CRA_Dussualt Rev.gp 8/20/07 2:39 PM Page 1 TA R G E T I N G T H E FA S H I O N A P P E T I T E • C E L E B R I T Y M A R K E T I N G TM NASDAQ OTCBB: DUSS DYNAMIC DUO Gene Simmons of KISS fame and Jason Dussault The powerhouse who is changing the fashion industry CRA_Dussualt Rev.gp 8/20/07 2:39 PM Page 2 03 THE NEW LUXURY EXPERIENCE It’s not just apparel. 07 THE MARKET A Multi-Billion Dollar Fashion Appetite. 10 12 14 THE BUSINESS CONCEPT Building A Billion Dollar Brand. THE MIND BEHIND THE JEANS An Intimate Conversation With Jason Dussault. MARKETING & MERCHANDISING The Dussault Brand. 18 MANAGEMENT TEAM Team Dussault. 23 CHARITY Corporate Citizenship: Our Approach. 24 MARKET DATA Investor Highlights. Contents 16 CELEBRITY MARKETING TO GENERATION Y. Up and Coming Trendsetters with Deep Pockets. CRA_Dussualt Rev.gp 8/20/07 2:39 PM Page 3 TM It’s not just apparel. Or jeans. Or a hoodie or luggage. It’s an experience. A way of life. From the finely-stitched silk linings and custom-made embroidery to the mind-bending theme-park in-store environment, every thread in the fabric of the Dussault consciousness is 100% original, uncompromising and pushing the limits of the luxury experience. In just two years, that passion has propelled this revolutionary custom apparel company to the forefront of the fashion world, boasting a legion of celebrities including the Black Eyed Peas, Pamela Anderson, Kid Rock, Jessica Alba, Nicole Richie, Everlast, Swollen Members, Robin Williams and Quentin Tarantino among the trend-setting clients wearing their clothes. And it’s just the beginning. Today, Dussault Custom Ink is poised for an explosive phase of growth, guided by an undeniable fashion concept, premium retail and distribution partners, and an elite leadership with the proven credentials to build a true global brand. 03 CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 4 Taking The Luxe Brand To Generation Y. It began two years ago, with a single store creating custom apparel for the world’s most recognized celebrities. The Powerhouse Leadership Behind The Brand. Like their flawlessly designed and crafted apparel, the team behind Dussault Custom Ink boasts an impressive pedigree. Today, Dussault Custom Ink is a vertically integrated premium fashion apparel company boasting license agreements with Todd McFarlane Entertainment, creators of the Spawn comic book franchise, as well as entrepreneur Gene Simmons to manufacture his new Gene Simmons’ MoneyBag fashion line. The company also recently earned honors at the prestigious MAGIC show, the world’s largest apparel industry event, surpassing 3,300 leading fashion companies with its award winning booth. From Founder and Chief Visionary Jason Dussault to President Terry Fitzgerald and rock’n’roll legend Gene Simmons, the impressive leadership behind the Dussault brand have collectively generated billions in the entertainment, fashion and financial sectors over the past 20 years. More significantly, they have proven their mettle at transforming innovative ideas into global brands. The New Luxury Experience. Just as significantly, the company is currently negotiating distribution agreements with several premiere North American retailers for store-within-a-store outlets, and is only months from the star-studded opening of its flagship store in the heart of Hollywood’s prestigious Melrose Avenue. 04 Together, they represent the guiding force behind the next global name in premium high-end apparel for Generation Y. Dussault Apparel Throughout, the company’s vision has never wavered to redefine the luxury experience and fulfill the lofty desires of affluent, fashionconscious customers worldwide. “Our mission is to design, develop, manufacture, market, distribute and sell distinctive and innovative products that redefine luxury in the fashion world. From our premium high fashion hoodie jackets, denim jeans and tops to our urban apparel and accessories, every element we create intends to redefine the luxury experience, and to fulfill the lofty desires of affluent, fashion-conscious customers worldwide.” – Jason Dussault, Founder & CEO ™ CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 5 JASON DUSSAULT, FOUNDER, WEARING A CUSTOM HOODIE DESIGNED FOR KID ROCK 05 CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 7 THE MARKET Targeting A Multi-Billion Dollar Fashion Appetite. In 2004, a small blue jean company called True Religion noticed a rise in their $1 share price as their blue jeans began appearing on celebrities like Jessica Simpson, Angelina Jolie and the cast of Desperate Housewives. In just over a year, True Religion's stock had soared beyond $20, with sales increasing five-fold and the company generating sales of $22 million in a single quarter. Today, True Religion is a $500 million company with annual sales exceeding $139 million. While True Religion’s impressive growth is a promising indicator of Dussault’s potential success, these sales represent but a fragment of a $500 billion world apparel market which is growing by 7.3% a year. TRUE RELIGION STOCK VALUE FROM 2003 - 2007 $27.50 20.00 15.00 AUGUST 25 2003 True Religion begins trading under “TRLG” at $1.35 10.00 AUGUST 18 2005 True Religion trades on the NASDAQ exchange at $14.80 5.00 2.50 1.25 OCT 04 APR JUL “ The OCT 05 APR JUL OCT 06 APR JUL OCT 07 APR Luxury Apparel niche market has five distinct advantages: high profit margin, low marketing costs, easier market