Chemalite Inc.

CHEMALITE, INC. Financial Report Period of January, 2003 1 to June 30, 2003 Financial subject field of Chemalite, Inc. for sextet months period ended June 30, 2003 is to include cash transaction, income statement and rest sheet. This report will also to include comment on Chemalite, Incs actual vent for the period. In early 2003, Chemalite, Inc. was established by Bennett horse parsley to market his invention, Chemalite,. During the first six months, Chemalite, Inc. was preparing for initial production and was still not ready for commercial phase. Chemalite, Inc. as setting up the plant by procuring needed legal entity, place, equipment and inventories. From those preparation activities, Chemalite, Inc. s summary of the cash for six months ended June 30, 2003 is Chemalite, IncCash on June 30, 2003 $ 230,000 By analyzing income statement, balance sheet and cash light statement of Chemalite, Inc for period of first half of 2003, we find that the actual loss of Chemalite, Inc in that period is $7,500. This means that Mr. Larsons comment on Chemalites loss of $145,000 is wrong, he calculated only cash position from January 2003 to June 2003, and he did not calculate other assets like patent, equipment and inventories. His comment is misleading and hind end influence other shareholders. My suggestion for Mr. Alexander is to do damage domination by presenting this report to other shareholders.