Travelogia
Financial and Recruiting Reports
Judge for yourself.
Will Travelogia be able to stay afloat or have to close the doors? 
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INDEPENDENT AUDITOR'S REPORT

Board of Directors and Shareholders
Travelogia.com

We have audited the accompanying balance sheet of Travelogia.com as of December 31, 2002, and the related statements of operations, shareholders' deficit, and cash flows for the period from January 17, 2002 (inception) to December 31, 2002. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Travelogia.com as of December 31, 2002, and the results of its operations and its cash flows for the year then ended and the period from January 17, 2002 (inception) to December 31, 2002 in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, during the year ended December 31, 2002, the Company incurred a net loss of $2,615,996, and it had negative cash flows from operations of $2,205,487. In addition, the Company had an accumulated deficit of $2,615,996 at December 31, 2002. These factors, among others, as discussed in Note 2 to the financial statements, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

(WWSN: The report continues on...)

DRAFT - 5/13/03

SINGER LEWAK GREENBAUM & GOLDSTEIN LLP

Los Angeles, California
May 22, 2003

ACCORDING TO KNOWLEDGEABLE SOURCES:

  1. For the month of December 2003: Only about 300 new affiliates enrolled at Travelogia. A far cry from the 1,000 plus they shoot for.

  2. During the month of December 2003, over 300 Travelogia affiliates QUIT Travelogia and joined PRT Travel.

  3. During the month of December, there were numerous additional affiliate cancellations and terminations.

  4. Travelogia's monthly operating overhead is well over $300,000 with payroll, operating costs, advance affiliate payments against future commissions, etc.

  5. Travelogia is operating in the red and if Greg Neely does not continue to fund it monthly, there are no cash reserves to bail out the company.

  6. Greg Neely has gone way beyond his original "investment intentions" and now is taking more stock back from Adam Gilmer and having it re-issued in his interest.

  7. Travelogia has at least one law suit against it that recently went to arbitration.

  8. Travelogia has/had threats of another lawsuit for "breach of contract" that potentially could bankrupt the company (for over $1,000,000).

  9. Travelogia held its "Launch Event" at the Flamingo Hotel in Las Vegas, Nevada back in October, 2003 and has a past due bill of over $100,000 with them.