OPERATIONS

Littlefield Entertainment

Littlefield Entertainment operates charitable bingo halls in Texas, Alabama, and South Carolina. The industry revenue tops $12 billion nationwide and is not largely affected by swings in economic conditions. Littlefield Entertainment operates 31 charitable bingo halls and is the largest public owner of such halls in the United States. Charitable bingo is an arcane, niche market whose dynamics vary widely by regulatory district. In charitable bingo operations Littlefield Entertainment enters into a business relationship with a group of worthy and legitimate charities that in turn operate bingo games within a location owned or leased by Littlefield Entertainment. The charities pay a fee or "rent" for each session of bingo played within a Littlefield hall. The charity is responsible for all aspects of running the bingo game, while Littlefield Entertainment is responsible only for the upkeep, maintenance, and facilitation of the physical location.

Littlefield Hospitality

Littlefield Hospitality mission is to provide a "one-stop" shopping experience for the party planner, corporate event coordinator or charitable social gala chairperson. The party rental/event coordination business is currently segmented into several different businesses consisting of catering, party rental (companies which rent tables, chairs, china, and linens for large gatherings), tent rental, event production, florist, and event or wedding planners. Littlefield Hospitality consolidated some of these companies and has realized merger efficiencies and cross-selling opportunities.

Littlefield Hospitality currently consists of Premiere Tents and Events, Word of Mouth Fine Catering and Tastebuds Catering, all located in Austin, Texas.

PRINCIPLES OF BUSINESS AND MARKETS

The Company currently has four distinct and separate business segments.

1. Littlefield Entertainment The 31 charitable bingo businesses comprise this segment. Of these 27 bingo halls, seventeen (17) are in Texas (Austin, Abilene-2, Amarillo-3, McAllen-3, Lubbock-3, Odessa-2, Midland, San Angelo and San Antonio), three are in Alabama (Montgomery-2 and Mobile) and ten (11) are in South Carolina (Charleston-6, Goose Creek, Walterboro, Conway, and Aiken). The total segment comprised approximately 61% of the Company’s total revenues in 2005.

   The Company anticipates recovering its entire investment (usually $100,000 to $400,000) in a new start up bingo hall within one to two years after the attainment of a stable and predictable operating environment (typically 6-12 months after the initiation of operations with a full contingent of charities).

   In addition to starting up new charitable bingo halls, the Company may acquire other companies that also engage in the management of charitable bingo halls.

   The Company has helped the charities that operate in its bingo locations raise approximately $3.7 million USD in 2007.

2. Littlefield Hospitality was established in November 2000 with the purchase of Austin Tents and Events. Other companies that comprise this division are: Premiere Tents and Events (originally Premiere Party Rental but merged with Austin Tents and Events), Word of Mouth Catering and Tastebuds Catering. Premiere Party Rental and Word of Mouth Catering were purchased in 2001. Tastebuds Catering is a new division that was created in 2002. Revenues in 2005 comprised 38% of annual revenues. This division has been especially hard hit by the national economic distress.