A New World for Small-cap Companies

Things are starting to look better for small-caps. Money is beginning to flow again. Increasingly, there is more than just rhetoric on Wall Street concerning investing in small­caps.

But also, things have changed. The players are different. Deals are being constructed

through private equity or hedge funds as often as the big IB firms. There is plenty of action

but most of it is happening away from individual investors.

That couldn't have been more evident than at our ValueRich Small-cap Financial Expo

in Palm Beach this last March. There were 124 executive suites on the floor of the Palm Beach County Convention Center; as I made the rounds, I observed one intense conversa­

tion after another.

One of our sponsors told me that he had so many quality leads it was going to be a challenge following up on them in a timely fashion. Another investment bank sponsor is

developing five new clients as a result of our show. I spoke with a number of micro-cap

CEOs who were flabbergasted at the amount of interest their companies were receiving.

I even heard of one South Florida micro-cap president who waited too long to reserve an executive suite on the floor (we sold out) and decided to come to the show as a walk-in

attendee. As he was leaving, he thanked one of my staff profusely for the Expo. He had

made a three-million-dollar funding connection in a matter of hours. I have never felt happier than on the day after the Palm Beach Expo, because I knew

that our event had helped so many companies. It was clear that my idea of an Expo for­

mat far and away outperforms the typical cloistered PowerPoint financial presentation

events. Starting and building ValueRich has been a very risky, intense and challenging pro­

cess. But we are not letting up for one minute. Small-caps need the extra play in today's

fractured market environment. They need to showcase their products and services to the

financial community. That's why I was already prepared to announce at our Palm Beach

event that we would bring the ValueRich Small-cap Financial Expo to the Javits Center in

New York this September, 1 ,SOO miles closer to Wall Street. In New York, I expect results for the exhibiting companies to be even more dramatic.

We have started a new facet oft he Expo called Bankers' Row, where investment banks spe­

cializing in small-caps will be conducting business. To help facilitate this, we are opening

a new Investment Banking section on ValueRichonline.com, where companies can submit their business plans to the investment banks before each Expo. We also expect to draw a

large number of financial professionals because of the close proximity to Wall Street. Early

registration is bearing this out. ValueRich is helping small-cap public companies create bullish action. I hope to see

you in New York. Don't wait too long to sign up.

4 VALU ERI CH MAG AZI NE 2005

Joseph C. Visconti President, ValueRich, Inc.

ValueRich President Joseph Visconti (left) and George W. Bush (John Morgan) agree, small-cap business is looking up at the ValueRich Expo in Palm Beach.

Value Rich contributing editor Liza Grant Smith and editor David Willson make the rounds at the Expo.

www. va I uerichon line .com

Communique

Summer is the Time of Passion

I think business is the finest of human endeavors. That might seem like an odd thing for a writer and art ist to say, but entrepreneurs are

among the most passionately creative people I know. Their businesses inspire and engage

many others with positive contributions- employees, partners, investors and, of course, their customers. Thei r contributions to society are immense.

In this summer issue of ValueRich magazine, we offer the stories of visionary business peo­

ple who have expanded the realm of the possible with their devotion to achieving perfection. You will read of Wally Group's Luca Bassani, who began rethinking and building a whole new

class of sailing yachts capable of racing speeds, but with family-safe deck designs. Now Wally is building power yachts, and they are like nothing ever seen before.

I also think you will enjoy our story about Horacio Pagani, who created the Zonda F super car as a tribute to his friend and mentor, the great Fl champion Juan-Manuel Fangio. His dream was to build a car so superior that its drivers would feel the talent of Fangio flowing through their fingers. Many agree that he succeeded.

Journey with us on Sea Cloud, originally commissioned by E. F. Hutton in the 1930s as the world 's finest sail ing yacht and lovingly resurrected by a group of German businessmen to provide the ultimate cruising experience for exclusive groups of passengers.

And please take the time to discover the nanotech, biotech and other small-cap company articles in our Company Connect section with unique products and patented processes.

Passion is also an element of controversy- something that small-cap leaders are well aware of in these times. We offer some articles with this in mind. "What Small Business Should Know About Big Politics" is an interview with Pat Buchanan. Lately, he's been a controversial figure in the news but, when it comes to politics, he speaks from experience. I guarantee you will find his opin ions about the influence of party politics on government and government's influence on small business very thought-provoking.

Also, "Market Economics and the Challenge for Small-cap Companies;' by 30-year securities industry veteran Roland Savage, explores the conspiratorial history of Wall Street's big players and the SEC's complicity from a small-cap perspective.

Mr. Savage originally presented his article as a speech at the first ValueRich Smal l-cap Financial Expo in Palm Beach in March. The ValueRich business plan revolves around providing

small-cap leaders and their support industry with the means to take market in itiative rather than simply react to conditions. And yes, we are very creative and passionate about it.

I encourage you to subscribe online and be a regularValueRich reader, contact us with your opinions and attend our exciting Expo-style events whenever possible. We offer more than just articles and financial presentations.

David A. Willson Editor, Va/ueRich magazine

www.vrexpo.net

1 lj

il

VALUE RICH !: THINK SMALL-CAP I

Joseph C. Visconti President & CEO joseph@vrexpo.net

David A. Willson Editor-in- chief dw illson@valuerichonline.com

J.C. Spradley Art Director jcs@valuerichonl ine.com

New York Contributing Editor Thomas Werner

Contributing Editors Rita Samols Liza Grant Smith Kayla Willson

Contributors Will Andrews Bill McGuffy Thomas J. Reynolds, Ph.D Lester Rosenkrantz Roland Savage Katherine Waldron

Advertising & Convention Sales Gregg Lowenstein Vice-President of Sales greggl@va luerichonline.com

Ashley Sosner Director of Corporate Development ashley@valuerichonline.com

Dave Roeder Director of Business Development droeder@va luerichonl ine.com

Kim J. Armstrong I•

Adverti sing Executive i, kja@valueri chonl ine.com

Brandyce H. Stephenson Business Development Coord inator brandy@valueri chonline.com

Dara Ryan Account Executive dryan@valuerichonl ine.com

Roxane E. West Director of Global Affairs 1-2 14-244-6400,1-917-544-7009

Copyright 2005 by ValueRich, Inc. All rights reserved.

Reproduction without the permission of the publisher is prohibited. The publisher and editors are not respon-sible for unsolicited material. Return postage must accompany all manuscripts, photographs and draw-ings. Every effort has been made to assure that all infor-mation presented in this issue is accurate, and neit her ValueRich magazine or any of its staff is responsible for omissions or information that has been misrepresented to the magazine.

ValueRich Magazine Issue 5 Summer 2005 (15SN pend-ing) is published quarterly by ValueRich, Inc., 1804 N. Dixie Highway, Suite A, West Palm Beach, FL 33407. Periodica ls postage pending at West Palm Beach, FL and additional mailing offices. POSTMASTER: Send address changes to ValueRich, 1804 N. Dixie Highway, Suite A. West Palm Beach, FL 33407.

561-832-8878, Fax: 561 -841-1524

SUM 2005 VALUERICH MAGAZINE S

ENCHANTING IN THE TRANQUILITY OF ITS SEASIDE SETTING, THE HYATT REGENCY HUNTINGTON BEACH stands sentry over Southern California's romantic Pacific coast. Beneath the gaze of a brilliant sun and the welcome of sea swept breezes, this is a place that both excites the senses and calms the soul.

Every comfort is indulged ... richly appointed guestrooms with hypnotic vistas of tropical landscapes, lagoon pools and the endless horizon of the sea ... the soothing and tranquil Pacific Waters Spa , reminiscent of a romantic turn of the century Spanish estate ... culinary delights from eclectic surf fare to sophisticated California cuisine ... refined social and business gatherings amongst dramatic vaulted ceilings, elegant iron works and lush courtyards.

DARE TO DREAM AT HYATT REGENCY HUNTINGTON BEACH RESORT & SPA.

21500 Pacific Coast Highway • Huntington Beach , CA 92648 • (714) 698-1234 www.huntingtonbeach.hyatt.com

~\ H__......Y-A-T_J --REG EN CY

HUNTINGTON BEACH ® RESOR T A ND SPA

o 2005 Hyatt Corp .

by Joseph Sidorowicz

l.Contents

8 VALUERICH MAGAZI NE 2005

i.Want.l From the Harley-killer Hellcat bike, to the

12 . d ' . h' . ' ultimate organ1zer, on t m1ss t 1s 1ssue s

collection of unique stuff that will have you

saying, "I want one:'

n.Motion Pagani Zonda - Drive As If Possessed By Will Andrews

18 Horacia Pagani created "Una Macchi.na

con Anima;' (a car with a soul) as a tnb­

ute to the great five-time F1 champion Juan­

Manuel Fangio- so anything less than perfec­

tion was unacceptable.

Wally Wonders By Bill "Guppy" McGuffy

Luca Bassani invented a whole new class 26 d h' t ' of sailboat. Then he turne IS atten 1on

to power yachts. The results defy description

- but we've got plenty of pictures.

x.Peditions Sea Cloud Cruising - Heavenly Romance and Legend on the High Seas By Kayla Willson

E F Hutton built the world's la rgest sail-36 . . . . ing yacht as a token of h1s love for h1s

wife. Today, the Sea Cloud offers the world 's

most unique cruising experience.

Sensory Santa Fe Summer The Inn of the Five Graces in Santa Fe, N.

40 Mex. has created a delight for each of the

five senses.

pro.Motion MINI Ha Ha By David Willson

When BMW acquired Rover in 1994, 42 · ·c d ... d they kept the Mm1 ooper IVISion an

unloaded the rest. Now they're laughing all

the way to the bank. But their success is due as

much to the advertising as the car.

n.Politics Interview with Pat Buchanan What Small Business Should Know About Big Politics

Love him or hate him, Pat Buchanan 48 I d . . I I. has been invo ve 1n nat1ona po 1-

tics for longer and in a wider variety of

rolls than just about anyone. Read why Pat

thinks small business should care about

what's happening in D.C.

n.Business Market Economics and the Challenge for Small-Cap Companies By Roland Savage

On Wall Street, what is expedient 54 . dht " becomes practice an w a IS prac-

tice becomes legal. And, the arbiter of

change is an oligopoly backed by a coop­

erative regulator. Is this healthy?

The Next 425 New Names in the S&P 500 By Jordan Kimmel

60 425 ofthecurrentS&P SOOcompanies

were not there 25 years ago. Which

small-caps will make tomorrow's S&P?

What Makes a Good Company Great? By Lester Rosenkrantz

Simply running a solid business 62

operation is not enough to be heard

above the babble of 14,000 other public

companies.

www. valuerichonline .com

~ LONDON

DRY GIN

9k~~n/Ct?!li ~,i<JICnat~M ;{-a/?tf/~

'MIOliiLifWWT\COM )i1 '--"tWIIIfl

PIIOilucr OP ENGI.J.ND

IMPORTED

2.Confents

10 VAlUERICH MAGAZINE 2005

Company>< Connect Once A Mild-Mannered Financial Reporter, EDGAR Online is Now SuperEdgar! By Liza Grant Smith

72 EDGAR Online's I·Metrix software is leading a

new global standard for financial reporting.

A Small World After All By Liza Grant Smith

76 Lumera Corporation is taking the"good things

come in small packages" concept to a new

level as an emerging leader in nanotechnology.

Frozen Assets By Liza Grant Smith

80 CryoPort's low cost, one-way, cryogenic ship-

per could revolutionize the way drugs are

delivered to market and clinical trials.

Mastering the Art of Innovation By Liza Grant Smith

84 Biophan Technologies is making implanted

and interventional medical devices safe and

compatible with magnetic resonance imaging.

AngeiCiti Antes For Huge Online Gambling Pot By Katherine Waldron

88 AngeiCiti is taking an internationally diversi­

fied approach to tapping into the growing multibillion-dollar online gambling phenomenon.

Informatics is Power By Liza Grant Smith

92 Guardian Technologies' artificial intelligence software increases accuracy and reduces costs

in the airline security and health care industries.

Interactive Games' Strategy Is No Gamble By Liza Grant Smith

94 The well-established slot machine developer

is adding lucrative licensing deals and expand­

ing into mobile device gaming applications.

i.Deas Charting a Course to Ethical Decisions By Thomas J. Reynolds, Ph.D.

96 MBA students at Notre Dame University are

enthusiastic about ethics, and they got that

way by teaching it to elementary school children.

w.Street.Expo Expo Wows Attendees and Exhibitors

64 The ValueRich Small-cap

Financial Expo in Palm Beach

proved there 's a better way for

small -cap companies to attract

attention and raise funds. Now

Wall Street is about to see small­

cap American in all its glory. Read

about the multifaceted ValueRich

approach for exciting the next

small-cap bull market.

MarketPlace Where Money & Ideas Connect

1 07i If you missed the Palm Beach

Expo, all the exhibiting com­

panies are listed here under their

financial objectives of raising capi­

tal, mergers and acquisitions, part­

nerships, new business develop­

ment and finding market exposure.

www. valuericho nline .com

Fonseca "The Original"

Our first and most classic cigar! We have been

making this cigar since 199 2 with twice aged

Connecticut Shade wrapper grown in

Connecticut USA. This wrapper is chosen for its beautiful, golden brown

color and mild, rich smoke. We then add an aged, Mexican Sumatra

binder for a little spice and smokey flavor.

Also available in Maduro!

Fonseca Vintae-e

All tobacco in this cigar is aged a minimum of

5 years! We start with a beautiful Ecttador,

Connecticut Seed, Shade Grown wrapper. The

Tercio Aged Dominican filler and binder provide a

rich , creamy flavor that give the cigar

presence without being overpowering. A

medium bodied smoke supported by a floral

aroma of natural tobacco .

Fonseca Serie F

The "F is or fuene . . Spanish for full flavor.

This blend starts with a well aged dark brown, oily

Connecticut wrapper to attract the cigar

connoisseur. The filler is T ercio Aged Ligero

Cuban Seed. The smoke is robust ye t smooth and

very, very tasty. This blend is designed to be savored slowly when

you're in the mood for a full bodied, strong cigar.

Six different cigars. Six different flavors. Six different personalities. One proud name.

Vee-as de Fonseca

This cigar is bold and daring! We use a

Cameroon wrapper for irs unique taste and pair it with a sweet tasting Connecticut

Broadleaf binder. The filler is bold with Nicaraguan Ligero and Dominican

Tercio Aged tobaccos. This cigar startS off mellow

and builds in flavor as the Nicaraguan Ligero hears

up. The smoke is a medium bodied , rich flavor.

Fonseca Sun Grown Cedar

As the name implies, this cigar has a Sun Grown

wrapper that is matched with a Dominican Olor

binder. In the filler we really go wild by

combining Nicaraguan Ligero for strength,

Peruvian tobacco for its floral character and

Dominican Cuban Seed to

round out the blend. The result is a medium to full

bodied cigar with loads of flavor and taste!

Limiud Edition Fonseca Reserva

Especial 2003 This full bodied cigar is

wrapped in the finest Havana Criollo Honduran

leaf and filled with 1996 Dominican and Nicaraguan Ligero. It comes packaged

in an exquisite, mahogany chest, brass plate numbered

with the box personally signed by Master Blender

Manuel Quesada. Get yours before

they are gone!

There's l for you.

!Fonseca ~ami[y

of Cigars

Distributed by SAG Imports, Inc., Miami, FL. • For the Tobacconist nearest you call 1-800-272-5396 • www.MATASA.com

www.palmone.com/us/

www.eterna.ch

Sit AIBO,

House Sit! AIBO, Sony's K-9 robot has been around for a while, but

recently received an upgrade, making it more playful, more lifelike and a potential guard dog.

The old AIBO has learned new tricks, and is more playful

than before. Its new software improves the robot pooch's reaction time for better response to voice commands, as well

as better face tracking and faster, smoother movements so that it can anticipate obstacles at a greater distance or in a

darker environment. A lBO will also play back your favorite WAV, MP3 and WMA

digital music files or CDs from its speakers while it dances to

the beat. AIBO owners can now control, program and navigate the

robot rover from a PC using AIBO Entertainment Player (AEP) wire­

less functions. And A lBO will even remind you of your appoint­ments with Microsoft Outlook compatible AIBO Scheduler.

Digital camera functions also get a boost with the addition of video recording capabilities. The combination of AEP and AIBO

MIND 2 (a software application on 32MB Memory Stick media) offers continuous, time lapsed, motion activated and sound acti­vated modes of recording. In addition, AIBO can send e-mail with

an attached photo, effectively making it a roving security camera, recording activities in the home while its owners are away.

AIBO now comes in pearl black as well as its original pearl white and includes AEP and AIBO MIND 2 software for $1 ,900. www.aibo.com

18 VALUERICH MAGAZINE 2005 www.valuerichonline.com

Pagani Zonda F

www.vrexpo .net SUM 2005 VAlUERICH MAGAZIN E 19

Horacio Pagani has declared that his Zonda supercar has finally reached perfection with its latest iteration, the Zonda F.

The remarkable speed of the new Pagani Zonda F is achieved through the combination of a 7.3-liter, AMG-sourced V12 engine that generates 650 HP and

560 lb.-ft. of torque pushing a car that weighs a mere 2,706 pounds. The Zonda F

is definitely one of the world's fastest cars. But

speed is not what sets the Zonda apart from

the other select few supercars of the world.

Once you've dispensed with the prerequi­

site data, everything else about the Pagani

Zonda is pure art and passion. Ferrari Enzo

fans might be able to claim an equal passion factor. Otherwise, one is hard-pressed to find

anything else that compares.

The Pagani Zonda is called by its maker "Una Macchina con Anima," (a car with a

soul.) Horacio Pagani created the Zonda as

a tribute to five-time F1 champion and fel­

low Argentinean, Juan-Manuel Fangio (1911-1995).

Known by many simply as "Maestro," Fangio is considered the greatest F1 driver of all time. From 1950 to 1958, Fangio's sheer talent dominated F1 racing regardless ofthe

technical qualities of his rides. Stories abound of how he overcame insurmountable physi­cal and mechanical difficulties to win races

and championships. In 1954 he made a mid­

season switch from Maserati to Mercedes,

which enabled him to win his second world title. Fangio went on to win the world title

again for three years straight- capturing

20 VALUERICH MAGAZINE 2005

every pole position and winning six of eight

championship races. Though Fangio drove

for many other teams, he will be forever asso­

ciated with driving the famous "Silver Arrow"

cars of Mercedes manager Alfred Neubauer.

Pagani got the idea for building the

Zonda as a tribute to Fangio after he joined a

group of close friends for dinner at the great

driver's home in 1988. His motivations were

pure respect and adulation. As Pagani puts it:

"I remember well his incredible presence, his

feelings and the concepts he used to express.

He is still an example to us all:' When he later showed working drawings

of the car to Fangio, he received the great

man's approval, with the encouraging words,

"Any project starts to be interesting as soon

as it becomes reality:' Fangio also told him: "I

am thankful to all of those that allowed me

to race and to win. My biggest thanks go to

Mercedes-Benz.! am a Mercedes man. If you

will make it, the car must have their engine:'

Pagani originally wanted to name the

car after Fangio, but after Fangio's death, he

Beginning with the soft leather flat-bottomed steering wheel, Zonda interiors are unique. www.valuerichonline .com

The Pagani Zonda was created as a tribute to five-time Fl champion Juan-Manuel Fangio.

changed the name to Zonda- a wind that

blows in the Andes- out of respect.

Pagani was under contract to Lamborghini when he made his first sketches of the car.

But in 1991, he founded his own company,

Modena Design, to meet a growing demand for specialized design services, engineering,

model construction, and prototypes using

composite materials. The small yet very tech­

nically advanced company has clients in the

commercial, sports and competition sector

with great companies like Dallara, Ferrari,

Aprilia, Berman, Lange and Renault. The

Pagani Zonda team's passion and rigorous

work ethics are reminiscent of Renaissance

artists- only working with futuristic tech­

nology.

Fangio's favorite team, the factory-spon­sored Mercedes-Benz team, retired from

international competition in 1955 after a

tire failure caused one of their cars to launch

into the crowd, killing 80 spectators. But

the Silver Arrows were reprised in 1989 by

Peter Sauber's Swiss racing team. The Sauber-

The Zonda's elegant dash and instrumentation are a work of art. www.vrexpo.net

Mercedes C9, with a Mercedes engine and

the company's full sponsorship, won the

World Sportscar Championship in its f irst season of racing.

Pagani has very obviously referenced

the Sauber Silver Arrow in his design of the Zonda. It is the closest thing to an F1 racer

in a Grand Tourismo car today. The Pagani

Zonda has gone through rapid development,

from the C12 through the more powerful

S7.3 and its subsequent Roadster version,

and finally the Zonda F.

Ferrari and Porsche would be loathe to

admit it, but since the Zonda C12 was intro­

duced in 1999, the lead position for making

the world's fastest, most technologically

advanced and sexiest supercar has changed hands faster than a heart-stopping F1 photo

finish. The development of the Enzo and the Porsche Carrera GT was spurred by the intro­duction of Pagani 's C12, and now the Zonda F with the AMG 650 HP V12 clubsport pack­

age has been judged by many to have taken the lead again in sheer performance, tech­

nology and the driving experience.

U.S. adaptations ofthe Pagani S 7.3 and its roadster version are in the works for a price that 's slightly over $500,000 at the current exchange rate. There is no word as to wheth­er an American Zonda F will ever be avail­

able. However, Pagani has plans to introduce

an entirely new car in 2007 that will be built in a new factory. Approximately 70 of these

2005 VALUERICH MAGAZINE 21

22 VALUERICH MAGAZINE 2005 www.valuerichonline.com

www.vrexpo.net SUM 2005 VALUERICH MAGAZINE 23

Horacio Pagani presented this prototype Pagani Zonda Fat the Geneva Auto Show, March 1, 2005.

should be a'llailab\e worldwide per year. car as flat and close to the ground as possible

Unfortunately, this later car will have to to counter any pitching effect.

comply with the new European regulations With its race-bred design, the Zonda F

concerning pedestrian impact front end and slices through the air with hardly any effort,

bumper specifications, meaning that the

beautiful sloping needle-nosed design of today's Pagan is will more than likely be lost

-the property of only a very few fortunate owners.

Most fortunate will be the owners of the

Zonda F. Every new Pagani Zonda F is cus­tom-built by just five craftsmen, out of car­

bon fiber, aluminum alloys, titanium, avional,

chrome-molybdenum alloy and selected

leathers. The level of detail and precision at Pagani is virtually unique.

It's with the driver's experience that

the Pagani team's attention to detail really begins to pay off. The driving position is low but upright, placed well forward and covered in a unique canopy windscreen -evoking the feeling of being in a fighter jet. The inte­

rior is sumptuous in soft leather, even on the flat-bottomed steering wheel.

Through the evolution of the various ver­sions, Pagani has fine-tuned the gearshift

into a precision instrument. The monstrously powerful AMG-sourced V12 in the Zonda F is

24 VALUERICH MAGAZINE 2005

Zonda's trademark four exhaust terminals.

a super-light modern marvel that is so finely wrought that it looks like a piece of high-tech

sculpture.

Also new with the F is a cutting-edge car­bon-ceramic braking system. But the car's

braking performance is as much a function of shock-absorber geometry, the low center of gravity and reduced weight, keeping the

yet very strong ground effects and the per­

fectly strung suspension ensure a transfer

of all the car 's power and torque to its tires,

regardless of whether it is accelerating, brak­ing or cornering. It is this fine-tuned integra­

tion of power, balance and practical physics

that is most striking for the driver.

Everyone who has driven a Pagani Zonda

says essentially the same thing: The steer­

ing is fingertip light, the throttle response

is immediate. The car handles like a living

being; it is so responsive that it seems to

anticipate your every move and improve on your best intentions.

Perhaps Horacio Pagani is a modern-day alchemist. It is almost as if he has managed to infuse his"Una Macchina con Anima" with the spirit of Juan-Manuel Fangio, so that the

owners of these marvelous cars will be able

to drive outside themselves and experience

a taste of greatness. VR

Information:

www.paganiautomobili.it

www. va I uerichonl ine .com

26 VALUERICH MAGAZINE 2005 www.valuerichonline .com

www.vrexpo.net

They say the sea is cold, but the sea contains the hottest blood of all, and the wildest, the most urgent. - D. H. Lawrence

Hooked up and running, with flush sur­faces and a seamless angular glass super­structure, the 118 WallyPower resembles a stealth aircraft more than a yacht. Its com­puter designed and simulator tank-tested hull knifes through ocean swells as triple gas turbine powered waterjets smoothly push it to speeds approaching 60 knots. At anchor or dock, this sci-fi watercraft goes through a total change in personality. It transforms

itself into a series of teak terraces, airy pavil­ions and studio loft-like lounges from bow to stern- a postmodern paradise.

Oddly, this spaceship of a power yacht was born from a line of sailboats, under the leadership of Wally Group's Luca Bassani .

Bassani was an avid sailing yacht racer who also loved to sail with his family. In

the 1980s, there were no comfortable, fast, and safe sailing yachts of large dimen­sions suitable for high-level races as well as everyday use. There were just the complex

and dangerous Maxi lOR boats, with large winches on deck and ropes like whipping snakes. Bassani wanted to be able to sail a family-friendly craft with little crew, where he could safely have his children on board, without sacrificing his pleasure in speed. So he started developing unique designs to meet his needs.

Bassani launched the first new boat incor­porating his ideas, the Wallygator, in 1991 . 1t utilized advanced composite materials, new innovations for easily handling and flush decks for safety. Very enthusiastic reactions and encouragement prompted Bassani to found the company Wally in 1993 to build more boats. Wally rapidly began producing a number of hull configurations with more innovations for easy handling like hydraulic sail trimming, computerized control systems and the Wally anchor system, as well as a series of 80-foot sloops that could be sailed by one person.

Bassani believes that sailing yacht design veered off in a wrong direction during the latter half of the 20th century. To him, vol-

2005 VALUERICH MAGAZINE 27

45 Wallytender combines speed, utility and sophisticated style.

ume ratios seemed totally illogical. Racing

yachts had a tendency toward more free­

board volume and wider sterns than cruise

yachts, not for comfort but mainly to comply

with arcane racing regulations. On the other

hand, cruising yachts tended to concentrate

most of their volume in the bilge rather than

as comfortable live-aboard space.

Using the strength of advanced

composite materials, Wally designs cruising yachts built along the lines

of racing yachts.

As Wally grew, Bassani employed

one of the largest staffs of structural

engineering specialists in the yacht­ing industry and spent more than

most companies in applied R&D­

all in a quest to constantly improve

the quality of sailing. It was in 1999 that events pre­

cipitated Bassani taking his highly evolved engineering and manu­

facturing operation into the realm

of motor yachts. The new 88-foot

sloop Tiketitan introduced Wally 's most radical ideas yet . Tiketitan 's revolutionary hydraulic canting keel

required that the huff space usually

occupied by its large mechanism. The saloon was moved aft. This facilitated the idea for

what Wally calls the "Terrace on the Sea;' an

open stern which steps down to water level

in teak terraces from a saloon entrance at

the rear of the boat. Consequently, Tiketitan

looked unlike any other sa iling craft. Its sleek

aggressive hull, clean lines, navigation pod

amidships, minimalist open interiors and ter­

raced stern caught the eye of an avid motor

yachtsman who approached Bassani with the

idea of a motor yacht based on Tiketitan.

As critical as Bassani was of past sailing

designs, he was even less enamored of pow­

erboats, thinking them ugly, inel ­

egant, unstable and prone to rolling

at sea. In other words, just the kind

of challenge he was ready to take

on. Wally designers began work on power yacht designs with their typi­

cal "take nothing for granted" men­

tality, using expert knowledge of

the sea derived from sailing experi­

ence and working through the R&

D, computer modeling and testing, firmly focused on their familiar goals of beauty, speed, safety and ease of

use.

devoted to a saloon amidships be Wally's 88-foot sloopTiketitan revolutionized deck design.

Several different concepts emerged from their research . The

1 1 8-foot WallyPower, and the 45-foot

WallyTender were the first to be built.

First launched in September 2001, the 45 Wally Tender was an immedi­

ate hit . Though initially appearing to be traditional in design, on closer

28 VALUERICH MAGAZI NE 2005 www. valuerichonline.com

inspection, the WallyTender leaves similar craft in its wake.

Incorporating many themes from the sail­

ing side of Wally, the 45 Wally Tender is con­

structed of advanced composites to keep

noise and vibration levels at a minimum.

The hull is designed and tested fo r balance

between load carrying, stability, handling

and ride. The vertical bow provides a finer entry angle with less pitching . The hull

quickly spreads back in a wide flare for a

dry ride at lower speeds, and a pronounced

fender keeps it dry at the WallyTender 's

top speed of 50 knots (40 knots with diesel

power plants). The hull shape also allows for a Tiketitan­

inspired open stern offering great sunbath­

ing while providing easy access to the water

and for boarding. The aft cushions conceal

the engine locker and are hydraulically lifted

for easy access to the engines and systems.

The WallyTender's navigation controls are

designed for single-handed operation. Its

console is placed in the center of the boat to

simplify maneuvering and to enhance safe-

Wallytender console with fridge and seats.

ty. A built-in refrigerator, large enough for

drinks and daily supplies is located between

the two guest seats. The forward area of the

central console hosts a head with shower

and sink down below. In an overnight ver­

sion, the below-deck space extends forward

to provide a cabin with double bunks.

With distinctive lines, beautifully finished

composite construction and hand-laid teak

decks, the 480,000 Euro WallyTender is a

classy, and yet sporty, tender that satisfies the most sophisticated sense of style and maritime beauty.

