Granite Island Group

We design, assemble, market and sell security products. Our products and services are used throughout the world by military, law enforcement and security personnel in the public and private sectors, as well as governmental agencies, multinational corporations and non-governmental organizations. Our products include a broad range of professional, branded law enforcement and consumer equipment such as covert audio and video intercept, electronic countermeasures, video, photo, and optical systems, radio communication, explosive contraband detection, armored vehicles and clothing, nuclear, biological and chemical masks and protective clothing, voice stress analysis lie detection, and global positioning systems ("GPS"), used for tracking, locating and recovering vehicles and fleet management. Our products are marketed under CCS International, Ltd. ("CCS"), G-Com Technologies, Ltd. and The Counter Spy Shops of Mayfair, London(R) brand names and are sold primarily through a worldwide network of more than 300 sales agents, including four retail stores in the United States and two overseas. Our trained, multilingual and experienced security personnel work closely with clients to create and implement solutions to complex security problems. These services include security planning, advice and management, security systems integration, intellectual property asset protection, due diligence investigations and training programs in counterintelligence, counter surveillance, advanced driving techniques and ballistics. We are a Florida corporation organized under the name Hipstyle.com, Inc. in June 1999. Our principal executive offices are located at 145 Huguenot Street, New Rochelle, New York 10801, telephone (914) 654-8700. Our website is www.spyzone.com. Neither the information nor other statements contained in our website nor the information contained in any other Internet website is a part of this annual report on Form 10-KSB. On April 17, 2002, pursuant to an agreement and plan of merger among us, CCS International, Ltd., a Delaware corporation ("CCS"), and CCS Acquisition Corp., a Delaware corporation ("Acquisition Corp"), Acquisition Corp. was merged into CCS, with the result that CCS became our wholly-owned subsidiary. As a result of the merger: -- We issued an aggregate of 11,900,000 shares of common stock, 3,500,000 shares of series A preferred stock and 1,500,000 shares of series B preferred stock to the former stockholder of CCS, with each share of series A preferred stock and series B preferred stock being convertible into one share of common stock if the Company has either annual net revenue of $10,000,000 or net income of at least $1,000,000 prior to October 25, 2008, each share of series A preferred stock having 15 votes per share, and each share of series B preferred stock having no voting rights except as required by law.