<SUBMISSION>
<ACCESSION-NUMBER>0001269364-04-000031
<TYPE>10KSB/A
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20031231
<FILING-DATE>20040924
<DATE-OF-FILING-DATE-CHANGE>20040924
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CAPE COASTAL TRADING CORP
<CIK>0001219097
<ASSIGNED-SIC>2590
<IRS-NUMBER>522372260
<STATE-OF-INCORPORATION>NY
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10KSB/A
<ACT>34
<FILE-NUMBER>333-105393
<FILM-NUMBER>041044176
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>301 WEST 53 6C
<CITY>NEW YORK
<STATE>NY
<ZIP>10019
<PHONE>646-215-3583
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10KSB/A
<SEQUENCE>1
<FILENAME>capec10ksbam2.htm
<DESCRIPTION>2ND AMENDMENT
<TEXT>
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<BODY><P align=center><FONT face="Times New Roman, Times, Serif" size=4>SECURITIES AND EXCHANGE COMMISSION </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Washington, D.C. 20549 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=4>Form 10-KSB/A</FONT><BR><FONT face="Times New Roman, Times, Serif" size=2>(Amendment No. 2) </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ANNUAL REPORT UNDER SECTION 13 OR 15(d) </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>OF THE SECURITIES EXCHANGE ACT OF 1934 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>For the fiscal year ended December 31, 2003 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Commission File Number 333-105393 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=4>CAPE COASTAL TRADING CORPORATION </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>(Name of small business issuer in its charter)</FONT> </P>

<P align=center>New York&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;52-23722</P>

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<P>(State of organization)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (I.R.S. Employer Identification</P>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>301 West 53, 6C, New York, NY 10019 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>(Address of principal executive offices) </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant&#146;s telephone number, including area code: 646-215-3583 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>None </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934: </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>None </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. </FONT></P>
Yes [X] No [ ]
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<P><FONT face="Times New Roman, Times, Serif" size=2>Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of the registrant&#146;s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [ ] </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>DOCUMENTS INCORPORATED BY REFERENCE: None </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>State issuer&#146;s revenues for its most recent fiscal year: $125.00. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>State the aggregate market value of the voting stock held by non-affiliates of the Registrant computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of a specified date within the past 60 days: The aggregate market value of the voting stock held by non-affiliates of the Registrant computed by using the closing sale price has been indeterminable within the past 60 days as there has been no market for the stock. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>State the number of shares outstanding of each of the Issuer&#146;s classes of common equity as of the latest practicable date: At April 14, 2004, there were 2,300,375 shares of the Registrant&#146;s Common stock outstanding. </FONT></P>

<P align=center><FONT size=2>1</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>This Report on Form 10-KSB/A, Amendment No. 2, for the fiscal year ended December 31, 2003, is being filed to disclose that as of the dates on which the original Report on Form 10-KSB, and all amendments thereto including this amendment, were filed the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. The issuer has checked &#147;Yes&#148; to the statement regarding these matters as set forth on the cover page. </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=3><B>
<A name=TableOfContents>TABLE OF CONTENTS</A></B> </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>
<A href="#PartI">PART I</A></B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3></TH>
<TH align=right colSpan=3>Page</TH></TR>
<TR vAlign=bottom>
<TD align=left width="12%">
<A href="#Item1DescriptionOfBusiness">ITEM 1</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=left width="81%">
<A href="#Item1DescriptionOfBusiness">DESCRIPTION OF BUSINESS</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align='width="2%"'>2</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item2DescriptionOfProperty">ITEM 2</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item2DescriptionOfProperty">DESCRIPTION OF PROPERTIES</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>6</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item3LegalProceedings">ITEM 3</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item3LegalProceedings">LEGAL PROCEEDINGS</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>6</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item4SubmissionOfMattersToAVoteOfSecurityHolders">ITEM 4</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item4SubmissionOfMattersToAVoteOfSecurityHolders">SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>6</TD></TR>
</TABLE>


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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>
<A href="#PartIi">PART II</A></B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3></TH>
<TH align=right colSpan=3><BR>Page</TH></TR>
<TR vAlign=bottom>
<TD align=left width="12%">
<A href="#Item5MarketForCommonEquityAndRelatedStockholderMatters">ITEM 5</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=left width="83%">
<A href="#Item5MarketForCommonEquityAndRelatedStockholderMatters">MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="1%">6</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item6ManagementsDiscussionAndAnalysisOrPlanOfOperation">ITEM 6</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item6ManagementsDiscussionAndAnalysisOrPlanOfOperation">MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>7</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item7FinancialStatements">ITEM 7</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item7FinancialStatements">FINANCIAL STATEMENTS</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>11</TD></TR>
<TR vAlign=bottom>
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD></TR>
<TR>
<TD align=left>
<A href="#Item8ChangesInAndDisagreementsWithAccountants">ITEM 8 </A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item8ChangesInAndDisagreementsWithAccountants">CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE </A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>16</TD>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item8AControlsAndProcedures">ITEM 8A</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item8AControlsAndProcedures">CONTROLS AND PROCEDURES</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>16</TD></TR>
</TABLE>


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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>
<A href="#PartIii">PART III</A></B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3></TH>
<TH colSpan=3></TH></TR>
<TR vAlign=bottom>
<TD align=left width="12%">
<A href="#Item9DirectorsExecutiveOfficers">ITEM 9</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=left width="83%">
<A href="#Item9DirectorsExecutiveOfficers">DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="1%">17</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item10ExecutiveCompensation">ITEM 10</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item10ExecutiveCompensation">EXECUTIVE COMPENSATION</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>18</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item11SecurityOwnershipOfCertainBeneficial">ITEM 11</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item11SecurityOwnershipOfCertainBeneficial">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>18</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item12CertainRelationships">ITEM 12</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item12CertainRelationships">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>18</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item13ExhibitsAndReportsOnForm8K">ITEM 13</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item13ExhibitsAndReportsOnForm8K">EXHIBITS AND REPORTS ON FORM 8-K</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>18</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item14PrincipalAccountantFeesAndServices">ITEM 14</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item14PrincipalAccountantFeesAndServices">PRINCIPAL ACCOUNTANT FEES AND SERVICES</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>18</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item14PrincipalAccountantFeesAndServices">ITEM 15</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Signatures">SIGNATURES</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=right>18</TD></TR>
</TABLE>


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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBITS</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=center border=0>
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<TH colSpan=3></TH></TR>
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<A href="capeex3-1.htm">EXHIBIT 3.1</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="capeex3-1.htm">CERTIFICATE OF INCORPORATION</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="capeex3-2.htm">EXHIBIT 3.2</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="capeex3-2.htm">BYLAWS</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="22%">
<A href="capeex31-1.htm">EXHIBIT 31.1</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=left width="82%">
<A href="capeex31-1.htm">SECTION 302 CERTIFICATION OF CEO</A></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>
<A href="#Item11SecurityOwnershipOfCertainBeneficial">EXHIBIT 32.1</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>
<A href="#Item11SecurityOwnershipOfCertainBeneficial">SECTION 906 CERTIFICATION OF CEO</A></TD>
<TD align=left>&nbsp;</TD>
<TD align=left></TD></TR>
</TABLE>


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<P align=center><FONT face="Times New Roman, Times, Serif" size=3><B>
<A name=PartI>PART I</A> </B></FONT></P>

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<A name=Item1DescriptionOfBusiness></A>ITEM 1.&nbsp;&nbsp;DESCRIPTION OF BUSINESS</B></FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>This section and other parts of this 10KSB contain forward-looking statements that are, by their nature, subject to risks and uncertainties. These forward-looking statements include, without limitation, statements relating to our company&#146;s operations, economic performance, financial condition, growth and acquisition strategies, investments, and operation plans. Any such statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as &#147;believe&#148;, &#147;expect&#148;, &#147;intend&#148;, &#147;anticipate&#148;, &#147;may&#148;, &#147;will&#148;, &#147;should&#148;, &#147;expects&#148;, &#147;plans&#148;, &#147;anticipates&#148;, &#147;estimates&#148;, &#147;predicts&#148;, &#147;potential&#148;, &#147;continue&#148;, &#147;projects&#148; or the negative or other variations or comparable terminology or derivatives thereof denote
forward-looking statements. These statements are only predictions and by their nature involve substantial risks and uncertainties, many of which are beyond control. Thus, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, those discussed in <U>Item. 6. Management's Discussion and Analysis or Plan of Operation </U>, under the heading &#147;RISK FACTORS&#148;.&nbsp;&nbsp;Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no obligation to publicly update any of the forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. </FONT></P>

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<A name=A017></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>General</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Cape Coastal Trading Corporation (&#147;CCTC&#148; or &#147;Company&#148;) was incorporated on August 16, 2002 and its fiscal year ends December 31. Since its incorporation CCTC has been in its developmental stages. CCTC has had little revenue from operations since its inception and has incurred, and continues to incur, operating losses. </FONT></P>

<P align=center><FONT size=2>2</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is in the business of importing artworks and crafts produced primarily in Ghana, Africa, by skilled native artisans and craftsmen. The Company initially procured U.S. $500.00 of artworks and crafts for purposes of providing samples for further marketing of products and initial sales. Imported items include the following: </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Ashanti Stools<BR>Leather Purses, Sandals, Book Bags &amp; Wallets<BR>Leather Footrests<BR>Bracelets&amp;Beads<BR>Authentic Kente Cloth<BR>Drums<BR>Masks&amp;Statutes, and an assortment of additional Wood Carvings<BR>Raffia Baskets<BR>Ashanti Dolls<BR>Traditional Games<BR></FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company currently has 2,300,375 shares of its $.001 par value common shares outstanding. In its Initial Public Offering, beginning November 12, 2003, and ending April 11, 2004, the Company sold 33,875 out of the 250,000 shares of common stock registered with the Securities and Exchange Commission on Amendment No. 5, Form SB-2/A, and declared effective, November 12, 2003. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is a Company that is in its developmental stages and has been in existence for approximately twenty months. CCTC has made no other significant purchases. It has not sold any assets, nor has it been involved in any mergers, acquisitions or consolidations. The Management of CCTC has modest experience in starting up a company and lack operational experience in the importation and sale of African artworks and crafts. Further, no member of management has any experience in running an Internet company. To address these issues, CCTC relies on the advice of&nbsp;independent consultants&nbsp;to assist the company with its development stage activities.</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The plan of operation of CCTC is to import and sell artworks and crafts produced in Ghana. CCTC currently has $425.00 of such inventory. The imported artworks and crafts will enable customers to enjoy the history and culture of Ghanaian people in a new way. Management is aware that there are several different types of artworks and crafts from Ghana and other regions of Africa, which are currently available on the market. During the next 12 months, CCTC has several goals in the sales and marketing of its products. </FONT></P>

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<A name=A021></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=3><U><B>The Business of the Company</B> </U></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>I.&nbsp;&nbsp;&nbsp;&nbsp; Historically Black Colleges and Universities (&#147;HBCU&#148;)</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC believes it can offer an immediate market for its products to the African American student population enrolled in the country&#146;s 100 HBCU&#146;s who seek custom hand-made African products. Management believes that this market offers the greatest source of initial revenues for the Company&#146;s custom hand-made leather products, particularly its book-bags. The Company began to directly target and offer its custom hand-made leather book bags in the 4th Quarter of 2003 and 1st quarter of 2004. The Company mailed out informational materials to 91 of the 100 HBCU&#146;s and is in the process of contacting bookstore managers, College and/or University Administrators and representatives of student organizations. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Overall, the U.S. College and University market consists of approximately 15 million people who spend just over $120 billion annually, of which 1/3rd of all students conducted online purchases in 1999. An estimated 70% of all these students have their own credit cards. $30 billion is spent by four million full time students. From this, $23 billion is allocated to necessities. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>After a lengthy period of stagnation, overall college enrollment increased by 2 percent from 1999 to 2002, with nearly identical gains at two-year and four-year institutions. Students of color had their largest enrollment increase, 5.6 percent, at the graduate level in 2000. They also exhibited progress at the undergraduate level, with an increase of 3.1 percent, and nearly 2 percent at the professional school level. Overall, college enrollment among students of color increased by more than 48 percent during the past decade, including a gain of nearly 15 percent since 1995. For the most recent year, minority students registered an enrollment gain of 3.3 percent. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC believes this population to be a major market for its leather book bags, purses and jewelry. In particular, the Company believes that the hand-made leather book bags, with the African continent inscribed on the back, as well as other African symbols or college and university logos, will appeal to mature undergraduate, as well as graduate, African American students and professionals attending HBCUs and certain other colleges and universities. The custom hand-made leather book-bags offer features currently available by traditional book-bag providers, such as Jansport and Eastpak. The Company believes its authentic hand-made leather book-bags will be able to compete successfully in this market. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Over the next 6 months, the Company will expend a considerable portion of its resources to obtain access at these campus bookstores in time for the fall semester. To increase the market for the book bags, the Company, on April 9, 2004, engaged Eworldwide Press Release Distribution (&#147;Eworldwide&#148;) to create and distribute a Company release describing the Company and its products for distribution to the College and University Press. Management determined that Eworldwire was the most efficient and cost effective solution to the reach college and university students through various media options made available by Eworldwide. </FONT></P>

