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Microcap & Penny Stocks : Microphonics(MRPS) Facts and Figures ONLY

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To: Jon Scott who wrote ()4/25/1999 10:57:00 PM
From: Jon Scott   of 53
 
Patent troubles?
To: re: MAX (2885 )
From: Sprintcar Monday, Mar 8 1999 8:41PM ET
Reply # of 6311

Some info from the Bull Thread

By: JackOfHearts
Reply To: None
Monday, 8 Mar 1999 at 8:33 PM EST
Post # of 1234

CTRL response

ME: Hi I see that you are selling an Ultraphonic detector. are you a
reseller/distributor for Microphonics (OTC BB: MRPS) or does CTRL design
and manufacture these products? also what is your relationship with
Microphonics, if any? thank you

CTRL: Dear Sirs,

In response to your inquiry the facts are as follows:

CTRL Systems, Inc. is a private company which manufactures and distributes
worldwide several products for non-destructive predictive diagnostics. One
of our products is the ULTRAPHONIC TM 101. We purchased the exclusive
rights of design, manufacture and the trademark from the original company,
Ultraphonics USA. These are uncontested rights from the original developer
and owners. CTRL Systems, Inc. has no business relationship or ties to
Microphonics, TN. We question under what rights Microphonics, TN produces a
similar product with the same name.

You should be aware that CTRL Systems, Inc has filed for a cancellation
order to the TTAB concerning the ULTRAPHONIC trademark. The common law
rights go back to the first use in 1982 by the original developer, these
rights were purchased by CTRL Systems, Inc.

CTRL Systems, Inc. will take all steps necessary to protect its property and
trademark rights.

Robert H Roche,
President
CTRL Systems, Inc.
www.ctrlsys.com



To: D. RUTTER (2976 )
From: Joe-MA Tuesday, Mar 9 1999 10:51AM ET
Reply # of 6311

****Important** MRPS response to CTRL***

I talked with Jimmy Gayle this am- 9:40 or so about the CTRL email to a number of us last night as well as the conversation I had with Bob Roche of CTRL and also asked the questions posed here while I was on the phone.

Mr. Gayle says he purchased all rights to Ultraphonics product from the original company not CTRL. Originally Ultraphonics of N.A. (precursor to MRPS) were buying boards from the original company UltraphonicsUSA but that arrangement did not work out - so ULTRA N.A. bought everything from them and proceeded to further design and modify and devlop the product themselves.(in 1990 i believe)

CTRL - five years later - actually bought 15 units from Gayle and were going to sell them. Mr. Roche apparently got intersted in the product and Ultra N.A. and offered to buy them out. Gayle set a price and they met face to face to negotiate. NOTHING came of this. CTRL did not come up with asking price and Mr. Gayle walked away from the deal.
(Funny side note: Jimmy mentioned that in the negotiation for the sale of the company Mr. Roche asked for air fare back from TN)
Mr. Gayle says Mr. Roche purportedly went back to UltraUSA to buy the rights from them, but THEY WERE ALREADY SOLD to the precursor to MRPS - Mr. Gayle.

The units for sale by CTRL on their web site, Mr. Gayle believes, are the original 15 units bought from MRPS in 1995!! Mr. Gayle through their attorney asked and I think secured a ban on CTRL from using the Ultraphonics label on any of their advertising. Again, the units listed on CTRL's web site are according to Mr. Gayle the units MRPS sold them.

According to Mr. Gayle, CTRL has tried in the past to get MRPS trademark on Ultraphonics reversed - UNSUCCESSFULLY.

Mr. gayle said that their patent attorney - Watley and Paterson (spelling?) is looking into the matter regarding CTRL - Mr. Gayle is reluctant to spend the necessary money - beyond the 10,000 already spent in restraining CTRL re trademark, but will reconsider in light of Mr. Roche's email.

Other questions: re. the sale of shares of Rozzi and the IB 1.4mill.

Mr. Rozzi was originally hired by MRPS before the IB to raise cash and bring the company public. He was given the 270,000(number?) shares for his efforts. He apparently did not perform. They tried to get shares back or stop the sale. Mr. Gayle thought that was successful but if not, the attorney will lokk into it

The IB was a bank run by a Mr. Russo of Staten Island - who came in after Rozzi - who claimed they would straiten out the fallout from Rozzi. We know about the arbitration/legal action going on there. Mr. Gayles says they are #21 on the docket at NASD for a hearing and he is optimistic of getting redress from both Mr. Rozzi and Russo.

I agreed to email Mr. Gayle the email from Mr. Roche and Mr. Gayle or his attorney Mr. David Clinefekter will email me all the particulars about the IB, the Rozzi thing, and the Roche claims.

MORE GOOD NEWS: MRPS IS NOW IN discussions with 51 potential customers.
Mr. Gayle believes the good press from current larger customers is spreading. He shared this exciting comment. A Goodyear rep at a NASCAR event said publically, (not verbatim but something very like, "We are going to revolutionalize tire manufacturing due to adances made by a little company in Tennessee."

That's most of it folks - I hope I haven't lost the chance to buy more today.(forgive the typos here -and I'll correct anything later - this has taken a long time to write...

Joe -MA


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