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<p><font color="#666666" face="MS Sans Serif" size="2">COMPANY PROFILE</font></p>
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<p><font color="#666666" face="MS Sans Serif" size="1"><b>4) Core Business of Cavern City Tours</b></font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>i) Tour Company</b><br>
Established in 1983. Regional Tour Operator of the Year 1993, 1994, 1995, 1996,
1997 and 1998.<br>
Cavern City Tours is a specialist incoming tour operator, with particular
expertise in the areas of sport and music. Organisers of the annual Beatles
Festival and the Mathew Street Festival, which is now established as the busiest
time for Liverpool hoteliers, exceeding the business enjoyed during the Grand
National.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>ii) Magical Mystery Tour Bus</b><br>
This tour was established by the tourist office in 1982. Cavern City Tours took
over this tour in 1991 and have since increased the carrying figures by over
400%.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1">Demand in the summer of 1996 was so high that Cavern City
Tours searched the country in order to purchase another bus, identical to the
model used in the Beatles Magical Mystery Tour film - Cavern City Tours has now
bought five of these buses, three of which are still in operation.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>iii) The Cavern Club</b><br>
Obviously the jewel in the crown in the company's portfolio. Re-opened in 1984
after eleven years, the club is a thriving night spot for students, tourists and
locals alike. The Cavern operates on many levels - as a live music venue, as a
disco, as a bar, as a tourist attraction. During the three months prior to the
release of The Beatles Anthology, 75 international film crews took footage of
The Cavern "Where it all began". Cavern City Tours have a current
lease of twenty years and the company also holds trademarks in many
classifications, protecting the name and image of The Cavern Club.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>iv) The Beatles Festival</b><br>
Organised entirely by Cavern City Tours since 1986. The Festival attracts
musicians and Beatle fans from all over the world and is truly an international
event. The concerts attract major international media interest, making the
festival the premier annual event held in the City of Liverpool.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>v) Merchandising</b><br>
The Company has extended both the range and quality of its merchandising over
the last twelve months or so. Mugs, cups, glasses, lighters, pens, bags,
wallets, postcards, posters, maps, jackets, T-shirts, polo shirts, denim shirts,
books, street signs, and just about everything else conceivable, prominently
features the famous Cavern logo. Every year approximately 100,000 postcards and
20,000 maps featuring places to visit for Beatle fans, are sold by Cavern City
Tours. The company envisages that this sector of the company possesses
considerable scope for expansion.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>vi) The Cavern Pub</b><br>
Opened in August 1994, in order to facilitate the needs of the tourists. The pub
has gone from strength to strength in the period and it's final phase of
development was completed with the unveiling of the 'Cavern Wall of Fame' on
January 16th, 1997, the 40th anniversary of the club's opening. The Wall of fame
incorporates the names of every artiste that performed at The Cavern Club from
1957-1973 (1801 artistes). Cavern City Tours holds a 25 year lease on the
property.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1"><b>vii) Liverpool's Mathew Street Music Festival</b><br>
Cavern City Tours were originators and sole organisers of the Festival from
1993-1996. The one day free festival typically attracts 100,000 visitors who are
entertained by 140 bands on 40 stages, all within 500 yards of the Cavern Club.<br>
Every pub, club and restaurant features live music and in 1995 the Council
estimated that the Festival generated an extra £1.75 million spent in the city
centre in one day.</font></p>
<p><font color="#666666" face="MS Sans Serif" size="1">Cavern City Tours looks to the future with great optimism.
With or without funding we will continue to increase and improve the facilities
for Beatles' visitors and market the name of Liverpool to a world-wide audience
hungry to find out more about the birthplace of The Beatles which, for hundreds
of thousands of people, is a -------------------------------<br>
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