<P align=center><FONT size=2>3</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>It is estimated that college and university print newspapers have a 90% readership on a weekly basis, and five out of ten students read their campus paper daily. The College and University Press service offered by Eworldwire is set to distribute CCTC&#146;s release to over 2,800 College and University publications in all 50 states in the U.S. The Company&#146;s release will reach not only editors and journalists at college and university newspapers, but also television, magazines, e-zines, radio and other wire services. The Company also plans to enlist the Black Media, Local and State Media and top 100 US Newspapers distribution services offered by Eworldwide in 2004. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp; Retail &amp; Department Store Market:</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Management believes that the Retail and Department store market offer the greatest source of revenue for the company&#146;s stools, wood-works, and other home and office furnishing. On several occasions Management has observed Ghanaian and other African artworks and crafts in stores such as Pier 1 Imports, Kmart, Wal-Mart, etc. The Company has decided to approach this market in mid-late 2004 so as to gain the necessary operational experience through its activities in the HBCU and College and University market over the next 6 months. The Company will need to raise at least $25,000 in one or more private placements or subsequent public offerings, or obtain financing through revenues from the HBCU and College and University market to fund the activities needed to obtain a share of the Retail and Department store sector. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company is currently in the process of designing a catalogue of its custom hand-made wood-works and crafts. In the next twelve months, we will hire a professional photographer and catalogue designer to produce a professional catalogue we believe will aid us in generating sales in this market. Management of CCTC is aware that although its authentic artworks and crafts are unique, it may not be prudent to import these products until it has the necessary market demand to indicate that there is a sufficient interest in the market for such products in department stores and colleges and universities. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company is pursuing a listing on the OTC Bulletin Board. Management believes that this will provide CCTC with a competitive advantage and increase its credibility among these and other retail vendors. Management believes that public status on a recognized exchange will enable the Company to obtain greater access to key members of Management in the Retail and Department store sector and also to achieve more favorable contract terms. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp; Website Improvements:</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>On April 10, 2003, CCTC entered into a contract with HostPC Internet Services (&#147;HostPC&#148;), a provider of Internet World Wide Web page hosting and e-mail services. In return for an annual subscription fee of $49.90, CCTC secured rights to: (1) its domain name, www.ghanacrafts.com; (2) 350 MB disk space; (3) 4 GB transfer; (4) 50 POP3 email accounts; and (5) Ensim Control Panel. As consideration for the above services CCTC selected, CCTC agreed to pay HostPC the applicable service(s) fees. All fees payable under the contract are non-refundable unless HostPC provides otherwise. Pursuant to HostPC&#146;s cancellation policy, CCTC can cancel the service, with or without cause, at any time in writing. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In the 2nd Quarter of 2003, the Company contracted with Ms. Lin, an independent website designer, to design and maintain the Company&#146;s website, www.ghanacrafts.com, for use as a vehicle to market and sell its products online. Ms. Lin designed the website to have shopping carts and payment capabilities and has placed our website on selected search engines. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In 2004, the Company plans to reengage Ms. Lin to enhance the professional appearance and effectiveness of the website in preparation for its mid-late 2004 Retail and Department store campaign. Part of the redesign and enhancement of the site will include the ability to choose among personalized options, in a scroll bar menu format, for certain of our products. In particular, the custom hand-made leather book-bags can be customized for college or university insignia as opposed to our traditional outline of the African continent. The website currently requires the customer to email the Company with personalized specifications for certain of our products. Although some products will still require further customer specifications, the redesign will have the insignias of all the HBCU&#146;s, and certain other colleges and universities with a strong African-American student population, including options with scrollbar functionality and a quicker sales
cycle. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In particular, CCTC will specifically identify those colleges and universities not having only the largest percentage of African Americans students, but also the largest percentage of African Americans enrolled in the freshmen class. Management believes that the freshmen class will be the biggest source of revenue for its book bags. From this, Management also believes that the revenues derived from book bag sales at all colleges and universities, inclusive of HBCUs, will be seasonal in nature, with increased revenues occurring at the beginning of the fall and winter semesters. Management plans to engage Ms. Lin to complete the redesign and functional enhancement of our website in the next 6 months in preparation for the fall semester of 2004. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp; Marketing:</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Management of CCTC understands the importance of a comprehensive marketing program in order to maximize its ability to sell the artworks and crafts. In addition to the production of a professional catalogue to be used in marketing to the Retail and Department store sector, CCTC engaged Eworldwide Press Release Distribution (&#147;Eworldwide&#148;) to distribute a release about the Company and our products. Eworldwide offers company distribution to: (1) Black Media; (2) College and University Press; (3) local and state media distribution; and (4) top 100 US Newspapers. Eworldwide also offers news release editing and writing services that would aid CCTC in crafting its image and message. </FONT></P>

<P align=center><FONT size=2>4</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>On April 9, 2004, CCTC engaged Eworldwide to publish and create a Company release for distribution to the College and University Press. The release, when finalized, will be distributed in the U.S. to approximately 2,800 colleges and universities. In the next 12 months, the Company will also engage Eworldwire for its press distribution services to the (1) Black Media; (2) local and state media distribution; and (3) top 100 US Newspapers. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp; Shipping and Handling: </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Based on oral negotiations with Lizmof Enterprise and Gye Nyame Handicraft Co. Producers and Exporters, CCTC expects that should it execute contracts with these parties, CCTC would provide for FOB Place of Shipment and CCTC would pay for the attendant shipping costs. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>As a promotional tool offered for a limited time on its website, CCTC is currently offering free shipping and handling for purchases of over $100. At all times, shipping and handling costs incurred on the part of CCTC will be passed on to consumers through increased prices. As soon as practicable after obtaining the necessary capital, CCTC will commence seeking an established domestic shipping company to deliver ordered products within the United States. It is contemplated that during the next 12 months of operations, CCTC will actively seek to reach its goal of shipping approximately 2,000 units. </FONT></P>

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<A name=A022></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Competition </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is aware that it will be competing for market share with well-established importers of artworks and crafts both within the United States and abroad. There are many other importers of artworks and crafts whose products can provide the same enjoyment as the Company&#146;s artworks and crafts and which will be in direct competition with CCTC. Further, the lack of a brand name for CCTC&#146;s artworks and crafts may adversely affect the public&#146;s confidence in the products and its success in the marketplace. The presence of established competitors could adversely affect the ability of CCTC to successfully implement its business plan to sell its products. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC has limited financial, marketing, technical and other resources that are necessary to implement its business plan. Many of CCTC&#146;s competitors have significantly greater financial, marketing, technical and other resources than CCTC. These competitors may be able to devote greater resources to the development, promotion and sale of competing artworks and crafts. Moreover, due to the size of these competitors, they may be able to import artworks and crafts with different designs at price points lower than which CCTC can procure market its artworks and crafts. </FONT></P>

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<A name=A023></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Patents, Trademarks and Licenses </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC currently holds no patents, trademarks or licenses. </FONT></P>

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<A name=A024></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Need for Government Approval </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The management of CCTC does not believe that there are any governmental restrictions on the importation and marketing of the artworks and crafts produced in Ghana. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>However, data collection, protection, security and privacy issues are a growing concern in the U.S. and in many other countries around the world. Government regulation is evolving in these areas and could limit or restrict CCTC&#146;s ability to market its products to consumers, increase our costs of operation and lead to a decrease in demand for our products. Federal, state and local governmental organizations, as well as foreign governments and regulatory agencies, are also considering legislative and regulatory proposals that directly govern Internet commerce, and will likely consider additional proposals in the future. We do not know how courts will interpret laws governing Internet commerce or the extent to which they will apply existing laws regulating issues such as property ownership, sales and other taxes, libel and personal privacy to the Internet. The growth and development of the market for online commerce has prompted calls for more
stringent consumer protection laws that may impose additional burdens on companies that conduct business online. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Federal legislation imposing limits on the ability of states to tax Internet-based sales was enacted in 1998 and will exempt some sales transactions conducted over the internet from multiple or discriminatory state and local taxation. It is possible that this legislation will not be renewed when it terminates. Failure to renew this legislation could allow state and local governments to impose taxes on Internet-based sales, and these taxes could adversely affect our business, financial condition and results of operations. </FONT></P>

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<A name=A025></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Product Liability </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Management does not anticipate any product liability claims against it. In the event, however, that CCTC lacks sufficient capital to obtain, or continue product liability insurance, any product liability claim which is filed against CCTC may result in the failure of CCTC, either as a result of costs expended by CCTC in defending the lawsuit or, as a result of CCTC being unable to satisfy a judgment taken against it. </FONT></P>

<P align=center><FONT size=2>5</FONT></P>

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<A name=A026></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Contingency Plan </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company is aware that despite its best efforts, the sales of its artworks and crafts may not be sufficient to result in a profitable corporation. Since the sole purpose of organizing CCTC was to import and sell the artworks and crafts, the Company currently has no plans regarding the direction of CCTC, in the event it is unable to sell a sufficient quantity of the artworks and crafts to create a profitable business. Management believes that even if it were unsuccessful in marketing the artworks and crafts, one option would be the sale of the inventory to an unrelated corporation or, through the combination with another entity.</FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item2DescriptionOfProperty></A>ITEM 2.&nbsp;&nbsp;DESCRIPTION OF PROPERTY</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>At the present time, CCTC&#146;s principal office is located at 301 West 53, 6C, New York, New York, 10019. These offices are being utilized, rent-free, by CCTC and are leased by Mr. Sarfoh. There currently is no written agreement between Mr. Sarfoh and CCTC concerning the company&#146;s rent-free use of office space. Currently, this location serves as the sales office and storage facility for the Company. At such time, CCTC anticipates obtaining storage space for imported artworks and crafts in New York, New York. CCTC does not anticipate purchasing any real estate, nor, does it anticipate purchasing any real property for its office or storage facility. Management for CCTC believes that the rent-free space will be sufficient for the needs of the Company for at least the next 12 months, or until such time where company growth necessitates the need to find larger office and storage space. Management believes that amounts saved on office rent enable
CCTC to target limited resources on Company growth strategies. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item3LegalProceedings></A>ITEM 3.&nbsp;&nbsp;LEGAL PROCEEDINGS</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is not currently a party to any legal proceedings.</FONT> </P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item4SubmissionOfMattersToAVoteOfSecurityHolders></A>ITEM 4.&nbsp;&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>On Monday December 29, 2004 at 7:00 p.m., Eastern Time we held our 2003 Annual Meeting of Stockholders for the purpose of electing directors, ratifying the appointment of our independent auditors for fiscal 2003, and ratifying the Amendment No. 5, Form SB-2/A, and declare effective for sale on November 12, 2003. At the meeting Kwajo M. Sarfoh and Trae O. High were re-elected as directors of CCTC for one year terms, until the next Annual Meeting of Board of Directors of the Corporation and until their successors are elected and qualify. Of the 2,000,000 shares outstanding as of the record date, December 15, 2003, of the Annual Meeting, 2,000,000 shares were present in person at the meeting, of which 2,000,000 votes were cast in favor of the election of Mr. Sarfoh as a Director and 2,000,000 shares were cast in favor of the election of Mr. High as a Director. There were no votes cast against their election, no votes withheld from the election, no
abstensions and no broker non-votes as to each matter. In addition, the appointment of Thomas Leger &amp; Co., L.L.P as our independent auditors for fiscal 2003, and the Amendment No. 5, Form SB-2/A were ratified with 2,000,000 votes in favor, 0 against , 0 votes withheld, 0 abstensions and 0 broker non-votes. </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=3><B>
<A name=PartIi>PART II</A> </B></FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item5MarketForCommonEquityAndRelatedStockholderMatters></A>ITEM 5.&nbsp;&nbsp; MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s securities are currently held of record by a total of approximately 36 persons. There is presently no public market for CCTC&#146;s common stock. The Company has never paid a cash dividend on its common stock and does not anticipate the payment of a cash dividend in the foreseeable future. The Company intends to reinvest in its business operations any funds that could be used to pay a cash dividend. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>RECENT SALES OF UNREGISTERED SECURITIES</B></FONT> </P>


<P><FONT face="Times New Roman, Times, Serif" size=2>From January 2003 to March 2003, CCTC completed an Offering of 66,500 shares of its common stock at a price of $0.10 per share to a total of 18 purchasers (&#147;Regulation D Offering&#148;). The last subscription for shares in this Offering was completed on March 31, 2003. The total amount received from the Regulation D Offering was $6,650.00. The Regulation D Offering and sales were deemed to be exempt under Rule 506 of Regulation D and section 4(2) of the Securities Act of 1933, as amended. No advertising or general solicitation was employed in offering the securities. The offerings and sales were made to a limited number of persons and the company made independent determinations that all of these persons were sophisticated investors, and that they were capable of analyzing the merits and risks of their investment. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>In particular, our company confirmed that with respect to the exemption claimed under Rule 506 D and section 4(2) of the Securities Act of 1933, that: </FONT></P>

<OL type=i>
<LI>

<P><FONT face="Times New Roman, Times, Serif" size=2>Each purchaser referred to gave written assurance of investment intent without a view for resale and certificates for shares sold to each purchaser bear a legend consistent with such investment intent and restricting transfer:</FONT></P>

<LI>

<P><FONT face="Times New Roman, Times, Serif" size=2>Sales were made to a limited number of persons. No general solicitation to the public was made in connection with such sales;</FONT></P>

<LI>

<P><FONT face="Times New Roman, Times, Serif" size=2>Each purchaser represented in writing that they had sufficient sophistication to evaluate the investment and could afford to lose their entire investment without adversely affecting their lifestyle; </FONT></P>

<LI>

<P><FONT face="Times New Roman, Times, Serif" size=2>Neither our company nor any person acting on our behalf offered or sold shares by means of any form of general solicitation or general advertising; </FONT></P>

<LI>

<P><FONT face="Times New Roman, Times, Serif" size=2>The purchasers represented in writing that they acquired the shares for their own accounts. </FONT></P>

<LI>

<P><FONT face="Times New Roman, Times, Serif" size=2>Shareholders have been placed on notice that their securities will need to be sold in compliance with Rule 144 of the Act, and may not be transferred otherwise.</FONT> </P>
</LI></OL>
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<P><FONT face="Times New Roman, Times, Serif" size=2>On September 15, 2002, CCTC issued 1,800,000 shares of common stock to Mr. Kwajo M. Sarfoh in exchange for $2,539.00 of capital contributed to CCTC to fund general business operations. CCTC therefore valued the common shares of CCTC at approximately $.00115 per share and recorded the value on its books at $2,539.00. Additionally, the Board of Directors authorized the issuance of 200,000 shares of common stock at $.001 par value to Trae O. High for consulting services provided to the Company amounting to $200.00. and of 200,000 shares of common stock at $.001 par value to David Loev in consideration for $200.00. Mr. The sales to Messrs. Sarfoh, High and Loev were deemed to be exempt under section 4(2) of the Securities Act of 1933, as amended. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>USE OF PROCEEDS FROM SALE OF REGISTERED SECURITIES</B></FONT> </P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>During 1st Quarter ended March 31, 2004 and beginning of the 2nd Quarter, through April 11, 2004, the Company sold 33,875 out of the 250,000 shares of common stock, par value $.001, for a fixed price of $.20 per share. The offering proceeds received from the sale of such shares amounted to $6,775. These shares were registered for sale under the Securities Act of 1933 with the Securities and Exchange Commission on Amendment No. 5, Form SB-2/A, and declared effective for sale on November 12, 2003. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>From this offering, $3,800 has been paid to Thomas Leger &amp; Co. L.L.P. for accounting services, $350.00 has been paid to Jason Karavias, Esq. for legal services, $350.00 to the Company's transfer agent, Pacific Stock Transfer Company, for set-up fees of which $390.00 remains payable, and $550.00 to Eworldwire for Company distribution release services to the Colleges and University market. Remaining proceeds from this offering of $1,535 will be used for initial catalogue design, website enhancements and general and administrative expenses. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The management of CCTC anticipates applying for trading in its common stock on the over the counter bulletin board upon the effectiveness of the registration statement of which this prospectus forms a part. However, CCTC can provide no assurances that its shares will be traded on the bulletin board, or, if traded, that a public market will materialize. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>No dividends have been declared or paid on the Company&#146;s securities, and it is not anticipated that any dividends will be declared or paid in the foreseeable future. Income will be retained for the development and expansion of the Company&#146;s business. Dividend policy for the future is subject to the discretion of the Board of Directors, and will depend upon a number of factors, including earnings, debt service, capital requirements, business conditions and other factors that the Board of Directors may deem relevant. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>During 1st Quarter ended March 31, 2004 and beginning of the 2nd Quarter, through April 11, 2004, the Company sold 33,875, out of the 250,000, shares of common stock registered under the Securities Act of 1933 with the Securities and Exchange Commission on Amendment No. 5 Form SB-2/A and declared effective November 12, 2003. A prospectus on Form 424(b)(3) was prepared and filed with the Securities and Exchange Commission (&#147;SEC&#148;) prior to use in the offering. The offering proceeds received from the sale of such shares was $6,775, and the Company paid no underwriting discounts or commissions. </FONT></P>