The 118 WallyPower, however, ta kes

Bassani 's power boating ideas to a strato­sph eric level. Once launched in 2003, it

quickly captured the imagination of the

entire design community. It was selected by

the San Francisco Museum to be featured in

a major architecture and design exhibition,

and received the 2004 Millennium Yacht

Design Award first prize, followed in second

place by its sister sailing yacht Wally B.

The 118 Wallypower super yacht is an

engineering marvel. The shape of the bow

provides a 50 percent reduction of vert ical acceleration as it knifes through seas. The

efficiency and sleek lines of the hull are the

result of extensive R&D that included tank

testing at the SSPA facility in Goteborg,

Sweden, and smoke testing in the Ferrari Wind Tunnel Facility in Maranello, Italy.

Its multi-level composite structure saves

weight and provides rigidity without trans­

mitting shockwaves. The bottom of the hull

With its beautiful fit and finish, the 45 Wallytender is equally at home at the loading dock, over a diving reef or pulling up to a black-tie affair.

www.vrexpo.net 2005 VALUERICH MAGAZINE 29

30 VAlUERICH MAGAZINE 2005 www.valuerichonline.com

1 p

www.vrexpo.net SUM 2005 VALUERICH MAGAZINE 31

At rest, the 118 WallyPower's deck and superstructure transforms into a series of terraced lounges, dining area and conversation pits.

is built of solid fiberglass. Hybrid fiberglass/ terraced deck offers easy access to a tender saloon, and when opened, serve as diving

carbon composite with balsa core is used garage, the bow social cockpit, the glass platforms. Cleats, mooring winches, radar

above the waterline and Nomex/full carbon superstructure, and the aft cockpit. antenna, TV dome and the anchor system composite is used for t he deck. The stealth­

like superstructure is made of laminated

glass with internal carbon frames that are

not visible from the exterior. Interior bulk­

heads and cabin walls carry no structural

loads and are constructed entirely of thin

wood and laminate veneer skins. The 118 WallyPower is pow­

ered by a combined diesel or gas

(CODOG) propulsion system com­

mon on small warships but rare on

yachts. Three gas turbines generat­ing 16,800 HP drive KaMeWa water

jets, capable of powering the boat to speeds just under 60 knots. The two outboard units are steerable and the centerline unit is stationary. At maneuvering speeds, the steer­able water jets are powered by two

370 HP diesel engines.

At anchor, decks retract and bulwarks drop to transform the

yacht into a series of breezy elegant social areas. Beginning at the bow and moving toward the stern, the

Large open areas are designed for six

passengers and a six-member crew to move

comfortably and safely around the deck

when at anchor. Sections of the bulwarks

alongside the superstructure drop down

hydraulically to increase the view from the

are neatly concealed without sacrificing

functionality. The deck, cockpit, navigation, dining

and saloon areas have been conceived as

one continuous element. The modern loft

style interior is divided into three areas, the

saloon, the dining/seating area, and

the navigation cockpit. When din­

ing, guests enjoy a 360-degree view

through the transparent superstruc­

ture. Underneath the table, a long

central skylight allows light into the lower corridor. The saloon features

teak planes covered in cushions to serve as sofas. Integrated spaces contain additional seating, tables,

storage and technology. At approximately $25 million,

there are only a very few who

would be in the market for a 118

WallyPower. However, Wally is cur­rently in production on smaller craft that combine the sensibilities of the 118 WallyPower and the Wally

Tender. A skylight under the dinner table illuminates the cabins below.

32 VAlUERICH MAGAZINE 2005 www.valuerichonline.com

118 WallyPower interiors are contemporary, functional and glow with natural overhead lighting.

The 67 WallyPower has the open-air living

characteristics of the WallyTender, with the

hull lines of the 118 WallyPower sharing its

same characteristics of speed, comfort, style,

and seaworthiness with three continuous

social areas on deck.

Under the glass superstructure, which has

sunscreen filters to reduce heat and glare,

the saloon acts as an inside-outside living

area. The well-protected and sheltered for­

ward cockpit offers privacy at anchor and at

dock and comfortably seats 10 with a table.

Protected by a high bulwark, this area can

be enjoyed by guests and children with com­plete piece of mind. The aft cockpit provides

another stylish seating and dining area.

Other convenient features include a wrap­around fender, a wide boarding/ swimming

ladder concealed in the transom and a ten­der garage for storage and Jet Skis.

Two 3,000 HP MTU diesel engines drive KaMeWa water-jets which power the 67

WallyPower to a max speed of 45 knots.

The 67 WallyPower is also available in a sporty "Open" version developed for short cruises and daily use. The Open version's glass

superstructure can be opened on the sides

and top for airy seating and dining areas. An

aft cockpit replaces the tender garage with

a vast flush deck that can be arranged in dif­ferent loft-like social pods.

Both versions of the 67 WallyPower offer

three accommodation configurations below

deck; a "suite" layout with a larger owner's

188 WallyPower's unique forward deck design, with hydraulic sunscreen (inset), makes the bow the focus for informal gathering, day and night.

www.vrexpo .net 2005 VALUERICH MAGAZINE 33

34 VALUERICH MAGAZINE 2005 www.valuerichonline.com

67 WALLYPOWER

·-·- . ~~· .. -~ 47 WALLYPOWER

suite, a "lunch boat" configuration with a for­

ward owner's stateroom and a larger galley amidships; and a three cabin layout.

For those who like the 45 WallyTender

but would rather have a cruiser. Wally has created the 47 WallyPower, a two-cabin

cruiser developed on the hull lines of the

WallyTender, featuring a large yet sheltered deck area with the navigation console and

the cockpit seating eight people. The for­ward area features a sun pad. Optionally, the

cockpit can be outfitted with a rigid awning. The aft area offers comfortable seating and

dining for up to 10 individuals. Down below, the 47 WallyPower provides

accommodation for three guests in two sepa-

www.vrexpo .net

rate cabins. The ser­

vice area includes the head, shower

and a galley. Two

880 HP gasoline engines

drive KaMeWa water jets.

With a fuel storage capacity of

528 U.S. gallons, the 47 WallyPower has a

range of 500 miles. The 47 WallyPower is currently expected

to have a 770,000 Euro pricetag and the 67 WallyPower, 3,000,000 Euros.

The know-how and sty le in yacht design that Wally had developed over the years are

key to the success of the company. In 2004,

Wally established a new division named WallyDesign to offer these skills for the

development of new sailing yachts over 164

feet and motor yachts over 135 feet. These mega-yachts will be based on the same con­

cepts that have made Wally products a refer­ence point in the industry: comfort, design,

style, technology, safety, and enjoyment of

the onboard living.

WallyDesign acts as the design authority assisting the client throughout the develop­

ment and construction of the yacht. At the

same time, Wally can be the supervisor and

owner representative. Any construction type is contemplated to suit the project charac­

teristics. Wally 's service includes the design

and styling, while the construction is con­tracted to a yard selected by the client that specializes in the yacht size and the chosen building technology.

Interestingly, some of the concepts devel­

oped by Wa llyPower for motor yachts, such as

a central deckhouse skylight, are beginning to find their way back into WallyYacht's sail­

ing yacht designs as a skylight that extends from the companionway forward to the

mast foot. There seems to be no end to what Wally will come up with next, making them a company to watch as technology offers new

opportunities to revise our relationship with the sea.VR

SUM 2005 VALUERICH MAGAZINE 35

• • rUISin

~et.wen\y Romance andL egend \..~~~

on the \\\\\'' Whether sailing on the majestic Sea Cloud,

queen of the seas, or her modern sister, Sea Cloud II, you will luxuriate in their

unique legacy of elegance and romance.

In summer, you may find the Sea Cloud gliding over the waters of the Aegean Sea in the Western Mediterranean, Costa Brava or the Cote d'Azur. Or you might see

the billowing sails of Sea Cloud II glistening

off of the verdant slopes and white cliffs of

the Balearic or Canary Islands. But before I

tell you about the ultimate in personalized

cruising on these sp lendid ships, let's go

back to the illustrious past of the Sea Cloud

and get some j uicy bits of history.

Romantic Beginnings

The Sea Cloud was launched in Kiel, Germany, in 1931 . The ship was commis­

sioned by Sir Edward Francis (E. F.) Hutton, one

of Wall Street's wealth iest businessmen, as a gift for his wife, Lady Marjorie Merriweather Post, who was, herself, the heiress to a huge

fortune and a successful businesswoman. As the largest sailing yacht ever built, the four­

masted barque was the epitome of yachting

luxury and privilege for anyone fortunate enough to experience it. Marjorie Post per­

sonally designed the furnishings of the ship using Carrara marble, precious woods, solid

brass, golden bath fi xtures and exquisite antiques. Sea Cloud 's 32,000 square feet of white sails created a dreamlike vessel on the

seas, with no comparison.

www.vrexpo.net

By Kayla Willson

Hutton and his wife spent at least nine months of the year sailing for exotic destina­

tions such as the Galapagos Islands, Hawaii,

and the Mediterranean. Unfortunately, this seemingly blissful romance on the seas was

short-lived, ending in a broken marriage by

1935. Still, Hutton knew that Post loved the

ship more than anything, so after the divorce he signed it over to her.

Post immediately took comfort in an old

friend, Joseph E. Davies, a successful attor­

ney who had been an economic adviser to

President Wilson during the peace negot ia­

tions in Versailles after World War I. Post and

Davies were married within the year. In 1937,

Davies took over the office of American

Ambassador in Moscow and the Sea Cloud went to Leningrad as a floating diplomatic palace. It was not uncommon for guests aboard to include royalty, including Queen Elisabeth of Belgium.

-g But World War II was on the horizon and, 0

;;;: as the number of warships in eastern waters Q)

~ rapidly grew and danger increased, the Sea ~ Cloud left the U.S.S.R. and sailed to Istanbul. ~ " Post tried to sell the ship before the U.S. 8 ~ went to war, but the market for luxury goods .§ had collapsed. The military needed private :;;: yachts to strengthen its fleets, and the Sea

Sea Cloud's expert crew climbs the rigging. Cloud was heroically sacrificed to the Coast

2005 VALUERICH MAGAZINE 37

Sea Cloud II

Guard. Sadly, the masts were removed, the

ship was painted gray, and she was outfitted

with guns and anti-submarine weapons. The Sea Cloud was one of the few yachts

to su rvive the war and continued to have

a colorful history, including being sold to

the brutal head of the Dominican Republic, Rafael Leonidas Trujillo Montinas, in 1955,

who renamed it Angelita. Unfortunately for

Montinas, he was assassinated on May 30,

1961 . His last cruise carried his body home.

Resurrected Glory

In 1978, the ship was acquired by a group of Hamburg shipowners and business execu­

tives, whose dream was to restore her to her

original splendor and share her with others.

The original owners' staterooms and dining facilities were restored, and additional cab­ins and state-of-the-art navigation, commu­

nications and safety systems were installed.

The Sea Cloud was brought back to what it once was -a splendor on the seas.

In February 2001, Sea Cloud gained a mod­

ern sister ship- the Sea Cloud II. The vision

for Sea Cloud II was to build a sail ing vessel for the 21st century that would capture the romance and luxury of the original Sea Cloud

and combine it with present-day comfort. It

38 VALU ERICH MAGAZI NE 2005

The staterooms of Sea Cloud II blend classic opulence with modern comfort.

was equipped with the most advanced navi­

gational system, which was very important when the 29,687 square feet of sails were

deployed. The newer ship matches its pre-

decessor in sophistication and charm while

it adds modern amenities. The beauty and

comfort of Sea Cloud Ill eaves no doubt that

the original vision has been realized.

Guests can experience the elegance of Lady Marjorie's cabin, finished in gold and marble.

www.valuerichonline.com

The Ultimate Maritime Experience

Marjorie Merriweather Post spared no

expense for her resplendent home away

from home. The decor and furnishings of

Sea Cloud exemplified her desire for a pal­

ace at sea. The 64-passenger, five-star sailing

yacht continues to attract royalty, celebrities,

and business leaders. Si x original cabins on the main deck, along with the two Owner's

Cabins, have been restored to all of their for­

mer opulence. New cabins, all of which have ocean views, were added on the Captain's

and Promenade decks and were refurbished

in the mid-1990s.

Spacious (41 0 square feet) Owner's Cabin

No. 1, Lady Marjorie's cabin , conta ins an

elegant French bed with gold-leaf embel­

lishment, a 97-square-foot bath with white

Carrara marble and gold-plated swan-neck

fi xtures, mahogany chests, Louis-Philippe

chairs, and marble fireplace.

Owner's Cabin No. 2 (366 square feet),

the former wood-paneled sleeping quarters

of E. F. Hutton, contains antique furnishings,

marble fireplace, and a 97-square-foot bath

equipped with pink Carrara marble and gold

fi xtures. Guests experience diverse and delec­

table fare from the fine dining restaurant

established in the original saloon. Corridors,

library, bar and deck are all true to the dream

envisioned more than 70 years ago. There

is no doubt that cruising on this museum­

quality heirloom captures the gracious life­

style of its historical past. The three-masted, 360-foot sister ship,

the Sea Cloud II, has spacious cabins, each

with its individual charm. The Owner's Suites on Lido Deck have decorative fireplaces, nos­

talgic marble baths with gold fi xtures, and

natural woodwork. The Lounge, the central meeting place for guests, provides comfort­

able seating arrangements in rich mahogany

surroundings. Your days onboard will be spent relish­

ing timeless traditions of the high seas as

the expert crew climbs the riggings over­head. You will slip easily into ancient sailing

rhythms between exotic ports of call . Treat

yourself to a unique cruising experience in full luxury and jump aboard a Sea Cloud ship.

It will no doubt be an unforgettable memory

in your travel log of life. R www.seacloud.com

www. vrexpo.net

The Sea Cloud sails the Caribbean in winter, from December to March, and in April sets sail for the Western and Eastern Mediterranean, where it remains until the end of October. Sea Cloud ll's destinations

include Southern and Northern Europe, the

British Isles, Scandinavia, and the

Caribbean Islands. Peruse the Sea

Cloud Web site at www.seacloud.com and you will find a variety of fascinat­

ing destinations to choose from.

Spending your time aboard the

Sea Cloud vessels is an experience in

itself, but just as unique are some of

the specialty cruises organized spe­

cifically for the Sea Cloud ships.

on a Black Sea voyage to historic ports. The

autumn cruise in the Western Mediterranean will explore "Italian Masterpieces." The pro­

gram includes exclusive visits to the Sistine

Chapel and Vatican Museums at times when

they are closed to the public, and stopping at

The Sea Cloud II sails only under

charter arrangements. One of the

main organizations to charter the

ships for European and Caribbean Uncommon friendships grow on an uncommon ship. cruises is Academic Arrangements

Abroad, a 28-year-old Manhattan company

that custom-designs itineraries in collabo­

ration with museums, universities and cul ­tural organizations such as the Metropolitan

Museum of Art, the Archives of American Art and the National Trust for Historic Preservation. The programs have a personal

touch as passengers hear recitals and lec­tures and take excursions ashore to view private art collections or visit historic sites or

places of natural beauty. "Byzantium: Faith and Power;' an exhibi­

tion at the Metropolitan Museum of Art, inspired this year's summer cruise aboard Sea

Cloud II to the northern shore of the Black

Sea. The ship sets sail from Istanbul, Turkey,

picturesque Portofino, the classic inspiration

for generations of artists and writers.

Kalos Golf, a North Carolina-based com­pany, also specializes in golf cru ises on the

Sea Cloud vessels. Popular itineraries incl ude the British Isles, France, Spain and Italy. The Riviera Golf Cruise, scheduled five times a year

aboard Sea Cloud or Sea Cloud II, offers a rich blend of scenic and challenging golf cou rses, including Monte Carlo Country Club, Corsica

and Sardegna. Kalos Golf cruises are high­

end and are particularly good for couples in which one is a non-golfer, as a full program of tours is also provided.

www.arrangementsabroad.com www.kalosgolf.com

2005 VALUERICH MAGAZINE 39

40 VAlUERICH MAGAZINE 2005

ensor!J ~AntA Je ~ummer The desert of the American Southwest is a feast for the senses, awash with super-saturated color, alive with music, and heady with ancient flavors. The Inn

ofthe Five Graces, a rambling adobe and river rock compound in the heart of historic Santa Fe, will indulge each of your five senses one at a time. Working closely with

experts in various fields, the Inn offers a series of packages to focus a particular sense

-Sight, Taste and Smell, Sound, and Touch.

A private photography lesson will focus your vision on this dramatic region. Spend

a half-day with an instructor at the renowned Santa Fe Workshops, working in either

digital or film formats. You will emerge with a far greater understanding of camera

craft and a stunning set of photographs. Santa Fe is a center of culinary excellence and distinctive regional cuisine. The

Inn of the Five Graces will arrange a private cooking class with noted chef John

Vollertsen of Las Cosas Cooking School. Taking place in the charming home kitchen

of a renowned artist, the class concludes with dinner with the chef and host.

Enhance your sense of sound with a private concert at The Awakening Museum.

The Inn of the Five Graces will arrange a program by an acclaimed musical soloist or

vocalist performing with The Santa Fe Opera. If you like, provide a "wish list" for your

custom concert program, or, let the musician perform as inspired. Awaken your sense of touch in the downtown Santa Fe studio of Heidi Loewen.

This accomplished porcelain sculptor will provide a private half-day workshop, walk­

ing you through the creation of your own object, which will be glazed, fired, and

delivered upon your return home.

Fees vary for each of the packages. R www.fivegraces.com

www.valuerichonline.com

300' OF OCEANFRONT AND LAKEFRONT Gorgeous British Colonial estate in excellent condition. Amenities include tennis court, movie theatre, fitness

center, huge swimming pool with pavilion and lakefront guest house consisting of two suites.

Call Linda Gary Cell: 561-346-5880 BROKER Linda A. Gary Real Estate, Inc. 420 So. County Road Palm Beach, FL 33480 www.lindaagaryrealestate.com Email: lgary88@aol.com Office: 561-655-6881 Fax: 561-881-5231

LINDA A. GARY REAL ESTATE, INC.

Licensed Real Estate Broker

42 VALUERICH MAGAZINE 2005 www.valuerichonline .com

By David Willson

'Let's Be Small With Huge Imaginations' That's the slogan emblazoned in simple white letters on a black screen as you begin creating a custom paint job for your new MINI Cooper- the one you're building on the MINI USA Web site to be delivered at a dealer near you. The Web site is full of similar little slogans:

"Let's use our horsepower for good:' "Let's join the fight against gas guzzling:' "More super. Less size:' "Let's protect each other from Meter Maids:' This one appears

just before you are invited to assemble an online robot using the

options and colors available for your MINI Cooper. Once completed,

the robot image can be downloaded to become your computer desk­

top. In fact, you can even buy a MINI robot collectible toy in the MINI

Motoring Gear online store. MINI makes it clear with a somewhat irreverent approach to

their advertising campaigns,

their customer relations and

their owners' manuals - all of

which are the work of some very humorous and talented writers

and designers- that the brand is all about two things: driving

and fun. In doing so, they've

captured the admiration and

attention of the young and the

young at heart.

In short, MINI has done

more than build a hip car.

They've built a culture, and it's

beginning to look like the new­

est British invasion of America.

But before we thoroughly

enjoy ourselves reviewing MINI

Cooper's quirky attitude, let's

review what makes the whole thing possible - a great little

car.

improvements. Troubled British Leyland once again went through

restructuring in 1988, becoming Rover. While the Mini remained pop­

ular, the financially challenged Rover was eventually sold to BMW.

"Every red light is a chance for a new beginning:'

When BMW acquired Rover in 1994, they also got the Mini. Two

years later, BMW announced that the Mini would be redesigned and reintroduced as MINI.

The all-new MINI appeared at the 2000 Mondial DeL Automobile

show in Paris just as the last Classic Mini was rolling off the line.

A year earlier, a panel of 130

international journalists had

recognized the Classic Mini as

"European Car of the Century:'

With the same cheeky

excitement that made the original Mini a legend, the new

MINI Cooper burst upon the

American scene at the 2001

New York International Auto

Show with a dazzling demon­

stration of high-speed parallel

parking and two-wheel driving

stunts highlighting the MINI

Cooper's exceptional handling and maneuverability. The first

American Model year was 2002.

The diminutive 11-foot 10-

inch MINI Cooper is cute and

frisky in its basic model itera­tion. On the outside, it appears

to have much in common with

The original Mini earned its classic predecessor. BMW legendary status in the 1960s The last classic Mini rolled off the line at the MG Rover plant in 2000. designer Frank Stephenson and

as a favorite of British celebrities from the Beatles and David Bowie his team were adamant that the new car would pay faithful homage to Peter Sellers and the Queen of England. The spunky little car also to the original's styling cues. However, that is where the similarities inspired fashion designer Mary Quant to create her famed Mini skirt. end. The new car is quite a bit larger, and comes with more creature

The Cooper name became forever entwined with Mini in1961 comforts than the original. when racing legend John Cooper developed the Mini Cooper. Statuesque actress Charlize Theron , who did most of her own

Cooper recognized Mini 's inherent motorsport potential and his stunts driving both the classic Mini and a modern MINI Cooper for the team produced cars that took numerous race titles. The Mini Cooper movie The Italian Job, made the comment that she felt like her knees

S became the stuff of legend with three Monte Carlo Rally wins were up under her chin driving the classic, but the interior was quite between 1964 and 1967. roomy and comfortable in the new car. She was surprised that she

The Mini's builder, BMC, went through some restructuring in had to move the seat up for her feet to reach the pedals. the tough '70s and became British Leyland. The Mini reemerged in If you saw The Italian Job, you've already got an inkling of what

the '80s as the Austin Mini, regaining its cult status due to several makes the MINI Cooper so special. It is one hot little car. The MINis

www. vrexpo .net 2005 VALUERICH MAGAZINE 43

44 VALUERICH MAGAZINE 2005

used in the movie were specially modified so they could be driven

over Hollywood's Walk of Fame, down flights of stairs, over embank­

ments and through the LA Metro Rail and sewer system. But even without movie stunt upgrades, the MINI Cooper and

most certainly the MINI Cooper S are spry enough to impress just

about any sports car enthusiast. Built on a rigid frame with a wide

bulldog stance and MacPherson strut front suspensions, the car han­

dles like it's on rails. The MINI CooperS, with its Supercharged, inter­

cooled 1.6-liter overhead cam, 16-valve inline 4-cylinder engine and

MINI Coopers take the stairs down to the LA Metro in The Italian Job.

17" alloy wheels is practically ready for racing right out of the box. MINis are commonly found on the track in a variety of sport tour­

ing car divisions. The cars are raced in factory condition with limited

required and allowable modifications for safety purposes. To race a

Cooper, the modification costs are less than $5,000 and the Cooper

S less than $8,000, exclusive of wheels. Though under-horsepowered

in some divisions, the MINis are well known on the track for their

handling in the corners and excel on road courses.

"Smallzilla"

BMW has artfully taken the uniquely British sport driving enthu­

siast's experience to the next level incorporating quality and finesse

into a body and interior that feels solid and airtight. The fit and finish

of these cars are recognizably German, and yet MINis still retain a

kind of quirky British user interface, featuring dash mounted window

toggles and a giant centered clock speedometer.

Some of the MINI's quirkiness is unwanted, however. Its rigid frame and sports suspension transmits every bump in the road -especially with the runflat tires of the CooperS. After a while, you'll find yourself doing the downtown slalom to avoid raised pavement and potholes. Still, most driving enthusiasts will trade an occasional

jolt for the amount of fun this car provides. BMW is obviously courting the youth market with the MINI. As a

result they've given us this snappy little car at a reasonably affordable price. A basic 2005 MINI Cooper lists at $17,500 and the MINI Cooper

S starts at $20,950. The new MINI convertible, with its unique roof, that can be used partially rolled back like a sunroof under 50 miles an

hour, starts at $22,000 and $25,450 for the CooperS version.

www.valuerichonline.com

Magazine MINI brand ad from the"Let's Motor" campaign.

At these prices, buying a MINI is almost an impulse decision.

Once the impulse strikes you, half the fun of buying the car is indi­

vidualizing it with the myriad options that are offered a Ia carte. Go

ahead, load on the premium interior and the sports package, the

amplified eight speaker Harman Kardon CD audio system with digital

sound processing and aux input for your iPod and two tone leather

seats. Options are reasonably priced too. It's hard to drive the price

of a MINI up over $30,000, unless you order the John Cooper perfor­

mance package, which increases the already ample 168 horsepower

of the MINI Cooper S to 210 horsepower. The John Cooper kit costs

$5,500 plus dealer installation charges (which can be substantial).

MINI Cooper's quirky styling, a fun driving and reasonable pric­

ing have made it one of the most popular cars in the world, and cer-

The hot selling MINI Cooper convertible was introduced for 2005. www.vrexpo .net

tainly one of the most popular imports to hit the U.S. in a long time.

For three years running, the MINI Cooper has received the high­

est rating for a compact car in J.D. Power and Associates' Automotive

Performance, Execution and Layout (APEAL) Study that measures

owners' delight with the design, content, layout and performance of their new vehicles.

The MINI Cooper and Cooper S were also rated a Consumer's

Digest Best Buy as well as capturing Autobyte/'s Consumer Choice

Award. They also have garnered top awards and mention from

Automobile Magazine, The Car Book and Automotive.com. And

Edmunds.com cited the MINI CooperS in their Top 10 Sound Systems in Cars Under $30,000.

Even the government is a member of the MINI fan club, rating

SUM 2005 VALUERICH MAGAZINE 45

The already zippy MINI CooperS received a standard boost in horsepower and revamped gearing for 2005.

MINI Coopers at the top of the EPA's fuel

efficiency list in the "minicompact" class

for t hree years straight years.

MINI broke onto the scene in the U.S. with the potent tagline"Let's Motor" and a

unique campaign that made creative use

of display mediums such as magazines

and outdoor advertising while forgoing

TV commercials all together. This was a

very different approach to marketing in

America, where television is considered

absolutely necessary when launching a new automobile. Custom-paint your car or learn performance driving techniques on MINI's game-like Web site.

MINI's publicity stunts, print ads and billboards are edgy, but always about MINI esprit d' corps. The message is that MINI is about

more than just driving a fun car, it's about making playfulness an ethic you can live by- live and let live: "Let's be big enough to let other cars in:'

"Put a little un in your orthodox:'

Perhaps the biggest success in reaching the youth market is MINI 's potent use of the Web. You can literally spend hours touring

their highly animated Web sites, continually stumbling on new ani­mated game-like pages that invite you to do anything from build and order a new MINI to take performance-driving lessons. Here is where MINI marketing edginess becomes positively razor sharp.

Take for instance the launch of the MINI convertible. To establish

46 VALU ERICH MAGAZINE 2005

the pop-top's fun factor, visitors to the homepage were greeted with an online video clip that had them taking a running leap into a con­

vertible MINI from behind. Just in case they thought that it might be some advertising fantasy, MINI invited them to visit toughlandings.

com where they could select from a series of ten attempts by a stunt man to jump into a MINI Cooper convertible from behind. Needless

to say, nine of the attempts are unlucky and appear to be quite pain­

ful. The result is like watching a segment from Fear Factor or Jackass television shows- only, on the Web site, you can hit rewind button

over and over again. The slogan preceding this nuttiness captures the essence of tak­

ing it to the edge in a MINI, "Ahhh, the joys of jumping into a MINI convertible. The joy. The freedom. The faceplants:' VR www.miniusa.com

www. valuerichonline.com

While Pat Buchanan's views are often considered controversial,

he is generally acknowledged as one of America's most experienced

political observers. He has been a senior adviser to three American

presidents, Richard Nixon, Gerald Ford and Ronald Reagan. In

December 7997, Buchanan challenged President George H. W Bush

for the 7 992 Republican presidential nomination, receiving 3 million

Republican primary votes. And in 7 996, he was an early strong chal­

lenger to Bob Dole for the nomination. In contrast, his 2000 Reform

Party campaign is mainly remembered for its role in the infamous

Palm Beach County "Butterfly Ballot," where the position of his name

allegedly confused voters.

Buchanan is the author of six books and articles which have

appeared in publications ranging from Human Events and National

Review to the Nation and Rolling Stone. He has been a nationally

syndicated newspaper columnist and a cable TV personality on CNN

as a co-host of Crossfire and, most recently as guest host on MSNBC's

Scarborough Country.

We recently interviewed Buchanan on the subjects of national

election politics and its effects on small business.

What Small Business Should Know About

Big Politics Interview

RICH: I can't remember a politi­cal convention in the last 20 or 30 years in

which there was any question about whom

the nominee would be. What changed to cause this?

Buchanan: It's because you've done away with the two-thirds rule for nominees, and when the requirement is just 50 percent to be nominated, you would have to have two strong candidates, such as Taft and

Eisenhower in 1952. What killed that possi­bility is the current primary system.

When I was with Nixon in 1968, there were about six really good contested prima­

ries. We won all six. Now you have dozens of them, so what happens is that the early

caucuses and the early primaries sort out

48 VALUERICH MAGAZINE 2005

An interview with Pat Buchanan

the field. One candidate does well in Iowa

and New Hampshire and accumulates $50

million in free media from all the networks,

cable TV and the newspapers worldwide. He

bui lds a head of steam that eventually, and

very early on, eliminates all rivals, except

for one who generally trails for a couple of weeks and then disappears.

