Andromeda International

Dear friends, 2003 has confirmed to be another important year for Andromeda. Notwithstanding the strong growth realized in the past and the difficult economic environment, Andromeda continues its growth. Organic growth was driven primarly by the Company's core business, "Designalive". In particular, the Nastro collection improved brand awareness and an increasingly loyal customer base. All of the Company's collections have benefited from management's strategic focus on creativity; evidenced by an extended product offering including complimentary lines, and an increasingly important flash products. Also, the Company's continued international expansion program has been instrumental in driving growth. The positive results of the sales department lead me to expect, once again, double digit revenue growth for the future year supported by a more than proportional increase in operating profits. I'm particularly grateful to all the employees whose commitment and professionalism has enabled Andromeda to achieve the results and to effect the transformation into a professionally managed, well diversified, international Company.