<P align=center><FONT size=2>6</FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item6ManagementsDiscussionAndAnalysisOrPlanOfOperation></A>ITEM 6.&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The following discussion contains certain statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that refer to expectations, projections or other characterization of future events or circumstances, and especially those which include variations of the words &#147;believes,&#148; &#147;intends,&#148; &#147;estimates,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;plans,&#148; or similar words or variations thereof, are likely to be forward-looking statements, and as such, are likely to concern matters involving risk, uncertainty, unpredictability and other factors that could materially and adversely affect the outcome or results indicated by or inferred from the statements themselves. Therefore, the reader is advised that the following discussion should be considered in light of the discussion of risks and other factors contained in this Form 10KSB
and in the Company&#146;s other filings with the Securities and Exchange Commission, and that no statements contained in the following discussion or in this Form 10KSB should be construed as a guarantee or assurance of future performance or future results. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>PLAN OF OPERATION</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is in its developmental stages and has generated very little revenue since inception, August 16, 2002. It is imperative that the Company raise $25,000 to satisfy the cash requirements in the next 12 months or until it can sustain itself based on its own operations. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>It may become necessary for CCTC to sell additional stock in one or more private placements or subsequent public offerings. If CCTC cannot obtain at least $25,000 in one or more private placements or subsequent public offerings, we will seek financing, however, the financing to be sought may not be forthcoming and even if additional financing becomes available, it may not be available on terms that are favorable to CCTC. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>During the next twelve months there are no expected purchases or sales of plant and significant equipment.</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Over the next 12 months, the operations CCTC will be focused on identifying a professional photographer and catalogue designer, contacting HBCU bookstore management and key administrative college and university personnel, and selecting an advertising agency to develop a campaign for our products in the Retail and Department store market. CCTC has arranged for both Lizmof Enterprise, a Ghana-based independent foreign dealer and distributor in art, craft and general merchants, and Gye Nyame Handicraft Co., a Ghana-based independent foreign producers and exporters dealer, to procure and distribute artworks and crafts to the company&#146;s office in the United States. In June, July and August of 2004, Management attended several trade shows in New York and was able to identify local carriers of these imported products. CCTC is actively pursuing these local carriers as an alternative means to procure certain items of inventory. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company has no written contracts with Lizmof Enterprise or Gye Nyame Handicraft Co. for the production and delivery of any artworks and crafts. Subject to Management approval, Lizmof Enterprise&#146;s has a current list and description of the artworks and crafts to be produced and delivered to the Company . The Company obtained its current inventory selection on a visit to Lizmof Enterprise&#146;s and Gye Nyame Handicraft Co., both located in Ghana, Africa, in December of 2002 by an officer of the Company. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The remaining inventory purchased from Lizmof Enterprise and Gye Nyame Handicrafy Co. in December 2002 will mainly be utilized as samples in CCTC&#146;s marketing efforts to obtain orders for the artworks and crafts. The retail price of our artworks, crafts, and leather products range from $15.00 to $500.00. CCTC expects to sell some of the remaining inventory and receive sales there from. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC anticipates that within the next 12 months it will be in a better position to determine exactly how much should be expended with regard to the actual marketing costs involved in the advertising and promotion of the products. CCTC anticipates expending up to $15,000.00 in marketing costs including advertising in journals and print publications reviewed by consumers, specifically, African American students. These marketing efforts will commence upon the development and distribution of a Company catalogue to selected targets. CCTC contemplates that the $15,000.00 presently allocated for marketing will be sufficient to permit continued marketing of the products until such time as CCTC can fund further marketing efforts through revenues earned by it. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC may hire its first part-time employee. This employee would be responsible for the sales and marketing of the artworks and crafts. It is contemplated that this employee would be employed under terms that will provide for an hourly salary of $15 per hour plus a commission incentive arrangement based upon units sold. At such time as sales for the artworks and crafts reach a level of 500 to 1,000 units, CCTC will have to add a full-time executive employee, to perform day-to-day operations at a salary of approximately $30,000.00. Additionally, a part-time hourly wage employee would be required for storage and shipping purposes. Since CCTC has not allocated funds for this purpose, these individuals would, if necessary, be engaged should we sufficient sales revenue. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>RESULTS OF OPERATIONS<BR><BR>Year Ended December 31, 2003 Compared With Year Ended December 31, 2002</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company is considered a development stage company. The Company had an increase in sales of $125 during fiscal year 2003 as compared to sales of $0 in fiscal year 2002. This increase is a result of the sale of two items of inventory. The Company has generated very little revenue since inception, August 16, 2002. Net loss increased $6,691, or 63%, to $10,637 for fiscal year 2003 from $3,946 in fiscal 2002. The increase in net loss represents $7,150 in professional fees and&nbsp;$3,082 in general and administrative expenses in fiscal year 2003, as compared to $2,481 in professional fees, $1,265 in general and administrative expenses and $200 in consulting expenses in fiscal year 2002. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Cost of sales were $75 in fiscal year 2003 as compared to $0 in 2002. The increase is a result of the sale of two items of inventory. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>The Company had gross profit margins of 40% in fiscal year 2003 as compared to 0% in 2002. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>The Company had total expenses of $10,232 in fiscal 2003 consisting of professional fees of $7,150 and $3,082 in general and administrative expenses, as compared to $3,946 in fiscal year 2002. The increase of $6,289 or 61%, resulted primarily from the construction of our website and an increase in accounting and legal fees related to the Company&#146;s registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933 on Amendment No. 5 Form SB-2/A and declared effective November 12, 2003. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>We are currently in a loss carry-forward position for federal income taxes, primarily due to the operating losses incurred through fiscal year 2003. The federal net operating loss carry-forwards balance as of December 31, 2003 was approximately $10,637 compared to $3,946 in the prior year. The net operating loss carry-forward generally available to offset future taxable income through 2022, however, our auditors have expressed concerns about our ability to continue as a going concern, and have reduced the full amount of any benefit we would receive by a valuation allowance. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>We had other expenses of $455 consisting of state and local taxes in fiscal year 2003.</FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>LIQUIDITY AND CAPITAL RESOURCES</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" --><FONT face="Times New Roman, Times, Serif" size=2>At December 31, 2003, the Company had negative working capital of approximately $6,099 as compared to $3,044 in fiscal year 2002. As of fiscal year 2003, current assets were $496 compared to current liabilities of $6,595 for a current ratio of approximately 1.07 to 1 as compared to 1.16 to 1 in fiscal year 2002. As of December 31, 2003, we had a deficit accumulated during the development stage of $14,583. </FONT>

<P><FONT face="Times New Roman, Times, Serif" size=2>We had cash of $71 and $122 in fiscal year 2003 and 2002 respectively, representing a $51 decrease. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>We had net cash flows used in operations of $6,808 in fiscal 2003 compared to net cash flows provided by operations of $2,180 in fiscal 2002, representing a decrease of $4,628. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>During 2003, we recorded depreciation and amortization of $825 compared to $221 for fiscal 2002. The increase in depreciation and amortization is principally attributable to the purchase of computer equipment. In addition, we invested $93 in the acquisition of new computer equipment in 2003. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>The principal sources of cash was from investing and financing activities during fiscal 2003, consiting of proceeds from the sale of 66,500 shares of the Company&#146;s common stock at $.10 per share for a total of $6,650 and the sale of 200,000 shares of common stock at $.001 par value to a founder of the Company in consideration for $200.</FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>Shareholders&#146; deficit at December 31, 2003, increased by $3,787 to ($4,644) as compared to ($857) at December 31, 2002, due primarily to the net loss, which was partially offset by sales of the Company&#146;s common stock. </FONT></P>


<P></P>

<P align=center><FONT size=2>7</FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=3><B>RISK FACTORS </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>Management lacks operational experience in the artworks and crafts retail industry.</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is a start-up company that markets and sells products that it imports and exports. Messrs. Sarfoh and High, the current officers of CCTC, have effective control over all decisions regarding both policy and operations of CCTC with no oversight from other management. Messrs. Sarfoh and High do not have any experience in the area of starting-up and properly staffing a company, operating an import and export business, or operating an Internet business. The success of CCTC is contingent upon these individuals&#146; ability to make appropriate business decisions in these areas. It is possible that this lack of relevant operational experience could prevent CCTC from becoming a profitable business and an investor from obtaining a return on his investment in CCTC. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>Additional capital investment in CCTC may not result in future profit. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is operating at a loss which may continue in the future. It cannot be determined if an additional capital investment in CCTC will permit CCTC to recognize a profit in the future. As of December 31, 2003, CCTC has sustained operating losses of $14,583. The amount of this loss should not be indicative of future losses sustainable by CCTC. As of December 31, 2003, CCTC had expended only a small amount of office expenses and had not yet begun accruing any expenses with regard to the actual anticipated operating costs. CCTC intends to utilize future revenues to market and procure the delivery of its products and operate its business. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>Management may have underestimated the size of the consumer market for their products, which may negatively impact future sales and profit. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>At the present time, CCTC has only evaluated the marketability of its products, based upon the management&#146;s perception of the potential value of African artworks and crafts in the marketplace. Once CCTC obtains the necessary capitalization, it will immediately commence direct and targeted marketing of its products, other than on its website at www.ghanacrafts.com and to the 100 HBCU&#146;s&#148;. CCTC&#146;s website was launched in mid-2003 and it is too premature to anticipate how the website will, if at all, aid CCTC in its marketing and sales efforts. In the event marketing efforts reveal that the product is not marketable, CCTC will not have a potential source of income and it will be necessary for CCTC to seek another means of obtaining income or the business will fail. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>Consumers may not adopt the Internet as a way of buying African artworks and crafts, which would prevent us from becoming profitable. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>We may not be able to convert a large number of consumers who purchase African artworks and crafts, both while visiting Africa, and from traditional shopping methods, to online shopping for African artworks and crafts. As a result CCTC may never achieve widespread customer acceptance of shopping for African artworks and crafts online. Specifically, consumers may not wish to change the way they purchase art and may feel it is necessary to view the actual works of arts and crafts rather than pictures before purchasing them. In addition, consumers may not be willing to make orders online due to the perceived difficulty of placing complex orders online or pricing that does not meet customer expectations of finding competitive prices on the Internet. As a result, we may never derive sufficient revenues from our online retail operations division in order to become a profitable enterprise, which could have a materially adverse impact on our business,
results of operations and financial condition. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC may not be able to differentiate its artworks and crafts from competitors which may adversely impact the company&#146;s ability to recognize a profit. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC will be competing with importers of artworks and crafts who sell similar products to the company&#146;s target population and have already established a market for their products. An investor&#146;s ability to realize a return on their purchase of shares will be dependent upon management&#146;s ability to differentiate their artworks and crafts from competitive artworks and crafts currently in the marketplace. CCTC will focus its marketing on the authentic designs of its products and target the segments of the market that will best appreciate this design. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC does not have formalized agreements with its suppliers which could result in increased acquisition costs. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC&#146;s agreement with Lizmof Enterprise and Gye Nyame Handicraft Co. Producers and Exporters are oral in nature. No formalized contract has been entered into thus exposing the company to market price fluctuations which could result in increased product acquisition costs. CCTC expects to formalize an agreement with the above named suppliers upon depletion of its current inventory on hand or upon receiving a specialized customer order from its website. In order to compete, CCTC will have to be assured that it can continually procure a quality product at a competitive price. The lack of a written contract could expose CCTC to increased prices per unit. </FONT></P>

<P align=center><FONT size=2>8</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>Our principal stockholder controls the business affairs of CCTC and thus investors will have limited or no participation in our business affairs.</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Currently, our principal stockholder and President, Kwajo Sarfoh, owns approximately 78.2% of our common stock. As a result, he will have significant influence over all matters requiring approval by our stockholders without the approval of minority stockholders. In addition, he will be able to elect all of the members of our Board of Directors, which will allow him to significantly control our affairs and management. He will also be able to affect most corporate matters requiring stockholder approval by written consent, without the need for a duly noticed and duly-held meeting of stockholders. Accordingly, you will be limited in your ability to affect change in how we conduct our business </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC may not have sufficient capital to procure its products, which could cause investors to lose all or a part of their investment in us. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In its Initial Public Offering, CCTC received less than 15% of the maximum offering price of $50,000, or $6,775, and sold 33,875 of the 250,000 shares offered for sale. CCTC will be able to operate, however, it may need to seek additional sources of financing. If additional financing is sought however, the financing to be sought may not be forthcoming and even if additional financing becomes available, it may not be available on terms that are favorable to CCTC. In the event that it cannot sell all of the shares being offered or obtain adequate financing, CCTC will concentrate its efforts on the purchase of debt. However, it may become necessary for CCTC to sell additional stock in one or more private placements or subsequent public offerings. If CCTC cannot obtain additional financing and revenue from operations are insufficient, it will have to cease operations and investor&#146;s value will be lost. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC may not recognize an operating profit in the future unless it can employ experienced management to operate the business on a full-time basis. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC is currently dependent upon the efforts of Messrs. Sarfoh and High. Specifically, the company&#146;s performance is substantially dependent on the performance of Mr. Sarfoh, its president. The loss of the services of Mr. Sarfoh could have a materially adverse impact on our business, results of operations or financial condition. In addition, the absence of Mr. Sarfoh will force us to seek a replacement who may have less experience, limited direct access to the markets and artisans in Ghana or who may not understand our business as well, or we may not be able to find a suitable replacement. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>A conflict of interest may arise regarding the amount of time that CCTCs current officers can devote to CCTC business activities.</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC&#146;s officers are only engaged in the business activities of CCTC on a part-time basis. This could cause the officers a conflict of interest between the amount of time they devote to CCTC&#146;s business activities and the amount of time required to be devoted to such other activities. Messrs. Sarfoh and High, CCTC&#146;s current officers, are engaged in the practice of public accountancy on a full-time basis. They devote 20 hours per week to CCTC&#146;s business activities. This amount of time historically has been sufficient to satisfy the business needs of CCTC. Subsequently to this offering, CCTC will increase its business activities in terms of marketing, product procurement, sales, and administration. This increase in business activities will require that CCTC&#146;s officers engage in the business activities of CCTC on a full-time basis, thereby causing Messrs. Sarfoh and High a conflict of interest. </FONT></P>