That 's the way the primary system is structured. And frankly, I have no objection

with it because the alternative is to have

something like a nationwide primary, which would simply validate the Gallop poll at that

time. And therefore the winning candidate

would be the best known, and the most popular when the snapshot was taken.

Even though I was far behind Senator

Dole in 1996, starting off behind Senator

Phil Graham in some states, we picked out

an early caucus in Iowa and defeated the

field with a few thousand votes; then went

one-on-one and defeated Senator Graham

in Louisiana and came into Iowa with tre­mendous momentum and lost by just three points to Senator Dole in Iowa; then carried

New Hampshire, and lost by a couple of points in Arizona. Had I won either Arizona

or Iowa, as an outsider I could, and would,

have won the nomination. But if you'd had a national primary, I don't

think I would have gotten into the race. VALUE RICH: What do you mean by "as

an outsider?"

Buchanan: I didn't have a single endorse-

www. valuerichonline.com

ment of a congressman, senator or governor.

I was challenging for the nomination of the

Republican Party basically from a position

outside of politics.

VALUERICH: Do you think, the way the

primaries have evolved, that they are used

as a tool by the parties to essentially front

their chosen agenda?

Buchanan: Exactly. I knew the whole game was over early in 1999 around February

or early March when Bush's exploratory team

announced that they had $36 million in the

bank. That was the end of the outsider chal­

lenge right there. VALUERICH: You are in favor of the

primary system the way it is. But doesn't this rob a lot of Americans from having their

input into who the candidates will be?

Buchanan: Sure it does. The parties

decide on their candidates. We have a two­

party duopoly now. It is something of a

consumer fraud in some sense to say that America is a democracy, because the two

parties have managed to eliminate third party candidates from the national debates,

which are decisive in the election.

And they have established their own

primaries the way t hey wish. Their two can­

didates now have, because of past loyalty

and voting patterns, pretty much an iron

lock on 35 or 40 percent of the nation. No

matter how weak a candidate of a major

party is, he's going to get 35 or 40 percent. When you add the votes from both parties

together, there is not enough left for a third

party candidate to win. There is no doubt about it. The American

people are kept out of the primary process

to a great degree because the early pri­

maries are decisive. New Hampshire and Iowa for example are more important than California and New York, because the winner

of Iowa and New Hampshire becomes the favorite in Californ ia and New York.

But I do think the American people par­

ticipated energetically in our campaign. We had 160,000 small contributors in 1992 chal­

lenging a president and in 1996 challenging

the Republican Party. We came from the outside and defeated major Republican fig­ures like Phil Graham, the chairman of the

finance committee, and the chairman of the foreign relations committee Senator Lugar,

Governor Pete Wilson of California, and six

www.vrexpo .net

Republican presidential candidates (left to right) Alan Keyes, Morry Taylor, Steve Forbes, Robert Dornan, Sen. Robert Dole, Sen. Richard Lugar, Lamar Alexander and, the outsider, Pat Buchanan before the New Hampshire presidential debate in February 1996.

or seven other national Republicans, and

almost defeated the senate majority leader

Bob Dole. You're right that the decision to defeat

Dole would have been taken by a tiny minor­

ity of Americans in Iowa, New Hampshire, Arizona and South Carolina. Let's assume if

we had won all four of those, we would have

won the nomination. But at least an outsider

could have won, and outsiders participated

in those early primaries with contributions.

"We have a two-party duo­poly now.lt is something of a consumer fraud in some sense to say that America is a democracy .. :'

If you talk about active voting, a voter in

let's say Oregon has virtually zero participa­tion in the choosing of a nominee- unless they do so by contribution or volunteering.

VALUERICH: Most recently, we saw two

big money players waging a war for the White House. How did Clinton, who essen­tially didn't have the bank account or the net worth, build up the steam financially to be

able to take on that national challenge?

Buchanan: I was in the race with Clinton. We were both in New Hampshire together. Clinton started off with a political base in Arkansas, and a small base of major contrib­utors out of Arkansas and Democrats who were looking at him nationally as the most

likely to defeat George H. W. Bush in 1992.

Clinton went up and lost to Tsongas in New

Hampshire, but he ran stronger than anyone

else. Then he went south, and Tsongas had no base in the South. Clinton swept through the entire South. Within three weeks of New

Hampshire, it was clear that Clinton was

going to be the nominee, even though Jerry

Brown chased him through the Midwest in

the later primaries. It got down to that one­

on-one situation I was talking about.

By winning the nomination, Clinton auto­

matically inherits, as I mentioned, about 40

percent of the country. You are 40 percent

of the way home for the presidency of the United States if you win the primaries and

the nomination, and enormous amounts of

money will accrue to you if you are a credit­able candidate.

What helped Clinton beat Bush, was the

fact that Ross Perot had $3 billion and, after I did well against Bush in New Hampshire, he decided to challenge on a lot of the populist issues that I had run on, and some of his own -the deficit. He got in, and he pulled away populist conservative votes that would have otherwise gone to George H. W. Bush . So

Clinton wins the White House in a three-way race against a president who has lost popu­

larity. I think current President Bush blames Ross Perot and me for his father 's problems

in '92. Of course the economy was in poor condition and the president did not run an outstanding campaign.

Once Clinton slipped through in a three-

2005 VALUERICH MAGAZI NE 49

Independent candidate Ross Perot helped Bill Clinton win the presidency by securing a position in the debates and pulling conservative votes away from the Republicans.

way race and won the presidency - he could take a vacuum cleaner around the

country and pick up checks.

A UERICH: Let's close out this whole

primary issue. So it's your contention that the primaries don't need any reforming.

Buchanan: Look, when you say reform,

who will reform them ?The parties will reform

them. And what will they do? They will reform them so no outsiders can be nomi­

nated. So I think when you say reform, you will reinstall the foxes back in the chicken house. The parties are essentially machines designed to maintain monopoly of power.

There was an opening in the old days, I think, for a movement candidate and an out­

sider. I would put the old days in '92 and '96. McCain almost made it in 2000, but of course he was a United States senator, had his own

5() l/ll.l\l£R\CI\ t<III.Gt.Z\tl£ 2005

basis of support and had enormous national media - more favorable media than any

primary candidate I have ever seen.

VALUE RICH: So essentially, to buck the

parties, it will take a candidate who is enor­mously charismatic, well-known and with a

huge bank account?

Buchanan: A huge bank account now, and that's the best combination. If I'd had Ross Perot's $3 billion, I would have spent

$2.9 billion in my primary run, and then if I lost, I'd see if I could live on the final $100 million (laughs).

VALUE RICH: Do you think John McCain

might have a chance if he were to decide to

run again at some point? Buchanan: I think John McCain would be

the front runner for the Republican nomina­tion even though Rudi Giuliani leads in the

polls, for the reason that Mayor Giuliani 's

positions on social and cultural issues like

gay rights, illegal immigration and right to

life are not only beyond the mainstream of

the Republican Party, they are pretty much

outside the Republican Party. I think he would have a hellish time in the

Iowa caucuses and the South Carolina pri­

mary getting beyond those positions- that

"It is utopian to believe 000 that big business, with all its wealth and all its lobbyists, is going to be denied entrance into the political process oo:' are really scrutinized. Candidates spend a year in Iowa. The mayor might feel that his

national recognition can enable him to go

into Iowa late, but he'd have to run through

the same inquisition. And I'm not sure the

mayor would survive it. VALUERICH: Let's talk a little bit about

the 527s. As I understand it, the FEC ruled

~ that they were not subject to the McCain­~ Feingold finance law and it became a loop­

~ hole. Is that a correct assessment? ,;::;

~ Buchanan: I don't know if that is a correct "' ~ assessment of the law. I gather the ruling a: .9 certainly had some reason behind it, oth-o

'5: erwise FEC would have not ruled thus. The

truth is that I found the 527 ads, especially

the Swift Boat Veterans for Truth, the most

effective of the presidential campaigns. I don't have a problem with outside

groups making their case to the American

people why one candidate should be

defeated and the other elected. And sec­ondly, I don't think you can devise a system

that will keep people of passion or people

with money from participating where they feel the outcome of that election is so criti ­cal to what they believe in or what they're

concerned about. I think it is utopian to believe, for exam­

ple, that big business, with all its wealth and all its lobbyists, is going to be denied

entrance into the political process consider­

ing that the federal government controls one-fifth of the entire national economy and can virtually regulate every decision that big

business makes. They're going to find a way

www.valuerichonline.com

around the law, through the law or inside the law to influence the outcome of an elec­

tion. We are dreaming if we think a force so powerful, with so critical an interest, is not

going to intervene. V LUERICH: Do you really think big

business is one entity? Buchanan: I think the giant business

corporations are certainly an entity. Let me give you an example. The vast majority of the Americans opposed NAFTA. At the

time of the vote, even the majority of the Republicans opposed NAFTA. The president

almost lost Ohio because of these trade deals and the jobs issue and the outsourc­

ing of jobs to China. Nevertheless, both the Republican and Democratic Party will remain free trade parties because they are

bought and paid for by giant corporations

and transnational corporations who feel they have a vital interest in moving their production outside of the United States to

low wage countries like China. The parties

are beholding to transnational corporations even though the voters are against them.

Now this leaves a great opening for a third party candidate. If you had run in 2004 on the issues of keep the jobs home, defend

111 think the strength in the small businesses is, quite frankly, in numbers:' the boarders and bring the troops home -funded to the same extent as the national parties, $500 million or so- you could have clearly gotten as large a share of the vote as Perot got in the year 2000. I don't think

you could have won because of the innate loyalty problem, but you could have gotten 20 percent of the vote.

I think the only way to crack big busi­nesses' grip on policy and on government,

is to reach a situation where, quite simply, the party rebels against its masters - as I think the Republicans are about to do on the illegal immigration issue.

VALUERICH: I think I hear you saying that election reform is basically a bogus issue.

Buchanan: It's a sandbox where they put policy wonks in to try to reform a system that they know cannot be reformed.

VALUERICH: ValueRich is very involved with the situation of the small-caps today. They've lost their forum within Wall Street because of market changes, the consolida-

Republican presidential hopeful John McCain and his wife among supporters a day after his defeat to George W. Bush in the February 2000 South Carolina primary. McCain injected new acrimony into the race with a bitter speech after the South Carolina loss.

www.vrexpo.net 2005 VALUERICH MAGAZI NE 51

t ion of brokerage houses, the economy, new

regulations ...

Buchanan: Well as you know, big busi­

ness can easily devise ways and means to

meet regulations that are far more onerous,

painful and costly to smaller businesses.

I'm very much a small businessman myself.

Believing in that should be the bulwark of a

conservative movement in the Republican

Party. I think the strength in the small busi­nesses is, quite frankly, in numbers. It is cer­

t ainly not in wealth . You cannot accumulate

the kind of wealth that these big companies

can, and some of the very large ones are

behemoth.

RICH: There has been a great

divide that has occurred on Wall Street

between the larger public companies and

companies with market caps under $500

million, partly as a result of the Sarbanes­Oxley Act (SOX), new corporate governance

and research laws. There are incredible

changes taking place with NASDAQ and the bulletin boards.

We met with a CEO of a public company

the other day, HearUSA (EAR), which has

a network of 156 outlets and sells hear­

ing aids. It trades on the American Stock

Exchange and has revenues of just under

$100 million. This company, which is only

now becoming profitable after 17 years,

now has additional SOX overhead of $1 mil­

lion in legal and accounting expenses- the

same cost to a company that is doing $900

mi llion in revenue. They threw the baby out

with the bathwater, didn't they?

Buchanan: Well sure. That point dem­

onstrates very graphically and dramatically

that between very big business and big

government, there is a marriage of conve­nience, which tends·to squeeze out smaller companies.

LUERICH: But the smaller companies are the driving economic force of our nation. The small companies employ something like 75 percent of the people in this country.

Buchanan: The giant corporations are down to, what, 10 percent or less? What

I'm saying is, it's the real world. It's not as it ought to be, but it is as it is. Back in the civil rights days, if you imposed some kind of affi rmative action or quota on a big compa­

ny it simply would create a new department

for compliance and staff it and move on. You

52 VALUERICH MAGAZINE 2005

do that with a smaller company, where its

profits are marginal, and you've wiped out

all of its profits. We've created a Darwinian

world where government, de facto, is on the

side of the big battalions.

ERICH: When they had the

opportunity to create this sweeping change

through SOX, do you think there was some

ulterior motive?

Buchanan: No I don't think so. The politi­

cal system is very shortsighted. The Congress of the United States is not a deep institution.

It is a very responsive and reflexive institu­

tion. For example, during the Enron scandals

and all the rest, you had Sarbanes-Oxley and

Democratic candidate John Kerry nearly won Ohio and the presidency on the issue of job losses.

things like this so that congressmen can go home and say look what we did. We cleaned

it up and responded to the crisis.

It's a crisis-oriented institution. The media seizes upon an alleged abuse and they turn to the Congress and say, "What are you going

to do?" And the president and the Congress say we will defend the people's interests,

and here is what we are going to do. Then they act. And they signed a bill and a law, and imposed a burden on all business, and

they moved on. Their job is done, and others have to live with what they've created.

What they've created is onerous. The weight does not fall equally. Quite obvi-

ously, if the weight falls identically on small

business and big business, then the weight

on small business is far greater.

That 's the world in which we live - the

world in which some of us have been trying

to do battle against big government, unsuc­

cessfully, because as I write in my book Where

the Right Went Wrong, we have two parties of

big government now. The Republicans and

the Democrats are two wings of the same

bird of prey. The Republicans have come

to realize that the way to win a majority

vote is to do what the public demands. And

that means that if the public is happy with

big government, then they become a big

government party. And their philosophy

and principles are cast aside in the pursuit

of power. And, it's hard to argue with their

success from their standpoint.

V LUERICH: You said one thing inter­

esting earlier, and that is ...

Buchanan: I hope I've said more than one (laughing).

VALUE RICH: That's true. You've said quite a few interesting things. But, what

perked my ears up earlier was when you

~ said that small businesses' strength is in X

"' :2 numbers ...

~ Buchanan: It is. It used to be the National "' ~ Federation of Independent Business (NFIB)

~ and small business groups like that were

8 very much listened to when I was back in E 8 the White House, because they represented ~ QJ

z so many businesses. We knew there were

~ an awful lot of people out there that they ..c: c.. represented, and they were hurting. That

was the backbone of the Republican Party

and the conservative movement to which I

belonged.

VALUERICH: Are those organizations still heard in Washington?

Buchanan: They are still there but one

hears less and less from them and more from the business roundtable and the big mules.

And so I think that 's very, very difficult. We've seen an awful lot of these small companies

go under. I just saw in Business Week that

Summitville Tile in Ohio, which is owned by a wonderful fellow and friend of mine­

he's supported me and given small fundrais­ers for me - went into Chapter 11 because

of China. And, the government seems not to care.

www. valuerichon I i ne .com

Why is the government addicted to global­ization? And in who's primary interest is glo­

balization? Who are the major driving forces

for it? They are the transnational companies

that deal across borders and would like a

borderless world. There is a callous indiffer­

ence to dropping small American businesses

into a sea where the businesses all over the

world are paying their workers a tiny fraction

of what Americans need for a living wage.

VALUE RICH: It's kind of scary, because

what's really keeping our economy above

water right now is small business, and yet it's

being decimated.

Buchanan: It is being decimated, and

especially the manufacturing sector. Again,

the only response, I think, is politically

from the people. Mr. Bush almost lost Ohio

because of the lost manufacturing jobs

there. VALUE RICH: Isn't it interesting that jobs

were a key issue, and yet I don't recall hear­ing the point hit hard during the debates

or in campaign advertising that small busi­

ness is responsible for most of the jobs in America, and that there are issues with small

business, where it needs to be supported

better by government? Buchanan: I think you're right. Most of

the advertising in campaigns - because

the campaigns are so close and the parties

are so even- are attack ads to convince the

undecided that the alternative is just hellish

or unacceptable. But you're exactly right.

The job losses in Ohio almost brought the

president down. If you look at the exit polls

of those Americans who considered jobs and

the economy the number one issue, Kerry

won three to one. If they considered taxes

the number one issue, I think Bush won four

to one. So, when you got to the issue of jobs it was a real vulnerability for Republicans, but the president survived it. And he is an

ideological free trader and his big business friends very much have a vested interest in

globalization. But I think the backlash is coming there,

as it is coming on illegal immigration. We

saw resistance to the president explode in the House of Representatives, to the point where he almost lost his intelligence Czar.

VALUERICH: I have one last election

question about district gerrymandering in

the House ...

www.vrexpo.net

Buchanan: There is no doubt about it. What Republicans are doing is cynically

using the Voting Rights Act of 1965. As it has

been interpreted, the Voting Rights Act said

you cannot dilute the power of the minori­

ties in Congress, and it designates Hispanics

and African-Americans as minorities. What

Republicans do is say, "Fine, let's take all

the African-Americans and all the Hispanics

and move them into heavily Hispanic and

African-American districts and virtually

guarantee that they will vote Hispanic and

African-American, and thereby increase rep­

resentation or maintain it in the House.

By so doing, of course, they are moving

Democrats into districts where they are 70,

80, 90 percent Democrat and they leave the

other districts 60 percent Republican to 40

percent Democrat and increase their mar­

gins. They did it very successfully, Tom Delay

did it - I think he must have picked up a net of four or five seats in the House in Texas

alone and made these permanent Democrat

and permanent Republican seats. VALUERICH: Isn't this the same as rig­

ging elections?

Buchanan: Well that's exactly what both

parties do. The whole idea is to rig the elec­

tions so that the outcome is that your party

is in power. That's what gerrymandering is

all about.

VALUERICH: Why shouldn't we be

alarmed about this?

Buchanan: (laughs) You can be as

alarmed as you like. But it's rather irrelevant

whether you're alarmed or not.

VALUERICH: What can be done about

it? Buchanan: Why is it a problem? You've

got a Democrat or a Republican Party. It

might be well, I guess, if all districts were 50150. I don't think you could do that, but if

you got them so that you had, say, 350 dis­tricts that were really very, very close, I think you would have a House of Representatives that would reflect national trends - but

again, you have two political parties that control gerrymandering. Each of those par­

ties has a vested interest in power. And each of them is going to do its level best, frankly, to butt the other out of existence to the degree that it can - or to so dominate the state, that they leave the other party get­

ting fewer congressional seats than its total

vote would have justified. Both parties are doing it.

With due respect, it 's like a football game

where we are simply the spectators. We are not deciding the outcome. We can boo or

cheer for whomever we wish, but it is the

players on the field that decide it. They are

"Rs" or they are "Ds" - and they will use

the tactics they can within what the court

decides, the court being the referees, to win

the game- and not only win it but run up

the score because that's what is all impor­tant. That is the real world .

VALUERICH: Is it possible to get back

to, or to develop, a representative form of government then?

Buchanan: Well, I think we have a two­

party system that is enshrined, and it is almost impossible for me.

See, my view is that a third party- which

represents the ideas that I mentioned, which

are frankly enormously popular today: eco­nomic patriotism, putting American work­

ers and American business first, controlling America's borders, and giving up this for­

eign policy of imperialism and adopting an

America first foreign policy - is what you

want, or what you need, and what I believe

we ought to have. I think those are ideas whose time has come.

But I do not believe that without billions

of dollars that you could overcome the other

two parties, or even get yourself into a presi­dential debate to articulate these issues.

And I do believe that the only way to defeat these parties is, in a way, from the top down.

Basically, to get say a 20 percent vote in one

election and then sort of force one of the

parties in your direction if it wants to survive

-probably the losing party in the election.

So in other words, what you would want to do is, for example as in the Perot-Bush situ­ation from '92, have the Republican Party move in the Perot direction, to reshape itself as a populist conservative party, but that did not happen.

VALUE RICH: I have to say, Mr. Buchanan,

that it is wonderful to listen to you when you

seem much more relaxed and when you do not have to fight for talk time.

Buchanan: Thank you very much. I've been fighting with MSNBC for a show where we have a little more time to talk rather than playing Clyde Beatty the Lion Tamer. VR

2005 VALUERICH MAGAZINE 53

54 VALUERICH MAGAZINE 2005

By Roland Savage

Technological advances and the changing face of regulation have each had a dramatic effect on the structure of today's securities industry and continue to affect the markets of tomorrow.

In most industries, open competition

(overseen by strict anti-trust guidelines) fos­

ters improvements in efficiency fueled by

ever-improving technological solutions. The

securities industry however, has not evolved

like any other industry. This is due to the

interaction of three major factors:

1. The securities industry is an oligopoly.

2. Technology is considered a threat, not a

benefit. 3. A governmental agency (the SEC) sets

rules that exempt the industry from tra­

ditional business constraints.

These factors have permitted behavior

that would be impossible in any other busi­

ness sector and have enabled the industry

to operate in a fashion that contradicts basic

economic premises of competition and evolution . In the securities industry, what

is expedient becomes practice and what is

practice becomes legal, and, to top it off, the

arbiter of change is an oligopoly supported

by a cooperative regulator.

Historically, limiting access to the markets

ensured extraordinary profits for a chosen

few. Consequently, advances in technol­

ogy and the education of private and pub­

lic companies as well as the public investor

were not major objectives of the industry. In a strange dynamic, the two biggest assets of the securities industry were ignorance and inefficiency, ensuring that private investors and public companies paid the freight for a

c system designed to maximize returns. ~ c The simplest and most dramatic example ~

lllllflm1ttmt~ ~ of this is the equity trading side of the busi-£ ness. The forces that created the landscape

j we face today were set in motion at least thir­.@" ty years ago w hen the government did away

......_------------~---_. ~ with fixed commissions. Fixed commissions

www. valuericho nline .com

ar • conom1cs

and the Challenge for Small-Cap Companies were a financial boon for securities firms that

supported a status quo of attractive margins,

gentlemanly cooperation and, in a strange

way, ethical behavior. Profits were assured

and entry into the club was limited. Had the government not eliminated

fixed commissions, the business might have evolved, with firms competing to differen­

tiate themselves by adding value through

providing better execution of customer

orders, better research to discover truly wor­thy companies, and more beneficial invest­ment advice tailored to the needs of specific

personal or corporate customers. Subject

to the basic economic principal of competi­tive pricing, they would have had to suc­

ceed by raising the quality of their products

and services to attract and keep customers. Unfortunately, with an industry so used to cooperative behavior, it was inevitable that

the firms would attempt to create another model that ensured their risk-free profits

rather than be subject to normal economic

forces of competition.

www.vrexpo. net

Fixed commissions were an enormous

cash flow to the firms for executing trades.

So, when they were eliminated, firms looked

to the only area with enough transaction

volume to make up for the loss. How do you

In the securities industry, what is expedient becomes practice and what is practice becomes legal, and, to top it off, the arbiter of change is an oligopoly supported by a cooperative regulator.

make up for a lower level of commission

rates? You create an environment where you control the price of the product. Once you control the price of the product, the level of commissions becomes unimportant.

We should have expected no less. The pre-

Editor 's note: This article is edited from a

speech that Roland Savage presented at the

ValueRich Small-Cap Financial Expo in Palm

Beach, Florida, on March 70,2005 .

disposition of the firms to act in a coopera­

tive fashion was obvious from past behavior.

The model that they created was NASDAQ.

In NASDAQ, the firms had a perfect environ­

ment to exceed the profits of the fixed-com­mission era.

However, to accomplish that, three things

were necessary:

1. Competing market makers must cooper­

ate to maintain wide spreads based not

on price, risk, volume or liquidity, but

what the market would bear.

2. Competing market makers must trade

among themselves, with the objective of

no stock positions at the end of the day and no exposure to risk.

3. Public orders could have no standing and

could not enter the market to narrow the

spread or show true interest.

Now, this is where economics and regula­

tion blended to enable the securities indus­

try to act in ways other industries cannot. The valid attempt on the part of govern­

ment to increase competition by eliminating

fixed commissions was almost immediately

undone by an SEC that appears preoccupied

with ensuring the health and profitability of the major member firms- the oligopoly.

The NASDAQ model is completely depen­dent on the cooperation of market makers

to ensure profits and the exclusion of the public to maintain its edge. In allowing the

NASDAQ model, the SEC changed the basic

economics of the business, allowing practic­

es that would be illegal in any other industry. If it's legal, economics tells you to do what­ever results in the greater return. The indus­try regulator allowed public stockholders

to be disenfranchised. The NYSE and Amex

were forced to stand by silently because they were, in effect, owned by the same

people who created NASDAQ. The growth of NASDAQ was assured, and the quality of the market was doomed to be secondary to the

collusion of traders. NASDAQ grew and became the darling

of academics and the SEC for its "open" elec­tronic market. Public companies and inves-

2005 VALUERICH MAGAZINE SS

In April2005, NASDAQ announced the intended acquisition of lnstinet.

56 VALUERICH MAGAZINE 2005

tors were overwhelmed with slick adver­

tising and phony research, paid for by the

exorbitant profits generated by the world 's

greatest fixed deck. The flawed NASDAQ

economic model aborted any move toward

greater efficiency and rewarded firms that

operated contrary to the public interest.

End of the NASDAQ Era

In the early nineties, when the Justice Department was finally called in (by the Small

Order Execution System bandits, no less), it

took investigators only a matter of months

to uncover the corruption of the system and fine the firms a billion dollars- which they

paid happily, considering the multi-billions

they had made with the big fi x.

The SEC was finally put in a position of doing something. It changed the order-han­

dling rules so as to give public orders stand­

ing and, in doing so, changed the econom­

ics of the business again. With public orders

having access, the market maker coopera­

tion element was gone and NASDAQ was no

longer an attractive model.

But there was one more dance left on the

card- the Internet bubble that allowed $10

trillion in market value to appear and disap­

pear and an estimated $60 billion of capital

to be misdirected through laddered IPOs. It

was a last fling where the market makers had

no positions and volatility attracted the play­

ers, who wound up owning all that paper.

NASDAQ went from 1,500 to 5,000, but

now is hovering around 2,000.

It is more than the type of company you

trade, it is the nature of your trading model

that allows such swings. It is interesting that,

in the downswing, NASDAQ lost 75 percent of its value while the auction markets, the

NYSE and Am ex, lost from 25 to 30 percent.

This might be a good place to reinforce

that change in the securities industry typi­cally evolves not toward a more efficient system but toward a more profitable one. The rise of NASDAQ is the perfect example.

Before NASDAQ was established, companies

~ moved from the pink sheets to the Amex

~ to the NYSE. They would first move from ~

~ ~ a.. <t :2 ::::> N

an inefficient dealer system to an auction model on the Amex, where there was as

little interference from dealer intervention as possible and everyone had direct access to the market. Then they would move to a

www. valuerichonline .com

more prestigious auction market where the

big companies traded- the NYSE.

The creation of NASDAQ enabled the

firms to keep companies in an inefficient and

enormously profitable market for as long as

possible and, through smoke and mirrors,

make them feel that they were on a high­

tech electronic exchange. The height of this

absurdity is that each morning select compa­

nies press a NASDAQ button to nowhere on CNBC. If your company is really special, you

get your face plastered on its Times Square

electronic bulletin board.

The only reason NASDAQ still functions

is because it was temporarily saved by the

volatility orgy of the bubble. Master packag­

ers still attempt to portray a robust trading

platform, but today NASDAQ market mak­

ers do less than 17 percent of the trades in

NASDAQ stocks. In fact, the NASDAQ recent­

ly acquired lnstinet's electronic communica­

tions network (ECN), effectively throwing in the towel. With the change in order-handling

rules, decimalization and a stagnant market,

NASDAQ is a market whose time has gone.

In recent years, ECNs have taken the trad­

ing volume from NASDAQ. A number of pre­

vious NASDAQ market-making firms have

started their own ECNs. Archipelago has cre­

ated very attractive execution insurance by

routing trades through its system instantly

to the best markets if it can't match them

with orders on its book, thereby creating

the ultimate matching system. Technology is

entering the markets because the coopera­

tion model is finally broken. Nevertheless, the SEC is still contributing

to market inefficiency by allowing payment

for order flow and soft dollars. Through its

inaction on these issues, the concept of best

execution is still economically disadvanta­geous. Since payment for order flow and soft

dollars is legal, rational purveyors will do all they can to increase the level of payment

for order flow and effectively change a pro­

tected customer asset into a commodity to be sold to the highest bidder. This creates an

environment that will support the most inef­ficient of markets in order to gain the great­

est amount of payment. It may be unethical to take advantage of the customer, but, since it is legal, economics points the large firms in

the direction of higher returns. Another example of the SEC favoring the

www.vrexpo.net

interests of the large firms over the public is

the elevation of transaction speed over qual­

ity of execution. The more transactions you

make, the more money you can make. In spite

of the obvious advantage this offers to large

firms, the SEC is supporting an electronic

environment where speed overwhelms price

improvement and the prospect of easier

transaction regulation overwhelms the ben­efit of an efficient pricing mechanism.

The Danger otWell-meaning Government

Economics is the driving force behind

any rat ional business action . Therefore, the

ability of a well -meaning SEC to unintention­

ally change the economics of the industry is

the most dangerous variable in the evolu­

tion of a truly efficient securities industry.

As we learned from the NASDAQ era, com­

bining the interest of the large players in an

industry with a well-meaning but misguided

-'We have seen decades where ••• you could make more money from trading the stock of a company than building the company itself. '

regulator can create significant unintended

consequences and have a major adverse

economic impact.

In addition, the abuses in the market and the unacceptable actions of corporate lead­

ership during the NASDAQ era gave rise to

even more governmental incursions, with

further well-meaning but flawed legislation.