domination, continued long-term product demand and low vulnerability to recession. Mark-up for premium jeans are far higher than most other apparel.” — Ian Wyatt, Rising Star Stock 06 07 8/20/07 2:40 PM Page 8 A $600 Million Premium Denim Market. With the sale of luxury denim jeans in the United States exceeding $679 million in 2006, this category continues to endure as one of the most appealing segments of the apparel market. Similarly, denim sales in the United Kingdom are seeing explosive growth, with industry estimates of over 86 million pairs of jeans to be sold in 2007. Simply put, luxury denim is built to last, providing some significant advantages in the marketplace. PREMIUM DENIM SALES 2004 - 2006 $700 Today, the wearables market is the leading category for promotional products distributors, representing nearly 30% of the $18 billion in total distributor sales reported in 2005 (New York Times). And premium hoodies, customized caps and other fashion accessories are driving that continued growth. Leather Accessories CRA_Dussualt Rev.gp As one of the pillars in the company’s product line, Dussault Custom Hoodies are ideally positioned to generate continued heat for the company over the coming years. Capitalizing On Travel Goods And Leather Accessories. More than ever, branded accessories represent a large and growing segment of the apparel market. In 2006, travel goods and leathers retail sales in the United States totaled $17 billion, up 11.3% from the preceding year, with the largest share of growth among higher-end products. 600 500 400 300 MILLIONS 200 100 0 2004 2005 2006 The Undeniable Appeal Of Luxury Apparel. While luxury apparel holds an undeniable luster for discerning shoppers, this segment also offers five distinct advantages for manufacturers. Combining an extremely high profit margin with low marketing costs, luxury apparel also benefits from less market competition, continued long-term product demand, and relatively low vulnerability to recession. For luxury apparel makers, that translates into high margins and sustained growth for the bottom line. As with premium denims and hoodies, the demand for branded designer accessories continues to grow, as consumers demonstrate their willingness to spend premium dollars on high-quality luxury products. HANDBAGS TRAVEL/SPORTS BAG LUGGAGE PERSONAL LEATHER GOODS BACKPACKS U.S. TRAVEL GOODS MARKET 1992 - 2006 (IN U.S. DOLLARS) BILLIONS 8 7 6 5 4 3 2 1 1992 1996 1998 2000 2001 2002 2003 2004 2005 MILLIONS U.S. TRAVEL GOODS MARKET 1992 - 2006 (# OF PIECES) BACKPACKS PERSONAL LEATHER GOODS 1 billion MILLIONS 800 BACKPACKS Hoodies Are Hotter Than Ever. If one look at the celebs on MTV doesn’t confirm the emergence of premium hoodies as a major force in popular culture, then consider the industry figures. 600 400 200 1992 08 2006 1996 1998 2000 2001 2002 2003 2004 2005 2006 CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 9 CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 10 THE BUSINESS CONCEPT Building a Billion Dollar Brand. Creating a global brand transcends logic. It defies reason. Beyond an inspired vision, it requires a mastery of the intangibles, a gift for navigating the cultural zeitgeist. The Cache of Apparel as Art. It also requires an uncanny understanding of global distribution. 10 As the former President and Co-Founder of Todd McFarlane Entertainment, newly anointed Dussault President, Terry Fitzgerald, has demonstrated his ability to create a billion dollar brand. Working with partner Todd McFarlane, he transformed a comic book company into an international conglomerate producing action figures, comic books, films and television programs with global distribution partners including Wal-Mart, Target, K-Mart, Toys’R’Us, Paramount Pictures, Universal Studios and beyond. Working with Jason Dussault and Gene Simmons, this team has the expertise to propel this unique, one-of-a-kind luxury experience into a household brand. CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 11 The Dussault™ Luxury Experience. From its flawless stitching to its hand-embossed design and limited edition presentation box, the Dussault brand promises the extraordinary. More than merely clothing, Dussault produces a distinctive line of urban men’s and women’s high quality fashion hoodies, denim jeans, shirts and accessories that redefine expectations. These intensely detailed, hand-worked and custom finished garments represent the culmination of urban design, offering affluent, fashion-conscious GenY’ers with bold, unique, one-of-a-kind styling at a premium price point. Like true works of art, each denim product is showcased in a custom-built wooden box embossed with the Dussault’s trademark double-D skull logo to distinguish it as a singularly unique fashion masterpiece. Like all art, Dussault™ apparel is a form of self-expression. From our many premium fabrics to a multitude of custom treatments, washings, detailings or embossings, no two jeans or hoodies are ever alike. Bold, brash and “ For irreverent, each unique element in the Dussault Custom line becomes an expression of the customer’s individuality and aversion to the status quo. For Generation Y customers seeking a premium fashion experience, Dussault represents the pinnacle in apparel as hip, cool, one-of-a-kind urban art. Custom Experience For The Mass Luxe Market. Designed entirely by our world-class in-house team, each element in our product line is