<P align=center><FONT size=2>9</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC has not entered into binding employment contracts with Messrs. Sarfoh and High requiring them to devote sufficient time to CCTC business activities, thereby potentially inhibiting CCTCs ability to grow its business. </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In the event that there is a conflict of interest and Messrs. Sarfoh and High are not willing to devote more time to CCTC&#146;s business activities, they may either employ full-time employees who have the experience and expertise necessary to bring the artworks and crafts to market, resign after finding suitable successors or cease operations, causing investors to lose their investment in us. While it is expected that other management will be added over time, there are no assurances that such will occur. If management does not devote adequate time or find experienced employees, investors will lose their investment in us. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC does not expect to pay cash dividends, which may lower expected returns for investors.</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>When making an investment in CCTC, an investor should not expect to receive cash dividends from CCTC. An investor must evaluate the potential for his return on his investment, based upon the investor&#146;s future ability to sell the shares purchased through this offering for a greater amount in the future. The holders of CCTC common stock are entitled to receive dividends when and if declared by the Board of Directors. CCTC does not intend to pay cash dividends in the foreseeable future, but instead intends to retain any and all earnings to finance the growth of the business. To date, CCTC has not paid cash dividends on its common stock. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>There is not an established market for shares of CCTC common stock, which could make markets for these shares highly illiquid.</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Investors may not be able to sell shares acquired in this offering because CCTC common stock is not currently publicly traded. It is unlikely that any active public trading market can be established or sustained in the foreseeable future. CCTC intends to have its common stock quoted on the OTC electronic bulletin board as soon as practicable, however, there can be no assurance that CCTC shares will be quoted on the over the counter bulletin board. Until there is an established trading market, holders of CCTC common stock will find it difficult to sell or to obtain accurate quotations for the price of the common stock. CCTC does not currently meet the requirement to have shares listed on the American Stock Exchange (&#147;AMEX&#148;) or the NASDAQ stock market, therefore, any market for securities that does develop will be highly illiquid. It is unknown whether CCTC common shares will achieve sufficient distribution or that it will be able to obtain
the number of market makers necessary to obtain listing on the NASDAQ stock market in the foreseeable future. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>CCTC shares are considered penny stock, which may impact an investors ability to re-sell their shares in the public market.</I> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Federal law imposes additional disclosure requirements for this stock, which may have a materially adverse impact on the investors&#146; ability to resell their shares in the public market. CCTC&#146;s common stock is currently considered a &#147;Penny Stock,&#148; &#147;as defined under Rule 3a51-1 promulgated under the Securities Exchange Act of 1934, under federal securities laws since its market price is below $5.00 per share. Federal rules and regulations under the Securities Exchange Act of 1934, generally impose additional sale practice and disclosure requirements on broker/dealers who sell or recommend CCTC&#146;s shares to certain investors. Broker/dealers who sell Penny Stock to certain types of investors may be required to comply with the Securities and Exchange Commission&#146;s regulations concerning the transfer of Penny Stock. If an exemption is not available, these regulations require broker/dealers to make a suitability
determination prior to selling Penny Stock to the purchaser, receive the purchaser&#146;s written consent to the transaction, and provide certain written disclosures to the purchaser. These rules may affect the ability of broker/dealers to make a market in or to trade CCTC shares. In turn, this may impact the investors&#146; ability to re-sell those shares in the public market. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><I>Our auditor has expressed substantial doubt about the continuing operation of our business </I></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The capital placed into CCTC through this offering may not be sufficient to permit CCTC to continue operations as an ongoing business. An investor should be aware that his investment will be lost if the Company cannot continue to operate. The projected need for additional capital in our business may not be sufficient to sustain CCTC&#146;s operation over the next 12 months. Therefore, even if all of the shares offered pursuant to this offering are purchased, the investors&#146; investment may be of little or no value should future events not occur as projected. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>CRITICAL ACCOUNT POLICIES </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Our discussion and analysis of our financial condition and results of operations is based upon our audited financial statements, which have been prepared in accordance with accounting principals generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of any contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to uncollectible receivable, investment values, income taxes, the recapitalization and contingencies. We base our estimates on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under
different assumptions or conditions. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>Use of Estimates</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>Going Concern</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Since inception, the Company has been considered a development stage company and has generated minimal operating revenues. There is substantial doubt that the Company will generate sufficient revenues during 2004 to meet its operating cash requirements. Accordingly, the Company&#146;s ability to continue operations through 2004 depends on its success in obtaining equity financing in an amount sufficient to support its operations. This raises substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty. The Company intends to raise additional capital through private or public securities offerings. </FONT></P>
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<P align=center><FONT size=2>10</FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item7FinancialStatements></A>ITEM 7.&nbsp;&nbsp;FINANCIAL STATEMENTS</B></FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>INDEPENDENT AUDITOR&#146;S REPORT </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>To the Board of Directors<BR>Cape Coastal Corp.</FONT> </P>

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<A name=A037></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>New York, NY </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>We have audited the accompanying balance sheet of Cape Coastal Trading Corp. (a New York Corporation and development stage company) as of December 31, 2003 and the related statements of operations, stockholders&#146; deficit, and cash flows for the year ended December 31, 2003 and for the period from inception (August 16, 2002), to December 31, 2002 and 2003. These financial statements are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements based on our audit. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cape Coastal Trading Corp., as of December 31, 2003 and its operations and cash flows for the year ended December 31, 2003 and for the period from inception (August 16, 2002), to December 31, 2002 and 2003 in conformity with accounting principles generally accepted in the United States of America. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company is a development stage company focused on importing artworks and crafts from Ghana, Africa to sell to its vendors and customer in the U.S. The Company has incurred substantial operational losses in the year ended December 31, 2003 and for the period from inception (August 16, 2002), to December 31, 2002 and 2003. These conditions raise substantial doubt about the Company&#146;s ability to continue as a going concern. Management&#146;s plans in regard to those matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. </FONT></P>

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<A name=A038></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Thomas Leger &amp; Co., L.L.P. </FONT></P>

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<A name=A039></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>April 2, 2004<BR>Houston, Texas </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>CAPE COASTAL TRADING CORP.<BR>(A DEVELOPMENT STAGE COMPANY) <BR>BALANCE SHEET<BR>DECEMBER 31, 2003<BR><BR><BR><BR>ASSETS</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 align=left border=0>
<TR vAlign=bottom>
<TH colSpan=2></TH>
<TH colSpan=2></TH></TR>
<TR vAlign=bottom>
<TD align=left width="73%">CURRENT ASSETS</TD>
<TD align=left width="8%">&nbsp;</TD>
<TD align=right width="17%"></TD>
<TD align=left width="2%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Cash</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Inventory</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>425</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR>
<TD colSpan=4></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>496</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>FIXED ASSETS, NET</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>1,455</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR>
<TD colSpan=4></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>TOTAL ASSETS</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;1,951</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=2>
</TD>
<TD>

<P>&nbsp;</P>
</TD></TR>
</TABLE>


<P align=center><FONT size=2><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></FONT></P>

<P align=center><FONT size=2></FONT>&nbsp;</P>

<P align=center><FONT size=2></FONT>&nbsp;</P>

<P align=center><FONT size=2>11</FONT></P>

<HR noShade>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>LIABILITIES AND STOCKHOLDERS' DEFICIT</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 align=left border=0>
<TR vAlign=bottom>
<TH colSpan=2></TH>
<TH colSpan=2></TH></TR>
<TR vAlign=bottom>
<TD align=left width="78%">CURRENT LIABILITIES</TD>
<TD align=left width="5%">&nbsp;</TD>
<TD align=right width="15%"></TD>
<TD align=left width="2%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Accounts payable</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;4,100</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Payable to shareholder</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>2,495</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>TOTAL CURRENT LIABILITIES</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>6,595</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=2>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>STOCKHOLDERS' DEFICIT</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Common stock: $.001 par value; 50,000,000</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>shares authorized, 2,266,500 issued and</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>outstanding</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>2,266</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Paid-in capital</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>7,673</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Retained deficit accumulated in the</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>development stage</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>(14,583</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Total stockholders' deficit</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>(4,644</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>TOTAL LIABILITIES AND STOCKHOLDERS'</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;1,951</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>DEFICIT</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>
<HR width="40%" color=black SIZE=2>
</TD>
<TD align=left>&nbsp;</TD></TR>
</TABLE>


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<P><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</P>


<P>&nbsp;</P>


<P>&nbsp;</P>


<P><FONT face="Times New Roman, Times, Serif" size=2>The accompanying notes are an integral part of these financial statements. </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>CAPE COASTAL TRADING CORP. <BR>(A DEVELOPMENT STAGE COMPANY)<BR>STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003<BR>AND FOR THE PERIOD FROM INCEPTION (AUGUST 16, 2002) TO DECEMBER 31, 2002 AND 2003 </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=left border=0>
<TR vAlign=bottom align=center>
<TH colSpan=3></TH>
<TH align=center colSpan=3>2003</TH>
<TH colSpan=3>2002</TH>
<TH colSpan=3>CUMULATIVE<BR>FROM<BR>INCEPTION TO<BR>DECEMBER 31,<BR>2003
<HR width="65%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left width="52%">REVENUE</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="2%">&nbsp;</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="12%">125</TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="12%">--</TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="8%">125</TD>
<TD align=left width="2%">&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>COST OF GOODS SOLD</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>75</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>75</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>GROSS PROFIT</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>50</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>50</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>EXPENSES</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>General and administrative</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>3,082</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,265</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>4,347</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Consulting fees</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Professional fees</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>7,150</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,481</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>9,631</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="40%" color=black SIZE=1>
</TD>
<TR vAlign=bottom>
<TD align=left>Total operating costs and expenses</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>10,232</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>3,946</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>14,178</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>OTHER (INCOME) EXPENSE</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>State and local taxes</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>455</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>455</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;Loss from operations and before taxes</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right></TD>
<TD align=right>(10,637</TD>
<TD align=left>)</TD>
<TD align=right></TD>
<TD align=right>(3,946</TD>
<TD align=left>)</TD>
<TD align=right></TD>
<TD align=right>(14,583</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>PROVISION FOR INCOME TAXES</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Net loss</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>(10,637</TD>
<TD align=left>)</TD>
<TD align=right>$</TD>
<TD align=right>(3,946</TD>
<TD align=left>)</TD>
<TD align=right>$</TD>
<TD align=right>(14,583</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TR vAlign=bottom>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD></TD>
<TD></TD></TR>
<TR>
<TD align=left>LOSS PER SHARE</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;Basic and diluted</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$<BR></TD>
<TD align=right>(0.00)</TD>
<TD align=left></TD>
<TD align=right>$</TD>
<TD align=right>(0.00</TD>
<TD align=left>)</TD>
<TD align=right>$</TD>
<TD align=right>(0.00</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TR>
<TD colSpan=12>
<HR color=black noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
<TD align=left>WEIGHTED AVERAGE SHARES</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>OUTSTANDING</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;Basic and diluted</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,187,353</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,000,000</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD colSpan=12>
<HR color=black noShade SIZE=2>
</TD></TR>
</TABLE>


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<P><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>


<P>&nbsp;</P>


<P>&nbsp;</P>


<P>&nbsp;</P>


<P>&nbsp;</P>


<P>&nbsp;</P>


<P>&nbsp;</P>


<P>The accompanying notes are an integral part of these financial statements. </FONT></P>

<P align=center><FONT size=2>12</FONT></P>

<HR noShade>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>CAPE COASTAL TRADING CORP. <BR>(A DEVELOPMENT STAGE COMPANY)<BR>STATEMENTS OF STOCKHOLDER'S DEFICIT<BR>FOR THE PERIOD FROM INCEPTION<BR>(AUGUST 16, 2002) TO DECEMBER 31, 2002 AND 2003</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=left>
<TR vAlign=bottom>
<TH colSpan=3></TH>
<TH colSpan=3>Date
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>Common Stock<BR>Shares
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>Amount
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>Additional<BR>Paid-In<BR>capital
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>Deficit<BR>accumulated<BR>during the<BR>development<BR>stage
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>Total
<HR width="65%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left width="33%">Balance,</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="2%">&nbsp;</TD>
<TD align=left width="8%">&nbsp;</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="2%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="9%"></TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="6%"></TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="6%"></TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="6%"></TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="6%"></TD>
<TD align=left width="2%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>August 16, 2002</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Stock Issued</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Accounts</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Payable</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>services</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>($.001 per share)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Consulting</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Services</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>9/10/02</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,800,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,800</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>739</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,539</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Stock issued</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>for accounts</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>payable</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>($.001 per share)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>9/10/02</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Capital Contributions</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>11/08/02</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>350</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>350</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Net Loss</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(3,946</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(3,946</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Balance December 31, 2002</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,000,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,089</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(3,946</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(857</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Stock issued</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>for cash</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>($.001 per share)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>4/10/03</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>63,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>63</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>6,237</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>6,300</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Stock issued</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>for cash</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>($.001 per share)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>4/21/03</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>203,500</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>203</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>347</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>550</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD>&nbsp; </TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Net Loss</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(10,637)</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(10,637</TD>
<TD align=left>)</TD></TR>&nbsp;
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Balance,</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>December</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>31, 2003</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,266,500</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>2,266</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>7,673</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>(14,583</TD>
<TD align=left>)</TD>
<TD align=right>$</TD>
<TD align=right>(4,644</TD>
<TD align=left>)</TD></TR>
<TR>
<TD colSpan=21>
<HR color=black noShade SIZE=2>
</TD></TR>
</TABLE>


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<P><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>&nbsp; </P>


<P>The accompanying notes are an integral part of these financial statements. </FONT></P>

