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Gold/Mining/Energy : Alternative Fuel Systems ATF:VSE -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (619)	4/1/1998 8:57:00 PM
From: Mark Bartlett	Read Replies (1) \| Respond to of 4605

Denise, << In order to finance this kind of growth, AFS will have to do a large share issue... say, 5 mill shares.>> Why? MB

To: Ally who wrote (619)	4/1/1998 9:56:00 PM
From: bc	Read Replies (1) \| Respond to of 4605

Hello Denise: <Let's say AFS is successful in selling 10,000 Sparrow systems to Mexico next fiscal year. This gives a revenue of $20mill. In order to finance this kind of growth, AFS will have to do a large share issue... say, 5 mill shares. Add this to the 25 mill shares now o/s, and assuming 7.5 x revenue, the market value calculation is $5/shr.> ATF already has $2 million in the bank from this deal and will be paid as they go. There is no need to do an equity placement and dilute shares as you have indicated. Also you have discounted the possibility of four other cities in Mexico which were named in the release. Regards, Bonnie ps. As part of your 'due diligence' have you talked to the company? You might want to ask for Gerry Klopp.

To: Ally who wrote (619)	4/1/1998 10:08:00 PM
From: bc	Read Replies (1) \| Respond to of 4605

Hello again Denise: <As far as the UK marketing deal, I'm not sure that it will turn out to be a piece of cake. From the postings it seems that there is a already a formidable Italian competitor doing the same thing as AFS in Europe.> There's nothing like good old healthy competition. I can hardly imagine that the 'formidable Italian competitor' would capture every inch of the European market. CEEL and AFS have formed a serious partnership to market this technology and distribute it to the U.K. and Europe. They have targeted 10 engines to convert. The first one has already been developed. Regards, Bonnie ps. I'm not a broker.