manufactured to exacting standards by local and international third party apparel companies, with final customized elements added in the actual Dussault factory. From our shirts, belts, hats and luggage to our upcoming lines of shoes and jewelry, our entire product line is conceived to provide uncompromising quality and individual touches at a premium price level. This strategy allows the company to benefit from economies of scale without forsaking quality or committing to the significant capital expenditures required for large scale manufacturing. This approach allows the company to invest in retail expansion and building brand awareness through marketing and publicity. the past 20 years, I partnered with Todd McFarlane to build one of the world's leading comic book and toy companies. Together, we expanded the company from two employees into a billion dollar conglomerate... In Jason Dussault, I see the same drive, energy, creative inventiveness and determination to own the world. I have no doubt that we’ll be a force in every metropolitan center worldwide.” Terry Fitzgerald, President Formerly President and COO of Todd McFarlane Entertainment 11 CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 12 The Mind Behind The Jeans. An Intimate Conversation with Jason Dussault Jason Dussault, the Founder, Chief Creative Officer and guiding force behind Dussault Custom Ink, sits down with friend and confidant Nipper Mulberry for an intimate tête-à-tête. Q What was the guiding vision that inspired you to build this company, and why do you think it’s caught on as quickly as it has? A I decided to make clothes for a market I was intimately familiar with. Namely, me. I had money, success, a passion for the good life and a taste for distinctive, unique, high quality fashions. I was constantly being disappointed by so-called premium brands that weren’t distinctive, well-produced or particularly unique. They definitely didn’t reflect my tastes or individual style. When I looked around, I saw a massive subset of people just like me – hungry for truly distinctive, unique, luxurious and hip clothes. And willing to pay a premium price for it. because once I commit myself to something, it becomes a 24 hour seven day a week commitment. That was my approach when I was raising capital for start-up companies, and it’s still the only way I know how to operate. From the moment I founded Dussault Custom Ink, I was building an international fashion and accessory brand that was going to be a household name. No question, part of my success has been a natural artistic gift and an innate love for fashion. But an equally large component was a very clear vision from the outset, with defined business goals and a solid strategy. Thankfully, after a decade working in the public markets, I understood the business fundamentals as well as the fashion business. Q So why fashion and why now? Q You seem to have exploded onto the scene right out of thin air. It’s been barely two years, and your clothes are being worn by some of the world’s biggest celebrities. You’ve signed a license agreement with rock star/entrepreneur Gene Simmons, are about to open a flagship store on Melrose Avenue, and have now brought on Terry Fitzgerald as President of your company. What the hell happened? A Yea. That was pretty quick, though it really hasn’t felt that way. The truth is, I’ve always been successful at everything I’ve done, 12 A To me, fashion combines the best of the artistic and financial worlds. As an artist and lover of good fashion, my goal is to create clothing and accessories that people are inspired to wear, and that truly serves as an expression of who they are. As a businessman, I saw an opportunity to provide for a need that I had, and that I knew others also shared. Over $200 billion is spent every year in the United States on clothing. That’s a staggering amount of money, which clearly suggests that Americans are willing to spend money when something of value is offered to them. I decided to give the market what it was crying out for. CRA_Dussualt Rev.gp 8/20/07 2:40 PM Page 13 Q Celebrities have been a large part of the company’s success. Was that simply luck, or was there a master plan behind it all? A “Master Plan” sounds a bit sinister. I’d prefer to call it a core element of a comprehensive brand building strategy. Besides, what better advertising for our product than the kinds of people our clothes were created for? In other words — stylish, distinctive, unique, accomplished, self-expressed, affluent people who are willing to drop some real coin to make a personal statement. Just for the record, we also make lots of custom items for amazing individuals who aren’t celebrities. But there’s no question, nothing speaks louder to the Gen Y market than having Nelly Furtado hitting a party or doing an MTV interview wearing our clothes. Old fashioned advertising and endorsements just don’t do the trick with the Gen Y crowd. They’re just too sharp and jaded. So we went with what works. Q Tell us about your relationship with Gene Simmons. A I’ve been a fan of KISS and in particular Gene since high school. When I was presented with the opportunity to meet him I leapt at the chance. I created an original piece for Gene — an embroidered lamb skin jacket —which I gave to him at our first meeting. He loved it and has worn it on his hit show “Family Jewels” several times. We had an instant bond at that first meeting. We