Artfest International, Inc.

Dear Shareholders:

I would like to announce several recent enhancements that were performed on our www.StarfestDirect.com and www.DeVieSun.com websites. We have added several new reports to help our members manage their Starfest Direct business along with new updates in the overall online shopping experience. We appreciate your patience while we were performing these upgrades and enhancements.

One of the major enhancements to the Starfest Direct system is the ability to sell digital products. The new download system includes a special web portal that will control all access to the downloadable product through the use of encrypted keys allowing the enforcement of download rights, including limiting the number of downloads within a certain period of time.  The digital content will be stored directly in the database for even more protection. This prevents someone from "giving away" a download link which would allow someone to download Starfest's new digital product without paying for it.

As the shareholders may be aware, PBS Holding, Inc. and its sister companies are acquiring companies with new content and media made available to the public for sale through the websites www.starfestdirect.com and www.deviesun.com. The new features on these websites will allow Starfest the ability to sell and distribute the new content and media to all of Starfest’s customers and members. Through the new upgrades, we are especially excited to offer limted print editions of art as downloadable single-print items.

It is my pleasure to bring this announcement to you.  For more information, please visit the websites www.StarfestDirect.com and click on the “Get Started” link to learn about the Starfest Direct system, or visit www.DeVieSun.com and click on the “Join Us” link to join for free.

Sincerely,

Anzhelika Tassan
CMO