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To: Zeev Hed who wrote (9577)	3/20/1999 12:53:00 PM
From: Larry Brubaker	Respond to of 27311

Zeev, as of September 27, there were 25.5 million shares. As of December 31 there were 25.9 million shares. As of February 5 there were 26.7 million shares. I would assume the 1.2 million additional shares since September came from a combination of exercise of stock options by insiders or ex-insiders, exercise of warrants by Castle Creek and Gemini, and conversion of some preferred shares to common.

To: Zeev Hed who wrote (9577)	3/20/1999 1:50:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

Zeev and Larry, You are laboring under the illusion that the convertible preferred shares are not included in the common share count. Actually convertible shares that are in the money, must be included in the common share count, as well as in-the-money warrants and options. Here is a recent statement from another company (I own some of their stock), who recently called some convertible bonds: NIWOT, Colo., Feb. 19 /PRNewswire/ -- The Dii Group, Inc. (Nasdaq: DIIG - news), a leading value-added electronics design and manufacturing service provider, today announced that $86.2 million of 6% convertible subordinated notes due October 15, 2002, were converted to 4.6 million shares of common stock. ... Thomas J. Smach, chief financial officer, said, ''With this conversion, our debt-to-total-capital ratio drops to about 50 percent. Given the strong cash generation of our businesses, that leaves significant access to the public and private capital markets.'' Smach added, ''Some investors mistakenly think that the conversion will dilute our earnings per share. That's not the case since the effect of the conversion has always been included in the calculation.'' biz.yahoo.com You've got a couple of other things seriously wrong. I will address in the next post. Paul

To: Zeev Hed who wrote (9577)	3/20/1999 2:02:00 PM
From: kolo55	Read Replies (1) \| Respond to of 27311

Castle Creek had NOT converted any preferred shares. And has NOT exercised any warrants as of the recent filing date. This is clearly stated on page 14 of the recent filing: ADDITIONAL INFORMATION REGARDING THE SHARES BEING OFFERED BY CC INVESTMENTS CC Investments owns 7,500 shares of our Series A Preferred Stock and 7,500 shares of our Series B Preferred Stock, plus warrants to purchase up to 895,522 shares of our common stock at a price of $6.78 per share. ... LIMITATIONS ON CONVERSION AND EXERCISE. Pursuant to the terms of our preferred stock and warrants, CC Investments cannot convert or exercise any portion of our preferred stock or exercise our warrants if such conversion or exercise would increase CC Investments' beneficial ownership of our common stock to be in excess of 4.9% of our outstanding common stock. Absent such limitations, the number of shares of our common stock issuable upon conversion of the preferred stock and exercise of the warrants held by CC Investments, as of February 10, 1999, would have been 3,434,608 shares, which would constitute approximately 11.4% of the outstanding shares of our common stock. These are the same counts as the original preferred shares and warrants issued. They haven't converted any of the preferred at the time of the filing. Paul