have similar passions; we are both artistic and share the same desire to be successful in business. We also share the same work ethic; Gene works 24 hours a day. When Gene offered me the chance to work with him on the MoneyBag line I jumped. Gene trademarked the MoneyBag image over twenty years ago and had been waiting for the right opportunity to bring it to market. He saw that opportunity in Dussault, and has been an amazing partner in the project, making himself available for tradeshows and promotional events. He’s been a tremendous help and terrific business partner. Q What are your goals for Dussault? A Like I said earlier on, I opened the first store knowing that it was the first building block in the construction of international household brand. Right now, we’re on our way. We’re starting to cement agreements with top-tier retail outlets around the United States. We’ve just brought on one of the most successful mass merchandisers in the country in Terry [new Dussault President Terry Fitzgerald], we’re opening stores and outlets in major markets in the states, and we’re building revenues and brand recognition. At this pace, we just need a few more years to get there. Q Thanks for taking the time to talk, Jason. A Least I could do. It is my company magazine, after all. CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page K 13 CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page L Q What makes your clothes special? Frankly, if someone comes into our store, gets a huge kick out of our photo-booth, but doesn’t buy our clothes, I still feel like we did our job. That’s the Luxe experience. And truth is, it’s not rocket science. A That’s a no-brainer. It’s the attention to detail. The moment someone slips on a Dussault Hoodie or Dussault Jeans, something happens to them. They start to notice the insane quality and attention to detail. There’s just no compromise at any level. From silk linings to delicate faux Mink cuffs, our clothes have this amazing, gentle, luxurious feeling that you don’t get with anything else. I constantly hear the same thing from our customers — that their Dussault Hoodie is their favorite piece of clothing. You just can’t fake quality, integrity and obsessive attention to detail. Q A lot of your marketing talks about the Luxe experience. What is that exactly? A It’s the human craving to feel unique, alive. To feel like you’re not just another faceless number wearing faceless clothes, leading a faceless life and being served by other faceless people performing faceless tasks. From where we sit, that means providing a complete and unique experience that starts the moment someone steps into our store. We make every facet of the Dussault experience unique — not just because we want you to buy our clothes, but because we want people to truly get that there are some places where passion and creativity do matter, and where inspiration does rule. Q Speaking of the stores, yours are pretty out there. What is the inspiration for the concept? A Our goal with each store is to take you somewhere you’ve never been before, and to give you an unforgettable experience. Our original store was created with an entryway that’s actually this crazy photo-booth. When you enter the compartment, it seals behind you so you’re in an enclosed booth, then it takes four photos of you — which you get to keep as a memento of your visit. Then, you’re released into the main store, which is a surreal setting right out of a movie. Our flagship store on Melrose builds on that, with an even crazier world designed along the lines of a vintage 1970s motel, with the cash register area in the style of a front desk, and a café and motel lounge — right out of a classic film. And the farther into the store you travel, the more layers you’ll discover. It’s a bit like our clothes — the closer you look, the more great little details you find. continued inside flap A Strategy for Global Growth CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page 14 couver n a V , e or ult St Dussa MARKETING AND MERCHANDISING The Dussault™ Brand. From our intricate custom-detailed hoodies, jeans and shirts to our insane in-store theme-park experience, every facet of the Dussault brand promises the extraordinary. We’re committed to building on that promise at every level of the shopping experience, and at every stage of our growth. The Dussault™ Theme Park Retail Experience. Starting with our original boutique in Vancouver, B.C. Canada, to our soon to open flagship store on Hollywood’s prestigious Melrose Avenue, every moment of the Dussault experience is a true original. From a built-in photo booth providing shoppers with a memento of their visit, to an entire store designed in a “Dussault Motel” theme featuring an old-style café and functioning retro video arcades, Dussault aims for the exceptional. For celebrity and premier clients, the new Melrose boutique will also feature a private shopping experience themed as a Canadian snow chalet, with authentic log construction, antique ski equipment and blowing snow. Life can be banal. Dussault makes it a scream. 