Sarbanes-Oxley (SOX) will go down in history

as a monumental miscalculation on the part of the Congress, with enormous implications for small-cap companies. As a result, small­cap companies must seriously reconsider

the implications of a decision to go public

or remain public in what is becoming an increasingly hostile environment.

Now, let's pull together what I have cov­ered and put it into the context of small-cap

companies. We have seen decades where trading

profits have overwhelmed other interests and created a culture where you could make

more money from trading the stock of a

company than building the company itself. The NASDAQ model of widening spreads,

trading to go home flat and excluding public

orders was a perfect environment to trade

anything. A large number of companies were

brought public because firms made good

money on the transaction and then even

more money on the trading. Whether or not

it made good economic sense to go pub­lic, the allure of trading profits in a risk-free

model made some firms a little overzealous.

Today we have a very different story. The

economics of the industry encourage big

deals and fast trading. The infrastructure of

large firms makes it cost-prohibitive to do

small deals, and, with a lack of easy trading

profits, speed of execution is of great impor­

tance. As the industry concentrates more on

the big deal and the SEC continues to act as if

anything small is risky and bad, the small-cap

segment must seriously consider its options. While many acknowledge the importance

of small business to the economy and job

creation, nothing positive seems to emanate from talking heads.

As mentioned before, the historical evolu­

tion of the markets appears to be predicated

on the needs of the oligopoly and the percep­tion of acceptability with the SEC. Recent his­

tory has shown that the Justice Department

and the offices of various attorneys general,

in addition to the SEC, have contributed to

industry regulatory changes.

Three Major Threats to Small-Caps

In my opinion, a major threat to the health of the small-cap market is the "one size fits

all " obsession on the part of regulators and

the economics of being public. Another seri­

ous threat is the misunderstanding of what it means to be a public company. The third is the lack of appreciation and availability of a supportive and efficient marketplace.

Let's take them one at a time. 1. One size fits all

The proclivity of the SEC and Congress to impose regulation without understand­

ing the nature of small business is a national disgrace. When Arthur Levitt and Paul Volker write an op-ed piece in The Wall Street Journal singing the praises of SOX, using

GE as an example of the cost benefit of the regulations, it borders on the bizarre. There

is such an intellectual disconnect in the

2005 VALUERICH MAGAZINE 57

economic thinking of regulators that it has

reached crisis proportions.

No one is more respectful and supportive of effective regulation than I, but there is a

point where the cost of well-meaning but

largely ineffective regulation overwhelms

the capital process. Steve Boyco advances the concept of risk

President George W. Bush signed corporate fraud legislation on July 30, 2002, with (left to right) co-authors Sen. Mike Oxley (R-MD), Sen. Paul Sarbanes (0-MD), Sen. Trent Lott (R-MS) and Tom Daschle (S-SD) looking on.

58 VALUERICH MAGAZINE 2005

vs . uncertainty. Large companies that have

revenues, earnings and size can assess the

probabilities of success vs. risk, but smaller, developing companies face uncertainty rath­

er than risk because so much is beyond their

control. Regulating both types of companies

the same way leads to a situation where the

cost of regulation is far greater than the ben­

efit and the result is economic stagnation. Regulators must gain a better under­

standing of the nature of business and the

severe unintended consequences that often follow ill-advised actions. Small companies

are not little big companies. They have differ­

ent challenges, they have different needs and

they are most in need of the efficient transfer

of capital from investor to enterprise.

The one-size-fits-all mindset is a cancer

eating at the basic promise of capitalism in

this country and if not addressed will have

significant implications on our ability to com­

pete in an ever-expanding world economy.

2. What it means to be a public company

The promise of cashing in by going public at high price multiples can be a great tempta­

tion, but the reality of being a public compa­

ny can be far different. In theory, public com­

panies attain admittance to a market that

will reflect their achievements and monetize

their accomplishments. However, nowhere

is there a greater difference between theory

and reality than in the securities industry.

While the largest companies have mil­

lions of shares, thousands of shareholders

and consistently heavy trading volume,

small-cap companies may not. While the

largest companies receive robust analysis and wide interest, small-cap companies may

not. The essence of efficient market theory is

the immediate discounting of information, and small-cap companies operate on a level

where that may not be the case.

While being small is not bad, it is more difficult in a world designed for the largest companies. The expenses of being public are increasing at a rapid pace, and the markets are moving in a direction that might not be

designed for the interests of small-cap com­panies. Small-cap companies more resem­

ble private companies that deserve access

to public capital. They must understand the workings of the market and rationally address their special challenges to maximize their opportunities. They must maintain

www.valuerichonline.com

business common sense.

The economics of being public must be

examined. With costs increasing, the size at

which a company can rationally go public is

growing and the nature of public companies

may be changing. The issue of staying private

for a longer period of growth or returning to private status is being forced on companies

by the increasing cost of regulation and the evolving structure of the marketplace.

3. Availability of suitable marketplaces

While the largest companies have a high

level of natural liquidity and can effectively be traded in electronic marketplaces, small­

cap companies must have access to a more

supportive and efficient market model. There is a need for capital commitment

to stabilize the market in stocks with smaller

floats. The difference in the economic inter­

ests of market makers has a direct influ­

ence on their pattern of trading. I previously

described the reasons for the rise and fall

of NASDAQ, but the basic economics of a

dealer market is important to understand

when choosing a marketplace. Dealers

make money on capturing the spread on the

stocks they trade, and they limit their risks by attempting to end the day flat, with no capi­

tal commitment. Theoretically, the perfect

NASDAQ stock would be a dollar stock with a

dollar spread. Not much good for a company,

but great for a dealer. Specialists in auction markets operate

from a long-term perspective. They commit

capital to smooth out the trading in a com­pany's stock and create an environment of

less volatility, so the stock has the best pos­

sibility of trading at the company's intrinsic

value. Once that occurs, the company will

issue more shares and become more attrac­

tive as a trading product. The interests of a specialist and the company are economically

identical. The fact that the SEC allows companies

to go public without access to supportive

markets is a disgrace, and its benign neglect of the Bulletin Board and the Pink Sheets is

a scandal. With the Amex regaining its inde­

pendence from the NASD, I have great hopes that we will establish a second tier to allow smaller companies to have access to the sup­

portive markets they deserve. The issue of private equity, however, is

becoming far more important. Private com-

www.vrexpo.net

panies need better options for raising the

funds to grow to a size where going public

is possible. And individual accredited inves­

tors, as well as venture funds, should have a

more efficient platform in which to interact

with real companies. A friend of mine, Lou Meade, is start­

ing the Private Company Marketplace

Exchange, where private companies and accredited investors can interact to provide

capital , or where public companies that

1The fact that the SEC allows companies to go public without access to supportive markets is a disgrace, and its benign neglect of the Bulletin Board and the Pink Sheets is a scandal.' return to private status can still have an

effective source of capital. They even pro­

vide means for accredited investors to trade

their positions in private companies with

other accredited investors, giving them

a level of liquidity they never had before.

Technological advances and the Internet

have enabled this concept.

Participating companies will be required

to have audited financials and report very

much like a public company, but without the

unnecessarily high costs of requirements placed on public companies by various

agencies. There will be an exchange media­

tion panel. The ultimate regulator will be the

Justice Department and the various state

attorneys general, who will be involved if

there is any attempt at fraudulent activity.

The Voice of Reason

To sum up, we are faced with a rapidly

changing securities industry that evolves

in ways that sometimes favor one segment

of the market over another because there

has been a serious lack of vision on the

part of both the regulators and the major

member firms that make up the oligopoly. Nevertheless, change can also provide for a

more efficient and fair market if we under­

stand that economics and integrity are the

foundation of a successful marketplace.

We must realize that our issues are funda­

mental to the economic health of this nation

and that our voices are the instrument nec­

essary for our success to occur. VR

Roland Savage is a thirty-year veteran of the

securities industry, most recently as a partner

in an American Stock Exchange specialist unit.

He previously was a Vice President at Fidelity

Capital Markets and prior to that spent fif­

teen years on the staff of the Am ex. He began

his securities career as an investment analyst

in the Corporate Finance Department of The

Prudential Insurance Company.

He received his MBA from the University of

Chicago Graduate School of Business and his

BA at Fordham University, and served as an offi­cer in the U.S. Navy from 1968 through 7917.

ADVERTI SEMENT

3C>H3M 32H3V3H REVERSE MERGE

The fastest easiest way to become a public company.

I have a NASDAQ full reporting entity (JRBO). It is empty and clean. Let's talk.

Call Dr. Robert E. Williams, 1 .. 352 .. 207 .. 5905

SUM 2005 VALUERICH MAGAZINE 59

The Next 425 Ne¥~ Names in the S&P 500 Remarkably, 425 companies in the S&P 500 were not there 25 years ago.

As the world economy

continues to grow and

change, new industries are created and new opportunities develop.

While so much is made of long-term invest­

ing, even looking at the companies that have

remained in the S&P, only a handful have

outperformed the index.

While I am a tremendous advocate of

equity investing, I am only interested in

t hose companies that have certa in charac­teristics - healthy ones that show current

growth. I am focused on identifying the

next 425 names that will be entering the

S&P over time. Interestingly, many of these

growth companies are funding their expan­

sion in a new way- through PIPES (Private

Investments in Public Companies).

In recent years, the cost and timeframe for

smaller companies to float secondary stock

offerings made raising new capital difficult.

In addition, larger brokerage firms were not

interested in doing the capital raises of only

$5 to $15 million that smaller companies

needed to get to the next level. This is how

t he opening for PIPEs arose.

Smaller broker/dealers and hedge funds

have the funds, or access to the funds, to do

t hese kinds of transactions quickly. While often a savior to smaller companies, the PIPE

transaction can be tricky. In some cases, the

"funders" do not have a suitable timeframe and do not hold the shares long enough. In

t hese cases, the company may see their share price under pressure as these new shares are

sold into the market. New capital is required

by smaller companies to grow and PIPEs can offer this capital. But smaller companies should be careful of who is helping them raise the money- investors or flippers.

It is critical for small companies to remem­

ber that they do not need to run with the largest crowd to be profitable. In fact most

large mutual funds buy the same largest publicly traded companies. It is for this rea­

son I believe the smaller funds, hedge funds, and the individual investor have a significant advantage over larger institutions today. An

60 VALUERICH MAGAZINE 2005

By Jordan Kimmel

investor in the best small companies, with

a 3-5 year time horizon, can have the most

superior investment results of all.

Once an under-followed and undervalued

company is identified, investors must have

patience to let the investment work out. But

it is also important to monitor the progress

or deterioration in the company 's finan­

cials. Holdings can and should be evaluated

through unbiased measurements - not

by management's updates about "how the

story is going:' Smaller companies, that wish to be in the

S&P 500 someday, need to focus on keeping

quality investors and on presenting them

with results rather than "the story." When companies show continued revenue and

margin growth, it is usually only a matter of

time until the institutions take notice. In order to be patient and feel comfort­

able holding smaller companies, I believe the selection process must be based on substance rather than sizzle. In every market

there are many"story stocks" that attract cap­ital only to frustrate investors over time. It is

the disciplined process of identifying future

"magnets," staying patient and monitoring

the progress of each company for continued growth that enables investors to generate

true wealth over time, and companies to

grow into leaders.

I have developed what I call the "Magnet

Stock Selection Process" to help

identify future market leaders. The

process combines the best aspects

of value, growth, and momentum invest­ing . By screening for top line revenue

growth coupled with margin acceleration,

we are able to identify companies with new

products and without current competition.

We look for companies with little institu­

tional holdings that dominate a new market

niche. We look for strong cash flow, low debt, in addition to evaluating companies with a

host of Magnet's proprietary financial ratios. This process allows us to uncover the

best of the smaller, new companies that we

believe will continue to appreciate in each

market cycle. Smaller company leadership

might be well served by measuring their

companies to the Magnet Process as a way to improve their attractiveness to knowledge­

able investors. Think about it, 15 years ago, who would

have ever dreamed of Internet security com­

panies? During President Hamilton's admin­

istration, there was a filibuster in Congress

to close the U.S. Patent office. The argument

was, "Now that everything has already been

invented, why are we wasting taxpayers'

money?"With the advancement of commu­

nication and technologies, new discoveries

are actually accelerating.

Ironically, these breakthroughs usually do

not come from the larger companies- they are too set in their ways. Investors truly look­

ing for growth need to be involved with the

innovative companies making these break­throughs. And smaller companies need to

concentrate on attracting astute investors.

Jordan Kimmel is the Market Strategist at

Brookstreet Securities Corporation, a national

brokerage firm headquartered in Irvine, Calif.,

with more than 500 independent brokers

and a member of NASD/ SIPC. Jordan man­

ages a Brookstreet branch office in Randolph,

N.J. Jordan is also the President and Portfolio

Manager of the Magnet® Investment Group,

LLC, managing private equity funds.

www.magnetinvesting.com.

www.valuerichonline.com

Bon Vivant, a luxurious and comfortab private villa, is nestled in a two-and­half acre tropical garden in the renownt Sandy Lane Estates. Recognized by T. London Times as "one of the most gracio1 get-aways for the well-heeled", Bon Viva; is appointed for leisure and sports and staffed to serve your every need.

Our chefs have been trained at the fme restaurants in America. Among them, l Bernardin, San Domenico, and WD-: in New York City, Tru in Chicago ar Lafitte's Landing at Bittersweet Plantatic in Louisiana.

To see more of this magnificent villa visit

us on-line at www.bonvivantvilla.com

or call 1-301-656-9400 today.

What makes a good company

By Lester Rosenkrantz

COMPANY A General Beverage Inc. (NASDAQ: "GBII")

has been in the soft drink business for eight

years. The company has a strong regional presence, a solid distribution base and a strong management team. Although GBII has

historically grown organically, the company has

hit a plateau despite being the first to market

in the previously untapped and potentially

lucrative niche of children's fortified soft drink.

62 VALUERICH MAGAZINE 2005

••• GREAT?

COMPANYB Just down the block, Emerging Soft Drink Company (NASDAQ: "ESCX")

is thriving. The company is a direct competitor of General Beverage; in

fact, the two organizations are strikingly similar in the size and scope of their operations. In May, ESDX announced through a press release and

information on its Web site that it had entered the children's fortified

soft drink space and began almost immediately fielding calls from

Wall Street industry analysts, institutional investors and the business

press. Its common stock is now trading higher, continuing a steady

12-month advance since it retained its investor relations firm.

www. valuerichon line .com

There are many companies with good ideas, solid operations and strong rev­enue models. Unfortunately, a company that functions as a good business has no guarantees that its long-term growth will be of significant interest to investors.

In the competi t ive and crowded public

markets, simply running a solid business operation is not enough to be heard above

the babble of 14,000 other public compa­nies. A company's overall business strategy

must include an active and forward-thinking

quality investor relations program to attract

sell-side research coverage and growing

institutional ownership. Investor relations (IR) involves promoting

the management and operations of a com­

pany to current shareholders, future inves­

tors and other f inancial constituencies. IR

programs strive to communicate a compa­

ny's vision and business opportunities, pro­

vide operational transparency, and convey

management's co nfidence in a way that is

understood by Wall Street. To deliver the company's messages, these

programs include the use of tools such as

user-friendly company Web sites, well-writ­

ten press releases, intelligently scripted con­

ference calls and clearly executed financial

presentations. Small companies have a lot riding on their

investor relations programs. Unlike their

larger counterparts, small public companies

cannot rely on huge advertising budgets, elaborate marketing campaigns or substan­

tial financial news coverage to pique inves­

tor interest. To maximize public awareness

and ownership, small entities rely heavily on

financial communications to secure a market

position for the company.

Chemistry Is Critical

A company 's investor communications

program has a huge impact on its short- and long-term success, so it is important to get

it right. Certainly, there are organizations that

perform their entire investor relations func­tion in-house; however, companies with lim­

ited capital and human resources will find that maintaining an IR department is a very expensive and unnecessary proposition.

The better alternative for companies with

www.vrexpo .net

If You Build It, There Is No Guarantee They Will Come!

limited bandwidth is to have an internaiiR

manager- perhaps the CFO- work closely with an outside firm that specializes in inves­

tor relations within its market sector. With the right IR firm in place, a company can nav­

igate the demands of its current and future

investor audience successfully. Conversely,

a slap-dash IR effort has costly ramifications

for the organization.

Almost anyone can hang up a shingle

and claim to have an investor relations shop.

There are many firms out there, each with

its unique method on how to approach

the financial community. It is highly recom­

mended that you research several IR firms

before making a decision.

Ask for referrals from your board, current

investors, lawyers and accountants- these individuals often come into contact with

a variety of IR firms and should be able to

make qualified recommendations.

As is the case with most significant busi­

ness decisions, the search for the "right" IR

firm is a very personal one. Done correctly,

the IR team becomes an extension of the

company; therefore, the chemistry between

the team and the company's senior manage­

ment is paramount. After all, management has a responsibility to lead its company's

investor relations program and ensure its

success. The executive team that pursues a part­

nership with its IR team will ultimately be more successful in its financial communica­tions than one that is satisfied with just a cli­ent-vendor relationship.

Although an IR firm handles some of the

communication on behalf of the company,

there is no substitute for direct contact

between the leaders of a company and the

investment community. In talking to the street, the chief executive officer and the

chief financial officer- in fact, the entire

senior management team- must take care to exude confidence (not arrogance) and

articulate the goals and achievements of the business clearly.

While the CEO will speak to the vi sion of

the company, the CFO will need to be able

to explain, and address questions about the company's financials. To the investor audi­

ence, a company's results are as important

as its vision, leadership and integrity.

Is It Worth It?

With Sarbanes-Oxley, Reg FD and other

regulatory changes in place, the cost of

being a public company today can add a

minimum of $1 million a year to a company's

overhead. Fees for exchange-listings and

SEC filings, as well as for the production and

distribution of interim and annual reports,

press releases and other news to the finan­

cial community, auditors and legal counsel

can add up quickly.

A company that is investor-friendly and

forthright in its dialogue with the financial

community will be rewarded with respect from the Street.

For a modest budget, a company can have an active stock marketing program that will not only raise its corporate profile among

investors over time, but also potentially con­tribute significantly to improved market val­

uation. These relationships become incred­

ibly important when it comes time to raise additional capital, as is the case with most growth companies. VR

Lester Rosenkrantz is the president of Cameron

Associates, Inc. (www. cameronassoc.com), an

investor relations firm focused on the micro cap

marketplace. A Wall Street investment banker for many

years, Lester has over 35 years of experience helping

emerging growth companies reach out to public

and private investor audiences. He can be reached

at 2 7 2/245-8800 or lester@cameronassoc.com.

SUM 2005 VALU ERICH MAGA ZINE 63

ValueRich Small-ca~ Financial Ex~o in Palm Beach, March 9-12, 2005 ---~--

Expo ows Attendees 1

From the minute they walked onto

the floor of the Palm Beach County Convention Center main hall, ValueRich Small-cap Financial Expo participants

were surrounded by the excitement and

d iversity of America's small-cap public

companies.

Over 100 small-cap public companies

and nearly 2,000 attendees gathered in Palm

Beach from the farthest reaches of North America to showcase their products and join

in a networking event that created incredible

energy and generated outstanding results.

Qualified investors, investment bankers and financial professionals flew in from Wall

Street and around the globe to attend. By the

end of the first full day, exhibitors were abuzz

at the happy hour co-sponsored by Zap! and

Bombay Sapphire- many of them clearly

impressed by the number of quality connec­

tions they had made on the Expo floor.

Chairman and CEO of Xtreme Beverage

Network, Inc. (XSBV.OB) Ted Farnsworth

commented: "Small-cap companies like our­selves have no exposure. This is one way that

you get exposure, by being here with fellow

peers and some other groups - everyone from investor relations people to attorneys

to investment bankers. It was great-quality

people that we found . We thought it was excellent:'

The unique ValueRich Expo format allowed small-cap companies to showcase their products with unrestricted access between company leaders and financial professionals.

This was the first time anyone had thrown

a small-cap financial event expo style and it

was also the first small-cap conference to

combine business networking with financial

presentations. Perhaps even more unusual,

the ValueRich Expo was not hosted by an investment banking firm . ValueRich, Inc., a

publishing and events company, is an indus­try-wide advocate for small-cap and micro-

cap companies. This flexible format attracted a broad

mix of micro- and small-cap public compa­

nies and attendees. Many companies were

able to bring their products into the hall

and showcase them. The exhibits included

everything from samples of energy drinks to

a semi tractor-trailer housing virtual NASCAR

racing simulators.

Energy was high on the Expo floor, featuring financial leaders like Archipelago, and small-caps like Abazias Diamonds and NuVim (left to right).

64 VA l UERI CH MAGAZI NE t 1005 www.valuerichonline .com

Our Inaugural Eventl

and Exhibitors Photos provided by Maryanne Russell Photography, Inc., Kim Fontaine and ValueRich.

Michael McCrory, !-Bankers; Michael Rabinowitz, Maxim Group; Barry Ritholtz, Maxim Group; and Ed Dulles, !-Bankers give the Expo a thumbs-up.

ZAP! (ZAPZ.OB) -the company's name

is an acronym standing for Zero Air Pollution

- brought an impressive display of elec­

tric scooters and cars, as well as the first

Americanized Smart Cars. Throughout the

conference exhibitors and attendees alike

were zipping about the floor on Zappy3 elec­

tric scooters. Start-up micro-cap Magic Media

Networks, Inc. (MGCN.OB) brought its motor

home-sized mobile studio to the floor and

displayed its Destination Television prod­

ucts, including HoteiTV, GymTV and BarTV,

to great advantage.

Many other exhibiting public companies

utilized their wood-paneled executive suites to demonstrate software and showcase

working models of high-tech digital signs,

refrigeration technology and other unique

products. Syndicated business broadcasters

were on hand with plenty of visual material

to film and over 100 public company CEOs to interview.

A Media Event

The nationally syndicated business invest­

ment radio show, Steve Crowley's "American Scene;' was broadcast live from the Expo's

main hall floor. Crowley interviewed exhibit­

ing company CEOs during regular program­

ming hours and banked a slew of interviews for future broadcasts.

The expo format is clearly the best way

for micro- and small-cap companies to

attract investor, market and media attention.

"It proved very, very successful for us;' said

Gerald Bloch, consultant for Consolidated

Energy, Inc. (CEIW.OB) "In fact, I don't know if we can 100 percent credit it to the conven­

tion, but our stock jumped the week after

the convention from $3 .80 to $5.30. There

were a lot of people at the convention that

got very excited about our possibilities and our ventures into this marketplace. We think

that the convention really helped expose us

to a lot of market makers as well as invest­ment people:'

In fact, the main hall exposition was such

a success that it caused one of the few disap­

pointments ofthethree-day event: Relatively

small numbers of attendees chose to leave

the main hall activities to attend some of the

financial presentations in the breakout con­ference rooms. Some presenting companies had sparse audiences.

However, presenting companies which

StockWire.com had a steady stream of visitors. John Lane (middle) and other attendees had lots of hands-on time with company exhibits.

www.vrexpo.net SUMMER 2005 VALUERICH MAGAZINE 65

took ample opportunity on the exposition floor to invite attendees and promote their

time slots, had excellent attendance at their

presentations. Companies that came pre­

pared with display materials and products

to showcase and staffed their executive

suite areas with outgoing personnel, had

the greatest success in generating positive

attention. By and large, small-cap public company

and financial exhibitors were ecstatic with

the connections they were making on the

main floor.

As Wing Yu, Chief Executive Officer of

FinanciaiContent (FCON.OB), put it: "The

ValueRich Expo represented an excellent opportunity for us to present products and

services to a very targeted and qualified

audience. It also was the ideal venue to open dialogue with the investment banking com­

munity. Our efforts generated numerous

leads, which will both help our top-line rev­

enues as well as improve our corporate posi­tioning on Wall Street:'

The investment bank Maxim Group, a

platinum sponsor oft he event, was also quite

happy, having generated a large number of

quality leads. Maxim Group's director of sales

and marketing, John Garrity, commented to

ValueRich President Joseph Visconti: "I'm

sure everyone is playing the Monday-morn­ing quarterback and telling you how things

could have been done better- you'll hear

none of that from me. The attention to detail,

the courteousness of the Value Rich staff, and

the overall positive atmosphere of your con­

ference made it a most enjoyable experience

for the Maxim Group team:'

ValueRich magazine, the extensive

ValueRichonline.com Web site and a direct

marketing program that involved partner­

sh ips with industry heavyweights such as

EDGAR Online, Bigdough and Business Wire

proved very effective in bringing 124 public

companies from as far away as Vancouver to

the Palm Beach Expo.

determined. With proven concept firmly in

hand, the Value Rich Small-cap Financial Expo

will now be held at the center of the financial

world September 14-1 S, 2005, at The Jacob

K. Javits Center in New York City.

Visconti and ValueRich will apply their

well-developed marketing machine to bring

this new event to Wall Street. Visconti has redesigned the breakout pre-

William R. Donaldson, CEO of Interactive Motorsports is interviewed on American Scene radio.

On to Wall Street

Visconti was planning the next event, and going over measures to improve it, even as

the Palm Beach show was coming to a close.

The date and location had already been

sentation part of the Expo for the New York

event, by bringing it inside the main hall,

close to central entertainment and network-

ing areas on two adjacent stages. Special

attention will be paid to helping exhibiting

public companies promote their presenta-

Edgar Online (left) demonstrated i•Metrix software. Paul Brown, M.D., Chairman of HearUSA gives a video interview (center). Advanced Spinal Technologies President Jeffery Perelman confers with Maxim Group's Michael Rabinowitz and Ross Mandell of Sky Capital (right).

66 VALUERICH MAGAZI NE 2005 www. valu erichonline .com

·tt: ro .., "' .r:. u a: (I) ::J

~ -c c: ro (I) c: ·~ c:

a£ E ~

u c: >.

.r:. 0. ~ Cl 0 0 .r:. c.. Qj

"' "' ::J ex: (I) c: c: ro ~ ro ~

"' 0 0 .r:. c..

Energy Breeds Success George W. Bush impersonator John Morgan (below) had attendees laughing. Many connections were made during daily sponsored happy hour parties at the Bombay Sapphire Lounge (right and center). The Zap! girls pronounce the Expo a success as they prepare to open their display (bottom).

www. vrexpo.net I I VALUERI CH MAGAZINE 67

The next ValueRich Small-cap Financial Expo will be held at the Javits Center, a few blocks from Wall Street in New York City.

t ions and make the most of the unfamiliar

expo format.

One of the pleasant surprises of the Palm

Beach expo was the Expo Guide, in which

each exhibiting public company was given

a full-page profile. The pocket-sized publi­

cation emerged as an impressive reference

book and was quickly in short supply, due to

demand.

The New York Expo Guide will be expand-

ed to include more show-related informa­

tion on company profile pages and will add

opportunities for companies to purchase

"Company Connect" articles and full -color

branding ads to tie in the themes oftheir dis­

plays. Of course, in order to accomplish this

in a full-color print publication, firm edito­

rial and advertising closing dates have been

established, and companies are encouraged

to register for the Expo as early as possible.

New York Expo Sponsorships Filling Fast

• !-Bankers Securities, Inc.

• Keating Investments, LLC

• Emerging Growth Equities, LTD

68 VALUERICH MAGAZINE MER 2005

Early interest in the ValueRich Small­

cap Financial Expo in New York has been

strong. Available sponsorships and

Bankers' Row slots are filling fast. At press-

• H.C. Wainwright & Co., Inc.

• Intelligent Capital Solutions, LLC

Platinum Sponsors:

Maxim Group, Inc.

Gold Sponsors: Edgar Online Onstream Media Cameron & Associates

Silver Sponsors:

American Stock Exchange Vintage Filings

Stockwire

Perhaps the most exciting addition to the

ValueRich Expo in New York will be Bankers'

Row- a single location where small-cap

public company officers can shop their

investment banking needs to investment

banks that specialize in small-cap public

company needs.

ValueRich is initiating a Web-enabled

process for public companies to submit

their business plans detailing their financial

needs. ValueRich will then source the infor­

mation to associated banks that specialize

in each type of requested financial service.

Thus company officers and investment bank­

ers will have the advantage of meeting face

to face at the ValueRich Expo, with introduc­

tions and much of the due diligence process

completed.

All in all, the ValueRich Small-cap Financial

Expo at the Javits Center in New York prom­

ises to be even bigger and better than the

last one. The expo-style event will showcase all of the excitement and energy of America's

small-cap public companies and provide a

unique business development and financial

networking opportunity for all attending.

For further information about products

and services ValueRich provides for small­

cap public companies, or the ValueRich

Small-cap Financial Expo at the Javits Center

in New York, September 14-15, 2005, visit

www.vrexpo.net or call (561) 832-8878. R

www. va luerich online .com

w NEW YORK

TIMES SQUARE

Feel the energy as you make

your way to theW New York ­

Times Square, an oasis of calm

in the midst of the flurry of a

revitalized Times Square. From

the moment you step inside, you will be transported to a Zen­

like environment. Quiet colors, calming textures and a dramatic

glass-encased waterfall that soothes the senses. Water runs

overhead, streaming down on open sides, enabling you to liter­

ally "walk on water" as you enter the elevator that whisks you to

Reception. It's easy to understand why Conde Nast Traveler put

WTimes Square on its "Hot List of Hotels:'

VR Rate: Wonderful King $349 1567 Broadway at 47th Street, New York, New York 10036

Phone: 212.930.7400, Fax: 212.930.7500

swissotel THE DRAKE NEW YORK

Swissotel The Drake, New

York places you at one of

Manhattan's most prestigious

addresses: on Park Avenue at

56th Street. Ideally located,

the 1927 landmark building is

just a short walk to the City's

most fashionable shopping

areas as well as the Midtown

business district. Swissotel The

Drake, New York provides all the necessities and luxuries to

make the Hotel your home in

Manhattan. Well appointed guest rooms include spacious suites,

several with full terraces overlooking the Manhattan skyline. A

great hotel, Q56 restaurant & cocktails and Paris' most upscale

gourmet shop, Fauchon, await your arrival.

