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To: george eberting who wrote (2793)	6/30/1999 9:08:00 AM
From: Ted M	Respond to of 3576

<<I'm guessing he is waiting to release the results of the financials about the same time he announces receipt of first payment so one softens the blow of the other>> If this is their attitude I have several problems with it. Under this scenario: First and foremost they are misleading investors by repeatedly suggesting in press releases that the audit is near completion if in fact it is completed. It is insulting and makes them look foolish and manipulative. From the May 20, 1997 (yes 1997) press release: 'the Company is in the process of consolidating and preparing it's financial statements for an independent audit with he objective of becoming a fully reporting company'. And, we all know the press release several months ago that indicated it should be completed in 2 weeks. Immenent not! Secondly, what blow? All any investor can reasonably extrapolate from their press releases from the past is that they are growing nicely, are barely profitable, and are still tiny. Their Unaudited 1997 revenue was reported as $1.3 million, with net income of $200,165, with an accumulated defecit of $1.07 million, and cash assets of $50,711, accounts rec. $110,536, Inventories of $27,256 giving current assets of $188,503 and current liabilities of $881,650. Not a good picture. They couldn't raise the $5 million in late 1998 for Voxel either. A loss to me wouldn't be a surprise at all given their borderline profitability, their discontinuation of reporting any results to us, and the likelihood of greater expenses related to the Russia deal. For a company that already has a credibility problem with some in the industry they are only making matters worse if they are choosing to sit on the audit. I'm sorry to be so negative but they owe us disclosure at some point and I'm having quite a difficult time continuing to come up with any reasons for their evasiveness that makes any sense and justifies their treatment of us as though they are or wish they were a private company. Ted