Veritas

NPDI – AUDITORS ISSUE “GOING CONCERN” QUALIFICATION

Neptune Industries Inc. (OTC/BB: NPDI) on October 16, 2006 filed the Company’s 10-K with the SEC for the fiscal year ended June 30, 2006. The filing included the disclosure of a “Going Concern” warning from the Company’s independent auditors, indicating a bankruptcy filing is possible if management does not secure additional significant financing in the next year to fund anticipated continuing operating losses.

HIGHLIGHTS FROM THE 10-K FILING:

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“LIQUIDITY AND CAPITAL RESOURCES

In order to execute our business plan, we will need to acquire additional capital from debt or equity financing. Our independent certified public accountants have stated in their report, included in this Form 10-KSB, that due to our net loss and negative cash flows from operations, there is a substantial doubt about our ability to continue as a going concern. In the absence of significant revenue and profits, we will be completely dependent on additional debt and equity financing arrangements. There is no assurance that any financing will be sufficient to fund our capital expenditures, working capital and other cash requirements for the fiscal year ending June 30, 2007.

If we are unable to raise needed funds on acceptable terms, we will not be able to execute our business plan, develop or enhance existing services, take advantage of future opportunities or respond to competitive pressures or unanticipated requirements. A material shortage of capital will require us to take drastic steps such as reducing our level of operations, disposing of selected assets or seeking an acquisition partner. If cash is insufficient, we will not be able to continue operations.”

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