14 CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page 15 The Store-Within-a-Store Concept. For Dussault, the store-within-a-store model represents a powerful and cost-effective strategy for maximizing brand exposure while also leveraging the credibility of larger retail partners. Working in association with large premium retailers that share a compatible vision and demographic, Dussault will benefit from prime retail locations and pre-existing traffic in major metropolitan centers without the prohibitive costs associated with store construction and maintenance. This approach has proven enormously successful for the company to date. Located in Vancouver’s Leone’s-L2 fashion center, one of North America’s leading specialty department stores, the original Dussault outlet has been the leader both in sales and earnings for Leone’sL2 since its opening nearly two years ago. A Strategy For Global Growth For 2008. Building on our proven store-within-a-store model, Dussault is currently undertaking an aggressive one-year plan for establishing itself as a global brand. This includes outlets in New York and London by Winter 2007, Toronto and Montreal by Spring 2008, Chicago and Miami by Summer 2008, and Tokyo by Winter 2008. Growing The Brand Through Joint Ventures. As a company committed to preserving the quality and integrity of our brand at every stage of growth, we believe that joint ventures and licensing agreements will be central to our continued success. The first such agreement is already underway, with Dussault developing, manufacturing and distributing the Gene Simmons’ “MoneyBag” clothing and accessories collections. This exciting product line will launch across North America in Fall 2007. A similar collaboration with comic book creator Todd McFarlane will generate substantial co-marketing opportunities for both companies, with Mr. McFarlane creating a new character called “Deuce The Destroyer”. Inspired by Dussault founder Jason Dussault, this character will be featured prominently on a line of Dussault apparel, and other merchandising and entertainment opportunities are also being explored, including an internationally distributed “Deuce The Destroyer” comic book. These outlets will be localized primarily in high-end department stores such as Nordstrom and Bloomingdales, as well as top-tier specialty retailers such as Fred Segal, Yellow Rat Bastard and Kitson. Building Our International Distribution Channels. In addition to the company’s store-within-astore strategy, Dussault is also in the process of establishing an extensive domestic and international wholesale distribution network. Dussault is currently in negotiations with international distributors in the United Kingdom, Europe, Asia and South America, and intends to have agreements in place and product shipping by Fall 2007. GENE SIMMONS AND JASON DUSSAULT AT THE MAGIC TRADE SHOW, LAS VEGAS 2007 15 CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page 16 Larger, and more impenetrable than the “Baby Boomers”, the 16-36 year-old Generation Y represents the heart and soul of Dussault’s customer base. Smart, savvy, jaded and individualistic, they seek products that transcend and defy the consumer culture. What’s more, they’re willing to pay serious coin to get it. And Dussault Custom Apparel is emerging as their voice. Celebrity Marketing to Generation Y Building Our Celebrity Network. From the Black Eyed Peas, Nelly Furtado and Jessica Alba to Nicole Richie, Quentin Tarrentino and countless other celebrities, we’re developing a passionate and rapidly expanding network of trend-setting fashion leaders. Building on this impressive marketing showcase, the company is expanding its relationship with Gene Simmons, as we continue to create new opportunities to leverage our brand and build visibility. Dussault™ Forward SALES • Expansion into more store-within-a-store retailers within the next year in cities like LA, Chicago, Miami, Montreal, Toronto, London • International distributions deals for territories such as the UK, Ireland, Italy, France, Germany, Canada, Brazil, UAE, Japan, Singapore PEOPLE • Will use a combination of in-house and outside sales agents enabling us to maximize full sales potential for a company our size and age 16 STORE OPENING • In-house stores include LA this year and one more next year in an eastern American location to be announced NEW PRODUCTS • High-quality embossed and embellished leather travel gear, messenger bags and wallets, as well as hand decorated hats and fully detailed belt buckles and belts • Jewelry for men and women in silver, gold and platinum metals, adorned in gemstones from around the world CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page 17 This will include a wide range of media opportunities, including continued appearances on his network television program “Gene Simmons Family Jewels” and other co-ventures to build brand awareness. Looking Beyond Traditional Marketing. When it comes to Gen Y’ers, old-fashioned advertising and endorsements are death. Instead, Dussault combines its aggressive celebrity-based, non-paid marketing with leading-edge merchandising events and partnerships, as well as advertising in skateboarding, hip-hop, young adult culture and Gen Y lifestyle magazines. And then, there’s the ultimate marketing vehicle — the internet. The Dussault™ Viral Marketing Program. From outrageous short films to animations and music videos, Dussault is constantly developing and airing fresh branded videos on YouTube.com, Myspace.com, Facebook.com and Squidoo.com. This cost-effective marketing approach represents a powerful marketing strategy that allows Dussault to deliver its fresh, unique and irreverent message to a sophisticated audience on an ongoing basis. Building a Brand