2012 First Half Review/ Communication

For the first half of 2012 our business continued to grow, jumping another 45% vs the same time last year which was a record year for us. We plan to continue the momentum through the remainder of 2012 as we have some really exciting products and projects in the pipeline. Here are some highlights from the first half of the year:

HIGHLIGHTS

- Marco V Cigars grew to 150 authorized Premium Tobacconists nationwide.

- Marco V Cigars Dom/M. Vito Havana were accepted by Cigar Insider for a vertical line review.

- Marco V had a formal factory visit in February where we finalized the deals to expand our operation.

- Marco V Cigars expanded our team to reinforce our team values.

- Marco V Vintage Cigar Porto had record quarters in Q1 and Q2 of 2012

- Marco V Cigars core brand 60 gauge V. Gigante had record quarters in Q1 and Q2 of 2012

- Marco V Cigars re-launched the V. Gigantes with new secondary labels.

- New blend development is under way for many new great cigars

Even though humidors are crowded and the industry is saturated with great cigars, 150 reputable tobacconists have filled their large gauge cigar void with Marco V’s. This speaks to the value and quality of our cigars.

Marco V specializes in enhancing the cigar experience by pairing our premium handmade products together within our brand. To date we have paired our cigars with Premium Vintage Porto and Premium Fresh Roasted Coffee which have both been successful.  In the pipeline, we have a premium whiskey, rum, and craft beer that all pair with different cigars in our portfolio.

We have a lot of exciting things coming for the remainder of the year that will not only diversify our portfolio but also complement the products that we currently offer. One debut that is coming soon will be the launch of our MV NFUZE (infused) cigars. Under this brand we are marrying the current products in our portfolio. Our first releases under this umbrella will be the Vintage 2007 Porto infused Cigar and the MV Cognac infused cigar.

In late 2012 will be introducing the first large gauge high-end premium brand called the Marco V Vintage X. The first release will be the PRINCIPE and will be available in the Salomone size format. Each release from this brand will be extremely limited and each bundle will be numbered and come with a certificate of authenticity.

In 2011, we launched our first National Branded Cigar Lounge in Downtown St. Paul. Marco V is relocating this lounge in July to a private lounge at a different location in St. Paul. This is exciting because as it is private it will allow regular tastings of our pairings in the lounge which was not possible in the previous location. The new private lounge will be a more intimate setting and play host to an exclusive launch party that will be scheduled for our NFUZE cigars. Keep an eye on the blog for more details on this. In August we will be announcing two more national Marco V Cigar Lounges. More details on these will be released soon.

Marco V Co. values your input -positive or constructive. We have created different platforms for you to stay informed, share, give feedback, and comment on all things Marco V. These platforms include Marco V TV on YouTube, Facebook, and Twitter. Customer reviews will also continue to be vital to our business. This puts proof behind what we are selling, and gives you confidence that you are buying a good product for a good value.

In 2012, we have expanded Marco V TV with a bunch of small clips that capture the essence of the brand. On the channel you will see a tour of the Marco V Cigar Factory, Tobacconist interviews, product reviews, product launches, etc. Marco V TV can be accessed directly from the homepage of www.marcovcigars.com.

Marco V Cigars Co. continues to remain dedicated to empowering the B&M cigar shops around the country. This is the foundation of the cigar industry and where cigars should be purchased. Marco V Cigars Co. strategy over the next 3 years will be to continue to align with B&M retailers around the country that are in line with our core values. We will continue to monitor this portfolio to focus on customer service, quality, and listening to what you want.

Casa De La V

As mentioned previously, we believe that cigars should be purchased from bricks and mortar retailers; however, we are not naïve to the fact that we have gaps in our retailer map. So for customers that do not have a bricks and mortar retailers near them that carry Marco V Cigars, we have approved one authorized online retailer to supply them Marco V’s. The online retailer is Casa De La V and they offer the full line of Marco V Cigars.

We have established a solid and stable foundation in our first 3 years of business. It is that solid base that will be the launching pad for this exciting new business. We are confident that you will continue to find value and excitement in our brand and products. We will continue to establish credibility and hope to come to a store near you.

Thank you for your business and continued support