VR Rate: Superior King $339.00 440 Park Avenue, New York, NY 1 0022, USA

Tel: 212.421.0900, Fax: 212.371.4190, 1.888.73.SWISS

Hip and dysfunctional are

out. Style and function are

in . Le Parker Meridien's 730

ergonomically inspired rooms

and suites with far- reaching

views of Central Park and the

Manhattan Skyline, give you

that "at ease" feeling as you

step out in the big town.

NORMA'S over-the-top

breakfast was voted "Simp ly

the best breakfast in New York"

by the Zagat Survey 2001 .

Seppi's neighborhood bistro is a little Soho in Midtown.

High atop the hotel, the savvy Estrela Penthouse affords

magnificent Central Park and Manhattan skyline views. Le Parker

Meridien. Uptown. Not Uptight.

VR Rate: Superior $ 395 118 West 57th ST, New York NY 10019-3318

Tel : 212.245.5000, Fax: 212.307.1776

Toll Free: 800.543.4300

lHf ~HORfHRM Stylish, Sleek & Sophisticated,

Experience the Shoreham. In

the heart of Midtown, on 55th

between 5th and 6th. The

Shoreham offers a truly custom­

ized experience with endless

possibilities. Experience a com­

plimentary drink upon arrival,

24-hour tea, coffee, cappuccino

' or espresso in the lobby, con-

cierge services, high-speed wireless everywhere, down comfort­ers and pillows with Belgian linens.

VR Rate: Queen Rooms $269 (normally $429)

Suites $319 (normally $589)

33 West 55th Street, New York, NY 10019

Phone: 212-247-6700, Fax 212-765-9741

www.shorehamhotel.com

For up-to-date information on the ValueRich Small-cap Financial Expo • New York, visit www.valuerlchonline.com. Contact hotels directly for

reservations. Please remember to ask for the ValueRich Expo Rate. Rooms at the conference rate are limited, early reservations are recommended.

www.vrexpo.net I I VALUERICH MAGAZINE 69

Once Mild·

nne red Financial

eporter •••

• IS now

By Liza Grant Smith

With the launch of I·Metrix, EDGAR Online is the first to step up and actually embrace XBRL, a new global standard for financial reporting, providing greater transparency and a rich environment to efficiently access every line item that a company is likely to include in its financial statements.

Have you ever had that dream where you show up to work naked? Ever since Sarbanes-Oxley made"transparency"the hot buzzword around Wall Street water coolers,

Corporate America has been preparing to

live the experience. Whether the thought of open enterprises inspires fear, frustration or freedom, the reality is that there is a chasm between where we are now and where we need to go. In pursuit of that end, many

72 VAlU ER ICH MAGAZIN E 2005

companies are looking for assistance from

an old friend who's offering new benefits. EDGAR Online, Inc. (NASDAQ: EDGR), a

leading provider of value-added business

and financial information, has always posi­tioned itself on the cutting edge of new tech­nologies. This has never been more evident than with the release of its newest brainchild, I·Metrix. The suite of products, launched in late April, enables users to access financial

data at an unprecedented level of transpar­

ency and marks a revolutionary advance in speed, accuracy, cost and convenience.

Ready or not, the transparency revolution

is here and EDGAR Online is equipped and eager to take its users along for the ride.

They say behind every great initiative is a great acronym. In the shift towards trans­parency, the most critical is XBRL, or eXten­sible Business Reporting Language, a newly

www. valuerichonline.com

developed software code tailored for busi ­

ness reporting. Despite XBRL's noble goals of allowing financial information to be more

widely distributed and easily understood, some finance profess ionals are intimidated

by the new crossroads of high tech and

finance it represents . However, those will ­

ing to look past its scary fac;:ade will find that

XBRL is not unlike the elementary concept of bar codes. Just as bar codes can track a

jar of pickles from the manufacturing plant

to point of sale, XBRL tags financial data and

tracks it from vendor interaction all the way

to consolidated financial reports.

Anyone involved in financial analysis

understands and likely dreads the time con­

suming and error-prone act of re-keying

financial data to move it from program to

program. By affixing a tag to each piece of

data, XBRL can compile data from a variety

of sources and formats and enables develop­

ers to create programs capable of analyzing and manipulating financial data in new ways,

without re-keying. The investment community stands firm­

ly behind the initiative. In February 2005,

the Secur ities & Exchange Commission

announced it was ready to start accept­

ing corporate financial reports using XBRL.

Increasing support for the XBRL standard 's

adoption is driven by growing demand for analytics, continuous auditing and real -time

reporting by the investment community. The standard is ultimately expected to serve

as the foundation for a new generation of

financial web services with a positive impact

on everyone from regulators to executives

and analysts. For financial data providers, the develop­

ment of XBRL has thrown down a gauntlet

of sorts to gauge which companies are up to the challenge of meeting the business world 's evolving needs. With the launch of I·Metrix, EDGAR Online has established itself

as the first competitor to resolutely step up and actually embrace the XBRL challenge.

"XBRL has set a new, truly global stan­

dard for financial reporting by providing a structure and context for every line item

that a company is likely to include in its financial statements," says Deb Doane, VP of

Marketing for EDGAR Online, Inc. "We have distinguished ourselves by being the first to adopt (XBRL) internally and map all of our

www.vrexpo.net

.. CONNECT ·

EDGAR Online, Inc.

50 Washington Street, 9th Floor Norwalk, CT 06854 800-41 6-6651 www.edgaronline.com

data to this global standard:'

She is quick to point out the staggering impact ofXBRL. "The standard itself provides

tremendous granularity in information;' says

Doane. "The average vendor today probably

a i·Metrix. ftr:.-ered Uv EOGAR·oninc:·

fCIII'Ihlt~~JOUiib kl ..,;,;,.,..rU•? -

' S,...,amr-.~ ~~~

::i]!"' lorlaci.IM~1U

M....:.dl>iopllr~- ~ :

provides somewhere in the vicinity of 100-

200 data points. By virtue of XBRL, users will have access to potentially more than 1,000 data points, a tenfold increase in data avail­

able, enabling people to see more minute trends:'

By leveraging the power of XBRL, the Company's I·Metrix product solves the chal­

lenges oft he currently time-consuming, and error-prone process of information gather­

ing by delivering a wealth of data directly into Microsoft Excel right after its submission

to the SEC. Users are able to download data for multiple companies into one spreadsheet without leaving Excel. While it took days for

Online® EDGR:NASDAQ

CONNECT Greg Adams COO&CFO 203-852-5645 gadams@edgar-online.com

data to become available with traditional

data providers, I·Metrix boasts data avail­ability in the fastest turnaround time in the

industry. Coverage is comprehensive, with

data for over 12,000 companies including

pink sheets, private companies and ADR's. This blows by the traditional data provider's

coverage which averages 8,000.

Those concerned that the product 's breadth and speed come at a cost, either

monetary or in accuracy, can rest easy. I·Metrix's price point is 20-25% lower than

competitive data providers and the product

offers unparalleled accuracy by eliminating

all cutting and pasting errors. Questions of line item accuracy are easily answered by clicking on the cell and being taken instantly

back to the corresponding SEC source docu­ment.

Knowing the varying needs of its target

markets, I·Metrix Professional is available in

three editions: Analyst, Corporate and Audit.

Along with the latest tools, fundamental

data and models, users can customize the

product by building their own models and templates to accommodate any specific needs they may have.

The launch of I·Metrix marks the cu lmina­tion of a long and focused process for EDGAR

Online. The Company was knee-deep in XBRL when it was still a rumbling and has been actively involved in the development of the

standard as a charter member of XBRL.org,

an international not-for-profit consortium of approximately 250 companies and agen­

cies striving to build the XBRL language and promote and support its adoption. EDGAR Online worked hand-in-hand with the big

2005 VALUERICH MAGAZINE 73

accounting firms to test the established

taxonomies, which proved to be a laborious

process due to the varying nomenclature of

line items. For XBRL to be successful, it was necessary to create a "dictionary" of tags that

were the same for each company so compar­isons could be made consistently from one

financial statement to another.

Simultaneous to the establishment of

XBRL, the Company began to develop ways

to leverage the revolutionary technology to

meet the needs of the business community. Hence, the concept of I·Metrix was born and has since become the most significant prod­

uct launch in the Company's history. The product has been the primary development

focus of the staff for the past year and has

required a significant capital investment.

Management notes that it has taken con­

siderable time and talent to create a parsing

engine and the proprietary data mapping

protocol necessary to return high-qual­

ity XBRL. However, they could not be more pleased with the ultimate product and the market seems to agree. Previewing of the data and software has generated a tremen­dous response and the Company expects

the product line to result in significant reve­nue growth and the attainment of company profitability in 2005.

For industry veterans, EDGAR Online's

position at the forefront of technological advancement is not surprising. The Company

74 Vl\lUERICH MI\GI\ZINE 2005

has historically established itself as a pioneer

in effective methods of distributing intellec­

tual information over the Internet and a lead­

er in the movement to modernized financial info. Its flagship product, EDGAR Online Pro,

you really can develop products, services

and tools to address those pains;' Doane says.

"We have always been technologically savvy

at EDGAR Online, being the first to recognize

the power of the Internet as a delivery meth­

od. While other companies were requiring

people to subscribe to proprietary services, we put information out there on the Internet.

That was an indication of the Company's

technological savvy and adaptability:' Also, it doesn't hurt to have an estab­

lished name brand in a sometime tumultu­

ous industry. "The EDGAR Online brand is

certainly a valuable commodity because it

is open ing doors for us;' boasts Doane. "We are not a newbie. We're an established com­

pany, celebrating our ten year anniversary in

2005. We were born in the dot-com era, have

weathered all the storms and come out the

other side stronger and more focused:'

Not one to ever stand still, EDGAR Online

continues to look forward . After the I·Metrix

roll -out is complete, the Company plans to

upgrade the Pro solution and currently has

other classified products and initiatives under

development. One thing is clear though,

,.,l;jt,,Jn,f: ~~~::;.:;:.

U,QU,116 U -wukL-t,lt,, ~U,U~ LutPrl< o t,4U,IU,IM

~"'-""'~"--..,.,...,.., ...,,_""' """-..... -~~~~~:-:.: ~:~~::::::: ~ :~:, .. "'

was a significant milestone in data access during the Internet explosion.

Management attributes the Company's position as a successful innovator to watch­

ing industry trends and listening to its clients. "Once you create a relationship with your cli­

ent base which enables you to feel their pain,

C.• ll• l bJu•"-"" ft2,t21,. ...... f) 1••11 Volu per Sbr. IU Cu~ fl - ln• O,crotlu $l,III.IIO,MI Rtw. u u llTM)

I·Metrix marks a new dawn for the future of

financial data and competitively threatens

the business models of existing information providers. However, Management at EDGAR

Online does not feel obligated to toot its own horn. As Doane says confidently, "I think

I·Metrix will speak for itself '~ VR

www.valuerichonline.com

Established 1965 Life, Disability & Long Term 4 Offices Care Products 38,000 Clients Full In-House Underwriting

60 Full-Time Professionals

BylluG .. n<Sm;th Wo rId After

All

Lumera Corporation (NASDAQ: LMRA), a Bothell, Washington­based company, is tak­ing the "good things come in small packages" concept to a whole new level as an emerging leader in the nano­technology industry.

While the Company deals with the incred­

ibly small, its innovative polymer materials

and products and t heir potential applica­

tions have paradoxically proved immense and far-reaching.

Tiny Technology

Understanding nanotechnology requires

individuals to consider far beyond the sig­

nificant limitations of human sight. The term refers to the development of products and

production processes at a scale smaller than

100 nanometers, with a nanometer equal to

one-billionth of a meter.

Bob Petcavich, Lumera's ChiefTechnology

Officer, illuminates the concept more simply.

"If you were to take a human hair and slice

that hair along its diameter a thousand times;' he explains, "one piece of that would

be a nano piece of hair." However, the key

issue is not that scientists are working at this

scale, it is that they are performing manipula­

tions at the atomic level to create new forms

of matter. At Lumera, these ultimately become the

polymers used to develop products that

can be used in a wide range of applications

including electro-optical communications

networks and biochemical analysis.

The development of these proprietary

products - using its polymer materials as

tools or enablers to improve their design,

performance and functionality - is one of the Company's key differentiating factors

and strengths. Management suggests that

offering product so lutions gives Lumera

a firmer foothold in the market and may

ultimately enable the Company to be more successful than competitors who essentially

produce nanotech research samples.

The CGQYPany 's t hree primary product sectors illustrate the variety of applications

for its proprietary materials.

Biotechnology Disposables

Current methods of protein analysis focus on how the amount and nature of proteins

change over time, disease and treatment. This expression profiling, as it is called, while

important, has significant limitations and does nothing to answer the critical questions of what is binding, how much is binding, how

fast and to what it is binding. The genome, t he genetic code that

www.vrexpo.net

.. CONNECT

lumera Lumera Corporation 19910 N.Creek Parkway Bothell, WA 98011

www.lumera.com

defines so many aspects of a given organ­

ism is now sequenced. Though much is left

to be understood about the genetic basis of

disease, many genes, the functional blocks within the genome, have been identified

and characterized . But, the products of

genes, proteins, collectively called the pro­

teome, are not at all well understood. While

methods exist to study individual proteins,

their role in disease and the compounds or

Lumera electro-optic modulator chip

drugs that may be used to modulate their

actions, there are very few ways to study all or any significant portion of the proteins of

any given organism. The technology that Lumera brings to the market called Proteome ProcessingTM can do this.

Lumera's NanocaptureTM Arrays are dispos­

able biochips, fabricated with a hydrophobic polymer coating, that provide biologists with a cost-effective alternative for isolating DNA

and protein samples for testing. The market

LMRA:NASDAQ

CONNECT Tom Mino, CEO

425-398-6540

TMino@lumera.com

segments that seek and value the kind of

information that Proteomic Processing pro­

vides are quite large with great diversity of interests, location, funding and motivations.

They include basic life science research, such

as that which is done at government insti­

tutes, universities and private foundations.

Also very much involved in this type of work

are clinical research groups located in hos­

pitals, institutes and government facilities .

Perhaps the most motivated by financial

leverage are the companies and contrac­

tors that make up the drug discovery indus­

try. Each day a new drug requires to come

to market is estimated to cost $1,000,000.

Anything that reduces that time is easily and highly valued.

Electro-Optical Devices

The Company's electro-optic devices

convert data from electric signals into

optical signals for use in communications

system and optical interconnects for high­

speed data transfer. Lumera's polymer-based modulators offer higher bandwidth, lower driving voltages, are lighter weight, and have lower fabrication costs than traditional switching technology based on inorganic material.

Copper interconnects are currently being used to enable the communication of differ­

ent logic units, for example, the chips found on the circuit boards of a computer. Optical interconnects offer the promise of decreas­

ing interconnect delays and providing high­er bandwidth to keep pace with transistor speed improvements, while potentially low­

ering power consumption and resistance to

2005 VALUERICH MAGAZINE 77

electro-magnetic interference. For example,

the ability to use lower power consumption could mean eliminating the problem of over­

heating in laptop computers while simulta­

neously offering faster computing speeds.

Lumera currently has 26 patents and

patent applications related to electro-optic chromophores and polymers, devices, and

fabrication processes. This intellectual prop­

erty is augmented by a variety of critical

trade secrets that form a formidable barrier

to entry for competitors.

Wireless Antennas & Systems

In November of 2004, Lumera re-defined

its wireless antenna sector strategy to focus

entirely on smart antennas for customer

specific applications. The absence of moving

parts in Lumera's smart antennas improves

its accuracy and durability compared to tra­

ditional antennas that have historically uti­lized mechanical beam steering.

To Market, To Market

In some circles, nanotechnology is con­

sidered the biggest of all the next big things

and Lumera had a positive experience with

their market debut. Born a subsidiary of Microvision who remains a significant share­

holder, Lumera became a separate company

78 VALUERICH MAGAZINE 2005

BREAKING NEWS

At press time, Lumera announced that it received an order from defense contractor

Raytheon Co. for high performance electro-optic modulators. Financial details of the

order were not disclosed, but Lumera said that the modulators ordered from Raytheon

operate in the 1 0 to 100 gigahertz range. Lumera announced a new patent that will help the company mass produce its elec­

tro-optical devices with enhanced waveguide performance to reduce optical loss.

in conjunction with their 2004 I PO. The IPO

raised $41.7 million for the Company. This

capital built on previously raised funds of

$24 million, including $8 million from Cisco

Systems. Impressively, total funding to-date

has reached $68 million.

Now the Company is facing an all-new

market entrance with even greater implica­

tions for its future. After years of research and

development work, Lumera has successfully

transitioned from a development company

to a product company.

While the shift is daunting, Lumera's CEO

Tom Mino feels it illustrates the competitive

strength of the Company.

"There are a lot of great nanotechnol­

ogy companies working on great things, but they're not going to get results for two or three years;' he says. "We've been working

on this for two or three years already with

Lumera electro-optic modulator

a focus on the marketplace and I think that

helps us have an advantage over other nano­

technology companies:' Mino and his Lumera team welcome the

opportunities afforded by, not to mention

the revenue generated by, the move to com­mercial markets. Analysts may cite predicted

market growth in the Company's product

segments, their strategic research agree­

ment with the University of Washington or

Lumera's proprietary product portfolio as

key indicators of future success, but Mino

believes it is more basic.

"I have a group of people that not only

have great minds, they have great hearts;'

he says. "And, in addition to that, they're all

very competitive and strive to be successful

in everything they do. That's why I have so

much confidence:' Mino knows that the Company's fledg­

ling year of commercial sales is the first in

several steps towards profitability, however

he doesn't let that cloud his overall vision of

Company success. "We're going to measure success, number

one, by establishing a revenue stream this year," Mino says. "Number two is profitabil­ity. But, probably most importantly, number three is becoming a company that has high values and is widely respected by its cus­

tomers, its investors and its employees. If we

have all that, we will be successful:' Whatever the reason, Lumera Corporation

seems poised for breakout achievements

and performance. And maybe that's not sur­prising for a Company who has always had,

literally, the world at its fingertips. VR

www. valuerichonline .com

What do 78o/oof Fortune 100 CEOs and CFOs have in common?

They all use Onstream Meclia•s Executive Webcasting Services Onstream Media Corporation [NASDAQ: ONSM] is a digital media service provider that specializes in video and rich media communication, webcasting and digital asset management services.

Onstream Media provides companies such as the NFL, PBS, Citibank, Thomson/CCBN and PR Newswire with the ability to easily manage their rich media content and broadcast information globally over the internet.

"Thomson Financial has been working with Onstream Media in the areas of webcasting and live event production for over three years and we continue to find their operational expertise and customer service to be industry leading .... the outstanding service they provide enables us to bring our services to market more quickly and efficiently."

Dan Vene - Senior Vice President, Thomson Financial

Ask how our new Executive Presentation Platform can help you effectively communicate with your customers, vendors, employees and investors.

Onstream >> >>>>> MEDIA

Onstream Media Corporation 1291 SW 29th Ave Pompano Beach , Florida 33069 • 866-857-1960 • www.onstreammedia.com

80 VALUERICH MAGAZINE 2005 www.valuerichonline.com

Anyone who has ever received a pack­age that looks as if it was used in an impromptu soccer demonstration knows that successful shipping isn't just about getting things there on time, it's also about their condition upon delivery. It's

true for a batch of Grandma's oatmeal ra isin

cookies, but when the package contains bio­

logical materials, the concept of"handle with

care" needs to be taken to a whole different

level. Temperature-sensitive biological materi­

als require specific conditions to maintain

their viability during shipping. Currently, the

pharmaceutical and biotech markets pri­

marily utilize dry ice packaging equipment

to serve these needs. The results achieved

when using dry ice as a shipping and pre­

serving medium are far from groundbreak­

ing, but despite being both inadequate and

inefficient, this type of packaging remains

the ubiquitous standard. So, what do you do when the standard

is faulty? If you are cryogenic innovator

CryoPort, Inc. (Ticker: CYRX), you set out to

redefine the standard. Scheduled to official­

ly debut later this year, the Company's new

one-way low-temperature cryogenic ship­

per, which can be thought of as a cryogenic

Fed Ex box of sorts, is poised to revolution­

ize the pharmaceutical packing industry and

vault CryoPort past both its dry ice and cryo­

genic competitors. The effectiveness of a product is often

determined by how it answers several key

questions. In the case of shipping containers

for temperature-sensitive biological materi­

als, these questions center around how reli­

ably a shipper can maintain the appropriate

temperature and for what period of time.

When is cold not cold enough?

Despite an unbelievably low tempera­ture of -78°C, dry ice is still not cold enough

to reach cryogenic temperature standards

of less than -150°C. Therefore, shipping or preserving specimens in dry ice limits their viability to 40-60 percent under ideal condi­

tions. This loss of viability ultimately costs

the pharmaceutical and biotech markets hundreds of millions of dollars per year as a result of a delayed time to market for drugs

in clinical trials and an increase in the num-

www.vrexpo.net

.. CONNECT

• COMPANY CryoPort, Inc. 451 Atlas Street Brea, CA 92821 Ph: 714-256-6100 www.cryoport.com

ber of patients per trial.

Even in situations where a cryogenic tem­

perature is not required, the use of dry ice

can be ineffective due to the nature of the

substance. Manufactured in blocks, dry ice

is heavy and, more detrimentally, sublimes

back to a gas in about 48 hours. Therefore,

CryoPort is finalizing its development of a one-way low-temperature cryogenic shipper - an innovative concept in the industry.

there is a limited time to ship before hav­

ing to re-ice, which is why many companies

utilizing dry ice will ship only on Monday,

Tuesday or Wednesday. In addition, void

spaces in the dry ice immediately upon ship­

ment mean that the specimen is not really

holding dry ice temperatures and thus has a greater chance of deterioration.

Cryogen liquid nitrogen shippers provide an attractive alternative to dry ice. In addi­tion to achieving cryogenic temperatures,

the shippers offer reliable temperature main­tenance over a period of 10-15 days.

The use and benefits of cryogenic tem­

peratures for biological material storage and shipping have been well established and commercialized over the past 50 years. What is new, however, is the current focus of Brea, California-based CryoPort, Inc.

CYRX:NASDAQ

CONNECT Dante Panella, Investor Relations Ph: 407-656-9600 x107 dpanella@firstcapitalinvestors.com First Capital Investors, Inc. www.firstcapitalinvestors.com

Saving Cold Hard Cash

Cryogenic shippers on the market today

are intended for multiple uses over a period

of years and are therefore manufactured from

substantial and expensive materials such as

stainless steel or aluminum. CryoPort is final­

izing its development of a one-way low-tem­

perature cryogenic shipper- an innovative

concept in the industry. The product could

revolutionize the way industries deliver

drugs to the market and handle specimens

in clinical trials as a result of its highly effi­

cient design, proprietary technology, ease of use and significant user cost savings.

In the words of President and CEO Peter

Berry, CryoPort is "simply bringing the tech­nology of cryogenics to low-cost effective packaging:'

While the concept may be simple, the

execution of the idea is far more complex. The development of its one-way shipper

required CryoPort to do considerable work

on unconventional materials of construction,

such as molded metals and plastic polymers, not typically used in the cryogenic world.

Manufacturing also presented a chal­lenge. Cryogenic manufacturers of the reus­

able products typically build 40,000to 50,000 units a year, in batches. CryoPort 's one-way

shippers require mass manufacturing more along the lines of 50,000 units a month. This

shift to a mass manufacturing process, cou­pled with the intense anticipated demand, led CryoPort management to make a strate­gic decision.

"We fully understand that we cannot keep

SUM 2005 VALUERICH MAGAZINE 81

up with the demand as this market develops

as a single company;' says Berry. "We believe

the way to dominate the space and set the new standard in the industry is by selecting

manufacturing license partners:'

By licensing manufacturing, CryoPort can expand rapidly. The company has already

chosen two partners for production later this

year and early next year. The first, one of the

largest dry ice manufacturing compahies in

t he industry, was drawn to CryoPort due to

t he inevitability of cryogenic shippers invad­ing the dry ice space. By partnering with

A Cryoport one-way shipper

82 VALUERICH MAGAZINE 2005

CryoPort, the company can offer a complete

product array in the segment of tempera­ture-sensitive material shipping. The second

partner is a cryogenic company in Europe.

With its ability to manufacture other cryo-

The estimated potential market opportunity for CryoPort's one-way shipper totals $3.3 billion.

genic equipment and deliver liquid nitrogen

worldwide, this company brings to the table additional value related to other customer

needs. Using only the pharmaceutical and bio­

tech industries as a benchmark, the esti­

mated potential market opportunity for

CryoPort 's one-way shipper totals $3.3 bil­

lion. Currently, 99.5 percent of these markets

are served by inefficient and expensive dry

ice products.

CryoPort has initially chosen to target

biotech companies, specifically those in life stage clinical trials with materials that need

to be cryopreserved. Berry calls it a sea-level

approach. "Instead of selling to the end­

users, the millions and millions and people

in laboratories around the world, we want

a very targeted, specific approach;' he says.

"It isn't just about the customer shipper, but

about all the other costs the industry toler­

ates today. We feel [the product] is a very

well -packaged economic sale. That's why

we're focusing on the top of these compa­

nies:'

With no competitors currently targeting

the one-way shipping niche, CryoPort sits in

an enviable position. Established cryogenic

equipment manufacturers remain focused

on the traditional reproduction and cryo­

biology markets, while dry ice equipment

manufacturers lack cryogenic manufactur­

ing capacity. Both competitors, in turn, lack

mass manufacturing experience and current practice.

Because of their work in ultimate material

selection and mass manufacturing capabili­

ties achieved through select partners, man­

agement believes that CryoPort will be able

to secure an early leadership position and

has a jump of a year or two on any potential

market segment entrants.

With a minimum of20 million frozen ship­ments made per year worldwide - an aver­age of 76,900 per business day- CryoPort's new one-way shipper promises to be not

only a revenue boon for the Company but

also an opportunity for many of the major

~ pharmaceutical and biotech companies to secure a more competitive market posi­

tion through reduced costs . With such an

B attractive package, it isn't likely that many of 0

0 c.

