dot com ENTERTAINMENT GROUP, INC.
                           AND SUBSIDIARIES

                      CONSOLIDATED BALANCE SHEETS
                             December 31,

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ASSETS                                     2001               2000
                                     ----------         ----------

Current assets:
 Cash and cash equivalents          $   965,041        $   655,409
 Accounts receivable:
  Trade, less allowance of
   $25,000 ($0 - 2000)                1,306,931            464,061
  Other                                   8,964             16,274
 Prepaid expenses and deposits           26,578                  -
                                     ----------         ----------
  Total current assets                2,307,514          1,135,744

Fixed assets - net                      105,114             46,418

Deferred tax asset                      122,000            260,000
                                     ----------         ----------

                                    $ 2,534,628        $ 1,442,162
                                     ----------         ----------
                                     ----------         ----------

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable and accrued
  expenses                          $    96,544        $   105,521
 Accounts payable - officers             50,000             75,805
 Deferred revenue                       214,701            164,167
 Income taxes payable                   338,968             15,532
                                     ----------         ----------
  Total current liabilities             700,213            361,025


Stockholders' equity:
 Common stock, $.001 par
  value, 50,000,000
  shares authorized,
  10,787,500 shares issued
  and outstanding (10,730,000
   - 2000)                               10,788             10,730
 Additional paid in capital           1,454,887          1,411,820
 Retained earnings
  (accumulated deficit)                 368,740           (341,413)
                                     ----------         ----------
    Total stockholders' equity        1,834,415          1,081,137
                                     ----------         ----------

                                    $ 2,534,628        $ 1,442,162
                                     ----------         ----------
                                     ----------         ----------


                   dot com ENTERTAINMENT GROUP, INC.
                           AND SUBSIDIARIES

                   CONSOLIDATED STATEMENTS OF INCOME
                       Years Ended December 31,

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                                           2001               2000
                                     ----------         ----------

Revenues:
 Royalties                          $ 2,687,134        $ 1,464,798
 Installation fees                      713,566             17,000
 Support, maintenance and
  e-digital services                    402,115            321,500
                                     ----------         ----------
                                      3,802,815          1,803,298

Expenses:
 Research, software
  development and
  support services                      965,064            588,996
 General and administrative             960,500            732,125
 Sales and marketing                    693,662            269,929
                                     ----------         ----------
                                      2,619,226          1,591,050
                                     ----------         ----------

Income before income tax expense      1,183,589            212,248

Income tax expense                      473,436             78,532
                                     ----------         ----------

Net income                          $   710,153        $   133,716
                                     ----------         ----------
                                     ----------         ----------


Net income per share:
 Basic                              $      0.07        $      0.01
                                     ----------         ----------
                                     ----------         ----------

 Diluted                            $      0.06        $      0.01
                                     ----------         ----------
                                     ----------         ----------

Weighted average number of common shares outstanding:
  Basic                              10,764,375         10,710,833
                                     ----------         ----------
                                     ----------         ----------

  Diluted                            11,702,331         10,805,214
                                     ----------         ----------
                                     ----------         ----------


                   dot com ENTERTAINMENT GROUP, INC.
                           AND SUBSIDIARIES

    CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Years
                   Ended December 31, 2001 and 2000

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                                                              Retained
                                                              Earnings
                     Common Stock    Additional   (Accumu-
                     ------------       Paid-in      lated
                   Shares     Amount    Capital    Deficit)     Total
                   ------     ------    -------    -------      -----

Balance at
 December 31,
 1999          10,500,000 $   10,500 $  939,050 $ (475,129)$  474,421

Issuance of
 common stock     200,000        200    454,800          -    455,000

Issuance of
 common stock
 in exchange
 for services      30,000         30      2,970          -      3,000

Issuance of
 stock options
 in exchange
 for services           -          -     15,000          -     15,000

Net
 income - 2000          -          -          -    133,716    133,716
                ---------  ---------  ---------  ---------  ---------

Balance at
 December 31,
 2000          10,730,000     10,730  1,411,820   (341,413) 1,081,137

Issuance of
 common stock      57,500         58     43,067          -     43,125

Net
 income - 2001          -          -          -    710,153    710,153
                ---------  ---------  ---------  ---------  ---------

Balance at
 December 31,
 2001          10,787,500 $   10,788 $1,454,887 $  368,740 $1,834,415
                ---------  ---------  ---------  ---------  ---------
                ---------  ---------  ---------  ---------  ---------


                   dot com ENTERTAINMENT GROUP, INC.
                           AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                       Years Ended December 31,

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                                            2001              2000
                                      ----------        ----------

Cash flows from operating activities:
 Net income                          $   710,153       $   133,716
 Adjustments to reconcile net
  income to net cash and
  cash equivalents provided by
  operating activities:
   Depreciation                           23,039             6,243
   Deferred income tax expense           138,000            63,000
   Expenses satisfied via the
    issuance of
    common stock and stock
    options                                    -            18,000
   Changes in non-cash working
    capital items:
     Accounts receivable                (835,560)         (149,404)
     Prepaid expenses and
      deposits                           (26,578)                -
     Accounts payable and accrued
      expenses                            (8,977)          (58,880)
     Accounts payable - officers         (25,805)           12,389
     Deferred revenue                     50,534           164,167
     Income taxes payable                323,436            12,132
                                      ----------         ----------
   Net cash provided by
    operating activities                 348,242           201,363

Cash flows from investing activities:
 Purchases of fixed assets               (81,735)          (52,661)
                                      ----------         ----------
  Net cash used in investing
   activities                            (81,735)          (52,661)

Cash flows from financing activities:
 Proceeds from issuance of
  common stock                            43,125           455,000
                                      ----------         ----------
   Net cash provided by
    financing activities                  43,125           455,000
                                      ----------         ----------

Net increase in cash and
 cash equivalents                        309,632           603,702

Cash and cash equivalents,
 beginning of year                       655,409            51,707
                                      ----------         ----------

Cash and cash equivalents,
 end of year                         $   965,041       $   655,409
                                      ----------         ----------
                                      ----------         ----------

Supplemental cash flow
 activities:
Income taxes paid                    $    12,000       $     3,400
                                      ----------         ----------
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