<P align=center><FONT size=2>13</FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>CAPE COASTAL TRADING CORP. <BR>(A DEVELOPMENT STAGE COMPANY)<BR>STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED<BR>DECEMBER 31, 2003 AND FOR THE PERIOD FROM INCEPTION<BR>(AUGUST 16, 2002) TO DECEMBER 31, 2002 AND 2003 </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=left border=0>
<TR vAlign=bottom>
<TH colSpan=3></TH>
<TH colSpan=3>2003
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>2002
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>CUMULATIVE<BR>FROM<BR>INCEPTION TO<BR>DECEMBER 31,<BR>2003
<HR width="65%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left width="52%">Net Loss</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="2%">&nbsp;</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="7%">(10,637</TD>
<TD align=left width="4%">)</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="6%">(3,946</TD>
<TD align=left width="4%">)</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="7%">(14,583</TD>
<TD align=left width="4%">)</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;Adjustments to reconcile net loss to</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;net cash used in operating activities:</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Depreciation and amortization</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>825</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>221</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,046</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Issued for consulting</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>200</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>Changes in assets and liabilities:</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>75</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(500</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(425</TD>
<TD align=left>)</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,319</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>5,320</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>6,639</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to shareholder</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,610</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>885</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,495</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(6,808</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>2,180</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(4,628</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>CASH FLOWS FROM INVESTING</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>ACTIVITIES</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;Purchase of fixed assets</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(93</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(2,408</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(2,501</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(93</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(2,408</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(2,501</TD>
<TD align=left>)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>CASH FLOWS FROM FINANCING</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>ACTIVITIES</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>6,850</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>6,850</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital contributions</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>350</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>350</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>6,850</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>350</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>7,200</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>INCREASE (DECREASE) IN CASH</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>(51</TD>
<TD align=left>)</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>122</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>71</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>CASH AT BEGINNING OF PERIOD</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>122</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>CASH AT END OF PERIOD</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>71</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>122</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>71</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD align=right>
<HR width="60%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>SUPPLEMENTAL INFORMATION</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD colSpan=15>
<HR color=black noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD colSpan=15>
<HR color=black noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;Stock issued for accounts payable</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>2,539 </TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>2,539</TD>
<TD align=left>&nbsp;</TD>
<TD align=left></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD colSpan=15>
<HR color=black noShade SIZE=2>
</TD></TR>
</TABLE>


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<P><FONT face="Times New Roman, Times, Serif" size=2><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>The accompanying notes are an integral part of these financial statements </FONT></P>

<P align=center><FONT size=2>14</FONT></P>

<HR noShade>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CAPE COASTAL TRADING CORP. <BR>NOTES TO THE FINANCIAL STATEMENTS<BR>FOR THE YEAR ENDED<BR>DECEMBER 31, 2003 AND FOR THE PERIOD FROM INCEPTION<BR>(AUGUST 16, 2002) TO DECEMBER 31, 2002 AND 2003</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp; ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A name=A059></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Nature of Operations and Organization</U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>Cape Coastal Trading Corp. (&#147;The Company&#148;) is a development stage company that was incorporated in New York on August 16, 2002. The Company is focused on importing artworks and crafts from Ghana, Africa to sell to its vendors and customers in the U.S. The Company is engaged in the planning, selection, and procurement of these products. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A name=A060></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U><B>Basis of Presentation</B></U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A name=A061></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Use of Estimates</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosure. Accordingly, actual results could differ from those estimates. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A name=A062></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Revenue Recognition</U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s revenues are derived from the sale of arts and crafts from Ghana, Africa to customers in the U.S. The company recognizes revenues when realizable and earned. Revenue from sales of products and related cost of products sold will be recognized when persuasive evidence of an arrangement exists, delivery has occurred, the seller&#146;s price is fixed or determinable, and collectability is reasonable assured. This generally occurs when the customer receives the product at which time title passes to the customer. Revenues will be recorded net of any provisions for estimated product returns. Customers generally do not have the right to return product unless damaged or defective. </FONT></P>

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<A name=A063></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Cash and Cash Equivalents</U></B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company considers all short-term securities purchased with an original maturity of three months or less to be cash equivalents. </FONT></P>

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<A name=A064></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Inventory</U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>Inventory is accounted for under the first in, first out method and are recorded at the lower of cost or market. Inventory consists of products for resale at December 31, 2003. </FONT></P>

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<A name=A065></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Property and Equipment</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, generally three years. Routine repairs and maintenance costs are charged to operations as incurred while the costs of significant improvements are capitalized. The major class of property and equipment is computer equipment at December 31, 2003 and for the period ended December 31, 2002 was $2,501 and $2,408, respectively. Depreciation expense for the year ended 2003 and for the period from inception (August 16, 2002) to December 31, 2002 and 2003 was $825, $221, and $1,046, respectively. Accumulated depreciation for the year ended 2003 and for the period ended December 31, 2002 was $1,046 and $221, respectively. </FONT></P>

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<A name=A066></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Income Taxes</U></B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Company uses the liability method of accounting for income taxes as set forth in SFAS No. 109, &#147;Accounting for Income Taxes&#148;. Under this method, deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are established, if necessary, to reduce the deferred tax asset to the amount that will assure full realization. Income tax expense is the current tax payable or refundable or the period plus or minus the net change in the deferred tax assets and liabilities. </FONT></P>

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<A name=A067></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Stock-Based Compensation</U></B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; prescribes accounting and reporting standards for all stock-based compensation plans, including employee stock options. As allowed by SFAS No. 123, the Company continues to apply the provisions of Accounting Principles Board Opinion No. 25 (&#147;APB No. 25&#148;) &#147;Accounting for Stock issued to Employees&#148; and related interpretations. Accordingly, compensation cost for stock options is measured as the excess, if any, of the determined fair value of the Company&#146;s stock at the date of grant over the stock purchase price. </FONT></P>

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<A name=A068></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Net Loss per Share</U></B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average of common shares outstanding during the period. Diluted per share amounts assume the conversion, exercise, or issuance of all potential common stock instruments unless the effect is anti-dilutive, thereby reducing the loss or increasing the income per common share. </FONT></P>

<P align=center><FONT size=2>15</FONT></P>

<HR noShade>

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<A name=A069></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Reclassifications</U></B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The accompanying financial statements for prior years contain certain reclassifications to conform to current year presentation. </FONT></P>

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<A name=A070></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Recent Accounting Pronouncements</U></B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In January 2003, the FASB issued Interpretation No. 46, &#147;Consolidation of Variable Interest Entities,&#148; (&#147;FIN No. 46&#148;) as superseded in December 2003 by FASB issued Interpretation No. 46R, &#147;Consolidation of Variable Interest Entities&#151;an interpretation of ARB 51 (&#147;FIN No. 46R&#148;). FIN No. 46R requires the primary beneficiary of a variable interest entity (&#147;VIE&#148;) to consolidate the entity and also requires majority and significant variable interest investors to provide certain disclosures. A VIE is an entity in which the equity investors do not have a controlling interest, equity investors participate in losses or residual interests of the entity on a basis that differs from its ownership interest, or the equity investment at risk is insufficient to finance the entity&#146;s activities without receiving additional subordinated financial support from the other parties. FIN No. 46R is applicable for the
Company starting February 1, 2004. We do not expect the adoption of FIN No. 46R to have a material impact on our financial condition or results of operations. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In May 2003, the FASB issued SFAS 150, &#147;Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity.&#148; SFAS 150 changes the accounting for certain financial instruments that under previous guidance issuers could account for as equity. It requires that those instruments be classified as liabilities in balance sheets. The guidance in SFAS 150 is generally effective for all financial instruments entered into or modified after May 31, 2003, and otherwise is effective on July 1, 2003. The adoption of SFAS 150 did not impact our financial position, cash flows or results of operations. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In December 2003, the SEC issued SAB 104. This staff accounting bulletin revises or rescinds certain sections of SAB 101, which gives interpretation guidance about revenue recognition. SAB 104 makes the interpretive guidance of SAB 101 consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The adoption of SAB 104 in the fourth quarter of fiscal 2004 did not impact our financial position, cash flows or results of operations. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp; GOING CONCERN </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Since inception, the Company has been considered a development stage company and has generated minimal operating revenues. There is substantial doubt that the Company will generate sufficient revenues during 2004 to meet its operating cash requirements. Accordingly, the Company&#146;s ability to continue operations through 2004 depends on its success in obtaining equity financing in an amount sufficient to support its operations. This raises substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty. The Company intends to raise additional capital through private or public securities offerings. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp; INCOME TAXES</B> </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=760 align=left border=0>
<TR vAlign=bottom>
<TH colSpan=3></TH>
<TH colSpan=3>12/31/2003</TH>
<TH colSpan=3>12/31/2002</TH>
<TH align=right colSpan=3>INCEPTION<BR>AUGUST 16, 2002</TH></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left width="40%">Operational Loss</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="14%">(10,637</TD>
<TD align=left width="7%">)</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="10%">(3,946</TD>
<TD align=left width="5%">)</TD>
<TD align=right width="1%">$</TD>
<TD align=right width="14%">(14,854</TD>
<TD align=left width="2%">)</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Future Tax Benefit</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>3,617</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>1,342</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>$</TD>
<TD align=right>4,959</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#c0c0c0>
<TD align=left>Valuation Allowance</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>3,617</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>1,342</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>4,959</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left>Tax Liability</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right></TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right></TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;--</TD>
<TD align=left>&nbsp;</TD>
<TD align=right></TD>
<TD align=right>$&nbsp;&nbsp;&nbsp;--</TD>
<TD align=left>&nbsp;</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD></TR>
<TR>
<TD>

<P>&nbsp;</P>
</TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD></TD>
<TD></TD>
<TD>
<HR width="100%" color=black SIZE=1>
</TD>
<TD>

<P>&nbsp;</P>
</TD></TR>
</TABLE>


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<P><FONT face="Times New Roman, Times, Serif" size=2><B><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></B></FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT>&nbsp;</P>


<P><FONT face="Times New Roman, Times, Serif" size=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp; CONTINGENCIES</B> </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>From time to time, the Company may be involved in litigation relating to claims arising out of its ordinary course of business. Management believes that there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material impact on the Company&#146;s financial position, results of operations or cash flows. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp; RELATED PARTY TRANSACTION </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>At December 31, 2003 the Company owed $2,495 to a major shareholder for purchases he made and expenses he paid on behalf of the Company. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item8ChangesInAndDisagreementsWithAccountants></A>ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp; CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>CCTC has no changes in or disagreements with our accountants on accounting and financial disclosure. </FONT></P>

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<P align=center><FONT size=2>16</FONT></P>

<HR noShade>


<P><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item8AControlsAndProcedures></A>ITEM 8A.&nbsp;&nbsp;&nbsp;&nbsp; CONTROLS AND PROCEDURES.</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluation of disclosure controls and procedures. The Companys chief executive officer and principal financial officer, after evaluating the effectiveness of the Company&#146;s "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this annual report (the "Evaluation Date"), has concluded that as of the Evaluation Date, the Company&#146;s disclosure controls and procedures were adequate and designed to ensure that material information relating to the Company and its consolidated subsidiaries would be made known to him by others within those entities. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in internal control over financial reporting. There were no significant changes in the Company's internal control over financial reporting during the fourth fiscal quarter that materially affected, or is reasonably likely to materially affect, the Company&#146;s internal control over financial reporting. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>Based on an evaluation performed, the Company&#146;s certifying officers have concluded that the disclosure controls and procedures were effective as of December 31, 2003, to provide reasonable assurance of the achievement of these objectives. There was no change in the Company&#146;s internal control over financial reporting during the fiscal year ended December 31, 2003, that has materially affected, or is reasonably likely to materially affect, the Company&#146;s internal control over financial reporting. </FONT></P>

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<A name=A071></A>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=PartIii><B>PART III</B> </A></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item9DirectorsExecutiveOfficers></A>ITEM 9&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT.</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The directors and executive officers currently serving the Company are as follows: </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH>Name
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH>Age
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH>Position(s) Held
<HR width="65%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left width="30%">Kwajo M. Sarfoh</TD>
<TD align=center width="20%">31&nbsp;</TD>
<TD align=left width="63%">President, CEO, Director, and Treasurer</TD></TR>
<TR vAlign=bottom>
<TD align=left>Trae O. High</TD>
<TD align=center>33&nbsp;</TD>
<TD align=left>Vice President, Director, and Secretary</TD></TR>
</TABLE>


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<P><FONT face="Times New Roman, Times, Serif" size=2>The directors named above will serve until the next annual meeting of the Company&#146;s stockholders. Thereafter, directors will be elected for one-year terms at the annual stockholders&#146; meeting. Officers will hold their positions at the pleasure of the board of directors, absent any employment agreement, of which none currently exists or is contemplated. There is no arrangement or understanding between any of the directors or officers of the Company and any other person pursuant to which any director or officer was or is to be selected as a director or officer. </FONT></P>

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<A name=A072></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Biographical Information</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Kwajo M. Sarfoh has served as our president, director and treasurer since our incorporation in August 2002. Mr. Sarfoh is a native citizen of Ghana, Africa and maintains established relationships within Ghana. Mr. Sarfoh has lived in the United States for over 28 years and currently resides in New York City. The diverse culture and artistic nature found within the United States leads Mr. Sarfoh to believe that an active market exists for the Company&#146;s products. From September 2000 January 2001, Mr. Sarfoh was employed at Flott &amp; Co. as a law associate specializing in international tax. Beginning August 2001, Mr. Sarfoh has worked as an federal tax consultant at Deloitte &amp; Touche LLP. Mr. Sarfoh received a bachelor degree in economics from the State University of New York at Albany, a law degree from Boston University Law School, a masters in business administration from Boston University School of Management, and a masters of law in
taxation from Georgetown University Law Center. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Trae O. High has served as an officer, director and secretary of the Company since its incorporation. From May 1998 to August 2000, Mr. High was employed with Excel Communications, Inc. as a tax research specialist. Beginning July 2001, Mr. High has worked as an international tax consultant at Deloitte &amp; Touche LLP. Mr. High received his bachelor degree in business administration from the University of Texas at Austin, a master of science in accounting from University of Texas at Dallas, a law degree from Southern Methodist University, and a masters of law in taxation from Georgetown University Law Center in June 2001. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>Neither Mr. Sarfoh, Mr. High nor Mr. Loev has been involved in any of the legal proceedings described in 401(d) of Regulation S-B during the past five years.</FONT></P>

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<A name=A073></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>TERM OF OFFICE:</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Directors of CCTC are appointed for a period of one year or until such time as their replacements have been elected by the Shareholders. The Officers of the Corporation are appointed by the Board of Directors and hold office until they are removed by the Board. </FONT></P>

