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To: Dale Baker who wrote (256)	11/16/1997 9:39:00 PM
From: Raymond Hill	Read Replies (1) \| Respond to of 118717

bout 1/3 of the company's revenue growth has come from acquisitions, while the rest is new business won by existing opportunities.

To: Dale Baker who wrote (256)	11/16/1997 10:01:00 PM
From: Raymond Hill	Respond to of 118717

I need to break this reply into two messages: PCTH company description - A consolidator of companies with compatible products and services and an integrator of technologies that provide significant opportunities in related growth markets. The Electronics group develops, manufactures and sells a broad range of precision component and electronic assemblies and explosively bonded materials designed to operate in harsh environments such as the ocean, space and the human body. The aerospace group provides machined, cast aluminum and metal parts and component assemblies to commercial and military aircraft, heavy trucking and automotive uses. The company also announced recently it's intention to form an information technology group and the company is currently conducting due diligence with respect to that group. Markets served by PCTH include the aerospace, space, defense, medical, energy, transportation, telecommunication and general electronics industries. The key to PCTH growth has been cheaply acquiring area companies, most of them unprofitable, and then integrating them into a focused and efficient whole. The company's timing has been perfect, allowing them to buy companies compromised by the early 90's aerospace downturn and then harness the aerospace upsurge and turn them profitable. About 1/3 of the company's revenue growth has come fron acquisitions, while the rest is new business won by existing opportunities. Boeing is a major customer and accounts for approximately 25% of revenues. Boeing is in the midst of it's greatest growth in it's history and plane production is rising as follows: 1 year ago 18 planes per month currently 30 planes per month 2nd qtr, 1998 43 planes per month projected

To: Dale Baker who wrote (256)	11/16/1997 10:29:00 PM
From: Raymond Hill	Respond to of 118717

PCTH response - part 2 A Piper Jaffray northwest stock analyst visited the company in September and commented as follows: Robert E Toomey said "he is impressed with the market strength of PCTH's patented technology and it's strategy to create more value-added products and applications by vertically integrating operations. My sense is that they are going places. I think the company is going to grow. They've been building a good foundation. The CEO is a very impressive individual and an entrepreneur in the true sense. He has been able to attract key people to fill managerial positions and has been successful in acquiring and improving low-margin firms. Some of the company's critical technologies, particularly those involving it's ceramic business and it's ability to bond dissimilar metals using explosives are without equal in the aerospace industry. An aerospace subsidiary is booked solid with aerospace orders through 2002. In business, as in life, luck plays an important role. They hit the aerospace cycle at just the right time." It looks like Piper Jaffray may become an analyst recommending the stock. The company announced on October 10, that three analysts have initiated coverage of PCTH - Dominick & Dominic (New York) "Buy" rating, Ragen MacKenzie (Seattle) "Accumulate" rating, David A Noyes (Chicago) 'Strong Buy" rating. My own reason for owning the stock has to do with the company backlog - last reported as over $52M, the strong growth pattern in sales and earnings, and the demonstrated capabilities of management in what they have done with this young company. One analyst is looking for at least $10 in 12 months and over $20 in the longer-term. There probably are many companies that will do better in the future than this one, but the main thing is that I feel comfortable with it and do not lose sleep worrying about it. This has allowed me to allocate an above average percentage of investment dollars to it. This is similar to the way you feel about BNGO. May they both do extremely well.