Kewl International Issues Shareholder Update

Kewl International , today released the attached update letter to shareholders:

September 13, 2004

To Our Shareholders:

In November, it will be a year since Kewl International began to explore the best avenues available to launch the exciting Kewl brand name in the U.S. and internationally. Since then we've gotten very positive receptions while carefully exploring a variety of possibilities regarding where we want to go with the brand and how we can best optimize shareholder value. Some ten months later, we believe we have reached a juncture where our efforts are being crystallized into decisions and actions which will pave the way for the success all shareholders are anticipating can be achieved.

* In terms of distribution/ manufacturing in the U.S., we have reported discussions with various groups that we felt were best qualified to handle the manufacturing and/or distribution in the vast American market on a regional or national basis. These discussions have been greatly narrowed down and are now in the end stages as we finalize decisions on expanding the brand, while balancing the interests of our shareholders and the firms with whom we expect to conclude agreements.

* Early on, we felt that the opportunity existed for us to diversify away from the original hockey based apparel concept while, of course, also building a hockey based brand. To that extent, we have thoroughly explored and have had a very enthusiastic response on deals in other lucrative sporting categories, for example, extreme sports and soccer. In addition, we have recently announced two 'non-apparel' agreements -- Kool Tel Collector Series prepaid telephone cards and a bottled water initiative -- which will utilize co-branding to promote the product. We see these as successful revenue generating adjuncts to our core apparel focus and will soon be announcing others with similar or even greater potential.

* Going back to mid-April, we announced plans to expand into Europe with Kewl Soccer Apparel. I'm pleased to say that our talks have progressed to the point where our main focus now is on signing endorsement agreements with some of the leading professional soccer players in Europe as well as in the U.S. which will greatly strengthen our hand in advance of finalizing manufacturing/distribution agreements. We expect to be able to announce our initial premier league signings shortly, with more to follow, recognizing the value of high profile endorsements in promoting the KEWL brand as a fresh, new, "hot" clothing line in the casual sports lifestyle market.

* We have also talked about strengthening our management team. Going forward, with our anticipated emphasis on international expansion -- where player negotiations will be on-going -- you can expect to see announcements from us about further additions to our team with this important experience.

In short, while there's much more to be done, much also has been accomplished and the momentum toward success is building. We believe more strongly than ever that your patience will be rewarded as the results of our efforts unfold in the period ahead.

Sincerely,

Domenic Fanelli
Chairman and CEO

About Kewl

Developed by professional players and individuals born and bred on the game, KEWL hockey clothing illustrates a specific style, spirit and character synonymous with its international attraction. The popularity and growth of hockey across North America and around the world, makes KEWL a distinct and refreshing addition to a hockey fan's desire to own more of the game.

The future of KEWL will mean the expansion of its hockey roots into other sports and apparel segments. As this highly successful brand name gains popularity, it lends itself to the crossover into these areas.

KEWL products are sold in over 425 stores across Canada, including the following retail sports chains: National Sports, Sport Chek, River City Sports, Sport Mart, Sport Experts, Play It Again Sports, Jersey City, Cap Connection, Players Bench and Source for Sports. KEWL products and the new Kewl NHLPA collections are also endorsed by some of the biggest names in professional hockey, including Shayne Corson, Darcy Tucker, Ryan Smyth, Travis Green, Bryan Marchment and many more.

About Kewl International

Kewl International is a U.S. non reporting company recently named the sole marketer and distributor of Kewl sports apparel in the U.S. Kewl Corporation and Kewl International have announced that they are in merger discussions. Additional information about Kewl International is now available on its website: www.kewlsports.com.

Forward Looking Statements

The management of the company, who take full responsibility for its content, prepared this press release. Statements in this news release concerning the company's business outlook or future economic performance, anticipated profitability, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties and factors include, but are not limited to, future capital needs, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, and general economic conditions.

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