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<A name=A074></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>AUDIT COMMITTEE</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>As of the date of this Annual Report, we have not appointed members to an audit committee and, therefore, the respective role of an audit committee has been conducted by our Board of Directors. When established, the audit committee&#146;s primary function will be to provide advice with respect to our financial matters and to assist the Board of Directors in fulfilling oversight responsibilities regarding finance, accounting, tax and legal compliance. The audit committee&#146;s primary duties and responsibilities will be to: (i) serve as an independent and objective party to monitor our financial reporting process and internal control system; (ii) review and appraise the audit efforts of our independent accountants; (iii) evaluate our quarterly financial performance as well as compliance with laws and regulations; (iv) oversee management&#146;s establishment and enforcement of financial policies and business practices; and (v) provide and open avenue
of communication among the independent accountants, management and the board of directors. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Our Board of Directors has considered whether the regulatory provision of non-audit service is compatible with maintaining the principal independent accountant&#146;s independence. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>CODE OF ETHICS</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Board of Directors adopted a Code of Ethics in April 2004, meeting the requirements of Section 406 of the Sarbanes-Oxley Act of 2002. The Company will provide to any person without charge, upon request, a copy of such Code of Ethics. Persons wishing to make such a request should contact Kwajo Sarfoh, Chief Executive Officer, 302 W 53rd, 6C, New York, New York 10019,. </FONT></P>

<P align=center><FONT size=2>17</FONT></P>

<HR noShade>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item10ExecutiveCompensation></A>ITEM 10&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION.</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The company&#146;s two directors and executive officers, Mr. Sarfoh and Mr. High, did not accrue and do not receive any compensation for their services performed during the past fiscal year. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item11SecurityOwnershipOfCertainBeneficial></A>ITEM 11.&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The following table provides the names and addresses of each person known to own directly or beneficially more than a 5% of the outstanding common stock (as determined in accordance with Rule 13d-3 under the Exchange Act) as of September 23, 2003 and by the officers and directors, individually and as a group. Except as otherwise indicated, all shares are owned directly. </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 align=left border=0>
<TR vAlign=bottom align=left>
<TH colSpan=3>Name and<BR>Address<BR>
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>Number of<BR>Shares Owned<BR>Beneficially
<HR width="65%" color=black noShade SIZE=1>
</TH>
<TH align=right colSpan=3>Percent of Class
<HR width="65%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left width="51%">Kwajo M. Sarfoh (1)</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="6%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=left width="22%">1,800,000</TD>
<TD align=left width="7%">&nbsp;</TD>
<TD align=right width="10%">&nbsp;</TD>
<TD align=right width="1%">78</TD>
<TD align=left width="1%">.2%</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD align=left>Trae O. High(2)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>200,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>8</TD>
<TD align=left>.6%</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD align=left>David L. Loev(3)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>200,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>8</TD>
<TD align=left>.6%</TD></TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD align=left>All officers</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>and directors</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>as a group (42 people)</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>2,000,000</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>86</TD>
<TD align=left>.8%</TD></TR>
</TABLE>


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<P><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></P>


<P><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>


<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp; Address is 301 West 53rd Street, 6C, New York, NY 10019. (2) Address is 505 West 54th Street, 313, New York, NY 10019. (3) Address is 1510 Crescent Oak Drive, Missouri City, Texas 77459. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The percent of class is based on 2,300,375 shares of common stock issued and outstanding as of April 11, 2003, par value $.001 per share. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item12CertainRelationships></A>ITEM 12.&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>On September 15, 2002, CCTC issued 1,800,000 shares of common stock to Mr. Kwajo M. Sarfoh, our Chief Executive Officer, in exchange for $2,539.00 of capital contributed to CCTC to fund general business operations. CCTC therefore valued the common shares of CCTC at approximately $.00115 per share and recorded the value on its books at $2,539.00. Mr. Sarfoh currently holds a control position in the business, owning a total of 78.2% of the outstanding common stock. </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>Additionally, the Board of Directors authorized the issuance of 200,000 shares of common stock at $.001 par value to Trae O. High, our Secretary, for consulting services provided to the Company amounting to $200.00. and 200,000 shares of common stock at $.001 par value to David Loev in consideration for $200.00. Mr. High and Mr. Loev each currently own an 8.6% beneficial interest in the Company. Messrs. Sarfoh, High and Love are promoters and founders in the Company. The sales to Messrs. Sarfoh, High and Loev were deemed to be exempt under section 4(2) of the Securities Act of 1933, as </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>There are no contractual agreements between Mr. Sarfoh and any other individual, whether a shareholder or not, and CCTC. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item13ExhibitsAndReportsOnForm8K></A>ITEM 13.&nbsp;&nbsp;EXHIBITS AND REPORTS ON FORM 8-K</B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The Exhibits listed below are filed as part of this Annual Report. </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
<TH></TH>
<TH></TH></TR>
<TR vAlign=top>
<TD width="17%">
<A href="capeex3-1.htm">3.1</A></TD>
<TD>
<A href="capeex3-1.htm">Articles of Incorporation (incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on May 20, 2003).</A> </TD></TR>
<TR>
<TD>&nbsp; </TD>
<TD></TD></TR>
<TR vAlign=top>
<TD>
<A href="capeex3-2.htm">3.2</A></TD>
<TD>
<A href="capeex3-2.htm">Bylaws (incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on May 20, 2003).</A></TD></TR>
<TR>
<TD>&nbsp; </TD>
<TD></TD></TR>
<TR vAlign=top>
<TD>
<A href="capeex31-1.htm">31.1</A></TD>
<TD>
<A href="capeex31-1.htm">Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended. </A></TD></TR>
<TR>
<TD>&nbsp; </TD>
<TD></TD></TR>
<TR>
<TD>&nbsp; </TD>
<TD></TD></TR>
<TR vAlign=top>
<TD>
<A href="capeex32-1.htm">32.1</A></TD>
<TD>
<A href="capeex32-1.htm">Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. </A></TD></TR>
<TR>
<TD>&nbsp; </TD>
<TD></TD></TR>
</TABLE>


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<P><FONT face="Times New Roman, Times, Serif" size=2><B>
<A name=Item14PrincipalAccountantFeesAndServices></A>ITEM 14&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES</B> </FONT></P>

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<A name=A076></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Audit Fees </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The aggregate audit and audit related fees billed by Thomas Leger &amp; Co., L.L.P. for audit and review of the Company&#146;s annual financial statements for $ 6,800 for the fiscal year ended December 31, 2003, and $1,231for the fiscal year ended December 31, 2002. </FONT></P>

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<A name=A077></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>All Other Fees </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Thomas Leger &amp; Co., L.L.P. did not bill the Company for any services other than the foregoing during the fiscal years ended December 31, 2003 and December 31, 2002. </FONT></P>

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<A name=A078></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=Signatures></A>SIGNATURES </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>

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<TABLE cellSpacing=0 cellPadding=0 width="50%" align=left border=0>
<TR vAlign=top>
<TD width="40%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="50%"><FONT face="Times New Roman, Times, Serif" size=2><B>CAPE COASTAL TRADING CORPORATION.</B><BR><BR><BR>/S/ Kwajo M. Sarfoh <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Kwajo M. Sarfoh, President <BR><BR>Date:&nbsp; September 24, 2004</FONT></TD></TR>
</TABLE>


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<P><BR><BR><BR><BR><BR><BR><BR><BR><BR></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. </FONT></P>

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<TD width="40%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="50%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<BR><BR><BR>/S/ Kwajo M. Sarfoh<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; <BR>Kwajo M. Sarfoh, Principal, Financial Officer and Director<BR><BR>Date: &nbsp;September 24, 2004</FONT></TD></TR>
</TABLE>



<P><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></P>

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<TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="50%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<BR><BR><BR>/S/ Trae O. High<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; <BR>Trae O. High, Director<BR><BR>Date:&nbsp; September 24, 2004</FONT></TD></TR>
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<DOCUMENT>
<TYPE>EX-3.(II)
<SEQUENCE>2
<FILENAME>capeex3-2.htm
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<A NAME=A001></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 3.2 </FONT></P>

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<A NAME=A002></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BYLAWS OF </FONT></P>

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<A NAME=A003></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cape Coastal Trading
Corporation </FONT></P>

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<A NAME=A004></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I &#151; OFFICES </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The principal office of the
Corporation in the State of New York shall be located in the City of New York. The
Corporation may have such other offices, either within or without the State of New York,
as the Board of Directors may designate or as the business of the Corporation may require
from time to time. </FONT></P>

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<A NAME=A005></A>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I &#151;MEETING OF SHAREHOLDERS</FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1 - Annual Meetings:  (Section 7.01*) </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The annual meeting of the
shareholders of the Corporation shall be held on the Third Tuesday in the month of
November, in each year, at such other time or day within such month as shall be fixed by
the Board of Directors, for the purpose of electing Directors, and for transacting such
other business as may properly come before the meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Failure to hold an annual meeting at
the time stated in or fixed in accordance with these Bylaws does not affect the validity
of such corporate action. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2 - Special Meetings:  (Section 7.02)</FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Special meetings of the shareholders
may be called for any purpose or purposes, unless otherwise prescribed by statute, at any
time by the Board of Directors or by the President, and shall be called by the President
or the Secretary at the written request of the holders of not less than ten per cent (10%)
of all shares of the Corporation then outstanding entitled to vote thereat, so long as
such written request is signed by all shareholders mentioned herein, describes the purpose
or proposes for which it is to be held and is delivered to the Corporation. </FONT></P>




<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3 - Place of Meetings:  (Section 7.01)</FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors may designate
any place, either within or without the State of New York, as the place of meeting for any
annual or for any special meeting called by the Board of Directors. If no designation is
made, or if a special meeting be otherwise called, the place of meeting shall be the
principal office of the Corporation in the State of New York. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4 - Notice of Meetings:  (Section 7.05 &amp; 7.06)</FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Written notice of each meeting of shareholders, whether annual or special,
          stating the time, date, hour of the meeting and place where it is to be held,
          and in the case of a special meeting, the purpose or purposes for which the
          meeting is called, (only business within the purpose or purposes described in
          the notice of such special meeting may be conducted at any such shareholder
          meeting) shall, unless otherwise prescribed by law, be served either personally
          or by mail by or at the direction of the President or Secretary, or the officer
          or other person or persons calling the meeting, not less than ten or more than
          sixty days before the meeting, upon each shareholder of record entitled to vote
          at such meeting, and to any other shareholder to whom the giving of notice may
          be required by law. If mailed, such notice shall be deemed to be delivered when
          deposited in the United States mail, addressed to the shareholder at his/her
          address as it appears on the stock transfer books of the Corporation, with
          postage thereon prepaid. If, at any meeting, action is proposed to be taken that
          would, if taken, entitle shareholders to receive payment for their shares
          pursuant to the Business Corporation Act, the notice of such meeting shall
          include a statement of that purpose and to that effect. If mailed, such notice
          shall be directed to each such shareholder at his address, as it appears on the
          records of the shareholders of the Corporation, unless he shall have previously
          filed with the Secretary of the Corporation a written request that notices
          intended for him be mailed to some other address, in which case, it shall be
          mailed to the address designated in such request. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          Notice of any meeting need not be given to any person who may become a
          shareholder of record after mailing of such notice, to any shareholder who
          submits a signed waiver of notice either before or after such meeting, or to any
          shareholder who attends such meeting, in person or by proxy, and fails to object
          to lack of notice or defective notice of the meeting at the beginning of such
          meeting. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          If an annual or special shareholders&#146; meeting is adjourned to a different
          date, time, or place, notice need not be given of the new date, time, or place
          if the new date, time, or place is announced at the meeting before adjournment.
          If a new record date for the adjoined meeting is or must be fixed by law,
          however, notice of the adjourned meeting must be given under this section of
          these Bylaws to persons who are shareholders as of the new record date. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5 - Quorum:  (Section 7.25)</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Except as otherwise provided herein, or by law, or in the Articles of
          Incorporation (such Articles and any amendments thereof being hereinafter
          collectively referred to as the &#147;Articles of Incorporation) at all
          shareholders&#146; meetings, a majority of the shares of the Corporation
          entitled to vote thereat and represented at such meeting either in person or by
          proxy shall constitute a quorum. If less than a majority of the outstanding
          shares entitled to vote is represented at a shareholders&#146; meeting, a
          majority of the shares so represented may adjourn the meeting from time to time
          without further notice. At such adjourned meeting at which a quorum shall be
          present or presented, any business may be transacted which was outlined in the
          original notice for the meeting. The shareholders present at a duly organized
          meeting may continue to transact business until adjournment, notwithstanding the
          withdrawal of enough shareholders to leave less than a quorum. </FONT></P>




<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 6 - Voting:  (Section 7.04, 7.21&amp;7.22)
</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Except as otherwise provided by statute or by the Articles of Incorporation, any
          corporate action, other than the election of Directors to be taken by vote of
          the shareholders, shall be authorized by a majority of votes cast at a meeting
          of shareholders by the holders of shares entitled to vote thereon. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          Except as otherwise provided by statute or by the Articles of Incorporation, at
          each meeting of shareholders, each outstanding share of the Corporation entitled
          to vote thereat, shall be entitled to one vote for each share registered in his
          name on the books of the Corporation on each matter voted on at such
          shareholders&#146; meeting. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Each shareholder entitled to vote or to express consent or dissent without a
          meeting, may do so in person or by proxy; provided, however, that the instrument
          authorizing such proxy to act shall have been executed in writing by the
          shareholder himself, or by his duly authorized attorney-in-fact which is sent to
          the Secretary or other officer or agent of the Corporation authorized to
          tabulate votes.. No proxy shall be valid after the expiration of eleven months
          from the date of its execution, unless the persons executing it shall have
          specified therein the length of time it is to continue in force. Such instrument
          shall not be valid until received by the Secretary, or other officer or agent
          authorized to tabulate votes at the meeting and shall be filed with the records
          of the Corporation. The death or incapacity of the shareholder appointing a
          proxy does not affect the right of the Corporation to accept the proxy&#146;s
          authority unless notice of the death or incapacity is received by the secretary
          or other officer or agent of the Corporation authorized to tabulate votes before
          the proxy exercises his or her authority under the appointment. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;
          Any action required or permitted to be taken at a meeting of the shareholders
          may be taken without a meeting if a consent in writing, setting forth the action
          so taken shall be signed by all of the shareholders entitled to vote with
          respect to the subject matter thereof. </FONT></P>

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<A NAME=A006></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III &#151;
BOARD OF DIRECTORS </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1 - Number, Election and Term of Office:  (Section 8.03 &amp; 8.06)
</FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          The number of the Directors of the Corporation shall be two, (note: only one
          Director is required by law) unless and until otherwise determined by vote of a
          majority of the entire Board of Directors. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          Except as may otherwise be provided herein or in the Articles of Incorporation,
          the members of the Board of Directors of the Corporation, who need not be
          shareholders or residents of the State of New York, shall be elected by a
          majority of the votes cast at a meeting of shareholders,by the holders of shares
          entitled to vote in the election. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Each Director shall hold office until the next annual meeting of the
          shareholders, and until his successor is elected and qualified, or until his
          prior death, resignation or removal. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2 &#151; Duties and Powers:
(Section 8.01) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors shall manage the
business and affairs of the Corporation. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3 - Annual and Regular Meetings; Notice:  (Section 8.20)
</FONT></P>



