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Gold/Mining/Energy : Unitec Int. Controls Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (455)	6/17/1998 10:52:00 AM
From: John B. Smyth	Read Replies (1) \| Respond to of 856

We have just switched over to Maximizer to broadcast our faxes from Tina's computer. We had some problems getting it to go through and had to restart it three times. Unknown to us at the time, the program saves the merged data base, and when we finally figured the solution out we broadcast them all "automagically". I apologize for the unnecessary waste of paper used. I'm not sure how much stock is cued up below $0.45. I find it unbelievable that someone would sell it even at twice that. However, I have received phone calls from several shareholders, and Tina and Howard reported similar comments made to them at the Investor Exhibition that advised a disgruntled party has been calling shareholders spreading misinformation which has caused them concern and perhaps panicked others. I spoke to that party, (who has emphatically denied making those statements), but they persist. All of the phone calls came from shareholders on their data base! I have no idea how much "panic selling" will result, hopefully we have seen most of it (I did notice that Canacord was the big seller). However, on the upside of it, one of those shareholders (from New York) after talking with me has introduced us to some potentially big players interested in helping us in the promotion and ultimate listing to a higher exchange. They have even indicated an interest in purchase order financing to help us tackle some of the bigger RFQs that we have turned down. Howard will stay on top of that. I know of two blocks estimated at 500K shares that will come on the market in the $0.45 - 0.50 range. Both have purchased in the $0.30 range and have interests elsewhere requiring reallocation of their funds but are not in a panic mode and have said they will feed their shares into the market as the price moves up from their target. Beyond that the theory is that (any) stock will hit a wall double the major trading points where investors will take their profits selling half their investment. On that basis we would expect selling plateaus to come again at the $0.60 and $0.90 area. If you look at it in real terms Richard, there has not been a great amount of dollar volume selling. Looking at yesterdays bid/offer, only 70,000 shares were offered up to $0.46 range. No doubt others will come out of the woodwork when the price moves up, but for the most part I don't think it would take a great deal of money to buy the stock up to the one dollar range. Our escrow shares are strictly on an earnout basis. The earnout formula requires $0.99 earnings before they can be traded. All my principal shares are escrowed. I do not see any of these coming to trade for at least a few years, and in my case I wouldn't consider selling them under the $5.00 range. In short, they are long term stock. The option shares are another matter. Several shareholders commented or were puzzled that the recent employee options were set at $0.47 when the trading price was in the $0.20 range. Our staff feels that the options are good at twice the market! There is a message their for those that look between the lines. A small amount of the options are exercisable in the low thirty cent range. None of our employees were interested in selling when it doubled. My guess is that they will be looking at the $3.00 plus range before they exercise them. Howard made an interesting observation the other day. He has been contacting all the shareholders and brokers by phone. He said he expected to hear some angry responses due to the low price, but was pleasantly surprised to find without exception the shareholders were firmly behind the company. Hope this is of interest and help, Richard. Keep your tanks full and enjoy the swim. Regards, John