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To: pres/ceo who wrote (300)	7/10/1998 1:04:00 PM
From: MC Niemi	Respond to of 329

If you used the cash flow to buy back shares then in 5 years you could own 100% of the company. MC

To: pres/ceo who wrote (300)	7/10/1998 5:39:00 PM
From: Richaaard	Read Replies (1) \| Respond to of 329

It looks like you'll get criticized whether you do or you don't. I appreciate the fact that you went out and purchased stock in an attempt to increase shareholder value. Many CEO's would have waited this slump out and done nothing. Again, thanks. Now that I've sucked up to you, when can we expect a decision on the warrants? Could we extend them a year? I hate these short reprieves. Also, could you not wait until the last minute this time? Richard

To: pres/ceo who wrote (300)	7/15/1998 2:13:00 PM
From: MC Niemi	Read Replies (1) \| Respond to of 329

Glen: could you explain how you got the figures of a company trading at "less than 5 times cash flow" and less than 1 third of sales"? If you take $2.50 times 4.28 million shares outstanding then the market cap is $10.7 million. Add in the 4.7 million of debt and you have a company worth $15.4 million. Projected sales per your investor relations is $25 million for FY98. Company is trading at .6 times sales not .3 times sales. Are you just using market cap of $10.7 million? That would put it at .4 times sales. On cash flow of less than 5 times? Company is losing money. So lets just assume it is breaking even. Depreciation and amortization run at $700,000 in 1997 which is about .16 per share. This is 15X cash flow. Then what about reinvestment in the business? Not counting acquisitions you spend $624,000 on property and equipment. Where is the cash flow? Are you assuming the company will earn the .30 projected by investor relations? But $2.50 dividend by ($.30 +.16) gets you at 5.5 times cash flow. Is that how you figured it? MC