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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp; A
          regular annual meeting of the Board of Directors shall be held without any other
          notice than this Bylaw, immediately following and at the same place as the
          annual meeting of the shareholders at the place of such annual meeting of
          shareholders. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          The Board of Directors, from time to time, may provide by resolution for the
          time and place, either within or without the State of New York, for the holding
          of additional regular meetings without other notice than such resolution. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          The Board of Directors may participate in any meeting of the Board or conduct
          such meeting through the use of any means of communication in which all
          Directors participating may simultaneously hear each other during the meeting.
          Any or all Directors participating by this means are deemed to be present and in
          person at such meeting. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4 - Special Meetings; Notice:  (Section 8.22&amp;8.23)
</FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Special meetings of the Board of Directors may be called by or at the request of
          the President or by one of the Directors, or by any other officer or individual
          so specified by the Board, at such time and place as may be specified in the
          respective notices or waivers of notice thereof. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          The person or person authorized to call such special meeting may fix any places,
          either within or without the State of New York, as the place for holding any
          such special meeting called by them. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Notice of special meetings shall be mailed directly to each Director, addressed
          to him at his residence or usual place of business, at least two (2) days before
          the day on which the meeting is to be held, or shall be sent to him at such
          place by telegram, radio or cable, or shall be delivered to him personally or
          given to him orally, not later than the day before the day on which the meeting
          is to be held. If mailed, such notice shall be deemed to be delivered when
          deposited in the United States mail, so addressed, with postage thereon prepaid.
          If notice be given by telegram, such notice shall be deemed to be delivered when
          the telegram is delivered by the Telegraph Company. A notice, or waiver of
          notice, except as required by Section 8 of this Article III, need not specify
          the purpose of the meeting. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;
          Any Director may waive notice of any meeting. The attendance of a Director at a
          meeting shall constitute a waiver of notice of such meeting except where a
          Director attends a meeting for the express purpose of objecting to the
          transaction of any business because the meeting is not lawfully called or
          convened. </FONT></P>

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<A NAME=A008></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5 &#151;
Chairperson: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At all meetings of the Board of
Directors the Chairperson of the Board, if any and if present, shall preside. If there
shall be no Chairperson, or he shall be absent, then the President shall preside, and in
his absence, a Chairperson chosen by the Directors shall preside. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 6 - Quorum and Adjournments:  (Section 8.24)
</FONT></P>



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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          A majority of the number of Directors shall constitute a quorum for the
          transaction of business at any meeting of the Board of Directors, but if less
          than such majority is present at the meeting, a majority of the Directors
          present may adjourn the meeting from time to time without further notice. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7 - Manner of Acting: (Section 8.21&amp;8.24)
</FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          At all meetings of the Board of Directors, each Director present shall have one
          vote, irrespective of the number of shares of stock, if any, which he may hold. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          If a quorum is present when a vote is taken, the affirmative vote of a majority
          of Directors present is the act of the Board of Directors unless the Articles of
          Incorporation or these Bylaws require the vote of a greater number of Directors. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          A Director who is present at a meeting of the Board of Directors or a committee
          of the Board of Directors when corporate action is taken is deemed to have
          assented to the action taken unless: (I) he objects at the beginning of the
          meeting, or promptly upon his arrival, to holding it or transacting business at
          the meeting; (ii) his dissent or abstention from the action taken is entered in
          the minutes of the meeting; or (iii) he delivers written notice of his dissent
          or abstention to the presiding officer of the meeting before it is adjourned or
          to the Corporation immediately after adjournment of the meeting. The right of
          dissent or abstention is not available to a Director who votes in favor of the
          action taken. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;
          Any action required or permitted to be taken by the Board of Directors at a
          meeting may be taken without a meeting if a consent in writing, setting forth
          the action so taken, shall be signed by all of the Directors and included in the
          minutes or filed with the corporate records reflecting the action taken. Any
          such action taken without a meeting shall be deemed effective when the last
          Director signs the consent, unless the consent specifies a different effective
          date. and such signed consent has the effect of a meeting vote and may be
          described as such in any document. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;
          A Director of the Corporation who is present at a meeting of the Board of
          Directors when a corporate action is taken is deemed to have assented to the
          action taken unless: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          he or she objects at the beginning of the meeting, or promptly upon his arrival,
          to holding it or transacting business at the meeting; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          his or her dissent or abstention from the action taken is entered in the minutes
          of the meeting; or; (iii) he or she delivers written notice of his dissent or
          abstention to the presiding officer of the meeting before its adjournment or
          immediately after adjournment of the meeting. The right of dissent or abstention
          is not available to a Director who votes in favor of the action taken. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8 - Vacancies:  (Section 8.10)
</FONT></P>




<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Unless the Articles of Incorporation of the Corporation or these Bylaws provide
          otherwise, if a vacancy occurs on the Board of Directors, including a vacancy
          resulting from any increase in the number of Directors: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Level 1" FSL="Default" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     the shareholders may fill the vacancy; (ii) the Board of Directors may fill the
                    vacancy; or (iii) if the Directors remaining in office constitute fewer </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>than a quorum of the Board, they may
fill the vacancy by the affirmative vote of a majority of all the Directors remaining in
office. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          If the vacant office was held by a Director elected by a voting group of
          shareholders, only the shareholders of that voting group are entitled to vote to
          fill the vacancy if it is filled by the shareholders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          A vacancy that will occur at a specific later date may be filled before the
          vacancy occurs, but the new Director may not take office until the vacancy
          occurs. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9 - Resignation:  (Section 8.07)
</FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any director may resign at any time
by delivering written notice to the Corporation. A resignation is effective when the
notice is delivered unless the notice specifies a later effective date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10 &#151; Removal of
Directors by Shareholders and Directors: (Section 8.08) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Any Director may be removed with or without cause at any time by the
          shareholders of the Corporation at a special meeting called for the purpose of
          removing him and the meeting notice must state that the purpose, or one of the
          purposes, of the meeting is removal of the Director. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          Any Director elected by a voting group of shareholders may be removed only by
          the shareholders of that voting group. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Any Director may be removed for cause by action of the Board. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11 - Salary:  (Section 8.11)
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By resolution of the Board of
Directors, each Director may be paid his/her expenses, if any, of attendance at each
meeting of the Board of Directors, and may be paid a fixed sum for attendance at each
meeting of the Board of Directors. No such payment shall preclude any Director from
serving the Corporation in any other capacity and receiving compensation. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12 - Contracts:  (Section 8.31)
</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          No contract or other transaction between this Corporation and any other
          Corporation shall be voidable by the Corporation solely because of a Director or
          Directors&#146; interest in a transaction if: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the material facts of the transaction and the Director or Directors&#146;
          interest was disclosed or known to the Board of Directors or a committee of the
          Board of Directors and the Board or Directors or committee authorized or
          approved, or ratified the transaction; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the material facts of the transaction and the Director or Directors&#146;
          interest were disclosed or known to the shareholders entitled to vote and they
          authorized, approved, or ratified the transaction; or </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the transaction was fair to the Corporation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Such interested Director or Directors
may be counted in determining the presence of a quorum at such meeting. However, such
interested Director or Directors may not be counted in determining a vote by the Board of
Directors to ratify such contract or transaction in which such Director or Directors
is/are interested. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 13 - Committees:  (Section 8.25)
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors may, by
resolution, authorize one or more committees and appoint members of the Board of Directors
to serve on such committees with such powers and authority, to the extent permitted by
law, as may be provided in such resolution. Sections 2, 3, 4, 6, and 7 of these Bylaws,
governing authority of the Board of Directors, meetings, action without meetings, notice
and quorum and voting requirements shall apply to committees and their members as well. </FONT></P>

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<A NAME=A009></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 14 &#151;
Contracts: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors may authorize
any Officer or Officers, agent or agents, to enter into any contract or execute and
deliver any instrument in the name of and on behalf of the Corporation, and such authority
may be general or confined to specific instances. </FONT></P>

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<A NAME=A010></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 15 &#151; Loans: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No loans shall be contracted on
behalf of the Corporation and no evidences of indebtedness shall be issued in its name
unless authorized by a resolution of the Board of Directors. Such authority may be general
or confined to specific instances. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 16 &#151; Checks, Drafts,
etc.: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All checks, drafts or other orders
for the payment of money, notes or other evidences of indebtedness issued in the name of
the Corporation shall be signed by such Officer or Officers, agent or agents of the
Corporation and in such manner as shall from time to time be determined by resolution of
the Board of Directors. </FONT></P>

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<A NAME=A011></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 17 &#151;
Deposits: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All funds of the Corporation not
otherwise employed shall be deposited from time to time to the credit of the Corporation
in such banks, trust companies or other depositaries as the Board of Directors may select. </FONT></P>

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<A NAME=A012></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV &#151;
OFFICERS </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1 &#151; Number,
Qualifications, Election and Term of Office: (Section 8.40) </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          The officers of the Corporation shall consist of a President, one or more
          Vice-Presidents (the number thereof to be determined by the Board of Directors),
          a Secretary, a Treasurer, and such other officers, including a Chairperson of
          the Board, as the Board from time to time may deem necessary, each of which is
          elected by the Board of Directors. Any Officer need not be a Director or
          shareholder of the Corporation. Any two or more offices may be held by the same
          person. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          The officers of the Corporation shall be elected annually by the Board of
          Directors at the first meeting of the Board following each annual meeting of
          shareholders. If the election of Officers shall not be held at such meeting,
          such election shall be held as soon thereafter as conveniently may be possible. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Each officer shall hold office until the annual meeting of the Board of
          Directors next succeeding his/her election, and until his/her successor shall
          have been duly elected and shall have been qualified, or until his/her death,
          resignation or removal. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2 - Resignation:  (Section 8.43)
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any officer may resign at any time by
delivering written notice of such resignation to the Corporation. Such resignation shall
become effective when delivered to the Corporation, unless such resignation specifies a
later effective date. If such resignation is made effective at a later date and the
Corporation accepts the future effective date, the Corporation&#146;s Board of Directors
may fill the pending vacancy before the effective date if the Board of Directors provides
that the successor does not take office until the effective date. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3 - Removal:  (Section 8.43)
</FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors may remove any
officer at any time with or without cause. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4 &#151; Vacancies: (Section
8.43) A vacancy in any office by reason of death, resignation, inability to act,
disqualification, or otherwise, may at any time be filled for the unexpired portion of the
term by the Board of Directors. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5 - Duties of Officers:  (Section 8.41)
</FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each officer has the authority and
shall perform the duties set forth in these Bylaws, and to the extent consistent with
these Bylaws, the duties prescribed by the Board of Directors or by the direction of an
officer or officers authorized by the Board of Directors to prescribe the duties of
officers. </FONT></P>

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<A NAME=A013></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 6 &#151;
President: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The President shall be the Principal
Executive Officer of the Corporation and, subject to the control of the Board of
Directors, shall in general supervise and control all of the business and affairs of the
Corporation. He/she shall, when present, preside at all meetings of the shareholders of
the Corporation and of the Board of Directors. He/She may sign, with the Secretary or any
other proper Officer of the Corporation thereunto authorized by the Board of Directors,
certificates for shares of the Corporation and deeds, mortgages, bonds, contracts, or
other instruments which the Board of Directors has authorized to be executed, except in
cases where the signing and execution thereof shall be expressly delegated by the Board of
Directors or by these Bylaws to some other Officer or agent of the Corporation, or shall
be required by law to be otherwise signed or executed, and in general shall perform all
duties incident to the office of President and such other duties as may be prescribed by
the Board of Directors from time to time. </FONT></P>

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<A NAME=A014></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7 &#151;
Vice-Presidents: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the absence of the President or in
the event of his/her death, inability or refusal to act, the Vice-President or
Vice-Presidents, in the order designated at the time of their election, or in the absence
of any designation, in the order of their election, shall perform the duties of the
President, and when so acting, shall have all the powers of and be subject to all the
restrictions upon the President. Any Vice-President may sign, with the Secretary or an
Assistant Secretary, certificates for shares of the Corporation, and shall perform such
other duties as from time to time may be assigned to him/her by the President or by the
Board of Directors. </FONT></P>

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<A NAME=A015></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8 &#151;
Secretary: </FONT></P>

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<A NAME=A016></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Secretary shall: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          keep the minutes of the proceedings of the shareholders and of the Board of
          Directors in one or more books provided for that purpose; (b) see that all
          notices are duly given in accordance with the provisions of these Bylaws or as
          required by law; (c) be custodian of the corporate records and of the seal of
          the Corporation and see that the seal of the Corporation is affixed to all
          documents the execution of which on behalf of the Corporation under its seal is
          duly authorized; (d) keep a register of the post office address of each
          shareholder of the Corporation, which shall be furnished, to the Secretary by
          such shareholder. (e) sign with the President, or a Vice-President, certificates
          for shares of the Corporation, the issuance of which shall have been authorized
          by resolution of the Board of Directors; (f) have general charge of the stock
          transfer books of the Corporation; and (g) in general perform all duties
          incident to the office of Secretary and such other duties as from time to time
          may be assigned to him/her by the President or by the Board of Directors. </FONT></P>

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<A NAME=A017></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9 &#151;
Treasurer: </FONT></P>

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<A NAME=A018></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Treasurer shall: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          have charge and custody of and be responsible for all funds and securities of
          the Corporation; (b) receive and give receipts for moneys due and payable to the
          Corporation from any sourcewhatsoever, and deposit all such moneys in the name
          of the Corporation in such banks, trust companies or other depositories as shall
          be authorized by the Board of Directors; and (c) in general perform all the
          duties incident to the office of Treasurer and such other duties as from time to
          time may be assigned by the President or by the Board of Directors. If required
          by the Board of Directors, the Treasurer shall give a bond for the faithful
          discharge of his/her duties in such sum and with such surety or sureties as the
          Board of Directors shall determine. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10 &#151; Assistant
Secretaries and Assistant Treasurers: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Assistant Secretaries, when
authorized by the Board of Directors, may sign with the President, or a Vice-President,
certificates for shares of the Corporation the issuance of which shall have been
authorized by a resolution of the Board of Directors. The Assistant Treasurers shall
respectively, if required by the Board of Directors, give bonds for the faithful discharge
of their duties in such sums and such sureties as the Board of Directors shall determine.
The Assistant Secretaries and Assistant Treasurers, in general shall perform such duties
as shall be assigned to them by the Secretary or Treasurer, respectively, or by the
President or the Board of Directors. </FONT></P>

