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Technology Stocks : Dauphin Technology -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (104)	5/3/2000 12:44:00 PM
From: Carolyn	Respond to of 419

From RB - Real Time Quote Chart Free E-Mail Raging DNTK Links < Previous Respond Next > By: olico Reply To: None Wednesday, 3 May 2000 at 11:40 AM EDT Post # of 18183 ANSWERS TO Q'S FROM IR: Ask them a question and look they respond.....how simple. Erik, First I would like to apologize for not getting back to you sooner. In response to your questions of May 1, 2000: 1.Race car sponsorship: A Dauphin Investor group owns the car and is basically promoting the Company at their expense. Dauphin is not the only advertisement on these cars. Dauphin will cover the cost of the handouts distributed i.e., literature promoting our Company and the Orasis hand-held computer. We are very grateful to these investors for promoting Dauphin on their race cars (2) and their truck which transports these cars throughout the U.S. Imagine the publicity and the exposure that we will receive in return. We wish them well and hope to see him on TV in the winner circle and of course with his car. 2.OS shares: The number of shares being registered is approximately 33 million. However, the newly issued shares are approximately 22 million. The difference between these two figures is approximately 11 million shares. These (11M) shares were issued in 1999 and were reflected in our 1999 10K, but were not registered. Therefore the 53M shares per our last 10K plus the 22M newly outstanding shares equals 75 million shares now outstanding but not all issued. The 22 million newly outstanding shares consist of : a. 6 million for future funding with Techrich International (Not issued yet) b. approx. 12 million shares to be used for future conversion of warrant/ options(Not exercised /not issued yet) Please note that upon exercise of these options/warrants the company will benefit with more than $44 million in the conversion process) c. approx. 4. million for the private placement. PLEASE NOTE THAT THESE ARE APPROX. NUMBERS actual numbers are available in the 10K and S-1. The 11 million shares issued previously in 1999 were for and accounted for in the 10K bringing the total of outstanding shares to approx. 53million: a.money raised in 1999 with restricted shares b.replacement of previously tradable shares belonging to certain officers and affiliates of the company who loaned the shares to the company primarily for funding purposes. c.Satisfaction of claims with certain vendors. Insider selling? The answer to this question of insider selling is definitely ?NO?. This particular question about insiders selling is extremely unfair to the people, especially our CEO, who has not sold one single share and whose shares have been registered since 1996. Moreover many of us have given our registered shares to the company throughout 1999, in exchange for unregistered issues. In doing so, we all risked not having our shares ever being registered because of the then difficult situation that faced Dauphin. As a matter of fact our CEO was the first investor that put his money on the line to buy out IBM?s claim during the Chapter 11 period and then took on the challenge to manage the company with salary way below market and many times did not even take payroll. Our CEO also loaned money to the company recently without interest and full of risk, asked other people in his circle of affiliates to do the same, and they did. These people that have helped go back with him seven years (1993) with their original investments during the Alan Young era. (Alan Young was the founder of this company and CEO before the chapter 11) After all this that they have done for this company, their integrity is now being questioned instead of applauded. Sorry that I had to answer this question with such a long explanation but our people have gone through many difficult times and have brought this company into a great position. The question pertaining to the CEO?s registering to sell 1.3m shares is plain ridiculous. These shares are shares that are now being registered for a second time. He did not sell them from 1996 to 1999; why should we think that he will do so now? Besides, AK has shares that he could have sold when the stock was $12.50 and didn?t sell why now at $4.50? Hopefully, by making this statement I am not depriving anyone of the opportunity to sell a small amount in case of need; we are all human and sometimes run into difficult times and should be allowed to exercise our rights appropriately. 3. New Product: The new product is making good progress. We expect to satisfy all of our requirements on time. We performed well in the past while under difficult financial constraints; now with a strong financial position we will do even better. 4. Techrich International does not have the 6million in their possession and will not have any until we first decide to draw funds (only at our discretion). They receive shares after receipt of the money. The 6M shares are being registered only to use in the event we need to draw. 5. Quiet Period: This period lasts until the registration statement becomes effective. This is up to the SEC, depending on how efficient are the documents that have been filed and what questions the SEC may have. It can take days, weeks or even months. During this period business continues in a normal fashion. Certain events however, especially anything which involves shares of anything or material change will effect the registration filing. Regarding announcement or disclosures pertaining to the contract matters, I will follow-up shortly with the answer since I need to get this answer from management. We have heard of certain misunderstandings, wrong interpretations and at times claims which have no basis. We are proud of our progress during the last four months and we will continue to do so while we remain informative to our shareholders; within the legal guidelines and requirements. We cannot be pushed into disclosing new information to certain individuals only, however, we will be glad to clarify certain matters, which are publicly disclosed. In some instances, the information does exists but certain people either do not bother to read it carefully or intentionally twist it. For example the information pertaining to funding is available within the press release. The press release contains text about draw downs and registration information. As you can see from the above, any increase in our equity capital structure was done for the benefit of the company and all of its shareholders. Best Regards, Kathy Hope this clears up some questions here. It certainly shows what a great team we have and clarifies that AK AINT SELLIN ANYTIME SOON!!!!!! GAME ON, Olico