Important link for DCHT shareholders,
dch-technology.com
A MESSAGE FROM THE CHAIRMAN
Dear Shareholders:
The purpose of this letter is to respond to the concerns and questions we have received from
many of you over the last several months in regards to the internet gossip & attacks, corporate
updates, the stock support and the filing of the Securities & Exchange Commission Form 10SB.
As a small technology based company, DCH invests a large extent of its resources in order to
commercialize the patents we license and the results of the cooperative development programs
in which we participate. This approach to building a product portfolio and a unique business
position requires us to seek innovative (economical) paths to fast track manufacturing. Our
ability to perform applications engineering, those tasks necessary to make our technology fit a
particular customer's requirement, is one of the corporate strengths which makes DCH highly
competitive. There is an existing, if very mature, installed base of sensor-based equipment in
dozens of industries which we propose to replace or supercede in the gas safety arena. This
existing set of solutions represent the proprietary interests of competitors. Many of these
companies will surrender their marketshare rather than be forced to make large investments in
research & development of new products and take a risk of market acceptance. We do see some
consolidation of firms as stopgap approaches to this challenge.
The fuel cell represents a synergistic, promising outgrowth of our hydrogen work. DCH was
fortunate to have made an agreement with Los Alamos National Lab in this pursuit. We have a
philosophy of getting a low power product to market quickly and establishing a position in the
smaller applications such as battery chargers. Even Ballard commented at the 10th Annual
National Hydrogen Association Meeting about the advanced status of the DCH fuel cell.
DCH, upon releasing its Form 10SB will notify and clarify to all of our existing and potential
competitors exactly our strengths and weaknesses. The publication of the SEC Form 10SB will
be detrimental to our strategic marketing efforts because the resources which we might apply to
any single competition may be gauged and countered. It is this heavy competitive penalty which
we must pay in order to evolve off the OTC: Bulletin Board, increase shareholder confidence
and garner a broader and fiscally stronger class of investors. DCH has worked closely with its
SEC compliance auditors to ensure that all aspects of this Form 10SB comply with the
regulations and the document is in final review. We are spending significant resources in the
regulatory compliance area in order to reach our goal to become an acceptable stock on a larger
exchange.
DCH has been the topic of internet gossip for a long time. We have specifically not commented
on the content of gossip because it would not be constructive. I understand that there are many
well-intentioned DCH "believers" on these "threads", but the company will maintain its strict
policy of not participating in any way. The internet is an anonymous forum that also,
unfortunately, permits attacks without accountability and therefore is a tool for those whose
fiscal and competitive goals are accomplished by slander, libel and spin. After the SEC
approves our Form 10SB submittal, DCH as a publicly reporting company will attempt to
maintain a higher degree of cognizance to rumors in accordance with SEC guidelines. DCH will
not be baited into debates with those whose mission is to hurt our productivity, distract our
supporters and assault our shareholder's morale. We strongly urge our shareholders not to
succumb to the temptation to battle these detractors who are possibly competitors or short sell
artists. And please note that sending DCH these postings will not result in a response.
DCH's approach to the increasing burden of shareholder relations is to maintain and expand our
Website to provide timely information. We also in the past have mailed updates to shareholders
but this practice was costly and has now been curtailed. Shareholders without web access may
request mailings of site updates by mail. To ensure you are on the DCH mailing list simply
e-mail us or send a postcard to DCH in Valencia, California.
We recognize the speculator's thirst for data is impossible to quench and we have to negotiate
the hazards of seeming unresponsive or even unfriendly in order to preserve our proprietary
advantages. Although some might feel we could improve in this area, real investors would rather
our attention was focused on growing the company and shareholder value rather than interrupting
our work. Stock support will grow as a direct function of shareholder value, not as a function of
press releases. Our well-intentioned releases of press announcements over the last few months
seem to have been ineffective; thus our future behavior will be more reserved.
The core message here is that we are releasing onto our Website the data we believe meets the
needs of providing reasonable updates to our shareholders while preserving our strategic
advantages. Calling the company directly to make inquires regarding these updates will not
result in the release of any information that is not already posted. Fairness of information access
requires that DCH maintain a strict policy of not providing telephone interviews.
The folks working at DCH are a dedicated group who are committed to the success of the
company. Most take a portion of their compensation in stock so they feel strongly about the
valuation of the company. While none of the employees may comment on the stock price they are
indisputably focused on building shareholder value. Most DCH employees are very
accomplished professionals who work here because they believe in the company's approach and
philosophy. At our annual meeting in California and at conferences around the nation key DCH
people are available to speak with and at this year's annual corporate meeting many shareholders
took facility tours and met some of the engineers and production personnel. It is important for the
shareholders to recognize the on-going contribution made by our people to the success of DCH.
1999 is an exciting year for DCH. We are expanding our facilities and market access. We have
made aggressive investments in technology and intellectual property that make us unique in the
marketplace. Our teaming approach to address key applications has begun to bear fruit. I hope
that all of our shareholders will continue their support and interest in the DCH future.
Please remember: Hydrogen Is the Future - We Can Sense It!
Sincerely,
David Haberman
Chairman |
