MORA, LUMARDA AND ASSOCIATES

Certified Public Accountants

No. 2 Don J. Llorente St., Capitol Site 6000 Cebu City, Philippines Tel. No. : (032) 255-4960 Cell No. : 09275728150

September 29, 2007

The Board of Directors Adrenaline X Ads

Attention:

Mrs. Ann Flor D. Ramirez Accountant

Gentlemen: In connection with our audit of the financial statements of ADRENALINE X ADS (the Company) as of June 30, 2007 and for the year then ended, please furnish us the documents, schedules, analyses, and reconciliation of the accounts enumerated in the attached list (Attachment A). We request that these be submitted to us in digitized format, if applicable. We will inform you should we need additional documents, schedules and analyses in the course of our examination. We will also request your staff to assist us in the following areas: 1. Typing of confirmation requests; 2. Investigation of differences which may arise from confirmation replies; and, 3. Other clerical work related to the examination of the Companys financial statements. We thank you for the cooperation and attention that you will give us on this matter. Very truly yours,

ATTY. RHENEIR P. MORA, CPA Managing Partner

ADRENALINE X ADS

Attachment A

LIST OF DOCUMENTS, SCHEDULES AND ANALYSES OF ACCOUNT BALANCES June 30, 2005 1. 2. New contracts and agreements with continuing accounting and financial significance Minutes of meetings of the board of directors and stockholders, and other committees held during the current year and a certification of their completeness (Attachment B) Certification by the Corporate Secretary as to the stockholders and their respective stockholdings as of June 30, 2007 (Attachment C) Letter of inquiry to legal counsel (Attachment D) Bank confirmation forms signed by the Companys authorized signatories (Attachments E): Kindly provide us the telephone and fax numbers and contact persons of the banks to which confirmations were sent or are to be sent. Ensure that addresses of said companies include the zip code of the location. 6. 7. 8. 9. Treasurers Affidavit (Attachment F) Statement of Managements Responsibility (Attachment G) Pending letter of authority and/or assessment from the BIR and/or City Treasurer, if any Updated retirement expense computation

3. 4. 5.

10. Bank reconciliation statements for all bank accounts using the format below: Per Books Unadjusted balance P Add (deduct) Reconciling items (please indicate available reference) Adjusted balance P x,xxx x,xxx x,xxx P P Per Bank x,xxx x,xxx x,xxx

11. Schedule of bank transfers seven days before and after August 31, 2005 12. Aging schedule of Accounts receivable trade showing the following: a. b. c. d. e. f. g. h. i. j. Invoice number or reference and date of sale Customer name Amounts in foreign currency and in peso Exchange rate used 1-30 days 31-60 days 61-90 days over 90 days mode of payment Subsequent collections (including OR number and date of collection)

13. Costed listings of all inventories as of June 30, 2007

Attachment A

14. Schedule of Property, plant and equipment per major classification with the following headings: a. b. c. d. e. f. g. h. i. Item description Date acquired Reference/CV number and invoice number Acquisition cost Estimated useful life Accumulated depreciation as of June 30, 2007 Depreciation expense for 2007 Accumulated depreciation as of June 30, 2007 Book value as of June 30, 2007

15. Please prepare a separate schedule of disposals (if any) during the year showing, in addition to the information in no. 32 above, items a to i, the following: a. b. c. d. e. f. Date disposed Manner of disposition Accumulated depreciation at time of disposal Selling price, if applicable Reference/OR number Gain or loss on disposal

16. Schedule of insurance policies showing the following: a. b. c. d. e. f. g. h. Description of asset insured Cost of asset insured (for property and equipment) Book value (for property and equipment) Amount insured Insurer Type of insurance Insurance policy no. Period covered

17. Schedule of Due from and to RELATED PARTIES 18. Schedule of bank loan and loan from other financial intermediaries, if any, showing the following: a. b. c. d. e. f. g. h. i. j. k. Name of creditor Date granted/loan date Date of maturity Payment terms for principal and interest Promissory note number Original amount of loan in foreign currency and in peso Balance as of June 30, 2007 in foreign currency and in peso Balance as of June 30, 2007 in foreign currency and in peso Interest rates Interest expense for 2007 Collateral and details of other significant terms

19. Schedule of Accounts payable trade (dollar/yen and peso) showing the following: a. b. c. d. e. f. Invoice number or reference and date of purchase Supplier name Amounts in foreign currency and in peso Exchange rate used 1-30 days 31-60 days

Attachment A

g. h. i. j.

61-90 days over 90 days mode of payment Subsequent payments (including OR number and date of payment)

20. Schedules of Accounts payable others, Accrued expenses and accrued retirement benefit 21. Monthly income statement for the year 2007 22. Schedule of Sales and Sales returns and allowances showing the following: a. b. c. d. e. f. Invoice date Invoice number Customer Amount in foreign currency Exchange rate used Peso equivalent

23. Schedule the following costs and expenses showing date, reference, description and amount: a. b. c. d. e. f. g. h. i. j. k. l. Direct materials purchases Factory supplies purchases Power and water (overhead and operating expenses) Repairs and maintenance (overhead and operating expenses) Travel and transportation (overhead and operating expenses) Security and utility Freight and handling (overhead and operating expenses) Professional fees and honoraria Office supplies Entertainment and gifts Communication and gifts Taxes and licenses

24. Monthly average number of employees