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Non-Tech : E4L, Inc. (NYSE: ETV) -- Ignore unavailable to you. Want to Upgrade?

To: Luce Wildebeest who wrote (996)	3/11/1999 1:56:00 PM
From: out_of_the_loop	Respond to of 1080

For an accurate answer to float questions, I would refer you to Bruce Goodman at 818-461-6400.

To: Luce Wildebeest who wrote (996)	3/11/1999 4:10:00 PM
From: out_of_the_loop	Read Replies (2) \| Respond to of 1080

I will read this more carefully later and possibly add comments but right now all I have time to do is post verbatim this e-mail from Bruce Goodman to me today. ************************* ......about the stock dilution, the short answer is that most of the "fully diluted" shares came from: 1. The Series D preferred shareholders had 18 million preferred shares. Because they have a right to convert into common shares, you have to count those shares as fully diluted shares. Incidentally, the new investment group bought about ½ those shares and made those shareholders sign a lock-up agreement so all those shares can't be dumped onto the street. 2. The investor group paid $20 million to the bank to get rid of the entire bank debt that was killing the Company. In return, the investor group received 13 million preferred shares that can be converted into common shares. Between those 2 transactions, that's more than 31 million shares that aren't outstanding, but could be converted into common shares. There are other shares - for example, ValueVision converted some shares and some of the former management also converted their options. Keep in mind that the term "fully diluted shares" includes every option that could convert into a share, even if the option is below water."