~ u

~~~----------------------~ ~ CryoPort's potential customers will have cold feet. VR

www.valuerichonline.com

•

New from

EDGAR" Online"

1n Powerful Formation . Introducing I•Metrix from EDGAR Online

Because you spend too much time hunting for financial information and too little time analyzing the data, we've

introduced I·Metri x, a suite of data and analytical tools.

I•Metri x was designed to provide greater structure and transparency to fundamental and market data. With I·Metrix,

users realize the power of XBRL, a global data sta ndard, to deliver unparalleled advantages over the status quo. In

addition to enhanced depth and breadth of financial information, I·Metrix delivers data faster and more

cost-effectively than anything else.

Regardless of whether you analyze data using Excel or a proprietary application, \•Metri x delivers immediate ROI

through increased productivity.

Call Corporate Sales at 888-870-2316 or visit us online at

www.edgar-online.com to see how I·Metrix can improve the

speed, accuracy, cost and convenience of retrieving and

analyzing financial data.

a i·Metrix. Powered by EDGAR.,Onlinee

For many biomed industry players, bring­ing a medical device to market signifies the end of a long process that entailed tremen­dous R&D hours and dollars. Their initial

"eureka" moment ultimately led to this final juncture, where the device is introduced to

the industry it was intended to revolutionize. However, as these companies pack up their microscopes and move on to the next big th ing, another company's innovation is just

beginning. Biophan Technologies, Inc. (OTC: BIPH) has become a world and industry

84 VALUERICH MAGAZIN E 2005

By Liza Grant Smith

leader, not in making medical devices, but in

making them better. The Company develops and markets cut­

ting-edge technologies designed to make biomedical devices both safe and compat­

ible with magnetic resonance imagining (MRI) . With a total of 108 patents issued or

pending, an extraordinary management and scientific team, and development contracts with NASA and Boston Scientific, Biophan

is proving that medical device developers aren't the only innovators able to garner

headlines.

The Importance of Compatibility

Compatibility issues seem inherent in all technological advancements, but perhaps

no incompatibility problem is as critical or detrimental as those associated with medi­cal devices, where human life is involved.

Of primary interest to Biophan is the statis­

tic that over $12 billion worth of medical devices shipped annually are not safe for use with MRI and/ or are not imageable. Due to

www. valuerichonline.com

safety concerns including heating of devices and metal wire leads which can cause tissue

damage, most MRI imaging centers currently

refuse patients with pacemakers and other

implanted medical devices, meaning they

are denied access to one of the most impor­

tant diagnostic tools in medicine.

Rather than accepting this as an unavoid­able limitation of the technology, Biophan

set out to solve the problem. The Company

ultimately developed shielding solutions

that can be used to minimize the problems

caused when MRI electromagnetic fields

interact with interventional and implanted

medical devices. Along with pacemakers,

this includes Biophan's new capability to

allow MRI-guided surgical devices in which

the Company uses its "anti-antenna" design

solutions to create medical device leads,

catheters and guide wires that can be safely

used in MRI-guided surgery. The expansion of Biophan's product and

technology initiatives past this original dis­

.. CONNECT

B I ~'''~ PHANTM -;, .. \~ TECHNOLOGIES, INC.

Biophan Technologies, Inc. 150 Lucius Gordon Drive, Ste 215 West Henrietta, NY 14586 www.biophan.com

lion and growing.

One of the biggest achievements for the

Company in the past year was the establish­

ment of its new Nanolution division, intend­

ed to focus on the $40 billion drug-elution and drug-delivery market. By leveraging

Biophan's expertise in nanoengineering and

BIPH:OTCBB

CONNECT Michael L . Weiner, CEO 585-214-2441

comes to maintaining the impressive value

of its intellectual assets. The Company 's

portfolio includes a total of 108 U.S. patents

issued, owned or licensed, which marks a

near doubling from a mere year ago, plus many pending international patents. 33 U.S. patents have already issued.

"These patent issuances

continue Biophan's growth

and business strategy to

develop a base of protected

intellectual property in key

medical areas," said Michael

Weiner, CEO of Biophan. "The broad coverage that Biophan

has been diligent in obtain­

ing also makes it attractive to

c our customers to consider an

{exclusive license for certain

~ fields of strategic interest to

~them, because they realize

~ that our broad patent posi-8 tion will allow them to defend

~their exclusive position in "' ___ ... ...._......,__,.'----' ..S market segments important

covery is a result of a seren­

dipitous ripple effect. While

the shielding solution for

implants was non-nanotech,

the Company discovered

that its tunable magnetic

nanoparticles, developed by partner Nanoset LLC, made

implants easier to see in an

MRI. This additional ben­

efit opened an even bigger

world of possibilities for the

Company. Management esti­

mates that while the revenue

of devices that can benefit

from making implants safe

for MRI machines may be

a $4-5 billion opportunity, the market for making other Vena Cava Filters without (left) and with (right) Biophan technology, which to them:'

devices, such as stents, as allows a simulated thrombotic specimen to be visible under MRI conditions. Not content to rely only on in-house development, Biophan is wil ling to well as surgical instruments, visible with the

nanoparticle coating could total close to $8

billion . The applications for Biophan's nanomag­

netic particle technology do not stop there. Again with partner Nanoset, the Company is adapting the technology to form advan­

taged contrast agents for MRI which are brighter and longer lasting. With contrast agents used in approximately one in four

MRI procedures, the market is over $800 mil-

www.vrexpo.net

its proprietary Nanoset nanomagnetic par­ticle technology, the division is developing solutions that facilitate the creation of active

drug-delivery products. Attaching nano­magnetic particles to drugs, the Company can cause them to be non-active until a spe­

cific electromagnetic field is applied thus activating the drug or, in other applications, releasing it so it can elute into the blood­

stream. Biophan has an aggressive stance when it

acquire patents and intellectual property for

technology that complement and strength­en its portfolio. One example of this is the

Company 's nano-technology enabled bio­thermal batteries. In 2004, Biophan acquired a majority interest in TE-Bio, patent holder for batteries that use body heat to generate

electricity for implanted medical devices. Whether through development or acquisi­

tion, the end result is a formidable gathering

2005 VALUERICH MAGAZINE 85

of intellectual property and a suite of unique

and proprietary nano-tech products.

Name Dropping

For those skeptical or merely confused about the far-reaching implications of nano­

magnetic particles, Biophan offers a stel­lar line-up of scientists and management

that can lend credibility to the strength of the Company's developments. Led by CEO

Michael Weiner, the makeup and creden­

tials of the Board of Directors and Advisory Board is staggering. The boards' members

include a Nobel Prize winner, a recipient

of the National Medal of Technology from

President Clinton, a board member of the

Federal Reserve Bank of New York, a dean of a

university's engineering and applied science

school, a chairman of a university's medical

center, and professors of surgery and radiol­

ogy from renowned medical centers among

others. The interest and dedication of these

accomplished individuals speaks volumes

about the worth and value of Biophan's intel­lectual assets under development.

Biophan's impressive relationships extend

to its strategic partnerships. In 2004, the Company announced that its TE-Bio thermo-

86 VALUERICH MAGAZINE 2005

electric battery subsidiary had entered into a

pact with the National Aeronautic and Space Administration (NASA) for characterization

and joint development of high-density,

of life and lower healthcare costs.

The NASA partnership came less than

a year after the Company announced its

joint development agreement with Boston

Scientific Corporation to make medical

devices more compatible with MRI tech­

nology. That relationship has expanded to

involve other products. Leveraging cooperative development

relationships remains pivotal to Biophan's

business strategy and assists the Company in

c sales channels, technology and by generat­.[ ing higher visibility the market and investor

~ communities. Management anticipates that

~the continued success and achievement will

~ only improve upcoming discussions with

S potential strategic partners.

~ Medical device developers have histori­

.f cally been considered heroes of the bio-Biophan coated wires 1 and 2 are visible under medical revolution, heralded for the prod-MRI while uncoated wire 3 is nearly invisible. ucts they create. However, equal fanfare

nanoengineered thermoelectric materials has begun to greet companies like Biophan

for use with implantable medical devices. Technologies, who realize that the revolution

By combining Biophan's innovative power is far from over when the products hit the

solution with NASA's thermoelectric mate- market. Given the extraordinary brain trust

rials expertise and leading nanotechnol- and intellectual property the Company has

ogy development, the partnership has the in its corner, it can be argued that the new

potential to greatly improve patient quality hero worship is well-deserved. VR

www. valuerichonline.com

Big 4 expertise with responsive, flexible service.

Sarbanes Oxley Compliance Internal and External Audit

Transactional Planning Individual & Entity Taxation

Federal, Multistate & International Tax Intercompany Transfer Pricing

Cost Segregation Wealth Management

Technology

We offer the power and expertise of many years of experience

working with medium to large public and private companies.

Our partners and senior staff members, some of whom have

joined us from the former Boston office of Arthur Andersen, have

the intellectual capital you need, the understanding of your cost

concerns and the close attention you're looking for.

Whatever your needs, we can provide the service that

is right for you.

":...c VITALE, CATURANO &.. COMPANY rc .,..... THE LARGEST REGIONAL ACCOUNTING FIRM IN NEW ENGLAND ....

T 80 City Square, Boston , Massachusetts 02129 617 • 912 • 9000 www.vitale.com

9 an Independent Member of Baker Tilly International

ror;

ONLINE POKER

Online gambling, particularly poker, has

been around since the late 1990s but did

not really take off until a couple of years ago

when amateur on line poker player Chris

Moneymaker won the nationally televised

World Series of Poker and walked away with

$2.5 million in winnings. At that point, many

amateur players went online to see if they,

too, might be the next big winner. And thus

an industry was born.

Today, estimates put the number of online

poker players at close to two million- a fig­

ure that seems to be growing faster every

day with no signs of slowing down, particu­

larly when one notes that there are an esti­

mated 100 million poker players worldwide.

Tapping into this new industry are more than

200 major online gambling companies that

have sprung up to pursue a share of this mul­

tibillion-dollar phenomenon. Seeing Gold Online

One company is AngeiCiti Entertainment

Inc. (AGCI.OB), an online casino software

licensor that has been publicly traded on the

bulletin boards since January 2002.

AngeiCiti is a Nevada corporation

and holding company for Worldwide

Management, a corporation that operates

under Costa Rican license in that country as

well as on the Kahnawake Indian Reservation

near Montreal. AngeiCiti 's current market

capitalization is approximately $6.5 million,

based on its recent stock price of one dol­lar for each of 6.5 million outstanding and

issued shares. Shares being held as collateral,

worth $26.5 million, were retired in May. Company Founder Larry Hartman heads

AngeiCiti , along with George Guti errez,

President, and Dean Ward, CFO. All have

shareholder stakes in the company. With

AGCI:OTC.OB

AngeiCiti Entertainment, Inc.

1109 North Federal Highway

Fort Lauderdale, FL 33304 www.angelciti.com

AngeiCiti Entertai nrnent

CONNECT George Gutierrez President

800-908-957 4

backgrounds in international law and

finance, they have created what they believe is a high-growth, high-profit company in a

market that many people expect to double

within the next two to three years. AngeiCiti's

goals are aggressive. Near-term, according

to Hartman, they would like to be listed on

the big boards. And not too much farther

out, he says, "We would like to have created

a synergistic company with online and land­

based casinos, making ourselves attractive

as a merger opportunity:'

The recent announcement that they have

entered into a LetteroflntenttoacquireCarib

Gaming, the largest land-based casino com­

pany on the Turks and Caicos Islands, is key

to this strategy. While this is the company's first foray into the bricks and mortar side of

gambling, Hartman says:"Carib presented us

with an opportunity to buy at less than three

times earnings. They are mostly a 'Mom and

Pop' type of company with a cash flow net of

$1.4 million, and they want liquidity:' Carib's

revenues are projected to be in excess of $3

million in 2005. The merger is expected to close by mid-summer.

Aiming for the Big Exchanges "Moving to a major national exchange is

the next logical step for our company," says

AngeiCiti 's president, Gutierrez. Announcing

the Carib Gaming deal, he said, "As we meet

the shareholders' equity and market valua­

tion requirements set by the NASDAQ and

AMEX, this move will fuel the future growth

of the company, enhance shareholder value and increase our liquidity and visibility:'

Moving to the bigger exchanges is a path

that other online companies are also taking. For example, PartyGaming, the parent com­

pany of PartyPoker.com, an industry leader

with claims to more than 50 percent of the market, is exploring the possibility of going

public at a valuation reported to be close to $5 billion.

Many online operators remain privately held, partly because the industry is so new,

but also because many of the laws, particu­

larly in the U.S., prohibit online gambling.

U.S. Legal Issues Remain Murky for Online Gambling Companies such as AngeiCiti face a perplexing issue in the U.S:s

1961 Wire Act, which makes it illegal to use telephone lines to place a bet or wager. While the Justice Department claims the Act

includes Internet gambling, it has yet to strictly enforce the law. The Bush administration asserts that Internet gambling is illegal.

A few current legal proceedings clarify the scope of the Wire Act, but so far rulings have been inconclusive. Legislation to enforce

Internet gambling laws has been stuck in Congress for years.

It is also highly unlikely that the Act will be modified to formally permit online gambling. Consequently, most online gambling

www.vrexpo .net

companies have offshore operations in the 85 locales that permit it. AngeiCiti 's operations are based in Costa Rica, along with Paradise

Poker, PokerStars and others. PartyPoker is based in India. The climate abroad is more favorable. The UK has passed laws

making it a regulated business. Other European countries are court­

ing online gambling and looking at doing the same thing.

The WTO recently ruled in a case filed by Antigua that the U.S. is within its rights to restrict remote gambling, but has applied restric­

tions inconsistently because rules vary from state to state. The rul­ing's impact on online gambling remains inconclusive.

SUM 2005 VALUERICH MAGAZINE 89

That is why most of these companies have

their operations offshore.

Double Revenue Growth

AngeiCiti generates revenue by operat­ing online casinos from its base in Costa

Rica . The company currently has negative

cash flow, due mostly to aggressively pursu­

ing investment opportunities and "burning

through a lot of capital;' says Hartman, to get

it s online poker up and operating . "It's the old adage that you have to spend money to make money;' explains Hartman.

Hartman predicts that revenue for

AngeiCiti, with the addition of Carib Gaming,

will grow from $3 million in 2005, with a profit

of $1.25 million, to $6.5 million

and a profit of $2.2 mill ion in

2006. Going forward, the land­

based Carib Gaming operation

is expected to generate steady cash flow. From there, they can

pursue other strategic invest­

ment opportunities.

AngeiCiti 's Casinos work

just like any land-based casino

in Las Vegas or Atlantic City.

They offer standard games

including blackjack, roulette,

craps, slot machines, and

Caribbean and various poker

games, among many others.

They advertise the same odds that would be expected in a

live casino. Players simply sign

up on the Web site, deposit

money into an account and begin playing.

AngeiCiti operates the online gambling

Web sites using software technology provid­

ed by Real Time Gaming. An operator, such

i3S AngeiCiti, typically receives a 2 percent to

5 percent take of the winnings along with an

entry fee for each participant, which general­

ly ranges from three to five dollars. In a large tournament there is a higher entry fee and a larger take (close to 10 percent), potentially amounting to more than $500,000.

From its inception in May 2002 through September 30, 2004, AngeiCiti claims more than 156,000 downloads of its software and

more than 58,000 registered players.

While most of their business has been online, they see a blend of online and land­

based gambling as being very compatible.

90 VALUERICH MAGAZINE 2005

For example, says Hartman, they would like

to be able to offer incentives to their land­

based customers to use their online opera­

tions and vice versa.

Online Poker Operations Spun Off

In July 2004, AngeiCiti spun off its online

poker operations to Midas Entertainment,

Inc. with an approximate 15 percent stake in

the company. "We did this so that we could

focus on our core operations;' says Hartman.

Midas' wholly owned subsidiary, Creative

Millennium Ventures, provides gaming

software to online poker sites, includ­

ing CityPoker.com, KingMidasPoker.com,

DesertPoker.com and SharkPoker.com.

In its first six months of operation, Midas

announced that it had taken in more than

$3.5 million in deposits, processed in excess of $45.2 million in bets and earned more

than $937,000 in rake (operator's percentage

take). The company also has more than $1.5

million in cash as it plans for further near­

term expansion. AngeiCiti owns 3.6 million shares in

Midas (MDAS.PK) valued at nearly $30 mil­

lion based on recent trading. But that figure

is discounted, according to Hartman, since the shares are restricted stock and harder to sell in blocks. This, says Hartman, makes

AngeiCiti's market capitalization of $6.5 mi l­lion "ridiculously undervalued" and is why

they are aiming to get onto the big boards,

where their value will be better appreciated.

Stratospheric Growth

Real numbers on the growth of online

gambling are hard to come by. The industry

is still run mostly by privately held compa­

nies, and new players and companies are

jumping on board at a dizzyingly fast pace,

but the growth in the industry appears to

be staggering. According to Hartman, the

increase in online poker grew by more than

1,000 percent in the past 12 to 18 months.

He says the online casino market grew at a

more steady, but still impressive, 20 percent

rate per annum. Estimates of worldwide rev­

enues for the online gambling industry in

the next two to three years range from $5

billion to $10 billion.

According to a recent

Barron's article, more than 200

online poker sites collectively

are generating about $2 bil­

lion a year in revenues, equal

to 40 percent of last year 's gam-

~ bling revenues from all of the

~ Las Vegas "Strip." Meanwhile, f-

g, an estimated 1.7 million poker l'l :c ~ c

"'

players are active online and

about 150,000 people play on E ~ an average day, according to c5 industry-tracking PokerPulse. ~ com, and 70 percent to 80 per-c

~ cent of all online players are

£American. .r. 0. ~ Cl

~ .r. c..

Grooming Themselves fora Merger

For now Hartman is tak­

ing advantage of this growth and is focus­

ing on maximizing his company's value by

concentrating on its core business, gaining

shareholder value, and making AngeiCiti an

attractive merger target a few years down

the road.

As for what type of company might be interested in AngeiCiti, Hartman says "a few years ago, I would only have imagined

a buyout by a bricks and mortar candidate. However, with the influx of numerous public­

ly traded online gaming companies, I would say that such a buyout could go either way

at this juncture:' In the meantime, online gambling shows

no signs of slowing its march into the main­stream, and AngeiCiti is focusing on getting

its share of that business. VR

www. valuericho nline .com

KEATING INVESTMENTS, LLC

Reverse Merger Specialists Providing a Turnkey Solution for Private Companies

Seeking a Rational Alternative to an IPO

Keating Securities, LLC- Member NASD, SIPC

Market-Maker ID: KTNG

for more information, please call:

Investment Banking, Domestic: Margie Blackwell (720) 889-0133

Investment Banking, International: Luca Toscani ( 415) 433-1800

Syndicate: Jeff Andrews (720) 889-0134

www.keatinginvestments.com

By Liza Grant Smith

It can be said that one of man's greatest assets is his ability to adapt to a changing environment. There is no greater tool in that adaptation than evolving technology. Today's society is awash with innovations that address our growing desire to minimize effort and eliminate wasted time.

We conduct business on our Blackberries

while riding the subway. We shop at home in

our pajamas over the Internet. Even the task

of sucking on a mint has been replaced by a

st rip that instantly dissolves on our tongues.

'-.,/

Pi-IP'oint 'J'I IIl i~AT J DI~NTI FJ~\'J'ION AND AL imTSYSTt-:M"

Americans take pride in how proactively

we identify and develop solutions to today's

problems. This is why the events of 9/ 11

were so devastating: We failed to recognize the problems related to what should be our

primary concern - safety. We simply were

not equipped to face the new reality of ter­

rorism . Developing technology to help us adapt to this change in environment is not a

luxury, but a critical imperative. PinPoint scans for characteristics of threat items and places a red box around the image.

Guardian Technologies International Co. (OTCBB: GDTI), a developer of advanced

image analysis technologies for both the

homeland security and health-care radiol­

ogy markets, has taken on this challenge.

Guardian's unparalleled PinPoint threat iden­

ti fi cation and detection alert system stands not only to restore efficiency to air travel but,

more importantly, to re-establish the guar­

antee of safety and our sense of security.

Currently, baggage-scanning equipment

ut ilizes 25-year-old X-ray technology with

minimal image analysis capacity. Screeners

are expected to associate certain colors in

an image with specific types of threat items.

Unfortunately, the X-ray images produced

often do not offer enough differentiation

between threat and non-threat items to cap­ture an operator 's attention . The potential for human error in this system leads to a sig­nificant number of needless "false positive"

physical searches and, more detrimentally, the possibility that a threat item could pass

through the security point undetected. Guardian Technologies' recently intro­

duced PinPoint system, which combines software and artificial intelligence, acts as a

"second set of eyes" to dramatically enhance

92 VALUERICH MAGAZINE 2005

the ability of existing baggage and package scanning equipment to identify explosives,

guns and other threat items. Using com­

puter analysis and sophisticated algorithms, PinPoint scans images for characteristics of

items on a threat list. When a threat is detect­

ed, Pinpoint immediately places a red box around the image of the suspected threat

item and sends a message to the operator

stating the type of threat item found.

According to Robert Dishaw, president

and chief operating officer of Guardian,

"PinPoint is to images what night vision gog­

gles are to the military for night battles:' Explosives and other threat items have

specific densities and characteristics similar

to those of non-threat items. The parallel

analytics of PinPoint can distinguish minute variations in X-ray images that are impos­

sible for the human eye to differentiate. The result is an accuracy rate of up to 90

percent, more than twice the rate of existing

scanning systems. PinPoint also boasts an

unrivaled minimal "false positive" rate of less

than 1 0 percent, compared with 30 percent to 60 percent for traditional scanning.

"What differentiates PinPoint from other technologies," says Dishaw, "is the 'out of the

box' approach management deployed in developing our 'intelligent imaging infor­

matics' (3i) engine that applies across numer­

ous image spectrums and formats. PinPoint is the first technology that has provided a

high degree of accuracy for detecting explo­

sives with a low 'false positive' rate:' By significantly reducing the potential for

human error, PinPoint effectively improves

overall air travel safety. Additionally, the inno­

vative technology promises to have benefi­

cial impacts on security overhead costs and

passenger/ baggage throughput.

Slashing Costs with Accuracy and Speed

Approximately 1 billion bags are screened

at U.S. airports annually. With "false positive" rates in excess of 30 percent due to the limi­tations of current technology, hundreds of

thousands of bags must be hand-searched each day. This increases flight and passenger

delays and has resulted in an average wait

time per passenger of 10 minutes. Current TSA rules require human screen­

ers to view each bag 's X-ray image for a minimum of five seconds, even when they

are certain no threat item is present. Use of the highly accurate, sub-second threat

www. valuerichonline .com

identification of PinPoint could enable the

TSA to reduce the viewing time required

for each image to as little as 1.5 seconds.

Subsequently, the airline industry's baggage

throughput rate could effectively triple.

By leveraging the PinPoint system, high­

volume airports, which typically service

65,000 airline passengers on an average day,

could potentially save 55 man-hours of lug­gage screening time daily. This is the equiva­

lent of seven eight-hour shifts per day and

would mean a significant reduction in over­

head costs. With 56,000 baggage screeners

employed in the U.S., the potential for sav­

ings in the airline industry is astounding. Due to its compatibility with all existing

baggage scanners currently in use, PinPoint

offers an attractive option for airports seek­

ing to minimize the capital expenditures nec­

essary to meet increased safety standards.

"The PinPoint technology can be mount­

ed in the existing baggage scanners;' says

Dishaw. "Thus, it leverages the existing

investment that airports and the TSA have

made in equipment:' To secure its competitive position,

Guardian is in the process of filing two utility

patents with over 100 total claims and a third

provisional patent with eleven utility patents

and potentially in excess of 200 claims.

There are currently more than 6,000 carry­on and baggage check scanner machines at

the 440 commercial airports in the U.S. The

potential international airport opportunity is roughly four times this number. These facts,

coupled with the lack of effective threat item

detection solutions, means the market for

PinPoint is immense. Guardian is also adapting PinPoint for

additional applications such as cargo scan­ning, body scanning, money laundering detection, illegal drug detection and, on the health-care side, for diagnostic/analysis pro­

cesses associated with radiology images.

Managing Medical Workflows

Through its existing health-care seg­ment, GDTI Healthcare, Guardian provides

FlowPoint, a Web-based integrated propri­etary radiology information system (RIS) and

picture archiving and communication sys­

tem (PACS). As Dishaw explains, "FiowPoint provides

the target health-care market with an inte-

www.vrexpo.net

• CONNECT

~Guardian ~ TECHNOLOGIES

Guardian Technologies International, Inc. 516 Herndon Parkway Herndon, VA 20170

703-464-5495

www.guardiantechintl.com

grated Web-based solution that improves

patient flow, [allows] optimization of all X­

ray, CT and MRI equipment, provides physi­

cians a simpler workflow, improves patient

safety, and lowers overall patient costs:'

With FlowPoint, patient data, radiology

images and other critical health-care infor­

mation are instantly accessible from any

location, and the radiology file's reduced size

Patient data, radiology images and exam information are instantly available from anywhere with FlowPoint.

enables faster, more efficient movement.

Guardian's focus on the growing health­care informatics market was clearly illus­

trated by the strategic acquisition of Wise Systems Ltd., a premiere developer of radiol­

ogy information systems based in the U.K. "As a result of the Wise acquisition, GDTI

acquired a solid client base of 30+ hospitals

GDTI:OTCBB

CONNECT

Robert Dishaw President & COO

Investor Relations Michael Friedman

866-540-2677

mikef@prbroadcast.com

in the United Kingdom with an operating

history of 17 years;' says Dishaw. "The tech­

nology developed by Wise over that 17-year

history evolved into the current FlowPoint

'leading edge' Web-based architecture:'

In the eyes of management, the acqui­

sition also provided GDTI Healthcare with

international credibility and the capability

to support the global language and market

requirements, as well as the

credibility to rapidly pene­

trate the U.S. marketplace.

FlowPoint is suitable for

all settings, from hospitals

and radiology centers to rural clinics and the mobile medi­cal environment. With up to

40 percent of patient medical information inaccessible at

the time of need or treatment

in the current health-care

environment and the exist­

ing IT solutions both over­

priced and inflexible, growth prospects for FlowPoint are impressive.

The environment has indeed changed and, as a result, we have adapted by suppressing our desire for

efficiency to focus on our essentia l needs of health and safety. The innovat ions of

Guardian Technologies suggest that our sac­rifice is unnecessary. While it is a complex

world, the Company has utilized intelligent

imaging informatics to provide complex technology solutions that meet both our pri­mary and secondary concerns. R

2005 VALUERICH MAGAZINE 93

Interactive ames' Strategy Is No Gamble

By Liza Grant Smith

Not everything that happens in Vegas stays in Vegas. The popularity of gaming, one of the peren­nial trademarks of Las Vegas, has expanded well

beyond the city limits to take on global proportions.

With worldwide gaming revenues estimated at $1.5 trillion annually, the industry has become something

of a juggernaut with no prospects of slowing down.

Gaming, once primarily a destination

sport, has now taken up residence in our

homes with prime-time cable hits includ­

ing ESPN's "World Championship of Poker"

and Bravo's "Celebrity Poker Showdown;' an

abundance of Internet gambling and online

casino sites, and most recently its infiltration

of our high-tech best friends, cell phones

and PDAs. In this high-stakes industry, understand­

ing the game, making a name for yourself

and choosing your allies carefully are criti­

cal. That is precisely why Interactive Games,

Inc. (OTCBB:IGAM), a developer and licensor

of interactive casino technologies and slot machine games, is an odds-on favorite to hit

the industry jackpot.

From Plastic Chips to Processor Chips

There was a time when slot machines were secondary to floor games, such as

blackjack or roulette, both in terms of pres­tige and popularity. However, as the poten­tial payouts increased and their innovative designs drew more and more players, slot machines redefined themselves. Slots, along

with other electronic gaming machines such as video poker, now account for more than

70 percent of total casino revenues.

94 VALUERICH MAGAZINE 2005

