There is also a year-end letter found on the company site that (www.TheKCMgroup.com/ceo_letter.html) summarizes positive key points such as remaining debt-free and profitable; recognition and visibility of KCMH in the financial marketplace; incubation of its next publicly traded companies patented software company GEENIUS and vertical entertainment company Empire Recording
s;
expansions of insurance subsidiary; continued committed development of value for shareholders.

KCMH plans to incubate a minimum of four viable publicly traded entities in 2010 as part of its innovative incubation model targeting a total $100 million of combined market capitalization creating substantial employment opportunities and asset value for shareholders. The company is in current negotiations and development of a diverse slate of potential ventures ranging industries such as alternative energy, motor vehicle manufacturing, mobile and social media. In every venture KCMH negotiates ownership and revenue share opportunities.

2009 Foundation Year leads to Multi-Million Dollar Potential for KCM Group in 2010 

As 2009 draws to a close, I would like to take this opportunity to provide our existing and prospective shareholders with a corporate update on KCM Group’s developments to date and our many ongoing opportunities for continued growth. We have now clearly established an exceptional foundation for accelerated growth, opportunity and expansion in 2010. Here are a few key observations and liquidity opportunities we are presently pursuing for our shareholders:

KCM HOLDINGS CORP. RECEIVES 2009 BEST OF BUSINESS AWARD
We have been honoured to receive the following recognition from the Small Business Commerce Association. Here is part of their press release:

THE ECONOMY

Although the economy slowed in 2009, our internal growth timelines were adjusted accordingly and capital commitments from our institutional partners will take place during the first quarter of 2010. The Company’s originally projected growth rate, although slightly hindered by the economic conditions, still forged ahead at a successful rate. As well, in a concerted effort to conserve our capital, all of our officers have waived portions or all of their compensation this year and the Company remains debt free as we continue to pursue additional opportunities in several exciting sectors. I sincerely believe that successful management teams grow their organizations through commitment, dedication and hard work. And it’s with this mindset that KCM Group’s management team has positioned the Company for tremendous growth and liquidity opportunities in 2010 and beyond.

OUR STOCK

Our daily trading volume continues to grow on a consistent basis and our target for early 2010 is a much higher share price valuation, which will allow us the freedom to raise capital by utilizing restricted stock thereby keeping our promise to not dilute our core holders at depressed levels. Our belief is the stock price will reach the necessary levels to provide a lot of liquidity during the first quarter of 2010. This anticipated increase in our share price and liquidity will allow us to attract favorable financing options from institutional size investors while at the same time cultivate a strong sense of shareholder value moving forward.

GEENIUS

Our exciting venture and pending publicly traded company GEENIUS, is a patented learning retention Web 3.0 model. We have prepared all the necessary documents and financial statements for the company so it can be audited and approved as a publicly traded company. This is a tremendous growth driver for us as KCMH has negotiated 10% ownership in GEENIUS, along with revenue sharing arrangements on several project fronts. The sale of GEENIUS stock will provide greater liquidity for KCMH and its shareholders and we project GEENIUS to be fully operational as a publicly traded company during the first quarter of 2010.

KCM INSURANCE SERVICES

In November 2009, we received approval for an expansion of our already successful insurance division. KCM Insurance Services will now be providing mortgage protection insurance coverage. This improvement should provide a positive boost for KCMH stock in 2010 as we have 2010 gross revenues goals to be between $5 million and $6 million dollars.

EMPIRE RECORDINGS

As recently announced, KCMH has secured ownership and revenue share agreements with Empire Recordings which will immediately boost its shareholder value. Empire Recording has named Kevin Alexander President and CEO. Mr. Alexander brings over 15 years of music experience, working with the biggest acts in the industry such as: The Black Eyed Peas, G-Unit, Dr. Dre, Eryka Badu, Eminem and Linkin Park. His experience in signing artists, structuring record and distribution deals, supervising studio operations, and record promotions poises the company for immediate success. Empire Recordings will be a vertically integrated music and entertainment distribution company positioned as an independent boutique record label delivering content to end users and resellers. Empire will concentrate on 5 major divisions: Urban, Pop, Crossover, Country and Distribution. Empire will be distributed by a major recognized industry label to be announced on the near term horizon.

CONTINUED DEVELOPMENT & COMMITMENT

As the New Year arrives, we will continue to keep our shareholders informed on all our evolving material development fronts. While 2009 had many interesting challenges, we positioned the company to experience significant growth, liquidity options and success in 2010. Our commitment at KCM Group is to continue to develop and enhance revenue streams and company incubations that provide liquidity for our investors. We are actively pursuing several new growth opportunities in emerging industry sectors and recognize the many exciting challenges ahead. We are confident that our numbers should double and quite possibly quadruple in 2010 now that several solid revenue models are in place. We will continue to focus on the insulation and sustainability of our financial infrastructure model that will more fully reflect KCMH’s maturing value to the markets throughout 2010. We believe the market is beginning to recognize that a debt-free company with growing revenues
and
assets like KCMH is projecting, is a company with many evolving and exciting investment attributes worthy of consideration. And as new opportunities begin drawing nearer to fruition early in 2010, I will begin elaborating on their intrinsic nature in far greater detail.  Our immediate future is bright, our ongoing growth endeavors are unlimited and our continued success is assured.

I wish you all a very Happy New Year as KCM Group begins to propel through the next cycles of growth!

Respectfully,

Donald W. Klein
President/CEO