Auditing Introduction Letter

October 25, 2007

Apollo Shoes Inc.
100 Shoe Plaza
Shoetown, ME 00001

Dear Mr Lancaster,

We would to thank you for choosing Anderson, Olds and Watershed for the audit of Apollo Shoes Inc. From our conversation last week we understand that your old auditors withdrew from the engagement and we very much look forward to working with you and your team through this 2007 fiscal year-end. At Anderson, Olds, and Watershed we have many years of experience working with manufacturing firms similar to yours and will be able to bring a better level of service to your company.
As you may know, our firm provides a variety of audit and assurance services that would be of use to Apollo Shoes. The primary service we provide is the audit of the year-end financial statements of your company. As we are an independent auditing firm, we will provide an unbiased review of the financial statements including substantive testing for line items that make up the Balance Sheet, Income Statement, other accompanying schedules and footnote disclosures. We will be able to certify whether or not, in our opinion, the financial statements are not materially misstated. As Apollo Shoes is a publicly listed company, The Sarbanes-Oxley Act of 2002 requires that we make sure that Apollo Shoes establishes and maintains adequate internal control structure and procedures for financial reporting, as well as assessment of effectiveness of internal control. This will provide shareholders and investors in Apollo Shoes a fair presentation of the risk of investing with your company.
We would like to thank you again for choosing Anderson, Olds and Watershed as your auditors for the financial statement audit. As mentioned previously, with our experience in the industry we will be able to provide you with a high level of service in the financial statement audit and review,