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Non-Tech : Palweb Corp (PAEB)

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To: don denson who wrote (1393)	1/17/1999 12:20:00 PM
From: michael john	Read Replies (2) of 2512

ok i try to give all of you the complete picture again. i have no time to get my spelling corrected so please overlook this. the user of pallets wooden pallets are very unhappy in general wood pallets have several problems like splinters loos nails hygenic problems and they give a lot of problems with the desposel of usless pallets 90% of all wood pallets user wood switch to plastic emidiatly. today there are aproxematly over 2 billion wooden pallets in operation in the us alone and every year ca. 600 million are produced to replace broken pallets and to fill edetional needs. out of this 2 billions ca 60% are standard 40 by 48 us 4 way block pallets. to change to plastic has several requiraments and problems. but firstb of all lets remember that the enicial usre of pallets are the manufacturer of products and the pallets they recive are mostly out of there controll this users not like to own this pallets they like to rent them today Chep is one of the biges pallet poolers and leasers in the US. the usre of pallets today pays ca. $4 to $8 per trip a trip is manufacturer to distributer and back. we offer this trip for $ 3.75 wood pallets last ca. 4 trips befor prepare is needed and can last ca 20 tripps after several prepares. the cost of a 4way block pallet is ca. $24 and a prepare of the pallet cost ca. $5 material and labor. ofer the 20 trips livetime the pallet has cost ca. $44 so now lets talk about the plastic pallets. several companys trying to manufacture plastic pallets but today there is not one plastic pallet on the market which will work. i need to get more specific to make sure that you can understand this. First of all there are 2 typs of making plastic pallets structural foam which is a low presure injektion prosess and high presure injection molding. all pallets made out of structural foam have proven not to work they lock strong and riget but they snap and brak very easely. the only way to go is high prsure injection molding. cost and weight of the plastic pallet is of great importanc. today it is possible to make a plastic pallet which is working but this pallet weighs over 100 pounds and cost more then $60. so the pallet may work but you can never sell or lease it with other words it not works. another very importent fact is that plastic has a very lo friction and goods or empty pallets stuckt on to of eachother slide very easely. that is a big proplem. so now to the palet i have developed. first of all our pallet is made with high presure injection molding it is made out of 2 diferent pastic HDPE and PET and has 8 rubber friction pads in it with the PET understructure of the pallet we solved the problem of deflection if pallets loded with up to 3000 pounds are stored in a rack. with the ruber inserts we have solved the problem of friction on the pallets serfice and the slipping of loded pallets on the forks of a forklift. bei nanufacturing a plastic pallet every one we and our competteters ned the same plastic and we all pay the same price.so nobody can save money on the plastic side. but now coms the real problem of manufacturing pallets. you need molds and injection molding machines. and just to give you another info which is important to get into this buissenes you must be able to manufacture at least 200 000 pallets a month. so now some calculations on set up cost on a 200000 production with conventional molds and machines. to produce a high precure incetion made pallet you need machines which cost ca. pro unit $2 million and you need 2 Molds top part botom part which cost ca $500000. to produce 200000 pallets you need 32 machines and 16 mold sets at a cost of ca. $ 72 million but now another problem you need several years to get the molds and machines build. with our machines and molds which i invented i can build this equipment for a friction of the price please understand that i will not tell you for how much less but trust me for a friction and in less then 6 month and not years. and now the most important part of it the production cost. on plastic i can save nothing like all the others but i can reduce the production cost by nearly 85% and that gives me a pallet which nobody can beat. all ouer costomers are waiting to get our final pallets in ther hands. and i am pushing as hard as i can but over the three years i am on this project i have change the hole process and developed a totaly new way to make injection molds. this new way only works for simple splitmolds and if you need the molds in big numbers. some of the stockholders at the last meeting in dicember have seen all of this technology and i explaind it in detail but i asked them not to give some of the details out all of this is patant pending and some are granted but some of this inventions are still pendant. i can tell you so much today i can produce a workable plastic pallet for ca. 50% less then the competicion and our pallet last ca 60 to 80 trips. we have today customers which will enter emidiatly in lease contracts for our pallets but they like to test the pallets themslf from the competicion was to much prommised and all the pallets failed. the customers are a little disapointed. i can go on and on but belive me and some of you like dallas have seen it i have realy something quite extraordanary here set up. so please i know now some of you have now even more questions. but leve it with this. very soon you will get all the news and all the news is very good news from vimonta too i got the final papers singed and the stock so cabec has now defenetly 20% of vimonta and that was not easy for me you will understand why soon. now you all have somthing to think about. and please again this info is not to hipe the stock so please do not by or sell stock based on this info. all is in your own risk. m.john Cabec/PPP

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