Credit Report

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CLIENT   :

ATTN OF  :

YOUR REF.:                                                      DATE: 2004/12/15

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GEOPOLITICS

IDENTIFICATION

LEGAL

FINANCIAL FIGURES

No financials are published

COMMENTS

ACTIVITY

The official name is 'CUNDLE ACQUISITION CO' ; but the firm is commonly known as 'ILLUMINATIONS'.

The Company is a candle manufacturer of candles.

In addition to candles (scented/unscented pillars, votives, tapers, floative candles), the company also makes mirrors, picture frames, tabletop decorations, and accent furniture.

All the products are sold through 44 stores in 20 states, as well as through a catalog, and a web site (elluminations.com)

The corporate address is in Delaware for tax purposes.

The headquarters are located:     

1995 S. McDoweel Blvd

      Petaluma, CA 94954

      Tel: (707) 769-2700

      Fax: (707) 769-8700

A former Company ELLUMINATIONS INC., started on April 8^th, 1992 and was incorporated in Delaware under ID# 2293870. the latter went into a voluntary bankrupcy Chapter 11, on January 9^th, 2004.

Calfornia  bankrupcy Court: Case 04-19427.

Judge: Samuel L. BUFFORD.

In early May 2004, the assets were acquired by Madeleine LLC, which formed a new Company, CANDLE ACQUISITION CO. doing business as "ELLUMINATIONS".

The new owners provided working capital through a $25 million credit facility provided by MADELEINE LLC, and have continued to operate the company.

As part of its program workforce, ILLUMINATIONS has closed low volume and unprofitable stores.

SHAREHOLDERS - MANAGERS

The stock is held by:

Madeleine LLC

950 5^th Avenue, New York, NY 1002,

an investment company started in December 1995

Bob DAVENPORT is the Chairman of the Board.

The President and Chief Operating Officer is Brian LALIBERTE.

He joinded ELLUMINATIONS, INC. in 2002 as Senior Vice President in charge of e-commerce, information technology and logistics. In 2003, he was appointed COO and assumed the additional responsability of store operations. He was then elected President and COO of the new Company.

The Chief Financial Officer is Blair LAMBRET.

Others managers include:

- Paulette Sun DAVIS, Senior Vice President, in charge of human ressources and legal

- Michelle CODINGTON, Vice President, Retail stote operations

- Noah TRESHNELL, Vice President, Merchandises planning and allocation

- Clay LINGO, Vice President, Direct to consumer

COMMERCIAL TREND AND FORECASTS

Financials are not published.

The year 2004 is expected to end with a US$ 182,000,000 turnover.

Declared Net worth is US$ 8,672,000.

The Company, under its new management, is developing a better business.

BANK RATING

The banks are confident within the new managing team. Moreover, the shareholder owns high equities and should support the subject.

Payments are made on due date on a regular basis 35 days.

No legal filings are mentioned.

RATING

The new company presents serious guarantees, especially with the well known shareholder, MAGDELEINE LLC.

At the beginning, the business met some difficulties but partners are now confident and expect good results.

The original structure did file under Chapter 11 but the management and the shareholder were different.

A business relation can be established on a € 800,000 credit.

SUMMARY