FOR IMMEDIATE RELEASE

Media Contact: Carol Campbell
Elf Foundation
Tel: 323-572-1699
E-mail: carol@crc-enterprises.com

'The Good News Newsletter'

an up-to-date look at what we've been up to!

January 1, 2004 - Hollywood, CA

Major Contributors:
Runco International, Yamaha Electronics, Lutron, Sonance, Faroudja, Stewart Filmscreen, Home Theater Cruise, XM Satellite Radio, Crestron, CEDIA, B & W, McIntosh, Primedia, InFocus, Klipsch, Consumer Technology Publishing Group, AVAD, Marketing Matters, Bose, Good Guys!, Straightwire, Richard Gray's Power Company

The best thing to give to your enemy is forgiveness; to an opponent, tolerance; to a friend, your heart; to your child, a good example; to your father, deference; to your mother, conduct that will make her proud of you; to yourself, respect; to all men, charity. -Francis Maitland Balfour

Las Vegas - January 2005

Eric Schwartz and Rick Albuck of the Consumer Technology Publishing Group are hosting the 3rd annual "Battle of the Bands" competition/party at The Beach on the opening night of CES - the event will honor the Elf Foundation in celebrating their accomplishments of 2004, and also help to raise awareness and additional support for future "Room of Magic" theater projects.

"The Elf Foundation is doing such wonderful work - the manufacturers who help out, the dealers who do the design and installation, everyone doing their part to further the foundation's mission - its really remarkable," says Eric. "We're proud to do our small part in helping Elf prosper. Please join us for an evening of great music and tons of fun."

London - January 2005

The initial planning is underway to create a new charity in England - tentatively known as the Pixie Foundation - to replicate the success of the Elf Foundation for children's hospitals across the United Kingdom. Expectations are for formal announcements to be issued in spring of 2005, with a major donor kick-off announcement targeted for CEDIA UK 2005.

The Pixie Foundation will be headed up by Angela and Stan Curtis, who will be working with various trade organizations, manufacturers, Residential Electronic Systems Contractors, media and rep organizations to create "Room of Magic" theaters for children's hospitals and ancillary facilities in England.

"We met with Carol and Doug from the Elf Foundation at CEDIA 2004 - a grueling 6-hour marathon meeting that covered all of the salient points in organizing ourselves properly - and came away convinced that we could do our own small part to bring the magic of music and film to some needy children and their families," said Angela. Stan weighed in as well, "What better constituency could we possibly serve? Who else but kids cooped up in a hospital could better deserve our gift of a magical theater?"

The Elf Foundation wishes nothing but success for our colleagues in the U.K. Cheers!

The Elf Foundation is proud to once again acknowledge our 2003/2004 fiscal recap, for those who wonder just how their contributions are spent! Here are the past two-year's results.

Total expenses:$455,885 (2003/04)
Program Services:$402,094 (88%)
Management and General:$26,680 (6%)
Fundraising:$27,11 (6%)

Total expenses:$318,313 (2002/03)
Program Services:$270,076 (85%)
Management and General:$17,561 (6%)
Fundraising:$30,676 (9%)

Hollywood, CA - 2005

New "Room of Magic" theaters coming on line!

This is always the best news we can share with everyone who has played a part in our growth - we now have over 30 theaters completed! So much effort goes into creating these theaters and all of the magical people who help are to be congratulated for their wonderful contributions.

1. Audio Advisors of West Palm Beach are proud to announce the opening of two new theater rooms for the children at the Nicklaus Children's Hospital. Keith Cottrell of Audio Advisors gets a special tip-o'-the-hat for his leading role in orchestrating the design, installation and major fundraising for this project.

2. GoodSounds Home Theater of Margate, Fl is wrapping up a large "Room of Magic" theater at the Broward Children's Center in Pompano Beach in January. This is a very special facility and Elf Foundation wishes to congratulate Jim and JoAnn McGowan for their special efforts. Additionally, special thanks to AVAD for underwriting this project - especially our friends at InFocus for their generous contribution of a ScreenPlay 7205 projector.

3. Custom Electronics is wrapping up their long-awaited project at the Barbara Bush Pediatrics Center in Portland, Maine. Steve Hayes has been quite diligent in seeing this project through to completion! Hospital bureaucracy is something to behold - and Steve has found that out first-hand. Congratulations for your perseverance and dedication to your local community.

