Inca Designs Inc. (OTCPK:IDGI) designs, sources and sells high fashion designer swimwear, resort wear and accessories for the wholesale and retail markets under the brand names Inca, Incagirl, Incabag and Inca Junior. This New York-based swimwear and resort wear designer markets its apparel through nearly 100 upscale department and specialty stores, including Barneys New York, Bergdorf Goodman, Saks Fifth Avenue and Neiman Marcus. Inca
	branded apparel is sold in South America, Europe, Asia, the Middle East and the Caribbean.
	The Inca brand was launched by fashion designer Stephanie Hirsch in 1996. During a trip to Peru and while traveling the Inca trails, Ms Hirsch was inspired by the beauty of her surroundings to create a line of handbags that incorporated bright colors, intricate detailing and exotic textiles. The handbag line enjoyed immediate success and gained strong visibility when Hollywood celebrities such as Jennifer Aniston, Halle Berry and Salma Hayek became early customers. Ms Hirsch expanded her business by adding luxury swimwear and resort wear inspired with exotic influences of Morocco, Mexico, Asia and Bali. Today, Inca Designs competes successfully with high-end designer brands such as Masson and Dolce & Gabbana and fashionable ready-to-wear lines such as Theory and Diane. Inca apparel has been featured in the world's leading fashion magazines, including Vogue, Harper's Bazaar, Glamour, Allure, Lucky, Marie Claire, Cosmopolitan and Oprah, and in the Sports Illustrated swimsuit edition.
	Inca Designs markets its apparel lines through approximately 50 major US retailers and 20-30 international retailers. In addition, the Company recently opened a flagship store on New York's Upper East Side and will soon add a second retail store in Miami's trendy South Beach area. The Company plans to establish a network of between four and ten retail stores by 2010. Inca has also expanded its apparel lines to include children's and teen's fashions and has also launched a line of home accessories. The Company has already booked approximately $500,000 in sales in early 2008 and we anticipate Inca will reach the $3 million milestone in annualized sales over the next 12 to 18 months.
	Swimwear is a $13 billion worldwide market
	The Company is a wholesaler and retailer of high-end swimsuits and resort wear which appeals to fashion-conscious consumers. Its swimsuits typically retail for $150 to $300. According to New York research firm NDP Group, sales of two-piece swimsuits grew 20.5% in 2006, following 18.8% growth in the previous year. A $12.9 billion market in 2006, fashion swimwear is forecast to grow to a
	$13.5 billion market over the next few years. Women's swimwear represents approximately 70% of the total market. Children's swimwear is expected to account for approximately 14% of the market by 2012.
	Flagship stores & new product lines accelerate revenue growth
	In October 2007, Inca Designs launched its new line of "Inca Junior" children's apparel for boys consisting of lightweight shirts, tunics, shorts, and lounge pants. Inca Girl is a collection for girls ages 3 to 11. The Company also introduced a new line of home accessories which includes luxury silk pillows, embroidered towels, table cloths and other items. In the future, Inca may introduce its own jewelry, footwear, intimate apparel, fashion accessories and furniture lines.
	n addition, Inca recently opened a flagship store on New York's Upper East Side. A second store, located in Miami's South Beach area in the exclusive Gansevoort Hotel, will be opened soon. Inca plans to open two more stores in key resort locations this year as well as in Atlanta, Las Angeles, Dubai, Macau, London, St. Tropez, Hawaii and Mexico. It expects to open between 4 and 10 new retail stores by 2010.
	In addition to increasing its brand visibility through Inca-branded retail outlets, the Company enhances its profit potential since apparel sold in Inca stores will command a higher margin. Inca generates gross margins of around 70% on swimsuits sold through third-party retailers.
	Differentiated apparel at affordable prices
	The Company branded, high quality apparel retails at prices below other designer brands and competitive with contemporary high-fashion brands such as Theory, Diane and others. Because its prices are affordable, Inca apparel appeals to a broad cross-section of consumers. This in turn helps drive significant sales volume and solidifies brand loyalty across an economically and demographically diverse customer base.
	Strong Media Coverage
	Advertisements in leading fashion magazines can cost hundreds of thousands of dollars per ad. Inca has been able to achieve the same level of visibility without spending a dime. The Company's apparel has been featured in multi-page stories in Glamour, Cosmopolitan, Lucky, Elle, Town and Country, Travel & Leisure the Sports Illustrated Swimsuit issue and numerous other national and international publications. Hollywood celebrities such as Kelly Ripa, Kate Hudson, Carmen Electra, Jennifer Aniston, Selma Hayek, Kathy Hilton, Hillary Swank and Vanessa Hudgens have been photographed wearing Inca apparel. In addition, the Company's fashions have received TV exposure on MTV's House of Style, E! Fashion File, Good Morning, America and the Oprah Winfrey Show.