Message from Trustee for Kiddie Kandids LLC – January 26, 2010

Many customers have inquired about photos they have ordered or purchased from Kiddie Kandids. Please be assured that the Trustee has taken and will continue to take steps to insure the safety and security of those photos whether they are in hard copy form at one of the Kiddie Kandids locations or in electronic format on a Kiddie Kandids Server. The Trustee has obtained an order of the Court appointing a "privacy ombudsman" in this case to represent the interests of customers and their privacy concerns. We expect that the ombudsman shall begin serving in the next few days.

Unfortunately, at the present time it is impossible for the Trustee to affect the delivery of any photos. The Trustee is, however, working with proposed purchasers of the Kiddie Kandids' business assets to negotiate the delivery of your photos by such purchasers. It is uncertain to what extent that may prove successful.

In the meantime, you will probably receive notice of the bankruptcy filing and instructions on filing a "proof of claim" in the Kiddie Kandids bankruptcy case. That form is also attached and downloadable from this website. To the extent there are obligations owed by Kiddie Kandids to you, you have the option of filling out the claim and filing it with the court at the address set forth on the proof of claim form. The Trustee notes that the process for getting paid on a claim filed in a bankruptcy case is usually measured in months and sometimes years. Furthermore it is impossible to predict the amount of money, if any, that may be available to pay on claims.

http://www.kiddiekandids.com/download/POC_with_Instructions.pdf

You may also receive other filings and notices made in the Kiddie Kandids case from time to time, which will inform you of the progress of the bankruptcy case.

Trustee Contact Information:

Duane H. Gillman

Chapter 7 Trustee for Kiddie Kandids LLC

Durham, Jones & Pinegar, P.C.

P.O. Box 4050, Salt Lake City, UT 84110

Tel 801.415.3000

Fax 801.415.3500

Email: kiddiekandids@utahlaw.com