FACT Corporation was incorporated under the laws of the State of Colorado on August 3, 1982. FACT Corporation predominantly operates in the functional food industry through its wholly owned subsidiary, Food and Culinary Technology Group Inc., ("FACT Group") developing, licensing and supplying turnkey functional bake mixes to customers who manufacture, distribute, and market bakery and pasta products to consumers through a variety of conventional and alternative channels including retail, food service and specialty markets. The Company's primary revenue stream is generated by the sale of these functional bake mixes in a wholesale format. The Company has also developed a line of home-use retail baking mixes under its Nutrition First brand for cookies, brownies and other products. During fiscal year 2005, the Company commenced a test market for its home-use line of products via an online internet store at www.eatwellstaywell.net. Due to insufficient funds, the Company was unable to continue with marketing and advertising efforts as proposed, and the site was discontinued prior to the close of fiscal year 2005 pending a review of the business proposal upon receipt of additional funding. The Company is currently reviewing 2007 to 2010 growth initiatives.

As of the date of this filing, the Company has three (3) wholly-owned subsidiaries, Wall Street Investment Corp. ("WSIC"), Wall Street Real Estate Ltd., ("Wall Street"), and FACT Group. WSIC currently has no business operations. The Company had intended to dissolve or divest WSIC during the fiscal year 2006; however, this did not occur and is now planned for completion in fiscal year 2007. Wall Street was incorporated in the Province of Alberta, Canada on July 23, 2002 for the purpose of holding commercial real estate assets. During fiscal year 2005 Wall Street disposed of all of its assets and the Company intends to pursue a divestiture of this inactive subsidiary during fiscal year 2007. FACT Group was incorporated in the State of Nevada on August 14, 2001 for the purpose of acquiring an interest in certain proprietary functional food formulations, and was acquired by the Company on November 7, 2001. FACT Group has a wholly owned subsidiary, FACT Products Inc., which was incorporated in the State of Nevada on November 5, 2001 as FACT Bread Company, Inc. Presently FACT Products, Inc. has the rights to the Aunt Lydia's crèmes ever, due to problems with the product, the Company has discontinued operations and the company has determined that it will spin-off this subsidiary by way of a dividend to the shareholders of the Company whereby each shareholder of the Company will receive one share of FACT Products Inc. for every five shares of the Company with a record date for the spin-off of the shares of January 10, 2007. The Company is presently in the process of preparing the necessary filings with the Securities and Exchange Commission to effect the spin-off.