Could we possibly borrow your logo? New Cannon Inc

Could we possibly borrow your logo?

New Cannon, Inc.

U.S. Securities and Exchange Commission

www.sec.gov

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DESCRIPTION OF BUSINESS

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(a) Business Development

New Cannon, Inc. (the "Company" or the "Registrant") was incorporated

under the laws of the State of Nevada on November 7, 1991 as U S Recorp. Shortly after the Company was organized, the Company offered its shares to a limited number of private investors. In connection with this private placement of its shares, on April 1, 1992 the Company issued 81,500 shares of its common stock to a total of 19 investors. Each of these investors paid $1.00 for each share of stock each purchased, and each executed a subscription agreement regarding their investment in the Company. The subscription agreement indicated that the shares issued to these investors where issued in reliance on the exemption from registration under Section 4(2) of the Securities Act of 1933 and that such shareholders agreed that their share could only be resold if an effective registration statement regarding the shares had been filed with the Securities and Exchange Commission and was in effect, or if they complied with the requirements of Rule 144 under the Exchange Act. An additional total of 20,500 shares of the Company's common stock was issued at a total of 14 investors on June 30, 1992 and under exactly the same terms. A combined total of 16,600 shares were issued on November 3, 1993 to three investors under such terms as

the final portion of the Company's private placement.

The Company changed it name to New Cannon, Inc, in February 2001. In February of 2001 the Board of Directors approved a 5 for 1 stock split and authorized the number of shares to be increased to One Hundred Million (100,000,000) shares of common stock with a par value of $0.001 and Ten Million (10,000,000) shares convertible Preferred Stock with a par value of $ 0.001.

On January 15, 2001, the Company agreed to acquire assets consisting of TV pilots, screenplays, completed motion pictures, and film rights from Belfair International Ltd ("Belfair"), a corporation organized under the laws of the Isle of Jersey, and its representative Menahem Golan ("Golan"). Such assets are valued at $2,933,766. The Company also acquired similar assets from Octava Ltd.

("Octava"), a corporation organized under the laws of the Isle of Niue, and its representative Evgeny Afineevsky ("Afineevsky"). Such assets are valued at $440,277. The Company issued a total of 4,500,000 in consideration for the assets acquired from Octava and in consideration of services rendered, and to be rendered, to the Company by Mr. Afineevsky. In addition to the assets purchased, the Company accepted an assignment of International Multiple Rights Distribution Agreements totaling $1,984,900.