With A Social Conscience. Like our target market, Dussault believes that for a brand to truly live in the consciousness of Generation Y, it must possess a true social conscience. As a company committed to bringing true integrity and excellence to every facet of the fashion world, we’re constantly seeking out strategies for incorporating a charitable or fundraising component into our merchandising programs. More than simply a marketing strategy, it represents yet one more opportunity to enrich our customers by allowing them to give back to the world at large. Similarly, the company is also very committed to reducing its own footprint on the planet. This includes using shopping bags made from 100% non-toxic recyclable materials, and participating in a carbon credit program. We’ve always believed in being leaders, and that holds true at every level of our company. • High-end lambskin products for men and women • Increase total jean SKUs/lines from 7 to over 10 • Increase hoodie designs for both men and women from 6 to over 15 • T-Shirt series will increase from 3 to close to 10 • The company will explore new areas within the apparel business for possible future expansion, such as footwear, skirts and other outerwear. 17 CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page 18 M A N AG E M E N T T E A M Team Dussault TM 18 Jason “Deuce” Dussault Chairman and Chief Creative Officer Creating and collaborating with several companies over the past 15 years, Mr. Dussault has worked to take small start-up companies public, accessing financing from U.S., Canadian and European sources and providing corporate guidance. In 2005, after successfully raising hundreds of millions of dollars in capital for his client companies, he finally decided to pursue his ultimate passion. From that first inspired leap, Dussault Apparel, Inc. was born. A year later, his first line of fashions sold out almost immediately, establishing his company and launching Dussault Apparel, Inc. Today, this cutting-edge design aesthetic and meticulous attention to detail are highly sought after by leading celebrities and trendsetters. As the company’s creative visionary, he works with Head Designer Peter Tsang to expand on a unique style, honing his creations through an intimate connection to some of the world’s leading celebrities and elite from the worlds of entertainment and sports. 125 million comic books in 30 different languages worldwide. He was then integral in the acquisition and subsequent expansion of a corporation that would later be known as McFarlane Toys. This company is known for its highly detailed action figures of licensed properties such as the Simpsons, Halo, the Matrix, Kiss, Elvis, MLB, NBA, NFL and NHL, the Terminator and the Beatles. With his vital involvement at the executive level, the McFarlane Group has grown from a two-person organization to one that now includes 150+ employees in four countries, with sales in the nine-figure range, with distribution with retailing partners such as Wal-Mart, Target, K-Mart, Toys’R’Us and Kaybe. As President and COO of Todd McFarlane Entertainment, Inc., he oversaw development and production of feature films and television series for New Line Cinema, Paramount Pictures, Universal Pictures, Warner Bros. Pictures, Home Box Office, UPN and Fox Television. Mr. Fitzgerald’s role as producer and writer/director of these and other projects has garnered him two Emmy Awards, two Grammy Award nominations with one win, nine MTV Music Video Award nominations wins and one MuchMusic Music Video Award. Terry Fitzgerald President Mr. Fitzgerald brings to the company 16-years of corporate experience in the licensing, design, entertainment, and manufacturing arenas. After graduating from college in British Columbia, Canada, he relocated to Portland, Oregon to create the McFarlane Group of Companies with Partner Todd McFarlane. Mr. McFarlane is best known as the world’s top selling comic book artist. Together in 1992, he and Mr. Fitzgerald formed Todd McFarlane Productions, Inc., a comic book company that to date has sold over Peter Tsang Director of Designer/Manufacturing As Dussault’s Director of Design and Manufacturing, Mr. Tsang is a rapidly emerging voice in the design world. Graduating from the Helen Lefeaux School of Fashion Design and earning a Diploma in Textile Design from British Columbia’s Capilano College, Mr. Tsang went on to receive numerous distinctions as an emerging designer, including finalist in the Smirnoff Experience Fashion Competition. In 2004, he became Lead Designer and Partner in Pierrejale, a high-end women’s clothing line, where he went on to design lines for Toronto Fashion Week and other prominent fashion events, CRA_Dussualt Rev.gp 8/20/07 2:41 PM Page 19 earning a Canadian New Designer Award Nomination from Fashion Expert Awards in 2005. He then moved to Dussault, where his sales booth design for the Summer 2007 MAGIC Trade Show in Las Vegas was distinguished from among 3,300 contestants with the Award For The Most Innovative Booth Design. Jason Sundar VP, Corporate Finance Combining an impressive background in high finance and capital markets with a profound entrepreneurial spirit, Mr. Sundar began his career at the age of 17 working for the B.C. Attorney General’s office, where he developed and promoted youth programs to protect high-risk youth. At 20 years of age Mr. Sundar became the youngest facilitator of corporate training