Alchemy Creative (ALMY) Reports Naked Short Selling and Actions Taken by Company

  
    
  
  
    
      Alchemy Creative Inc. (Pink Sheets: ALMY), a nationally recognized 
      corporation focusing on children's education through multi-media and 
      inventive educational products, announced today that it has been the 
      victim of naked short selling and the actions it is taking to counter 
      the negative impact of same.
    
    
      We at Alchemy Creative believe we must respond to certain references to 
      the Company in news articles. It is not our desire to sanction this 
      publicity. The news articles related to disclosures about certain 
      shareholders by other shareholders. We wish to make it clear that while 
      the existence of such shareholders may be true, the disclosure was 
      inappropriate and never sanctioned or condoned by the Company. The 
      Company was not aware of the promotional activity and, once we became 
      aware, we immediately took steps including a demand that the disclosure 
      about our shareholders and other information about our Company stop 
      immediately. It deeply offends us that anyone would seek to compromise 
      the privacy to which we believe shareholders are entitled. In short, we 
      believe truth is no defense when it comes to privacy.
    
    
      In response to repeated queries about the status of our company, in 
      particular, the recent decline of our company’s 
      share price, Alchemy Creative Inc. provides this open letter to its 
      shareholders, as well as the investment community at large.
    
    
      As you are probably aware, the share price of Alchemy Creative Inc. 
      stock has declined precipitously during the last couple of weeks of 
      trading to its current levels. I would like to extend my sincerest 
      apologies for any inconveniences this has caused to any of our 
      supportive shareholders. The overall current market is very volatile and 
      unfortunately Alchemy Creative Inc. has not been immune to this 
      volatility. We are currently reviewing internal shareholder documents to 
      discern if any inappropriate trading activity may have contributed to 
      this decline. Naked short selling is a well known problem on the 
      pinksheets and we would put to use all of our available resources to 
      combat any naked short selling of our stock.
    
    
      Please see yesterday’s Press Release for 
      BUYINS.NET: Alchemy Creative, Inc. (ALMY) SqueezeTrigger Price is $1.91. 
      Approximately 2.8 Million Shares Shorted Since December 2007 According 
      to Buyins.net Research Report at http://new.quote.com/news/story.action?id=MTO065u5491.
    
    
      Also, the company is filing a complaint with the Securities & Exchange 
      Commission reporting the naked short selling of the company’s 
      stock.
    
    
      From the beginning, the central philosophy of our company has been to 
      produce products of the highest quality, be as forthcoming as possible 
      to ensure the investment of our shareholders, and to leverage the 
      invaluable relationships the company has been privileged to enjoy over 
      the years with companies such as ExxonMobil, Time Warner, The Meadows 
      Foundation etc.
    
    
      Notwithstanding the overall market conditions and, more specifically, 
      the current price of our stock, that the company is in very good health 
      and continues to move forward on its initiatives highlighted by the 
      following:
    
    
      The company has not released any financial information and/or 
      projections, however management of Alchemy Creative Inc. is very aware 
      of the inherent benefits of corporate transparency in this day and age, 
      and as such will continue to explore and evaluate considerations 
      relating to the company seeking a more senior listing which 
      would require the company to become a reporting issuer to the SEC 
      (Securities and Exchange Commission), and as a consequence would further 
      require the company to release its financial information to the 
      marketplace.
    
    
      We will continue to communicate with you any updates on the current 
      business, as well as any new developing opportunities. We are very 
      serious about increasing the value of your company, and opening the 
      communication lines to our shareholders is vital to our overall success.
    
    
      We want thank you for your patience, and look forward to delivering very 
      positive news to you in the coming weeks and months.
    
    
      Disclaimer:
    
    
      CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
    
    
      This press release contains "forward-looking statements," which are 
      statements related to future, not past, events. In this context, the 
      forward-looking statements often include statements regarding our goals, 
      plans, projections and guidance regarding our financial position, 
      results of operations, market position, pending and potential future 
      acquisitions and business strategy, and often contain words such as 
      "expects," "anticipates," "intends," "plans," "believes," "seeks" or 
      "will." Any such forward-looking statements are not assurances of future 
      performance and involve risks and uncertainties that may cause results 
      to differ materially from those set forth in the statements. These risks 
      and uncertainties include, among other things, (a) general economic and 
      business conditions, (b) the level of strategic partner incentives, (c) 
      the future regulatory environment, (d) our cost of financing, (e) our 
      ability to complete acquisitions and dispositions and the risks 
      associated therewith, and (f) our ability to retain key personnel. These 
      factors, as well as additional factors, could affect our forward-looking 
      statements. We urge you to carefully consider this information. We 
      undertake no duty to update our forward-looking statements, including 
      our earnings outlook.