any, includes four components. Most reports assume capital will be raised for the majority of our client companies. Most micro cap/small cap companies need capital to reach our theoretical 5 year projections. The academic world justifies an analyst's decision to forecast the three statements (Income Statement, Balance Sheet and Cash Flow Statements) for 5 years. We normally do so in three cases: Optimistic Case, Base Case and Pessimistic Case. However, in the practical/real world, buying a micro cap stock based on 5 year forecasting is EXTREMELY risky. If smaller companies are able to raise capital, our theoretical price targets in a perfect world might be justified, providing the Company executes on its business model.

At times our price targets may be significantly higher than the current price of a stock. This can happen in theory only if the company's assets, with assumed capital raised, could theoretically create large sales and cash flow volumes over time. In the practical world, these price targets may appear to be unrealistic. However, we believe the academics of our calculations support the theory of these assumed price targets. While we do not give investment advice, the investor should consider the possibilities of a given company being able to raise capital to execute its business model over 5-10 years. Few micro/small cap companies are able to raise enough capital and execute their master budget over an extended period of time and often go bankrupt. Our price targets are academic theory only and should not be relied upon. Investors should do their own research and consult with their financial consultants.

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Contacts:
ZIBO QI Transpacific Investments, Ltd.
Cheung Siu
141 Des Voeux Road Central, Hong Kong
R.O. Unit 2503 China Insurance Group Building
1-888-211-9482
Ziboqiinvestments@yahoo.com

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