programs for Peak Performance Systems — a Brian Tracy International Network focused on the psychology of achievement, goal setting, professional selling skills, advances selling skills and B2B selling skills. Among their numerous clients were Yorkton Securities and Crown Packaging. By the age of 23, Mr. Sundar was the top performer for investor relations specialists PCMI. Leaving that position, he partnered with Olivia Communications, raising over five million dollars and taking the organization from three people to a staff to 24. Since founding Sundar Communications Group in 2002, he has personally raised over $50 million for his clients worldwide. Jeremy Poirier VP, Investor Relations Establishing his passion for the business world at a young age, Mr. Poirier moved to Vancouver to become an entrepreneur and work in the public markets when he was 18 years old. Over the past three years, Mr. Poirier has been a significant player in the success of Deuce Jeans and Open Sundae ventures. Mr. Poirier has worked with over thirty publicly traded companies, and has been President of Seacove Investor Relations for two years. Robert Mintak Director & COO Mr. Mintak, has over 25 years of experience in the retail and wholesale industries. His track record in management includes five years with the Robinson Group, which was named one of the 50 best managed companies in Canada 2005, and ten years of management experience in retail. Mr. Mintak is also a certified lighting designer. Mr. Mintak has been the CFO of Open Sundaes Bath and Body Products for the past three years. Jamie Arthur Lewin, CFO Mr. Lewin has 15 years of progressive experience and responsibility in accounting, financial analysis, financial management and business administration. Mr. Lewin has been the Chief Financial Officer for Abenteuer Resources Corp. since June of 2006 and the Manager of Finance and Administration for CNIB BC/Yukon Division since October 2006. Mr. Lewin has a strong work ethic and is highly developed in accounting. Tina Baird VP, Corporate Communications Ms. Baird has been responsible for media relations, public relations, and advertising for Dussault Custom Ink since the launch of the first collection in 2005. In addition to handling Dussault, she has twentyfive years experience providing media relations, advertising, publicity, marketing, corporate communications, and public relations. Ms. Baird, a UBC graduate, has designed and supervised international, national and locally targeted communication, publicity and marketing campaigns for her clients. Past clients include Peace Arch Entertainment Group Inc., the Vancouver Art Gallery, the Whistler Resort Association, The Western Magazine Awards Foundation, Travel Concepts Inc., Blanche McDonald School of Fashion and Design, and Voyageur Film Capital Corporation. 19 CRA_Dussualt Rev.gp 8/20/07 2:42 PM Page 20 CRA_Dussualt 8/21/07 3:54 PM Page 21 M A N AG E M E N T T E A M Advisory Team M A R K E T I N G A DV I S O R J O I N T V E N T U R E PA R T N E R Kiley Hendriks a.k.a. Prevail “As one of the lead singers in 4 time Juno winning rap group, Swollen Members, I am blessed with opportunities to meet people, whose lives are highly popular, on a more social platform. The doors that are opened, from touring and song collaboration, are ones that, in time can lead to long lasting and influential friendships. It’s no secret that the music and film industries are changing. What is also taking shape though, is that artists, more than ever, are networking and building together to support each other. My ability to offer amazing, custom made clothing, to people I have come in contact with, is a great asset to Dussault. In the business world, as much is in the entertainment world, an introduction is only as solid as the person making it. For a group of people who are constantly bombarded with sponsorship ideas and more free stuff than one can handle, it is exciting to know that our gear is getting worn, not only for its unique design, but also on the strength of friendship. This is what I can offer to Dussault Custom Ink. I have been not only an artist, but also a self promoter, for the last decade. I’m good with communicating and am building new contacts daily. I look forward to propelling our company to the top, and appreciate the well you have provided me to draw from.” Gene Simmons MoneyBag Fashion Partner “I have owned the trademark MoneyBag logo for over 25 years. I have used it on my magazines, book imprints, my record company and a few other areas. Until I met Jason Dussault, I held off on really going out into the marketplace in the street wear line. It has to do with finding a kindred spirit. And, Jason is it. He and I share a passion for only doing things in life that mean something. Together we are creating cutting edge, in-your-face fashions. The MoneyBag Line, at long last, has become a reality.” Sincerely, Gene Simmons, KISS y, Kiley Hendriks, Swollen Members 21 CRA_Dussualt Rev.gp 8/20/07 2:42 PM Page 22 DISTRIBUTION Marcello Leone US Distribution Marcello Leone is highly regarded in the fashion industry. He has spent over 16 years operating one of Canada’s largest and most successful independent specialty stores known as Leone’s. Leone’s, located in Vancouver, British Columbia, represents over 30,000 sq. ft. of luxury brands including the exclusive Gianni Versace boutique, as well as Roberto Cavalli, Prada and Christian Dior just to name a