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To: Zeev Hed who wrote (2151)	5/8/1998 10:01:00 AM
From: Omnichrome	Read Replies (1) \| Respond to of 9096

You bring up some valid points. Obviously most of the answers will be in the contracts and JV partnership details. From previous Conference Calls and talks with IR, though, some assumptions can be made. When Guatemala appeared to be the first potential customer it was stated that they would make the initial hardware purchase ($7MM) upfront. If similar provision is made with a Brazilian contract (which can be expected), then the current cash account is not a factor. Secondly, I believe the coverage area is 300 miles as opposed to 300km. Also, this contract is for the Sao Paulo area, not for the whole country. Thirdly, in earlier discussions re: Brazil there was mention of a guaranteed number of customers and a waiting list of over 1MM of same. If these details are accurate and my memory not too askew, then most of your concerns are being addressed. If anyone else has any other info or different recollections, please share. Be careful out there.

To: Zeev Hed who wrote (2151)	5/8/1998 11:30:00 AM
From: Bruce A. Thompson	Read Replies (1) \| Respond to of 9096

Zeev, Welcome to the thread. Your turnips are welcome and appreciated, as always. When I talked to Todd Violet yesterday, I asked the same question about the source of $$ for the "systems" startup costs. This was at the same time we were discussing floorless. He tells me that ADC does the ground portion of the systems and pays those expenses. He also explained that there are already investment bankers lined up for the funding of the planes. As for the $7 mm system cost, Todd says that the figure is overstated since they will be the manf. on the phased array antenna and the aircraft. These are going to be pilotless aircraft, there are many expenses that won't be involved that have to be paid on a piloted plane. Pressurization, seats, control systems, FAA approvals, etc. The aircraft building expenses shouldn't be much more than the costs of building a "homebuilt" aircraft. I am concerned, however, with the $300k "Initial financing" last week when the co. already had $2.1MM in the bank. Why? Happy Investing Bruce