To: SmartStockAdvsr.com who wrote (78 ) 8/25/1999 2:27:00 PM From: SmartStockAdvsr.com Read Replies (1) | Respond to of 223
SmartStockAdvisor.com Report: Nashville Trip, August, 1999 Our trip to Nashville at the beginning of this week was undertaken to review the current status of Microphonics' sales campaigns and new technology development. Another purpose of our visit was to seek answers from the company directly to a variety of shareholder questions. It was exciting and overwhelming in a positive way to hear about the number of new prospective customers they are now talking with, and in many cases in contract negotiations. They provided us with a long and complete recap of the current status of all the major deals they and their distributors are working on. They also asked us to remind shareholders that contracts like these do not happen overnight. The major contracts announced in the first few months of this year were the result of hard work and many months (or years in the case of GM and NASCAR) of exhaustive customer testing of Microphonics' products compared to competitors' units. Happily because of past successes and "word of mouth", the next round of contracts has been sped up and should become "signed, sealed, and delivered" in the near future. While the details of these talks and negotiations cannot be made public at this time, over the next several weeks formal press releases will be issued as these contracts are authorized for public dissemination. Even more exciting for the long term success of Microphonics was the briefing and demonstration we received regarding new technological advances being developed now to enhance the sophistication of the Ultraphonic diagnostic devices for applications unheard of just weeks ago. These new initiatives were alluded to in Mr. Gayle and Izikoff"s Letter from Microphonics press release of August 4, 1999. These breakthroughs will expand the uses of their technology and gain their entry to new markets and new customer applications. As we receive permission to publish the details of these advancements and their purchase by customers, we will do so. Regarding competition, we discussed that in great detail. We think all shareholders will be impressed with the technological superiority of Microphonics' units when compared to any and all competition. Further, the size of the ultrasound market that Microphonics is in is so large and lucrative that they often do not even run into competition. Lastly, we again are impressed with the doors that have been opened as a result of Microphonics' connections to NASCAR and ARCA. All these factors bode very well for the future. Concerning the financial situation: Microphonics has made a substantial monetary investment in the hiring of Ernst & Young and the new CFO in order to ensure that its financial house is in order, that it will be fully compliant and reporting to the SEC, and so that it has the initial requirements for listing on NASDAQ. We were fortunate in meeting the new CFO, who is officially starting mid-September, and were impressed both by her credentials and her outline for success. We will give you a full introduction to her in the near future via a press release. Unfortunately, with all the briefings, strategy sessions, and discussions, we were unable to get the time to conduct our planned audio interview of Jimmy Gayle. We will be rescheduling that interview in the near future. While we could provide answers to many of your questions ourselves, based on our discussions, we believe you would prefer to have Mr. Gayle address your concerns directly. Mr. Gayle will be providing his answers to our and your questions which will be posted on their website either as an audio interview or as a written Q&A. In the meantime please use the existing ways for getting answers to your individual questions: the Microphonics website: www.microphonics.com, our email address: smartstockadvisor@yahoo.com, or our phone line: 619-492-8061. Microphonics will be having an Open House at their new headquarters at the Nashville House building in early November. These new offices are more upscale, spacious, and attractive. In a separate press release in September the details and formal invitation to all interested parties will be announced. The agenda will be exciting, informative and fun. Both Microphonics and we believe that once shareholders can see and touch and feel the excitement of their company, they will have a renewed optimism toward the future, just as all individual investors have had after their visits as reported on these threads. In the meantime if any of you simply cannot wait for November, Microphonics always has an open door policy. Regards, SmartStockAdvisor.com 1-619-492-8061 smartstockadvisor@yahoo.com www.smartstockadvisor.com Disclaimer: SmartStockAdvisor. com is a compensated agent of Microphonics, Inc. as of May 18,1999. SSA has been hired to perform press and investor relations for the company and are being compensated as follows: during the first three months of our contract SSA will receive 3K freely trading shares and 2K restricted shares per month; thereafter SSA will receive 5K restricted shares per month, with possible additional restricted shares on a quarterly basis. In addition, the individuals comprising SmartStockAdvisor.com all hold individually owned unrestricted shares of Microphonics, which collectively amounts to less than 1% of outstanding shares. We are not a registered investment advisor and suggest that you consult with an independent registered advisor as well as do your own research before investing in any stock. The opinions and analysis included herein are based on sources believed to be reliable but no warranty, expressed or implied, is made as to their accuracy, completeness or correctness. Readers are advised that this communication is issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities. The reader should verify all claims and do their own due diligence before investing in any securities mentioned. Investing in securities is speculative and carries a high degree of risk, of which may or may not be suitable for everyone.