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<A NAME=A019></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11 &#151;
Salaries: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors shall fix the
salaries of the Officers from time to time. </FONT></P>

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<A NAME=A020></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12 &#151;
Contracts: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors may authorize
any Officer or Officers, agent or agents, to enter into any contract or execute and
deliver any instrument in the name of and on behalf of the Corporation, and such authority
may be general or confined to specific instances. </FONT></P>

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<A NAME=A021></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 13 &#151; Loans: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No loans shall be contracted on
behalf of the Corporation and no evidence of indebtedness shall be issued in its name
unless authorized by the Board of Directors. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 14 &#151; Checks, Drafts,
etc.: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All checks, drafts or other orders
for the payment of money, notes or other evidences of indebtedness issued in the name of
the Corporation shall be signed by such Officer or Officers, agent or agents of the
Corporation and in such manner as shall from time to time be determined by resolution of
the Board of Directors. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 15 - Shares of Other Corporations:  (Section 6.11)
</FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The President, any Vice-President, or
such other person as the Board of Directors may authorize may execute any proxy, consent,
or right to vote possessed by the Corporation in shares of stock owned by the Corporation
subject to the direction of the Board of Directors. </FONT></P>

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<A NAME=A022></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V &#151; SHARES
OF STOCK </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1 - Certificate of Stock:  (Section 6.25&amp;6.26)
</FONT></P>



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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          The Board of Directors may authorize the Corporation to issue some or all of its
          shares with or without certificates. The certificates representing shares of the
          Corporation shall be in such form as shall be adopted by the Board of Directors,
          and shall be numbered and registered in the order issued. They shall bear the
          holder&#146;s name and the number of shares, and shall be signed by (I) the
          Chairman of the Board or the President or a Vice President, and (ii) the
          Secretary or any Assistant Secretary, and may bear the corporate seal or a
          facsimile thereof. The signatures of such Officers upon a certificate may be
          facsimiles if the certificate is manually signed on behalf of a transfer agent
          or a registrar, other than the Corporation itself or one of is employees and
          such certificates shall remain valid if the person who signed such certificate
          no longer holds office when the certificate is issued. The name and address of
          the person to whom the shares represented thereby are issued, with the number of
          shares and date of issue, shall be entered on the stock transfer books of the
          Corporation. All certificates surrendered to the Corporation for transfer shall
          be canceled and no new certificate shall be issued until the former certificate
          for a like number of shares shall have been surrendered and canceled, except
          that in case of a lost, destroyed or mutilated certificate, a new one may be
          issued therefore upon such terms and indemnity to the Corporation as the Board
          of Directors may prescribe. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          No certificate, if any, representing shares shall be issued until the full
          amount of consideration therefore has been paid, except as otherwise permitted
          by law. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          The Board of Directors may authorize the issuance of certificates for fractions
          of a share, either represented by a certificate or not, which shall entitle the
          holder to exercise voting rights, receive dividends and participate in any
          assets of the Corporation in the event of liquidation, in proportion to the
          fractional holdings; or it may authorize the payment in cash of the fair value
          of fractions of a share as of the time when those entitled to receive such
          fractions are determined; or it may authorize the issuance, subject to such
          conditions as may be permitted by law, of scrip in registered or bearer form
          over the signature of an officer or agent of the Corporation, exchangeable as
          therein provided for full shares, but such scrip shall not entitle the holder to
          any rights of a shareholder, except as therein provided. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;
          The Board of Directors, from time to time, may authorize the issuance of some or
          all of the shares of the Corporation of any or all of its classes or series
          without certificates. (Such shares shall be known as &#147;uncertificated
          shares&#148;). Such authorization by the Board of Directors does not effect
          shares of the Corporation already represented certificates until they are
          surrendered to the Corporation. Within a reasonable time after the issue or
          transfer of such uncertificated shares, the Corporation shall send the
          shareholder a written statement of the information required by law and these
          Bylaws on certificates of shares of the Corporation. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2 - Lost or Destroyed Certificates:  (Section 6.25)
</FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors may direct a
new certificate or certificates to be issued in place of any certificate or certificates
theretofore issued by the Corporation alleged to have been lost, stolen or destroyed, upon
the making of an affidavit of that fact by the owner claiming the certificate or shares to
be lost, stolen or destroyed. When authorizing such issue of a new certificate or
certificates, the Board of Directors may, at its discretion and as a condition precedent
to the issuance thereof, require the owner of such lost, stolen or destroyed certificate
or certificates, or his/her legal representative, to advertise the same in such manner as
it shall require and/or to give the Corporation a bond in such sum as it may direct as
indemnity against any claim that may be made against the Corporation with respect to the
certificate alleged to have been lost, stolen or destroyed. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3 - Transfers of Shares:  (Section 6.27)
</FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Upon surrender to the Corporation or the transfer agent of the Corporation a
          certificate, when such shares are certificated shares, for shares duly endorsed
          or accompanied by proper evidence of succession, assignment or authority to
          transfer, it shall be the duty of the Corporation to issue a new certificate to
          the person entitled thereto and to cancel the old certificate and record the
          transaction upon its books. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4 - Record Date:  (Section 7.07)
</FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In lieu of closing the share records
of the Corporation, the Board of Directors may fix, in advance, a date not exceeding
seventy days, nor less than ten days, as the record date for the determination of
shareholders entitled to receive notice of, or to vote at, any meeting of shareholders, or
to consent to any proposal without a meeting, or for the purpose of determining
shareholders entitled to receive payment of any dividends, or allotment of any rights, or
for the purpose of any other action. If no record date is fixed, the record date for the
determination of shareholders entitled to notice of or to vote at a meeting of
shareholders shall be at the close of business on the day next preceding the day on which
notice is given, or, if no notice is given, the day on which the meeting is held; the
record date for determining shareholders for any other purpose shall be at the close of
business on the day on which the resolution of the directors relating thereto is adopted.
A determination of shareholders of record entitled to notice of or to vote at a
shareholders&#146; meeting is effective for any adjournment thereof, unless the Directors
fix a new record date for the adjourned meeting, which it must do if the meeting is
adjourned to a date more than 120 days after the date fixed for the original meeting. If a
court orders a meeting adjourned to a date more than 120 days after the date fixed for the
original meeting, it may provide that the original record date continues in effect or it
may fix a new record date. The record date for determining shareholders entitled to demand
a special meeting or to act without a meeting is the date the first shareholder signs the
demand. </FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section  5 - Shareholders' List:  (Section 7.20)
</FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Corporation shall prepare an
alphabetical list of the names of all shareholders who are entitled to notice of a
shareholders&#146; meeting, arranged by voting group, (and within each voting group by
class or series of shares), and show the address of and number of shares held by each
shareholder. Such shareholders&#146; list must be available for inspection by any
shareholder beginning two business days after notice of the meeting is given for which the
list was prepared and continuing through the meeting, and any adjournment thereof at the
Corporation&#146;s principal office or a place identified as to where the meeting will be
held. A shareholder, his agent or attorney may, on written demand submitted to the
Corporation inspect and copy such list during regular business hours and at his expense,
during the period it is available for inspection. </FONT></P>




<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VI &#151;DIVIDENDS  (Section 6.40) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subject to applicable law, dividends
may be declared and paid out of any funds available therefore, as often, in such amounts,
and at such time or times as the Board of Directors may determine so long as the
Corporation is able to pay its debts as they become due in the usual course of business
and the Corporation&#146;s total assets exceed its liabilities once such dividend has been
declared and paid. </FONT></P>

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<A NAME=A023></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VII &#151;
FISCAL YEAR </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The fiscal year of the Corporation
shall be fixed, and altered if necessary, by the Board of Directors from time to time,
subject to applicable law. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VIII &#151;CORPORATE SEAL  (Section 3.02)
 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The corporate seal shall be in such
form as shall be approved from time to time by the Board of Directors. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IX &#151;WAIVER OF NOTICE (Section 7.06&amp;8.23)
 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whenever any notice is required to be
given to any shareholder or Director of the Corporation under these Bylaws or under the
law, a waiver thereof in writing signed by the person or persons entitled to such notice,
whether before or after the time stated therein, shall be deemed equivalent to the giving
of such notice. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE X &#151; AMENDMENTS  (Section 10.20)
 </FONT></P>


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<A NAME=A024></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1 &#151; By
Shareholders: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All Bylaws of the Corporation shall
be subject to amend or repeal, and new by-laws may be made, by a majority vote of the
shareholders at the time entitled to vote in the election of Directors even though these
Bylaws may also be amended or repealed by the Board of Directors. </FONT></P>

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<A NAME=A025></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2 &#151; By
Directors: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors shall have
power to make, adopt, alter, amend and repeal, from time to time, Bylaws of the
Corporation; provided, however, that the shareholders entitled to vote with respect
thereto as in this Article IX above-provided may alter, amend or repeal Bylaws made by the
Board of Directors, except that the Board of Directors shall have no power to change the
quorum for meetings of shareholders or of the Board of Directors, or to change any
provisions of the Bylaws with respect to the removal of Directors or the filling of
vacancies in the Board resulting from the removal by the shareholders or to amend or
repeal a particular Bylaw which the shareholders stated, when passing such Bylaw, was not
subject to amendment or repeal by the Board of Directors. If any Bylaw regulating an
impending election of Directors is adopted, amended or repealed by the Board of Directors,
there shall be set forth in the notice of the next meeting of shareholders for the
election of Directors, the Bylaw so adopted, amended or repealed, together with a concise
statement of the changes made. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 31.1 </FONT></P>

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<A NAME=A002></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF CHIEF
EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER</FONT></P>

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<A NAME=A003></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Kwajo Sarfoh, President and Chief
Executive Officer, certify that: </FONT></P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               I have reviewed this Annual Report on Form 10-KSB of Cape Coastal Trading
               Corporation; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Based on my knowledge, this report does not contain any untrue statement of a
               material fact or omit to state a material fact necessary to make the statements
               made, in light of the circumstances under which such statements were made, not
               misleading with respect to the period covered by this report; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Based on my knowledge, the financial statements and other financial information
               included in this report fairly present in all material respects the financial
               condition, results of operations and cash flows of the registrant as of, and
               for, the periods presented in this report; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               I am  responsible for
               establishing and maintaining disclosure controls and procedures (as defined in
               Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Designed such disclosure controls and procedures, or caused such disclosure
               controls and procedures to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to me by others within
those entities, particularly during the period in which this report is being prepared;</FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Evaluated the effectiveness of
the registrant&#146;s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation;
and</FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Disclosed in this report any change in the registrant
&#146;s internal control over financial reporting that occurred during the registrant&#146;s fourth fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;
          I have disclosed, based on
          my most recent evaluation
of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of registrant&#146;s board of directors (or persons performing the
equivalent functions):</FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All significant deficiencies and material weaknesses in the design or operation
               of internal control over financial reporting which are reasonably likely to
               adversely affect the registrant&#146;s ability to record, process, summarize and
               report financial information; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any fraud, whether or not material, that involves management or other employees
               who have a significant role in the registrant&#146;s internal control over
               financial reporting. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<TABLE align=left WIDTH=50% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR><BR>
<BR>/S/ Kwajo M. Sarfoh<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Kwajo M. Sarfoh, Chief Executive Officer and Prinipal Finanial Officer<br><br>Date:  September 24, 2004</FONT></TD>
</TR>
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<A name=A001></A>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>EXHIBIT 32.1 </FONT></P>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>STATEMENT FURNISHED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, 18 U.S.C. SECTION 1350 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>The undersigned, Kwajo M. Sarfoh, is the Chief Executive Officer and Princiapal Financial Officer of Cape Coastal Trading Corporation (the &#147;Company&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>This statement is being furnished in connection with the filing by the Company of the Company&#146;s Annual Report on Form 10-KSB for the year ended December 31, 2003 (the &#147;Report&#148;). </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>By execution of this statement, I certify that: </FONT></P>

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<TABLE cellSpacing=0 cellPadding=0 width="100%">
<TR vAlign=top>
<TD align=right width="3%"><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></TD>
<TD width="94%">
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)) and </FONT></P>
</TD></TR>
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<BR>
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<TABLE cellSpacing=0 cellPadding=0 width="100%">
<TR vAlign=top>
<TD align=right width="3%"><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></TD>
<TD width="94%">
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report. </FONT></P>
</TD></TR>
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<BR>
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<TABLE cellSpacing=0 cellPadding=0 width="50%" align=left border=0>
<TR vAlign=top>
<TD width="40%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="50%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<BR><BR><BR>/S/ Kwajo M. Sarfoh<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Kwajo M. Sarfoh, Chief Executive Officer and Principal Financial Officer<BR><BR>Date:&nbsp; September 24, 2004</FONT></TD></TR>
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<P ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 3.1 </FONT></P>



<A NAME=A001></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[Certificate of
Incorporation] </FONT></P>

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<A NAME=A002></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>New York State </FONT></P>

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<A NAME=A003></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Department of State </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<A NAME=A004></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Division of
Corporations, State Records </FONT></P>

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<A NAME=A005></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And Uniform Commercial
Code </FONT></P>

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<A NAME=A006></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Albany, NY 12231 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<A NAME=A007></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certificate of
Incorporation of </FONT></P>

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<A NAME=A008></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>CAPE COASTAL TRADING
CORPORATION </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<A NAME=A009></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Under Section 402 of the
Business Corporation Law </FONT></P>

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<A NAME=A010></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
FIRST:  The name of the Corporation is:  CAPE COASTAL TRADING CORPORATION </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECOND: This corporation is formed to
engage in any lawful act or activity for which a corporation may be organized under the
Business Corporation Law, provided that it is not formed to engage in any act or activity
requiring the consent or approval of any state official, department, board, agency or
other body. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THIRD:  The county within this state, in which the office
 of the corporation is to be located is:  NEW YORK </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOURTH: The total number of shares
for which the corporation shall have authority to issue and a statement of the par value
of each share or a statement that the shares are without par value are: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The aggregate number of shares the
corporation shall have authority to issue is 50,000,000 shares of common stock, par value
$.001 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FIFTH: The Secretary of State is
designated as agent of the corporation upon whom process against the corporation may be
serves. The address to which the Secretary of State shall mail a copy of any process
accepted on behalf of the corporation is: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;301
West 53rd Street, 6C, NY, NY 10019 </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR><BR>
<BR>By: /S/ Kwajo M. Sarfoh<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>(Signature)
<br><br></FONT></TD>
</TR>
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<p><BR><BR><BR><BR><BR><BR></p>
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<TR VALIGN=TOP>
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR><BR>
<BR>Kwajo M. Sarfoh, President<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<br>Name and Capacity of Signer<br></FONT></TD>
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