few. Leone’s contemporary division known as L2 represents contemporary designers such as Diesel, Rock and Republic, True Religion, Miss Sixty and Dussault Custom Ink. Marcello is responsible for the development of new product lines, guiding the buying team, and daily operational duties for Leone’s and L2. Today, due to Marcello’s participation and on-going management team, Leone’s has been recognized as one of North America’s leading retailers as quoted in Vogue Italy 2 years running. JASON DUSSAULT CREATING CUSTOM HOODIES 22 Munir Ali International Distribution Munir Ali is involved in a broad range of business interests, including manufacturing, international trade and investment management. With 15 years in the industry, Munir has extensive experience conducting retail business in Asia, Singapore, Thailand, India, Pakistan and Bangladesh. In this capacity, Mr. Ali has developed retail networks to facilitate the marketing and distribution of consumer products, including operations and sales. Through business in this industry he has also gained experience in manufacturing and sales of commodities. He has also worked to develop infrastructure and logistics to support retail business which requires a thorough familiarity with the market, as well as planning for change and anticipating market trends. CRA_Dussualt Rev.gp 8/20/07 2:42 PM Page 24 INVESTOR HIGHLIGHTS TM Head Office 8010 Melrose Avenue Los Angeles, CA 90046-7010 • In just two years, this vertically integrated premium apparel company has developed a relationship among world-class celebrities, athletes and entertainment figures around the world. • The company is poised for explosive growth with established distribution partners and an elite leadership with the proven credentials to build a true global brand. Store Locations 8010 Melrose Avenue Los Angeles, CA 90046-7010 Tel: 323.951.9215 • New President Terry Fitzgerald, the former President and Co-Founder of Todd McFarlane Entertainment, who partnered with Todd McFarlane to transform a comic book company into an international conglomerate producing action figures, comic books, films and television programs with global distribution partners including Wal-Mart, Target, K-Mart, Toys’R’Us, Paramount Pictures, and Universal Studios. 56 Powell Street Vancouver, BC V6A 1E7 Tel: 604.222.2010 • The company boasts license agreements with Todd McFarlane Entertainment, creators of the Spawn comic book franchise, as well as entrepreneur Gene Simmons to manufacture his new MoneyBag fashion line. Investor Relations Jeremy Poirier Tel: 1.877.322.2732 Email: jp@dussaultink.com • The company recently earned a distinction at the prestigious MAGIC show, the world’s largest apparel industry event, beating over 3,300 of the world’s leading fashion companies with its award winning booth. Market Data Exchange: OTCBB Symbol: DUSS Restricted: 21 Million Free Trading: 28 Million Total Issued & Out: 49 Million Transfer Agent Island Stock Transfer 100 Second Avenue South, Suite 104N St. Petersburg, FL USA 33701 Att: Kara Kennedy Board of Directors Jason Dussault Terry Fitzgerald Robert Mintak Auditors John Kinross-Kennedy CPA Legal Counsel Clark Wilson Bill Mcdonald • The company is only months from the star-studded opening of its flagship store in the heart of Hollywood’s prestigious Melrose Avenue. • Comparable history to True Religion, which went from $1 share price to $20 in just over a year after their blue jeans began appearing on celebrities like Jessica Simpson, Angelina Jolie and the cast of Desperate Housewives. Today, True Religion is a $500 million company with annual sales exceeding $139 million. • Continued growth of the luxury denim jeans in the United States with sales of $679 million in 2006. Similarly, denim sales in the United Kingdom are seeing explosive growth, with industry estimates of over 86 million pairs of jeans to be sold in 2007. IMPORTANT DISCLAIMER Each person to whom a copy of this company profile (“Profile”) is provided is a “User” and each User agrees to be bound to the terms of this agreement. IF YOU DO NOT AGREE TO THESE TERMS RETURN THIS PROFILE TO DUSSAULT APPAREL INC. UNREAD AND UNUSED. The attached information has been prepared by Dussault Apparel Inc. using its best efforts to realistically and factually present the information contained. However, subjective opinion, dependence upon factors outside Dussault Apparel Inc.’s control and outside information sources unavoidably dictate that Dussault Apparel Inc. cannot warrant the information contained to be exhaustive, complete or sufficient. In addition, many factors can affect the Profile which could significantly alter the results intended by Dussault Apparel Inc., rendering the Profile unattainable or substantially altered. Therefore, interested Users should conduct their own assessment and consult with their own professional advisors prior to making any investment decisions. This Profile does not constitute a prospectus or public offering for financing, and no guarantees are made or implied with regard to the success of Dussault Apparel Inc.’s proposed ventures. Some of the information in this Profile are forward-looking statements. The User can identify these forward-looking statements by forward-looking words such as “may,” “will,” “expect,” “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “project,” “plan,” “continue” or similar words. 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