Powerful partnerships
March 25, 2008
Every year, new niche markets and products emerge as tremendous revenue opportunities that were unthinkable just a few years previously. For instance, the U.S. market for MP3 player accessories grew from $50 Million in 2001 to $2 Billion in 2006, an increase of approximately 20 times, driven by strong sales of MP3 players, increased availability of accessories, lifestyle changes among consumers and continuing product development (Source: Research and Markets). For those companies that are able to recognize important market shifts, and then adapt in order to meet the demands of this changing marketplace, the rewards can be tremendous. Less than five years ago, many industry observers were commenting on the demise of Apple. Sparked largely by the tremendous success of one single product, the iPod, Apple stock has surged from less than $7 to approximately $130 in March 2008, even topping $200 in December of 2007.
CHDT Corporation (OTCBB: CHDO) is a public holding company incorporated in Florida, engaged in several business lines through its wholly-owned subsidiary Capstone Industries (www.capstoneindustries.com) and others, including Power Tools and Automotive Accessories as an official licensee of the famous STP® Products brand, Portable Book Lights and Specialty Lighting Products. The Company takes an active role in the management and direction of all business units that benefit from cumulative business experience in a variety of industries. CHDT also provides a variety of services to the business units, allowing them to function smoothly and seamlessly while taking advantage of the consolidation of business processes that is made possible through the Company's integrated structure. Common components operated at the corporate level are human resources, financial services, accounting services, legal services, budgetary control, marketing support, information technology, and systems support. By providing these corporate services for the business units, each unit is charged with focusing on planned revenue growth. For the three months ended September 30, 2007, the Company had total sales of approximately $815,000, up approximately 103% from the $401,000 in sales of the same period in 2006. In addition, through the first nine months of 2007, total sales were $1,415,000, an increase of more than 72% over the $820,000 in sales that the Company generated in the first three months of 2006. Through continued development of its business plan focused on fostering additional growth, CHDT and its subsidiaries expect to see this type of growth continue into 2008 and beyond.
Recently, Capstone announced that its line of Simply Comfort products have been re-ordered by Smarthome.com due to brisk sales and low inventory. In addition Smarthome has added book lights which have been shipped and are online now at www.smarthome.com, keyword: book lights. Under its Simply Comfort line, Capstone produces a unique assortment of Memory Foam, Massager, and MP3 Speaker comfort products developed to relax and re-fresh the mind, body and soul. The success of Apple's iPod and other MP3 players has spawned a $2 Billion industry, and Simply Comfort's assortment of accessories, including the MP3 Tune Shades, MP3 Tune Wrap, and MP3 Tune Pillow are unique niche products developed to capitalize on this rapidly growing segment. For the three months ended September 30, 2007, the Company had total sales of approximately $815,000, up approximately 103% from the $401,000 in sales of the same period in 2006. In addition, through the first nine months of 2007, total sales were $1,415,000, an increase of more than 72% over the $820,000 in sales that the Company generated in the first three months of 2006. Through continued development of its business plan focused on fostering additional growth, CHDT and its subsidiaries expect to see this type of growth continue into 2008 and beyond.
As an official licensee of the Armor All/STP Products company, CHDT subsidiary Capstone Industries offers a complete line of Power Tools and Automotive Accessories under the internationally recognized STP® brand (www.stptools.com). After years of supplying the public with products they can trust, STP® has earned the respect and loyalty of millions of automotive enthusiasts worldwide. The formula for acceptance is simple: The products consistently live up to claims of performance improvement. Through this partnership, Capstone Industries offers a broad range of products, including Power Tools, Shop Lights, Portable Power Solutions, Air Compressors, and Garage Accessories, all under the famous STP® brand. This partnership goes beyond simple commercial ties, as Capstone was recently the primary sponsor for the #81 MacDonald Motorsports Dodge, driven by DJ Kennington at Daytona International Speedway on February 16th, 2008 and will remain a major associate sponsor for the rest of the season . CHDT believes that the distribution capabilities of Capstone in combination with the powerful brand recognition of STP® Products will continue to generate strong revenues and form an important segment of the Company's business.

