Below is the official statement from the legal department of Viva Entertainment Group.

Subject: Pinay Hotbabes

Dear TRC,

VR referred your email to me regarding the referenced subject. I will detail herein the factual background which surrounded the matter and the steps we took to handle the situation:

1. On 27 April 2005, we received an email from Angie Estacio, one of our concert partners in the U.S. inquiring about what was then being promoted in the U.S. as "Pinay Hotbabes." She gave us the website promoting the same. We immediately checked out the site (carousel pinoy entertertainment)and true enough there was a promotion of a series of shows in the U.S. featuring Maui Taylor, Anna Leah Javier, Kristine Jaca, Gwen Garci and Yda Manzano.

2. Said U.S. shows were scheduled in the following venues on dates as follows:

June 11 - New York
June 17 - Chicago
June 18 - IN
June 24 - Kansas, MO
June 25 - Maryland
July 3 - Reno, Nevada
July 9 - Las Vegas, Nevada

3. After some investigation and inquiries, on 16 May, we wrote a letter to Aggie Productions, particularly to Ms. Nemesia Aguilar, who is the supposed promoter in Washington D.C. She immediately replied to us the following day saying that they entered into a contract with Creative Ideas and A Celebrities Talents International and gave us the information regarding a certain Mutch Carino whom they have dealt with regarding the contract.

4. On 19 May, we sent a demand letter to Mutch Carino to cease and desist from promoting "Pinay Hotbabes" as the same had not been authorized by Viva, nor did Viva give consent to his use of the term "Hotbabes." There is, however, no reply from him until this date.

5. During the concert of "Return of the Champions" in New York and Washington, VRJ was approached by Ms. Aguilar. She then informed VRJ that the East Coast promoters/producers of the "Pinay Hotbabes" have already given around US $7,000 deposit to Mutch Carino. However, because of our letters to them, they gave VRJ a counter-proposal for a show of the Hotbabes. Right now, the three east coast promoters have executed contracts with Viva for the Hotbabes for late August. There are also west coast promoters, in about six venues, for Hotbabes' shows until 11 September.

6. We likewise sent letters to Gwen Garci, Anna Leah Javier and Kristine Jaca on 25 May 2005, telling them to cease and desist from participating in the "Pinay Hotbabes" shows. We did not sent a similar letter to Maui Taylor since earlier on in the year, she had already asked permission from Viva to do shows in the U.S., it's just that they didn't know that her show will be packaged with the other Hotbabes.

We also sent a demand letter to Annie Ayroso, manager of Kristine Jaca and Anna Leah Javier, of similar tenor as above.

Based on the email you have furnished VR, "the problem with Viva" should not be used to mean as if this was a sanctioned undertaking by Viva.

Rather, it should be clarified that "the problem with Viva" is that they did not secure consent of Viva in the first place.

I hope that the foregoing had sufficiently clarified matters. Please let me know if other issues come up.



President / CEO