Our company announced the acquisition of Animation Factory today. This acquisition culminates an acquisition quest for Animation Factory that begain in early 2003. We were rebuffed in our acquisition efforts back then and this led us instead to our purchase of Arttoday.com (which inluded photos.com and clipart.com)in June 2003. This acquisition in turn ultimately led us to many more image company acquisitions so that today our Jupiterimages division is the largest part of Jupitermedia Corporation.

The acquisition of Animation Factory makes Jupitermedia the largest owner of lower resolution digitized images of all types worldwide. We now own close to 7 million of these types of images (and we also own over 600,000 royalty free digitized images). I am not aware of any company in the world that owns more than a few hundred thousand of such lower resolution images?

I have long believed that owning content leads to many other business opportunities including spin out products as well as OEM and licensing deals. And this is what is happening in the Jupitermedia march to being a very significant player in both the use of lower resolution images for Web sites as well as for the highest level of marketing and creative usage with our top quality Royalty Free and Rights Managed images.

As we enter 2006 this strategy will be clearer and more powerful. In the meantime we continue to build and integrate our various image properties and brands into a worldwise model of efficency.