Electronic games are popular with both

the customers and the casinos. Customers

are attracted to the dynamic video interfaces and creative new games, as well as the large

jackpots enabled by multi-player network­

ing, and casinos prefer the machines to table

games because their labor costs are much

lower and the financial return is more con­

sistent.

Interactive Games' role as a licensor is only one component of the Company's multi-pronged business model

Interactive Games, headquartered appro­priately enough in Las Vegas, is strategically positioned to capitalize on this appeal. In

April of this year, the Company announced its purchase of a license for the title "Ed McMahon's Million Dollar Madness" Class Ill slot machines from BestBet Media Group, Inc. The state-of-the-art slot machine, which

is the first to feature video and audio like­

nesses of Ed McMahon, will be offered as a stand-alone "life-altering prize" payoff

machine.

(lJ

> 't "' ~ c

,., Vl

~

The former co-star of The Tonight Show

Starring Johnny Carson is also hugely popu­

lar for his million-dollar-prize and sweep­

stakes giveaways. His image presents a great

opportunity to create brand appeal and recognition for the newly public Interactive

Games.

"I think being able to come out of the

box with a celebrity like Ed McMahon and get a deal done with that machine

gives us a tremendous amount of credibil­

ity;' says Interactive Games founder Michael

Friedman. "Our pipeline of over 150 titles is

already well-established and our developer

is one of the well-known gurus in the field, respected by every major manufacturer:'

In these types of licensing arrangements,

Interactive Games creates the software and then makes a deal with a major manufac­turer to receive net revenues through a daily

software royalty payment that ranges any­where from $2 to $6, depending on celebrity

involvement. "With a 2,000-machine minimum, even if

it's on the lower end of the spectrum at $2 a machine, that's $4,000 a day and $120,000 a

month;' says Friedman. "That one title alone can bring in excess of $1 million net to our

company:'

www.valuerichonline.com

::> 0 u Vl (lJ

Ol

"' E

Interactive Games expects to release

the Ed McMahon Million dollar Madness

machine later this year.

Building a Vertical Strategy

Interactive Games' role as a licensor is only

one component of the Company 's multi­

pronged business model designed to capi­

talize on new opportunities and expand into underserved vertical markets of the gaming

industry. As a result of its recent purchase of

Entertainment Broker Inc., the Company

now owns the trademarked portal site www.

EntertainmentBroker.com, a premiere gam­

ing and entertainment online ticket portal

that currently generates more than $1 million

in revenue through ticket sales to sporting,

musical and theater events nationwide. This

is an important step in Interactive Games'

vertical strategy as it plans to utilize casino

gaming screens on existing slot machines,

video poker tournaments, Internet kiosks,

and casino-based ATMs to promote events

and allow clients to purchase tickets.

The Company is further establishing

brand recognition by offering a real-time

inventory of refurbished slot machines and

casino products, which can be viewed and

purchased online at www.igslotmachines.

com. Primary markets for these products

include the cruise industry and Caribbean

and European casino operations; interest­

ed parties can browse the 2,000 to 3,000

machines of in-stock inventory as well as

request digital photos. To maintain quality

standards, Interactive Games uses an alli­

ance with Spin, Inc., to confirm that clients

are verified and approved casino operators

before shipping.

Going Mobile

The Company 's newest business initia­

tive is its foray into the burgeoning world of mobile gaming. The Company has formed

a strategic alliance w ith Via-Cell Inc., a lead­ing developer for cell phone games, for joint

development and expansion of cell phone

game offerings and is also in discussion with several wireless providers regarding partner­

ships. The potential for the mobile market is

astounding . U.K.-based Juniper Research predicts that worldwide revenues for mobile

www.vrexpo.net

.. CONNECT

interactive games

Interactive Games, Inc.

6757 Spencer Street.

Las Vegas, NV 89119

866-568-GAME

www.interactivegamesinc.com

gaming will reach $19.3 billion by 2009 and

will make up a third of the entire estimated

$60 billion mobile entertainment market for that year.

To entice users, Interactive Games is cur­

rently offering a preview of the play for free

downloadable games, including blackjack,

Interactive has formed strategic alliances for its share of the mobile gambling

market, expected to reach $19.3

billion by 2009.

scratch ticket and video poker online at www.igmobilegames.com. Eventually, these games will work under a "pay for content

model" that will be bundled with a cellular provider's subscription service where charg­

es are added to the user's cell phone bill.

Interactive Games can be defined as much by the markets they are in as by the markets

they avoid. The Company has launched its

cell phone gaming platform and games in the U.K., where the gaming market is esti ­mated to be $25+ billion and expected to grow as the country liberalizes its laws regarding casinos. The IG Slot Machines'Web

site enables the Company to sell and ship

IGAM :OTCBB

CONNECT Michael Friedman

866-540-2677

mikef@prbroadcast.com

its products throughout the world. Most

recently, it completed a nine-casino deal in Peru.

One area Interactive Games steers clear

of is offshore gaming. Friedman suggests

that software used in offshore gaming is

often not accepted by regulated di stricts

such as Nevada. In this respect, Interactive

Games distinguishes itself from many of its competitors.

"We've built our own architecture;' says Friedman. "That puts us far ahead:'

Independently, Interactive Games' busi ­

ness segments are impressive, but by enter­ing into select alliances and agreements, the

Company gains the ability to market, sub­

license and distribute gaming products, all

under the Interactive Games' brand name.

This will ultimately build credibility, broaden

market reach and make Interactive Games

competitive with larger gaming companies and casinos.

Friedman cites the business model of

industry giant Alliance Gaming Corporation (NY5E: AGI ) as inspiration for Interactive Gaming. Once trading for under $1 on the

Bulletin Board, AGI is now a $500+ million revenue company with a market cap of $635 million. "Alliance started with a simila r

model;' states Friedman, "putting routes out there and developing their own software and platforms:'

Whether Interactive Games will follow in the footsteps of Alliance remains to be seen, but based on the Company's initial success, established alliances and brand recognition, the Company is already a respected player, holding great cards. VR

2005 VALUERICH MAGAZINE 95

96 VALUERICH MAGAZINE M 2005 www. valuerichonline.com

Co rse To

After more than twenty years of academic and professional focus on the develop­ment of psychological theory, research methods, and decision modeling tech­niques, I began to realize that I could apply my knowledge toward solving what I believed is the single greatest challenge facing America- our seeming inability to teach ethics in a meaningful way.

I was convinced that the answer to this

lay in the development of a decision-mak­

ing curriculum. Initially, I believed all change

needed to start in elementary school since

child ren face a myriad of societal pres­

sures and often lack positive role models. They need to learn decision-making skill s

before they make choices that land them in life-limiting or life-threatening situation s.

Consequently, the program I developed,

LifeGoals, is based on the philosophy that

a child taught decision-making skills devel­

ops personal responsibility and, therefore, becomes a better citizen.

However, during the development of

LifeGoals, corporate ethics and the role busi­ness schools play in teaching ethics became a hot topic as more and more publicized scandals involving high-profile business

leaders emerged. Many business schools began requiring

students to take at least one fundamental

ethics course. Several schools instituted eth­ics centers and integrated ethics into the subject courses, such as accounting, market­

ing, leadership, etc. Student react ion, how-

www.vrexpo.net

Decisions By Thomas J. Reynolds, Ph.D.

ever, seems to indicate that these classes

seldom influence ethical behavior. Columbia

University, for one, publicized student disap­

pointment in traditional ethics discourse.

These courses are typically based on case studies and class discussion . Though they

offer interesting perspectives based on tra­

ditional ethics models, students do not feel

that they experience any personal growth

after taking them.

Some of the most egregious ads committed in business have been by executives who attended business schools that required ethics classes.

The conclusion? Business schools may

be reacting to the desire to see ethics play a

critical role in their curriculum, but recruiters and students recognize that more is needed to create ethical business leaders.

The more I thought about it, the more I considered that what was critically lacking from these ethics courses was, once again,

a decision-making approach . Some of the most egregious acts committed in business

have been by executives who attended busi­ness schools that required ethics classes.

Clearly, those classes did little to alter these

leaders' eventual behavior. Had they actually stopped to consider their decision process, they might have avoided making the poor

choices they made. I wondered if decision­

making was a skill that could, and should, be

taught to MBAs as well as to children?

'Should' Has Little Impact

The basis of my decision-making curricu­

lum took shape after I researched current

character education programs in elementary

schools. These show-and-tell lessons essen­

tially ask children to apply abstract parallels

from virtues and values to their everyday

problems, without a model or real-life exam­ples, and generally without any focus on

the decision-making process. Additionally,

the question was always "What should you

do?" rather than "What would you do?" This

approach appeared to have no real impact on changing intended behavior.

Having thus framed the problem, my

initial goal was to define a general deci­

sion model and then design a curriculum

to teach it to elementary schoolchildren. Clearly, without a concrete choice model

to rely upon, my experience told me, the desired results of consistent, positive chang­es in our children's decision-making ability were highly unlikely to occur.

Goal-Oriented Option Development (GOOD) Decision Modeling

Afterfouryears of concerted effort I devel­

oped the LifeGoals curriculum for grades one

through six, which teaches concepts that can be used for the rest of one's life. LifeGoals uses real situations that children could find

2005 VALUERICH MAGAZINE 97

Notre Dame business student Matt Amado teaches South Bend, Ind., elementary grade students the GOOD Decision Model.

themselves in as the basis for their decisions,

working through choice options for each

situation to discover how each option can

affect their future. More specifically, it helps

children understand the relationship of each

choice option to the achievement of their

own personal goals. When children use their

own personal goals as yardsticks for evaluat­

ing which options are in their long-term best

interests, it yields five positive results: 1. It makes each lesson real to children and

serves as a mental "rehearsal" before they

are actually confronted with the situation.

2. Allows students to work out solutions irrespective of an authority figure (the

teacher).

3. It enables a focused discussion on per­sonal goals and why goals are important.

4. It sets the stage for understanding that all

decisions involve trade-offs, and provides the specific model as to how to evaluate trade-offs in an unbiased way.

5. It provides the basis for exploring the underlying reasons why goals are impor­

tant (their defining personal values).

The possible long-term societal impact of th is decision-making tool can only be specu-

98 VALUERICH MAGAZINE 2005

lated upon. Crime, abuse, unwanted preg­

nancies and school dropouts are but a few

of the areas in which we can expect to have

a significant long-term impact.

MBAs Learn by Teaching

It was the same theory that later drove my design of a decision-making ethics class

for MBAs. Business ethics typically covers the histories and orientations of philosophi-

cal schools of ethics and how they yield dif­

ferent conclusions, in combination with a

"right vs. wrong" orientation. This approach

is just one more example of the top-down

approach of character education I observed

in elementary schools. Surely, those busi­

nessmen and women who have lied to

shareholders, cheated the system and bro­

ken laws knew what they should do. Why,

then, did the disconnect occur between

Each of the curriculum building blocks that define the decision-making model is critical to developing effective teaching skills across grade levels. Below, the key components of the LifeGoals GOOD Decision Model are arranged by the grade in which they are taught.

Choice Options Alternatives or possibilities generated internally or externally

"Labeling Choice Options"

[ 1]

. - . A situation where choice has to be made. This can include time, place, others involved, etc.

Distinctions Consequences The The short-term characteristics or immediate of a choice results of the option, both choice options positive and "Associating to negative Consequences" "Labeling Choice Options"

[2] [3]

[K] Recognize choice situations and identify when choices are present. "Identifying" Choice Context

Outcomes Goals Longer term Desi red end-implications states toward or results of wh ich effort

~the decisions ~is directed ~~

made "Chunking "Sequencing Entire Model" to Outcomes"

[4] [5]

Driving Force (Self) Each person's unique way

~~fseeing him or her self "Sequencing to Outcomes"

[6]

www. valuericho nline .com

should and would when it came time for

them to make decisions? My pilot class was conducted at the

University of Notre Dame, where I had taken

a position as a visiting professor. Professor Joe Urbany, then associate dean of the busi­

ness school, suggested that good leaders are

a combination of good teachers and good

decision-makers. The MBA course we envi­sioned simply suggested that business stu­

dents' leadership skills would be improved by

learning how to teach decision-making skills.

Under this "leadership" concept, I taught a

pilot class to MBAs in which they taught the

decision-making model to local elementary

students. However, my other agenda was in

understanding their perspectives and reac­

tions to learning the decision model.

MBA Pilots: Phase I

The course was eight weeks long and

consisted of a two-day workshop on the

methodology of teaching the LifeGoals cur­

riculum followed by eight lessons the MBA

students delivered to underprivileged stu­

dents at Monroe, a local elementary school

in South Bend, Ind. The MBA students were

required to submit a reflection paper to me

after each lesson. At the end of the eight weeks, the MBA

students were asked to write a paper on any

topic of their choosing. Remarkably, sixteen

of the seventeen students in the class wrote

on the same topic: the impact of understand­

ing a model of decision-making with respect

to digesting and analyzing issues in ethics.

Notre Dame is known for its emphasis on

Example Decision Model

Loyalty: Stand Up Or Not? Brad was a little different from the other

kids in the class, but Trevor always tried to be nice to him.

ethics, and the possibility of bridging deci­

sion-making to ethics supported my previ­

ous theory, so I continued the pilot test.

MBA Pilots: Phase II

This time, the semester-long course was

divided into two completely separate com­

ponents. The first again involved learning

to teach the decision curriculum to elemen­tary school students, and the second part

focused upon an introspective look at the

MBA students' decision-making using the

decision model as the foundation . There

were no lectures. Individual assignments

focused on mapping decision problems,

which were then presented to and discussed

by the class.

Several conclusions emerged from this unique ethics class. First, the MBA students

unanimously supported the assumption

that the best way to internalize the deci­

sion model was to teach it. Second, the stu­

dents asserted that the posturing of deci­

sions without a right-and-wrong orientation

permitted them to delve more deeply into their own decision-making process with ­

out undue concern for what the instructor

wants to hear. Third, the decision framework

allowed for focused dialogue in which stu­

dents questioned each other and learned

through pointed discussion, seen by the entire class to be a highly productive instruc­

tional method.

So essentially, once given a model of

choice, both the little kids and MBAs gener­

ate positive peer pressure. They ask, "Why

are you making that decision?" They had a

I Kids won't r+ Kids stop get his lunch picking on money your friend

I

Kids may 4 May get hurt start to pick a 1

When Brad went to the lunchroom alone, he was stopped by the class bully and his friends. The boys made Brad give them his lunch money.

Later, when Brad and Trevor went to their lockers, the bully and his friends were waiting for Brad again. Trevor was friends with some of the boys in the bully 's group.

Some kids In school are picking on your friend after class. Would you stand up for your friend or would you join them in order to fit in

fight with me :

Consequences Outcomes

{ I

Kids won't :-+ I'll stay part

If you were Trevor, what would be your choice?

www.vrexpo .net

\..

pick on me

Hurt friends feelings

1 ofthe group

I

I .-+ He'll keep I gett ing I picked on

I

framework, a language, to talk about choice, which they didn't have before.

In our discussions, the MBA students

determined that the bridge between teach­

ing the decision-making model and the

business ethics component of the class was made by virtue of the fact that [1] we are all

the sum of the decisions we've made in our lives.

A second foundational element also

stemmed from understanding the decision

model, namely, [2] All choice options can be

linked to personal values, both positive and negative.

The realization that values drive deci­

sion-making is key. Once this understanding

becomes second nature, the students were forced to realize that [3] all personal values

must be identified and defined if they are to

be effectively used in decision-making.

This defining of personal values became

the source of ongoing discussion through­out the second half of the course as each

student sought to understand his or her own

personal values. They realized that [4] values

define you, as if they were a badge, because

they drive all of your decisions.

When the class reached consensus on the first four postulates, the focus moved to dis­

cussing the mechanics of making the trade­

off between values, which determines which course of action they would take. Students

came to "discover" that their values were

organized in an internal hierarchy that deter­

mined the decisions they would make.

Following recognition of the hierarchy

concept, ethical problems were developed

I

t-+Responsibility ~ ( self Esteem ) I I I

\

I \

4 "No"Safety I

Goals

I

:-+Social

1 Acceptance

I I .-+"No" Caring .....

SUM 2005 VALUERICH MAGAZINE 99

and discussed in class. A majority, but not all

of the students came to realize that, like the

elementary lessons they taught, [5] if a nega­tive value is the basis for the decision, one is

likely to be on a sl ippery slope of ethics.

The decision framework permitted look­

ing into the gray areas of ethical discussion,

which students indicated were not readily

dealt with in the other ethics courses they had taken . Though not as definitive as the

prior five, the ent ire class agreed to a sixth

premise, which is the reason that teaching

ethics in this way will be more effective than

any other method because [6] recognizing

that ordering of values defines decision­

making, which in turn defines a person, will

cause continuous introspection and reflec­

tion about all of one's decisions the rest of one's life.

Considering these conclusions, the impli­

cat ions are a bit more interesting for the

MBA students than the elementary children. Once they realize that all of us are the sum of

our decisions and that we all have an order of

values that drive our choices (the trade-offs),

New York, NY I 212.308.8722 i nfo@maryan nerussel l.com www.maryannerussell.com

A Certified Women's Business Enterprise (WBE) qualified for Diversity Programs

100 VA LUERICH MAGAZINE 2005

they become self-modifying . They think

about who they are, in terms of their values,

defined by their decision-making, and this

leads them to make the "right" decision - in

business lingo: not taking shortcuts.

This leads to the deduction that taking this ethics class will affect future behavior,

which, as mentioned earlier, is the reason we

teach ethics in the first place. The MBA stu­dents overwhelmingly supported the practi-

cality of such an approach. What if all business schools adopted a

decision-based ethics approach? At the very

least, students might feel that they were get­ting more value from the experience as they

explored their own personal hierarchy of

values. At most, business school ethics will

finally achieve what they profess to do now

- they will change future business leaders' decisions for the better. VR

Dr. Reynolds received his Ph .D. in mathematical psychology. His

academic research in the area of decision-making and communica­

tions serves as the theoretical basis of the GOOD Decision Model - a

detailed decision-making process, applicable to all ages and cultures.

Dr. Reynolds has taught elementary education in a barrio in East Los

Angeles and junior high and high school students in South Central Los

Angeles. At the university level, he has taught at the University of Notre

Dame; the University of Southern California; the University of California,

Berkeley; the University ofTexas, Dallas; St. Mary's College, Notre Dame; and Michigan State

University.

The GOOD Decision Model, along with a more complete overview ofthe LifeGoals program

can be explored at www.lifegoals.net. A video summarizing the MBAs' comments on this new

approach to decision ethics is available from staff@lifegoals.net.

maryanne russell PHO OGRAPHY

Avon I D&B I Morgan Stanley I HBO

Wachovia I Sony I Random House

AT&T I Time Warner I M'erck I IBM

www.valuerichonline .com

lAWYERS.

LEADERSHIP.

LEGACY.

BROAD AND CAsSEL ATTORNEYS AT LAW

A full-service , Florida law firm with dedicated attorneys.

For more information contact: Kathleen Deutsch

Partner, Corporate/Securities Department One North Clematis Street, Suite 500

West Palm Beach, Florida 33401 561 • 832. 3300

www.broadandcassel.com

BOCA RATON · FORT LAUDERDALE · MIAMI · ORLANDO· TAlLAHASSEE· TAMPA· WEST PAlM BEACH

Till llllll"'l" , q \I \\\'d R I\ At'\ l\\l'<>ll l \t---1 [) 1, l' l c't'-- I ll·\ \llc' ll 't'--1>l 1•1 1•\\l.' '·>ill\ I I'• to\ \ I>\ 11\·I,J\\ I t'\ l \

1\rlc':'.l )c' l 111, 1.'1 \'" l' c' \1~ 11 \ c I I •U! \\lU ll It'\ li'. 1 lll~,\',\ll•'t'-- \1·'' 1 1 ''''" •'I ,\.111, \ •''J• \1'. 1 1\'IIUI~l I

ESTATES REALTY. COM

Beautiful Homes • Beautiful Properties

FLORIDA • NEW YORK • CALIFORNIA • COLORADO

REALTOR®

561.393.1446 • 561.393.1447 FAX

sold@bellaestatesrealty.com

233 SOUTH FEDERAL HIGHWAY • SUITE 310 • BOCA RATON, FL 33432

EQUAL HOUSING

LENDER

Member FDIC

$J~ooaooO** 100% financing with payments of

only $3,541 *per month

Dream It ... Live It Flagstar Bank will customize a loan program to make your dream come true, no

matter how grand or ambitious. Purchase a new or second home, increase liquidity, maximize tax benefits or exploit equity with a leader in luxury home lending.

Interest Only • Purchase or Refinance • Debt Consolidation • Construction • Capitalization

For a confidential consultation please call Steven G. Hinytzke 1-888-760-8383

Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. Borrower has option to make interest only payments. All calculations are approximate. All rates, fees and programs are subject to change and/or withdrawals from the market without notice. Qualifica­tions are subject to available Collateral, credit income, assets and a first position deed oftrust. U.S. properties only. Permanents residents only. Non-permanent residents are subject to investor requirements. A Zero down payment option is also available with certain restrictions. Ask for details. * Interest-only payments for the first 10 years, plus 1 S years fully-amortized, for a total of 2S years. The above figures are based on a 20% down payment and rate of 3.2SO o/o and 1.00% loan discount fee as of 6-16-05. APR is 4.388%. Initial interest-only payments of $3,541 per month for 10 years and adjustable fully-amortized payments of $7,522.78 for 15 years based on rate as of 6-16-05. Actual adjustable fully-amortized payments will be based on rate when 10- year interest only period expires. **El igible Pledged Assets Securities include but are not limited to: Stocks, Mutual Funds, Bills, Notes, Bonds, Certificates of Deposit, Money Market funds and Cash .

{Jwy Ct71MM1-W .... 1&j tu,tw.- M ~ 1/Ytf<M-1- {;,. rYt./twvt ~ "'A::i "f l1ft. T"I/Aj &W 1/Ytf<M-1- ltA4 IHcfT'l#t TitYY~ fMific~ t; .... t~1Y".....,,,_e; .... ~/, 6J&~t.r1

C,.J&~ 'fZ1C~~ r-1tY t;C17~1cM- u.Mttw rttw.-1/wtfvru..t: .... &

Twck:A Mvf<j " .... 1-W MYt./ 1TtltYkv{d .... .J &kt ~kJ ,-f flA:J~l>ttw.-c~ wi&lt-i .... tkt 4wf<M-MM&t fy,.vi .... ce:, """"y C17U1-U..W .... 1t.:f "'M l/t.113 .... t;l( w;, fry-,-J& f?<!rrl;.t

1 .... tev~1cAJ rt.., ........ 1 .... .J tw.-1/ JwJ&M .... tv/4-le: C(t~1 .... .J·

1-w?"""?f t.r&~t: J1&t.r Ytw.-_J1 .... .J fYfT'l# 1.1-.f {;,. 3 MYt./ ~t MW'i~lt w1&k- Octtw.-1

~w .... t-A-1 .... tw.-1/ 6Jb~'f v1t:wJ. A u..Mbt:Y Stw.-t~J>~{Mv~ {d.w1!AtY 1J v....J1bt: {;,. k.t,1 (d.w1 ll( j"WY cwJI;,.u.. k.rn..t .

P·~vi t'""""""~""vwt fj..rtwtN

~1~ fl\fi[icA-

broker-dealers, attorneys, licensed resistered representatives, and other securities professionals in matters involving:

• Various going public transactions; • Restricted stock matters; • Mergers and acquisitions; • Initial Public Offerings; • The United States Attorneys Office, Securities and Exchange Commission, National Association

of Securities Dealers, Commodity Futures Trading Commission, Federal Trade Commission, Federal Bureau of Investigation, Grand juries, and Stock Exchanges;

• General securities, corporate, contractual, business and transactional matters; • Drafting of materials for public and private offerings and compliance; • Blue Sky filings and compliance; • Drafting of periodic filings and other SEC disclosure under the Securities Exchange Act of 1934; • Drafting SEC registration statements and filings; • Sarbanes-Oxley compliance; • Internal investigations; • Investor relations matters, including Securities Act of 1933 Section 17(b) disclosure; • Market maker, Rule 15c-211, and Form 211 documents; • Purchase and sale of broker-dealers; • White Collar criminal defense; • Federal criminal trials and related appeals; • Defense of federal district court civil injunctive actions, SEC and CFTC administrative court

actions, and NASD matters; • Temporary Restraining Orders; • Civil trials and appeals; • Trading suspensions and Stop Order proceedings; • State regulatory and enforcement matters; and • Self Regulatory Organization investigations and examinations.

For more information about Hamilton, Lehrer & Dargan, P.A. or the information in this Profile, please contact Brenda Lee Hamilton, Esquire at Hamilton, Lehrer & Dargan, P.A. at 2 East Camino Real, Suite 202, Boca Raton, Florida 33432, Phone: (561) 416-8956, Fax: (561) 416-2855; Email: bhamilton@hldpa.com

M GROUP

Sound Investments. Solid Relationships.

Maxim Group has a rich history in investment banking coupled with a specialized approach to corporate finance. Connecting people, ideas and

capital, we aim to be your first choice for achieving financial results.

$22 Million IPO $7.5 Million PIPE

----____ _..,.,.,.~~.......----

- - - I N T E. R c H A N G E T• • EPIXTRR

Interchange, Inc.

Roth Capital Partners Maxim Group LLC

Epixtar Corporation

Maxim Group LLC

$17 Million PIPE $21.6 Million IPO

Drug

Drugmax, Inc. Gentium S.p.A First Albany Maxim Group LLC Maxim Group LLC !-Bankers Securities Incorporated

New York City 405 Lexington Ave., New York, NY 10174 ·tel: 800-724-0761, tel : 212-895-3500, fax: 212-895-3555

Long Island, New York 99 Sunnyside Blvd., Woodbury, NY 11797 ·tel: 800-537-6923, tel: 516-393-8300, fax: 516-364-1310

Chicago 200 West Jackson Boulevard, Suite 2000, Chicago, IL 60606 ·tel: 800-621-0659, tel: 312-554-2200, fax: 312-554-1009

John Garrity 99 Sunnyside Boulevard, Woodbury, NY 11797 ·tel: 516-393-8300

info@maximgrp.com Member NASD & SIPC

INVESTMENT BANKING I BUSINESS OBJECTIVE:

Dialog Group is seeking capital.

COMPANY DESCRIPTION

Dialog Group provides relationship marketing communications services, business and consumer targeting databases for the healthcare, financial other direct-to-consumer, direct-to-professional business markets.

CONTACT INFORMATION

Dialog Group, Inc. Ph: 212-719-7013 www.dialoggroup.com

INVESTOR RELATIONS

invrel@dialoggroup.com

SYMBOL:

G~DrugMax

INVESTMENT BANKING I BUSINESS OBJECTIVE:

DrugMax is focused on integrating operations with those of Fa after the merger in November 2004. Receptive to exploring opportu enhance capital position and/or entering partnerships that advance strategy.

COMPANY DESCRIPTION

Drug Max is a specialty pharmacy and drug distribution providers that closely with doctors, patients, managed care providers, medical centers nd employers to deliver low cost and effective healthcare solutions.

CONTACT INFORMATION

Drug Max, Inc. Ed Mercadante, President and CEO Ph: 860-676-1222 (ext. 138) www.drugmax.com

INVESTOR RELATIONS

Cindy Berenson Ph: 860-676-1222 (ext. 138) berenson@familymeds.com

obozioJ~ DIAmOnDS

INVESTMENT BANKING/ BUSIENSS OBJECTIVE:

Abazias.com seeks to raise up to $1 million in non-floorless convertible ture arrangements or engage in investments with private equity

COMPANY DESCRIPTION

A top online suppl ier of discounted diamonds and jewelry, Abazias.com tures one of the largest certified loose diamond databases in existence more than 60,000 diamonds, valued at over $350 million.

CONTACT INFORMATION

Abazias.com Oscar Rodriguez, CEO Ph: 352-264-9940, Fax: 352-377-0488 webcontact@abazias.com www.abazias.com

www.vrexpo.net

AdAI Group, Inc.

INVESTMENT BANKING I BUSINESS OBJECTIVE:

Keating Investments, LLC will be raising additional equity capital to fund AdAI Group's organic and acquisitive growth strategies while reducing debt.

COMPANY DESCRIPTION

AdAI Group is an aluminum technologies roll -up which represents the combi­nation of several well-established aluminum manufacturing businesses, pro­viding complete one-stop aluminum extrusion services to U.K. and continental European customers.

CONTACT INFORMATION

AdAI Group, Inc. Rupert Howe, UK Investor Relations rupert.howe@adalgroup.com Phone: +44 (1342) 833855

INVESTOR RELATIONS

Keating Investments Pamela A. Solly, Vice President ps@keatinginvestments.com Phone: (720) 489-5876 www.adalgroup.com www.keatinginvestments.com

SYMBOL :

VIPER MOTORSPORTS, l n o.

INVESTMENT BANKING I BUSINESS OBJECTIVE:

Viper is currently seeking an investment banking relationship to raise addi ­tional capital via private placement.

COMPANY DESCRIPTION

Viper is a motorcycle company engaged in the design, development, produc­tion and commercialization of premium V-Twin heavyweight motorcycles (custom cruisers) and proprietary V-Twin engines.

CONTACT INFORMATION

Viper Powersports, Inc. Ph: 763-732-0778 Fax: 762-732-0781 www.viperpowersports.com

INVESTOR RELATIONS

John Lai, VP Corporate Development Ph: 763-732-0778 johnl@vipermotorcycle.com

A·\ m SYMBOL:

PHARMA

INVESTMENT BANKING I BUSINESS OBJECTIVE:

AXM Pharma is actively seeking bank facilities and trade lines of credit with internationally-minded financial institutions. Company will occa sionally explore equity financing arrangements in order to fund capital expenses.

COMPANY DESCRIPTION

AXM Pharma, Inc. is 100% owner of AXM Pharma Shenyang, Inc. which holds 43 licenses to produce over-the-counter and prescription pharmaceutical products in The Peoples Republic of China.

CONTACT INFORMATION