4. Matt Scalici and Gary O'Donavan of Front Row Media Systems in Birmingham, Alabama are scheduled for a January/February completion date on their first "Room of Magic" theater at the Alabama Children's Hospital. This will be a large installation and certain to be a top contender for CEDIA's :"Special Design" award category at Expo 2005. Matt has also been instrumental in arranging for a site evaluation at the Arnold Palmer Women & Children's Hospital in Orlando - our on-site, managing partner will be Anika Ruff of Home Theater Solutions - and the involvement of Joe Gibbs, the founder of the Golf Channel.

5. A very special "Room of Magic" has been opened at St. Joseph's Children's Hospital in Patterson, New Jersey. This is, by far, the most needy project the foundation has ever undertaken. A tremendous amount of effort has gone into this facility and extra special thanks is warranted for our heroes at LivingIntelligent - especially Mitch Arthur, who has been working on this project for several years! Mitch is also wrapping up ANOTHER project for Elf - at the Maria Ferrari Children's Hospital in Westchester County, New York. This will be our third "Signature Theater" and certain to turn heads when the project is complete.

Calgary, Alberta - January 2005

The Elf Foundation is proud to announce the opening stages of our first Canadian project. Warren Press of Holmes Theater & Automation is heading up the theater projects at the new Alberta Children's Hospital - scheduled to open in early 2007. This will be a major project for the Elf Foundation - featuring a main "Room of Magic" theater that seats 160, in addition to 4 smaller theaters located on critical care floors. Manufacturers interested in getting in on this exciting project should contact the home office ASAP - this is going to be a big one!

Somewhere at Sea - October 2004

David Bott and Gary Reiber of the Home Theater Cruise once again sponsored the foundation's Live Auction during the 2004 HTC. Runco International, Yamaha, Stewart Filmscreen, Monster Cable, Faroudja Laboratories, TV Authority, D-Box, Denon, Samsung, Epson, and Anchor's Away all contributed products and services that helped raise $51,300 for our ongoing theater projects. A tremendous round of applause to everyone who participated!

Washington, D.C. - December 2004

XM Satellite Radio has once again pledged huge support for the Elf Foundation for the upcoming year. Among topics discussed at meetings held at their fabulous digs in the nation's capital, were the consideration of recording a children's lullaby CD in conjunction with Jeff Weber of WeberWorks (a multi-Grammy winning producer) and David Gustafson (musician and song-writer). Proceeds would be divided between the Elf Foundation and David's special philanthropy work at Children's Hospital of Philadelphia. Additionally, the concept of a special fundraiser in NYC this coming spring in conjunction with the Home Entertainment Show was discussed - plans to be finalized after 2005 CES. Finally, our dear friends at XM Radio will be partnering with the foundation and Avitecture (a professional integration firm in Sterling, VA) in creating something magical! for the children at National Children's Hospital!

Traverse, Michigan - December, 2004

With the invaluable assistance of Walt Rising and the Rising Foundation, we are proud to announce the creation of the Elf Rising Endowment Fund! This is a long-range plan to seed funds away for a decade - we are targeting a minimum of $1,000,000 - so the foundation will have a long-term platform from which to operate. This endowment fund is meant to perpetuate the foundation's work - initial funding of $10,000 has been graciously provided by the Rising Foundation, with a matching contribution from the Elf Foundation. $980,000 to go!

All of the legal, accounting, and investment work is being organized - we anticipate the formal announcement of the first $100,000 in donations and a finalized framework this spring/summer. Stay tuned because this is tremendous news for the foundation and Special Elves everywhere.

About The Elf Foundation
The Elf Foundation was founded in July of 2001, with the express mission of creating private entertainment theaters ñ 'Rooms of Magic' - for childrenís hospitals, autism centers, shelters for abused kids, and terminally-ill hospices for children across the country. Operating as a 501 (c) 3 non-profit charity, the foundation acts as a catalyst within the consumer electronics industry and in local communities to advance their mission of bringing the magic of music and film to special kids in a time of need. To date, The Elf Foundation has opened over 50 'Room of Magic' theaters in the U.S. and Canada. For more information visit www.elfSystems.org.