Dear Friends & Shareholders, 

We hope your Holiday Season was blessed with joy and that your New Year is off to a wonderful start.

One can hardly believe the first month of 2013 has passed by already. In fact, the last 2 months have been our best ever at Paradise Publishers as it continues to grow exponentially. Here are a just a few exciting highlights for you:

• 2012 revenue up 28% over 2011!
• Six (6) straight years of growth!
• Membership now exceeds 1.4 Million subscribers!
• Over 3,000 new Members, on average, join daily!
• Traffic that visited our properties during 2012 exceeded 14 million unique visitors!
• Our Site Visitors now download over 26,000 eBooks daily!
• We have 125,000 Facebook fans + 45,000 Spanish Facebook fans and growing!

The past year of 2012 was also another progressive year of development which saw us reach and achieve a number of milestones, including: 

Espanol.Free-eBooks.net
This new site was launched in late 2011. Our first venture into foreign markets has far exceeded any expectations.  It has quickly become the fastest growing eBook site for the Spanish market attracting nearly 600,000 unique visitors monthly and drawing over 1,500 new members daily. To further catalyze this rapid growth, we launched Spanish versions of both our Android and Apple iOS apps in 2012 to allow these members to take Espanol.Free-eBooks.net with them on the go! 

Portugues.Free-eBooks.net
Following the success of our Spanish library, a Portuguese version was launched in Q4 of 2012. The growth of the Portuguese site is already outpacing it's Spanish counterpart.  While markets such as Spanish and Portuguese are not yet as profitable on a per capita basis as the English one, we are once again pioneers in these foreign spaces, allowing us to position ourselves as foundational leaders in the industry (as we did by entering the English eBook market before companies such as Amazon and Apple). The increase in smartphone and tablet use in these countries is quickly escalating the demand for eBooks. We believe the continued expansion into foreign markets will allow us to strengthen our brand, further cross promote our properties and increase our competitive advantage. 

Ampersand & Textbooks
We've also identified the educational eBook market to be another area of explosive growth. Therefore, we have created Ampersand Press, a division of Free-eBooks.net, and partnered with BookBoon (a leading eTextbook provider) to offer thousands of extra educational books. 

Social Publishing has arrived!
After many years of development Foboko.com is now open to the public! Our aim has been to capitalize on the widely popular desire people have to write/create books. With Foboko, we make it simple, fun and profitable to do just that. By combining a 'Publishing Wizard' that 'babysits' a user through all the publication steps and allowing them to seek help from the entire Foboko community anywhere along the way, it's never been easier to create a book!

More advantages for Authors
Authors have more publishing choices than ever these days. At Paradise Publishers we are always looking to provide them with new unique benefits, besides simply being one of the greatest options for exposure online today. We aim to give our authors the chance to build a fanbase by sharing their work for free, but also to be able to reap monetary rewards. As such, in conjunction with Google who runs our advertising, we now allow authors to share in the ads that surround their particular book(s). This system has been implemented on Free-eBooks, our Spanish version and also on Foboko.com.

We're also in escalated talks with a number of high profile publishers who'd like to use our websites as 'testing grounds' for the books they cannot publish right away (due to the traditional publishing industry's limitations). The best books would then be rewarded with contracts. This incentive would be tremendously attractive for authors.

New Capital Infusion - Chicken or the Egg?
While the launch of Foboko has been a major milestone for us, it still doesn't seem to satisfy Investment firms who now demand to see 'substantial traction' before investing.  Yet, increasing revenues and market awareness is elusive without obtaining the right funding first. While we're eager to make a leap forward, along with a potential public listing, for now we shall continue to focus our efforts on further growing the company internally. Plus, we're continuously exploring new firms, candidates, and options, like the upcoming changes to the JOBS act which we believe could have a big impact for us. 

 The Best for Last?
Wal-Mart recently approached our Costa Rican office as they are expending Sam's Club into Central America. They requested that we white-label our Spanish site for them. As such we recently unveiled SamsLibros.com. You may use the TestCode (SAMTEST) to try it out, though the site is in Spanish. The idea being that Sam's would offer gift cards in their stores for this site at $15 for 15 eBooks. They are currently planning 25 stores in the region. Mexico has 120 stores and there are over 600 in the USA. Getting our foot in the door with Sam's and potentially working up to the US market is one of our biggest goals for 2013.

Furthermore, we are working on our own prototype, retail gift card program for our English eBook library. At the moment, we plan to introduce this to all major chains, as well as airport shops and more.  The gift card opportunity is incredibly lucrative as the profit margins are tremendous and the 'eBook cards' space holds little to no competition at the moment.

Don't be Shy
Not only am I blessed to work with the great team at Paradise Publishers Inc., but also to have a solid shareholder base made up of many accomplished people. We're never too busy, or proud, to ask for help. If you have any suggestions, contacts or anything that you believe can assist us further the company, for everyone's benefit, please do not hesitate to contact me.

Many new seeds were planted in 2012 and we're excited to watch them flourish in 2013 and beyond. One of our biggest successes in the past has been to stay ahead of the competition and by expanding into foreign markets, the educational sector and taking our online product offline with 'eBooks Cards,' we believe we can multiply our success exponentially.

As always, I wish you and yours a peaceful and prosperous 2013.

Yours truly,

Nicolas Gremion, CEO
Paradise Publishers Inc.