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To: Ally who wrote (23)	4/14/1998 4:48:00 PM
From: Mayo	Respond to of 512

Hi Denise, As per your request: We are in the manufacture and distribution to music store dealers of musical instruments (drums and drumsticks). - Annual worldwide wholesale sales are approx. $7 billion U.S. and percussion instruments account for approx.5% or$300 million U.S.of total sales. - Strong demographic (young men aged 12-25) currently growing by 2% to 3% per year until 2010. Our custom drums and drumsticks are manufactured in Vancouver, B.C. Canada at our 13000 square foot facility. - Ayotte's unique "Wood Hoop" and overall design enhances sound quality and responsiveness and its patented "tunelock suspension system" extends duration of drum tuning and reduces tuning time. - Our order backlog currently runs about 2 months. - Ayotte brand name carries a high profile, continually heightened by prestigious trade show appearances and very positive product reviews in industry publications. - Numerous well known drummers play our Custom Drums. Drum Sticks, 11 models. Consumable. Good Margins. Introduced one year ago. Sales have grown rapidly to over $20000.00 per month. - drumSmith line of drums are both high volume, high profit margin (avg. 35%). drumSmith are built at a 30000 square foot factory in Taiwan and when introduced at the January '97 trade show orders for 179 sets we placed sight unseen. We currently have approx. a 2 month order backlog and growing. We are always concerned about quality control and find much patience from appreciative dealers too. -Merchandise- plans to develop marketing for and launch a line of t-shirts, jackets caps etc.(Ayotte directors currently own and operate $25 mm plus t-shirt business). Growth Strategy: -Alliance with Tay E. Co. of Taiwan is expected to increase gross margins, assists in launch and market development of entry level drum kit line and allow Ayotte to expand into other related musical instruments and hardware (stands, foot pedals). -Rapidly expand international distribution channels. -Ayotte intends to capitalize on its high profile and strong reputation for quality and craftsmanship and become a multi-product manufacturer while delivering new higher margin goods to the market. -Ayotte has established a dealer network of over 150 dealers in 20 countries (expanded from 30 dealers in last 18 months). -Baby boomers are providing a growing market for musical instruments as they place great emphasis on music education for their children's quality of life. Financial Highlights: to fiscal year end Feb. 98 approx. $700k in cash, no debt, shares outstanding 11.6mm basic, 13.0 fully diluted, $810k non-capital tax loss carry forwards to offset future taxable income. The Team, -Ray Ayotte, founder, president and Director, has been in the drum business since 1969 with the very successful Drums only store, which led to producing custom drums bearing the Ayotte logo in 1982. -Louis Eismam- chairman of the board, One of principals who founded Mr. Jax fashions with $80mm in sales. Mr. Eisman devotes much of his time to the company and has been instrumental in increased productivity. -Sam Feldman- Director. Mr. Feldman has in excess of 25 years in the music industry. As co-founder and co-principal along with Bruce Allen Mr. Feldman has built his career on A&F Music Ltd. their clients include to name a few: Brian Adams, the Cheiftans, Martina McBride, Anne Murrey and Joni Mitchell. -Michael Fugman-Director. CA, President of Gault Distribution Inc., a wholesale distributer, in business for 98 years. Mr. Fugman is the President of Ayotte Music (VCC) Inc. Summary, Growth will come from our ever increasing sales of drumSmith, being mass produced and selling very well. Our drumsticks are increasing in sales and custom drums are growing in demand always. Look for consolidation in the musical instrument industry and we are actively seeking opportunities to grow our company with strategic take acquisitions. Our sales campaign is working very well with ads running in major drummer magazines ie: Modern Drummer, full page ads. we have our U.S. sales for in place as well. I could fax you an article from a drum magazine that just came out with rave reviews for our customs if you like. I hope I have included enough information for you to have a further opportunity to review us. Whatever I have missed let me know and I will forward ASAP. Yours truly, Mark W. Stern Investor Relations P.S. I should not forget the fact that so many famous drummers who endorse other drums actually buy our drums with their own money! they typically use them in their own homes or studios. visit our web site www.ayottedrums.com (it may currently be down due to some glitch but keep trying)