AXM Pharma, Inc. Ph: 702-562-4155, Fax: 702-562-4157 www.axmpharma.com

INVESTOR RELATIONS

Investor Communications Company, LLC Tom Bostic (866) 562-0134 www.iccinfo.com

SUM 2005 VALUERICH MAGAZINE 107

~Vertex ~STRIBUTING

INVESTMENT BANKING I BUSINESS OBJECTIVE:

Vertex seeks first round strategic investment of $3 million with anticipated sec­ond round of $3-5 million within 12-18 months.

COMPANY DESCRIPTION

Vertex is a global distributor of non-proprietary computer software in both the retail and OEM format.

CONTACT INFORMATION

Vertex Distributing www.vertexdistributing.com

INVESTMENT BANKING I BUSINESS OBJECTIVE:

SYMBOL:

Paulson Investment is offering 1,000,000 units including Class A and Class B public warrants.

COMPANY DIOSCR\PT\ON

Nuvim produces, markets and distributes NuVim dietary supplements in beverage form containing two proprietary micronutrients, LactoActin and LactoMune, that have been shown in studies to help strengthen the immune system, support muscle flexibility and promote sturdy joints.

CONTACT INFORMATION

NuVim, Inc. Richard Kundrat, CEO Ph: 201-556-1010 www.nuvim.com

INVESTMENT BANKING I BUSINESS OBJECTIVE:

mPhase Technologies seeks to increase shareholder value.

COMPANY DESCRIPTION

SYMBOL:

mPhase Technologies develops and commercializes next -generation solutions for telecommunications and nanotechnology applications and is currently selling leading edge components and test equipment for digital subscriber networks (DSL).

CONTACT INFORMATION

mPhase Technologies, Inc. Mary K. Whelan, EVP Marketing & Communications Ph: 973-256-3737 (ext 11 0) invest@mphasetech.com www.mphasetech.com

108 VALUERICH MAGAZINE 2005

Financial C 0 N T E N T

INVESTMENT BANKING/BUSINESS OBJECTIVE:

FinanciaiContent seeks further investment for a strategic merger or acquisi­tion ventures.

COMPANY DESCRIPTION

FinanciaiContent, Inc. is a leading provider of financial data and business applications to online media and financial services companies worldwide.

CONTACT INFORMATION

FinanciaiContent, Inc. Wing Yu, Chief Executive Officer Ph: 650-837-9850, Fax: 650-745-2677 wyu@financialcontent.com www.financialcontent.com

~United Financial Mortgage Corp. " Leading America Home

INVESTMENT BANKING I BUSINESS OBJECTIVE:

Seeking both strategic and capital partners to help bolster balance sheet and provide market support.

COMPANY DESCRIPTION

United Financial Mortgage is an independent nationwide retail and wholesale mortgage banker that originates, funds, sells and services residential and com­mercial mortgage loans.

CONTACT INFORMATION

United Financial Mortgage Corp. Ph: 630-571-7222 info@ufmc.com www.ufmc.com

MMN MaGIC MEi:Jta NE,rwOrUCS, INC.

\INVESTMENT BANKING I BUSINESS OBJECTIVE:

SYMBOL:

Magic Media Networks seeks to find a placement agent and/or arrange for a selling agreement for Securities. The Company currently has an "Effective" SB-2 Registration Statement.

COMPANY DESCRIPTION

Magic Media's core business is the implementation of private television net­works and digital signage in high traffic leisure destinations. Wholly owned subsidiary, Destination Television, Inc., currently broadcasts Bar TV, Gym TV and Hotel TV.

CONTACT INFORMATION

Magic Media Networks, Inc. Gordon Scott Venters, Founder and CEO gsv@destinationtelevision.com Ph: 954-332-6666 Fax: 954-332-0111 www.magicinc.com

www. valuerichonline.com

([f) MtoiA NHYGROUP TE CIINillllGI E S

INVESTMENT BANKING I BUSINESS OBJECTIVES:

The Company is seeking an ongoing relationship with an investment ba firm to build upon, and to establish a path towards a possible future ing.

COMPANY DESCRIPTION

Media Net encompasses an integrated group of operating divisions volve around many aspects of media and technology including, brand wards programs and internet portal applications, television and video tion and intellectual properties (Howdy Doody).

CONTACT INFORMATION

Med iaNet Group Technologies, Inc. Martin Berns, CEO Ph: 954-974-5818 ext. 202, Fax: 954-974-5720 mberns@medianetgroup.com www.medianetgroup.com, www.bsprewards.com

. . . . D E R M A S CiEN C E S

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

Derma Sciences seeks to establish research coverage, ach ieve listing o an exchange and increase trading volumes through new investors.

COMPANY DESCRIPTION

Derma Sciences is a fully integrated manufacturer, marketer and supplier fa complete line of products for wound and skin care.

CONTACT INFORMATION

Derma Sciences, Inc. 609-5 14-4744 www.dermasciences.com

INVESTOR RELATIONS

Lester Rosenkrantz lester@cameronassoc.com

SYMBOL:

newmarket t c c h no I o gy

INVESTMENT BANKING OBJECTIVE:

NewMarket is working to expand its shareholder base to include more ins itu­t ional investors, in part by applying to AMEX for listing.

COMPANY DESCRIPTION

NewMarket Technology is the next step and expansion of a business plan ini­t iated in June of 2002 at IPVoice Communications Inc. to become a glo ally recognized leader in the continuous introduction of Emerging Technologi s.

CONTACT INFORMATION

NewMarket Technology, Inc. Ph: 972-386-3372 ir@ipvoice.com www.newmarkettechnology.com

www. vrexpo.net

Newtek Business Services, Inc.

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Newtek Business Services, Inc. is seeking: Mergers and acquisit ion opportuni ­ties; Research and investment banking support.

COMPANY DESCRIPTION

Newtek Business Services' mission is to become the premier provider of qual­ity financial products and business services to smal l and medium-sized busi­nesses across the U.S.

CONTACT INFORMATION

Newtek Business Services, Inc. Barry Sloane, Chairman and CEO Ph: 212-356-9500 ext 101, Fax: 212-643-1 006 bsloane@newtekbusinessservices.com www.newtekbusinessservices.com

MERGE & ACQUIRE SYMBOL:

COACH INOUS I RI IS GROUP. IIC .

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Coach Industries is currently exploring merger and acquisition opportunities.

COMPANY DESCRIPTION

Through its subsidiaries, Coach Industries offers an array of fi nancial services and insurance products to commercial fleet operators and independent con­tractors in the courier industry and manufactures specialty vehicles for com­mercial fleet operators in the luxury limousine services industry.

CONTACT INFORMATION

Coach Industries Group, Inc Investor Relations 954-602-1400 ir@cigi.cc www.cig i.cc

SYMBOL:

INVESTMENT BANKING I BUSINESS OBJECTIVES:

PHC seeks to establish a positive, long-term investment banking relationship in order to further develop its revenue growth strategy.

COMPANY DESCRIPTION

PHC, doing business as Pioneer Behavioral Health, operates subsidiaries t hat provide inpatient and outpatient behavioral hea lth care services, clinica l research, and Internet- and telephonic-based referral services.

CONTACT INFORMATION

Pioneer Behavioral Health Ph: 978-536-2777 info@phc-inc.com www.phc-inc.com

INVESTOR RELATIONS

Hayden Communications, Inc. 843-272-4653 Matt@haydenir.com

SUMM 2005 VALUERICH MAGAZINE 109

I :

INTERNATIONAL INC

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Bio-Lok is seeking mergers & acquisitions of small companies, business con­tacts, and market support for developed technology.

COMPANY DESCRIPTION

Bio-Lok is the manufacturer and distributor of the "Bio-Lok~ Precision Dental Implant System:'

CONTACT INFORMATION

Bio-Lok International, Inc. Bruce L. Hollander, CEO & President Ph: 954-698-9998 (Ext 1 2) blh@biolok.com www.biolok.com

.. ~_.,CHANGE · "! ..,_ :crpcrat1on . ; L

INVESTMENT BANKING OBJECTIVE:

SYMBOL:

The X-Change Corporation is seeking market support as well as opportunistic acquisitions of oil and gas concerns whose plans and operations are compli ­mentary to those of the Company.

COMPANY DESCRIPTION

The X-Change Corporation is an oil and gas producer who currently operates several wells in Texas.

CONTACT INFORMATION

The X-Change Corporation Investor Relations Michael P. Mcinerney Ph: 972-747-1206 info@x-changecorp.com www.x-changecorp.com

A DVANCED SPINAL TEC HNOLOGIES, INC. A REVOLUTION IN THE TREATMENT OF BACK PA IN

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Advanced Spinal Technologies is seeking to generate interest in the Company's preparation to go public and private market opportunities.

COMPANY DESCRIPTION

Advanced Spinal Technologies is a medical device company with U.S. and Worldwide rights to market the patented Power-assisted Spinal Mobilization instrument designed to administer an innovative and revolutionary treatment for acute or chronic back pain.

CONTACT INFO

Sky Capital Enterprises Ross Mandell Ph:001 2127091900 www.skycapitalventures.com

110 VALUERICH MAGAZINE 2005

~ METWOOD BUILD I NG SOLUTIONS

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Metwood is looking to create a relationship with the right firm to promote the Company, as well as to help in the attainment of financial goals.

COMPANY DESCRIPTION

Metwood manufactures light gauge steel building components for all types of construction.

CONTACT INFORMATION

Metwood, Inc. Ph: 540-334-4294 Fax: 540-334-4293 www.metwood.com

INVESTMENT BANKING/BUSINESS OBJECTIVE:

NetSol 's Investment Banking objectives are strategic acquisitions and capital raises. These objectives are currently handled by Maxim Group.

COMPANY DESCRIPTION

NetSol Technologies, Inc., an SEI CMM Level 3 and ISO 9001 company, is a leading developer of integrated leasing, treasury, and knowledge management systems for the banking, leasing, and auto finance verticals.

CONTACT INFORMATION

NetSol Technologies, Inc. Emaad Burki, SVP Ph: 301-869-0500, Fax: 301-869-3713 eburki@netsoltek.com www.netsoltek.com

~arcalex INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

Archipelago Holdings is seeking business development opportunities and market support.

COMPANY DESCRIPTION

Archipelago Holdings Inc. operates the Archipelago Exchange (ArcaEx), the first open all-electronic stock market in the United States.

CONTACT INFORMATION

Archipelago Holdings, Inc. Ph: 31 2-960-1696 www.arcaex.com

www.valuerichonline.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

BlastGard is currently seeking business development opportunities and r-ket support.

COMPANY DESCRIPTION

BlastGard was created to design and develop proprietary blast miti materials.

CONTACT INFORMATION

BlastGard International, Inc. Jim Gordon, Chairman & CEO jgordon@blastgardintl.com Ph: 727-592-9400 www.blastgardintl.com

the DTgroup a real estate company

INVESTMENT BANKING I BUSINESS OBJECTIVES:

The DT Group is looking for co-managers and syndicates for offerings.

COMPANY DESCRIPTION

The DT Group is a fully integrated real estate company comprised of 5 ing entities and 16 investment partnership.

CONTACT INFORMATION

Sponsor: US EURO Securities, Inc. Michael Roy Fugler Ph: 917-834-7250 www.useurosecurities.com

1.5» GAI§1(XY ENERGY CORPORATION

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Galaxy Energy is seeking to raise funds for future projects and possible acq tions.

COMPANY DESCRIPTION

Galaxy Energy is an oil and gas exploration and production company unconventional and conventional natural gas properties in Wyom Montana, Texas and Europe.

CONTACT INFORMATION

Galaxy Energy Corporation Ph: 303-293-2300 www.galaxyenergy.com

www.vrexpo.net

INVESTOR RELATIONS

Brad Long Ph: 360-945-0395 brad@galaxyenergy.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

CWTC is currently seeking business development opportunities and market support.

COMPANY DESCRIPTION

CWTC's aim to be a dominant player in the trade agency business and direct investment consultancy service, linking companies in China to the rest of the world.

CONTACT INFORMATION

China World Trade Corporation Ph: 001-8620- 3878-0186 ext. 821 www.chinawtc.net

-· ENERGY

INVESTOR RELATIONS

ir@chinawtc.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

EENT is seeking business development opportunities and increased market support.

COMPANY DESCRIPTION

EENT develops and markets auxiliary power generators for the long haul trucking industry and its products are geared toward reducing pollution and dependence on foreign energy sources by limiting use of diesel fuel and there­by reducing noxious emissions into the environment.

CONTACT INFORMATION

EENT Willard G. McAndrew, Ill, President & CEO Ph: 972-732-6360 info@eent.net

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

GenOil seeks to increase shareholder value and raise additional capital at a higher valuation.

COMPANY DESCRIPTION

GenOil's technologies represent either breakthrough or innovative technolog­ical approaches to existing oil and gas production or refinery problems.

CONTACT INFORMATION

Genoil , Inc. David Lifschultz, Chairman & CEO Ph: 914-393-5800 www.genoil.net

INVESTOR RELATIONS

Candida Beaumont Ph: 212-688-9606 ir@genoil.net

SUM 2005 VALUERICH MAGAZINE 111

GLOBAL AIRCRAFT SOLUTIONS

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Global Aircraft Solutions is interested in securing additional funding for certain productivity-improving or synergistic acquisitions and other asset-based busi­ness opportunities.

COMPANY DESCRIPTION

Global Aircraft Solutions provides parts support and maintenance, repair and overhaul services for large passenger jet aircraft to scheduled and charter air­lines and aviation leasing companies.

CONTACT INFORMATION

Global Aircraft Solutions, Inc. Ph: 520-294-3481 www.globalaircraftsolutions.com

INVESTOR RELATIONS

Hamilton Aerospace Technologies Gordon Hamilton dhamilton@HamAeroTech.com

SYMBOL:

GuruNet .;:~ INVESTMENT BANKING I BUSINESS OBJECTIVES:

GuruNet is currently seeking long-term investments.

COMPANY DESCRIPTION

GuruNet Corporation develops and markets Answers.com, which provides quick, integrated reference answers instead of just search engine links.

CONTACT INFORMATION

Guru Net Corporation Jay Bailey, Director of Communications Ph: 866-576-0352 ir@gurunet.com www.gurunet.com

1-Sector INVESTMENT BANKING I BUSINESS OBJECTIVES:

1-Sector is currently seeking business development opportunities and increased market support.

COMPANY DESCRIPTION

/-Sector designs and sells Cisco-based IP Telephony/VoiP solutions and net­work infrastructure equipment from Cisco Systems, Inc. for enterprise organi­zations and provides both implementation services and post-implementation support services related to such solutions.

CONTACT INFORMATION

I-Sector Corp. Ph: 713-795-2000 info@i-sector.com www.i-sector.com

112 VAlUERICH MAGAZINE 2005

INVESTOR RELATIONS

PR Financial Marketing, LLC Jim Blackman, President Ph: 713-256-0369 jimblackman@prfinancialmarketing.com

GLOBAL PAYMENT TECHNOL OGlES

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Global Payment Technologies is currently seeking business development opportunities and increased market support.

COMPANY DESCRIPTION

Global PaymentTechnologies is a worldwide leader in the design, manufactur­ing and marketing of currency validation systems, including paper currency validators and related paper currency stackers.

CONTACT INFORMATION

Global Payment Technologies, Inc. Ph: 631-231-1177 www.gptx.com

INVESTOR RELATIONS

Thomas McNeill, VP & CFO investorinfo@gptx.com

SYMBOL:

INVESTMENT BANKING I BUSINESS OBJECTIVES:

GVI Security Solutions is seeking business development opportunities and increased market support.

COMPANY DESCRIPTION

GVI Security Solutions is a rapidly growing pure play Homeland Security Enterprise Solutions provider.

CONTACT INFORMATION

GVI Security Solutions, Inc Ph: 972-245-7353 www.gviss.com

INVESTOR RELATIONS

CCG Investor Relations Crocker Coulson Ph: 818-789-0100 crocker.coulson@ccgir.com

SYMBOL:

Onstream > > > >>>>>>> MEDIA

INVESTMENT BANKING I BUSINESS OBJECTIVES:

On stream Media seeks to work with experienced institutions for assistance in evaluating and executing strategic acquisitions; facilitating new business development; increasing market support and creating diversified shareholder base to increase liquidity.

COMPANY DESCRIPTION

On stream Media Corporation is a digital media services provider that special­izes in web-based executive presentation and collaboration; audio, video and other rich media communications; and digital asset management services for global audiences.

CONTACT INFORMATION

Onstream Media Corporation Barry A. Rothman Ph: 954-917-6655 brothman@vdat.com www.onstreammedia.com

www.valuerichonline .com

~PDG Environmental, Inc.

INVESTMENT BANKING I BUSINESS OBJECTIVES:

PDG Environmental is currently seeking equity/ debt financing to acquisition(s) for diversification and growth.

COMPANY DESCRIPTION

PDG Environmental Inc. is an environmental and specialty contractor quartered in Pittsburgh with 13 offices throughout the Country.

CONTACT INFORMATION

PDG Environmental, Inc. Ph: 800-972-7341 www.pdge.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

INVESTOR RELATIONS

Dulcia Maire Ph: 954-979-7077

Q4i is seeking business development opportunities.

COMPANY DESCRIPTION

SYMBOL:

Q4i offers innovative, creative and breakthrough solutions that enablefina institutions, broker-dealers, companies and other organizations to and grow their businesses and simplify their processes despite an increasi complex operating environment.

CONTACT INFORMATION

Q4i, Inc. Ph: 972-661-1880 www.q4i.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Wits Basin is seeking support and sponsorship to a senior exchange.

COMPANY DESCRIPTION

Wits Basin is a precious minerals exploration and development company project interests in South Africa, Continental US and Canada.

CONTACT INFORMATION

Wits Basin Precious Minerals Inc. Ph: 612-349-5277 www.witsbasin.com

INVESTOR RELATIONS

Aurelius Consulting Group Wits@runonideas.com

www.vrexpo.net

?~pSivida INVESTMENT BANKING I BUSINESS OBJECTIVES:

pSivida is currently seeking business development opportunities and increased market support.

COMPANY DESCRIPTION

pSivida is a global nanotechnology company developing and commercializing a new biomaterial , nanostructured porous silicon (BioSilicon'"), for multiple potential applications in healthcare with a core focus on drug delivery.

CONTACT INFORMATION

pSivida Limited Josh Mann, Investor Relations Ph: +61-8-9226-5099 joshuamann@psivida.com www.psivida.com

Sc1ent1oo The world's leader in inteU.g~ Business Process Automation

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

Scientigo is seeking to develop a successful relationship with an institution that understands its business objectives and industry. The institution will assist the Company with its capital needs, evaluating acquisitions, facilitate research, and will be a strong retail advocate and supporter in the market.

COMPANY DESCRIPTION

Scientigo is the world 's leader in intelligent Business Process Automation technologies, specializing in developing and licensing intellectual property to partners whose products and services complement its technologies for the benefit of clients.

CONTACT INFORMATION

Scientigo, Inc. Ph: 704-319-5155 info@scientigo.com www.scientigo.com

INVESTOR RELATIONS

Vince Buczek Ph: 301-751 -1457 investor@scientigo.com

SYMBOL:

~orkstream INVESTMENT BANKING I BUSINESS OBJECTIVES:

Workstream is currently seeking business development opportunities and market support.

COMPANY DESCRIPTION

Workstream provides enterprise workforce management solutions and ser­vices that help companies manage the entire employee lifecycle -from hire to retire.

CONTACT INFORMATION

Workstream Inc. Ph: 407-475-5500 www.workstreaminc.com

SUM 2005 VALUERICH MAGAZINE 113

SYMBOL:

B I ~::~% PHAN™ TE C HNOLOGIES , INC.

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Biophan seeks to expand broker and inst itutional investor awareness of the Company and its planned listing on a major exchange in 2005.

COMPANY DESCRIPTION

Biophan develops and markets technologies for making biomedical devices safe and compatible with magnetic resonance imaging (MRI).

CONTACT INFORMATION

Biophan Technologies, Inc. Ph: 585-214-2441 info@biophan.com www.biophan.com

;!Centale INVESTMENT BANKING I BUSINESS OBJECTIVES:

Centale is seeking strategic partnerships.

COMPANY DESCRIPTION

SYMBOL:

Centale has over 25 years of combined Direct Response, Sales and Marketing experience, technology development experience, and is supported by a soft­ware development team of over 100 programmers.

CONTACT INFORMATION

Ph: 754-224-3300 www.centale.com

t!ia Industrial !iervices of America

INVESTMENT BANKING /BUSINESS OBJECTIVES:

SYMBOL: ... ,..,.

ISA is seeking market support services and strategic partners leading to LLC development, partnerships, acquisitions, and logistic opportunities.

COMPANY DESCRIPTION

ISA is a logistic management services company that offers total package waste and recycling management services to commercial, industrial, and logistic cus­tomers throughout North America, as well as providing recycling and scrap processing and waste handing equipment sales and services.

CONTACT INFORMATION

Industrial Services of America, Inc. Greg Brendel, Director Sales & Marketing 888-494-4472 ext . 7538 gbrendel@isa-inc.com www.isa-inc.com

114 VALUERICH MAGAZINE R 2005

SYMBOL:

BSI2000~

INVESTMENT BANKING I BUSINESS OBJECTIVES:

8512000 is seeki ng partnerships and relationships to help increase market share and improve its ability to compete in the homeland security and com­mercial security markets and would like to increase global awareness for the Company and its products.

COMPANY DESCRIPTION

BSI2000's primary market is Homeland Security and is first in identifying, vali­dating and tracking people with optical smart cards.

CONTACT INFORMATION

BSI2000, Inc. Jack Harper, President & CEO Ph: 303-231 -9095 jharper@bsi2000.com www.bsi2000.com

INVESTOR RELATIONS

Frank Hawkins or Julie Marshall Hawk Associates Ph: 305-852-2383 info@hawkassociates.com

SYMBOL:

Electric Aquagenics Ur lir~;ted

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Electric Aquagenics is seeking public market exposure and has launched a cor­porate promotional campaign by hiring Strategic Growth Internationa l (for IR) and Rubenstein Public Relations.

COMPANY DESCRIPTION

Electric Aquagenics is a supplier of non-toxic water treatment technologies and equipment used in cleaning and disinfecting everything from carpets and poultry processing to extending the shelf life and freshness of grocery produce.

CONTACT INFORMATION INVESTOR RELATIONS

Electric Aquagenics Unlimited, Inc. Gaylord Karren, President & CEO gaylord@eau-x.com

Joe Stapley, VP Investor Relations jstapley@eau-x.com

Ph: 801 -443-1031 www.electricaquagenics.com

Ph: 866-302-3289

MILEST~~NE SC IE NT I F I C

INVESTMENT BANKING /BUSINESS OBJECTIVES:

Milestone is prepared to enter the phase of joint partnerships for commercial­ization of new technology for two projects: (1) a single tooth anesthetic deliv­ery system and (2) commercialization of the patented CompuFio technology for spinal anesthetic injections.

COMPANY DESCRIPTION

Milestone is the world leader in advanced injection technology.

CONTACT INFORMATION

Milestone Scientific Ph: 800-862-1125 www.milestonescientific.com

www.valuerichonline .com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

NaturaiNano is seeking to expand broker and institutional awareness of fast growing nanotechnology company, its unique nanomaterials and applications, and the experienced management team.

COMPANY DESCRIPTION

NaturaiNano is a development-stage company whose primary business is cessing, developing and commercializing naturally occurring nanotechnol materials.

CONTACT INFORMATION

Ph: 585-214-8005 info@naturalnano.com www.natura lnano.com

~

~·Telkonet INVESTMENT BANKING/ BUSINESS OBJECTIVE:

Telkonet, Inc. is seeking strategic partnerships with value-added resellers, tern integrators and distributors.

COMPANY DESCRIPTION

The Company is the leading developer of high-speed Internet over the existing electrical lines within commercia l buildings.

CONTACT INFORMATION

Ken Sgro CEOCast.com Ph: 21 2-732-4300 kensgro@ceocast.com www.telkonet.com

INVESTOR RELATIONS CONTACT:

Investors Stock Daily, Inc. Jody M. Janson Ph:585-454-6955, Fax: 585-23 jody@istockdaily.com www. istockda ily.com

INVESTMENT BANKING/ BUSINESS OBJECTIVE:

M-Wave, Inc. is currently seeking market support.

COMPANY DESCRIPTION

M-Wave is a service provider of high performance printed ci rcuit boards u a variety of digital and high frequency communications applications.

CONTACT INFORMATION

M-WAVE Phone 630-562-5550 Fax: 630-562-243 1 www.mwav.com

www.vrexpo .net

INVESTOR RELATIONS CONTACT

Aurelius Consulting Group, Inc. Dave Gentry Phone 800-644-6297 info@runonideas.com www.ru nonideas.com

in

SEEKING MARKET SUPPORT SYMBOL:

21st Century HOLDING COMPANY

INVESTMENT BANKING I BUSINESS OBJECTIVES:

21st Century Holding is currently seeking market support.

COMPANY DESCRIPTION

21st Century Holding Company is a vertically int egrated insurance holding company, wh ich, through its subsidiaries, controls substantia lly all aspects of the insurance underwriting, distribution and claims process.

CONTACT INFORMATION

21st Century Holding Company Richard A. Widdicombe, CEO rwiddicombe@tchusa.com Ph: 954-308-1254 www.21 centuryholding.com

CHARLES&: COLVARD" - - - - ---Created-------

MO SSANITE

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Seeking Market Support.

COMPANY DESCRIPTION

SYMBOL:

Charles & Colvard, Ltd., manufactures, markets and distributes Charles & Colvard created moissanite jewels for sa le in t he worldwide jewelry market.

CONTACT INFORMATION

Charles & Colvard, Ltd. Jim Braun VP Finance & CFO Phone: 919-468-0399, Fax: 919-468-5052 jbraun@moissan ite.com www.moissanite.com

c h emok 1ne therapeutics

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Chemokine is currently seeking market support .

COMPANY DESCRIPTION

SYMBOL:

Chemokine Therapeutics is a biotechnology company developing drugs in the field of chemokines and cytoki nes, a family of small, soluble proteins, primarily located within bone marrow to regulate stem cell growth, differ­entiation and maturation.

CONTACT INFORMATION

Chemokine Therapeutics Corp. Hassan Salari, Ph.D., President & CEO Ph: 604-822-0301 www.chemokine.net

SUM 2005 VALUERICH MAGAZINE 115

Consolld~ted E nergy

Inc. . . ' ..

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

To create superior shareholder va lue by supplying coal, gas and oil in a safe, environmentally-friendly manner.

COMPANY DESCRIPTION

Consolidated Energy is a company engaged in coal mining operations, gas and oil exploration and development, and development of related clean energy technologies that are environmentally friendly.

CONTACT INFORMATION

Consolidated Energy, Inc. David W Guthrie, President and CEO Ph: 317-287-0419 Fax: 317-287-0442 dguthrie@ceiw.net www.ce iw.net

INVESTMENT BANKING/BUSINESS OBJECTIVE:

SYMBOL:

Duraswitch is seeking additional partners in licensing existing and new tech­nologies.

COMPANY DESCRIPTION

Duraswitch licenses enabling technologies to established manufacturers and OEMs worldwide. Its focus is the multi-billion dollar electronic-switch market.

CONTACT INFORMATION

Heather Beshears, VP Corporate Communications Ph: 480-586-3300, Fax: 480-844-9625 heather@duraswitch.com www.duraswitch.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

GigaBeam is currently seeking market support.

COMPANY DESCRIPTION

SYMBOL:

GigaBeam Corporation des igns, develops, insta ll s, and maintains high perfor­mance wireless point to point communications access solutions that operate in the licensed 71-76 GHz and 81-86 GHz radio spectrum bands.

CONTACT INFORMATION

GigaBeam Corporation Lou Slaughter, CEO Ph: 617-921-5500 lou.slaughter@gigabeam.com www.gigabeam.com

116 VALUERICH MAGAZINE 2005

~ TECHI\IOLOGIES

INVESTMENT BANKING I BUSINESS OBJECTIVES:

CSMGTechnologies is interested in helping the investing public become aware of the Company and the promising potential behind its two current projects.

COMPANY DESCRIPTION

CSMG Technologies is a technology management company that identifies, finances, owns, develops, licenses and markets innovative advanced technolo­gies.

CONTACT INFORMATION

CSMG Technologies, Inc. Donald Robbins, President & CEO Ph: 361-887-7546 www.ctum.com

, eldorado gold

INVESTMENT BANKING/BUSINESS OBJECTIVE:

SYMBOL:

The Company is seeki ng acq ui sition candidates, and/or seeking strategic merger, partnerships, joint ventures or acq uisition.

COMPANY DESCRIPTION

Eldorado Gold Corporation is an international gold-producing company cur­rently active in development and exploration.

CONTACT INFORMATION

Eldorado Gold Corporation Nancy Woo, Manager, Investor Relations Ph: 604-601-6650, Fax: 604-687-4026 nancyw@eldoradogold.com www.e ldoradogold.com

Hear usA INVESTMENT BANKING/BUSINESS OBJECTIVE:

SYMBOL:

HearUSA is Seeking Market Support. The Company seeks to expand the cur­rent 18,000 retail shareholders to include a significant percentage of insti ­tutional investors as a resu lt of support from the right investment banking organization.

COMPANY DESCRIPTION

Based in the U.S., HearUSA is engaged in providing professional hearing health care products and services. The Company has 157 company-owned and oper­ated centers in 11 U.S. states and one Canadian Province, Ontario.

CONTACT INFORMATION

Paul A. Brown, M.D., Chairman Ph: 561-478-8770 ext . 123, Fax: 561 -478-9603 pbrown@hearusa.com www.hearusa.com

www.valuerichonline.com

INSURANCE OFFICE OF AMERICA

INVESTMENT BANKING I BUSINESS OBJECTIVES:

lOA establishes tactical relationships to assist small to mid-cap compani recouping underwriting profits, creating investment income, and im cash flows. All of this is accomplished through the placement of ins products with an objective of enhancing product knowledge and offe innovative avenues for ROI.

COMPANY DESCRIPTION

lOA is one of the fastest growing multi-line insurance agencies in the U States.

CONTACT INFORMATION

Insurance Office of America Douglas Irvine Ph: 561 -776-0660 Fax: 561-776-0670 irvined@ioa-insurance.com www.ioausa.com

~!'I~~IntegratedEnvironmental Technologies, Ltd.

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Integrated Environmental Technologies, Ltd. is seeking market support.

COMPANY DESCRIPTION

Integrated Environmental Technologies, Ltd. operates two technology sions: EcaFioTM Division Water Treatment Disinfection and Purification; tial Oils DivisionOil Extraction from Botanicals

CONTACT INFORMATION

Integrated Environmental Technologies Ltd. Bill Prince, President & CEO Phone: 843-390-2500, Fax: 843-390-3900 bill.prince@ietltd.net www.ietltd.net

lumera INVESTMENT BANKING/BUSINESS OBJECTIVE:

Lumera is currently seeking to Attract Market Support.

COMPANY DESCRIPTION

SYMBOL:

Lumera is a nanotechnology platform company delivering innovative ucts based on advanced materials and processes for the biotechnology, o cal and communications markets.

CONTACT INFORMATION

Lumera Corporation Tom Mino CEO Phone: 425-415-6900, Fax: 425-398-6599 tom_mino@lumera.com www.lumera.com

www. vrexpo.net

INTEG~ ED® AM E RICA

T H E F E R T I L I T Y C 0 M P i\ N y®

INVESTMENT BANKING I BUSINESS OBJECTIVES:

lnegraMed is seeking additional institutional sponsorship and to develop rela­tionships for future expansion needs.

COMPANY DESCRIPTION

lntegraMed provides business services to a national network of fertility cen­ters; distributes pharmaceutical products and treatment financing programs directly to consumers; and operates http://www.integramed.com, a leading fertility portal.

CONTACT INFORMATION

lntegraMed America, Inc. John W. Hlywak, Jr., CFO jhlywak@integramed.com Ph: 914-251-4143 www.integramed.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

IMTS is seeking growth capital, preferably in the form of debt financing using the race simulators and/or revenue share partner contracts as collateral.

COMPANY DESCRIPTION

IMTS is a world leader in race car simulation with patented technology and an exclusive license through 2009 with the fastest growing sport in America, NASCAR.

CONTACT INFORMATION

Interactive Motorsports and Entertainment Corporation Ph : 317-295-3500 www.smsonline.com

INVESTOR RELATIONS

Steve Wagoner Ph: 866-825-851 5 (ext 1 08) lnvestorRelations@SMSonline.com

SYMBOL:

NGAS RESOU RCES, INC.

INVESTMENT BANKING I BUSINESS OBJECTIVES:

NGAS is currently seeking market support.

COMPANY DESCRIPTION

NGAS Resources, Inc. is an Appalachian based oil and gas company focused on natural gas development, drilling and reserve growth.

CONTACT INFORMATION

NGA5 Resources, Inc. Ph: 859-263-3948 www.ngas.com

SUM 2005 VALUERICH MAGAZINE 117

SYMBOL:

para g on financial

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Paragon Financial is currently seeking market support.

COMPANY DESCRIPTION

Paragon Financial Corporation is a financial services business currently focused on the acquisition of companies that originate residential mortgages loans.

CONTACT INFORMATION

Paragon Financial Corporation Ph: 904-285-0000 info@paragonfinancialcorp.com www.paragonfinancialcorp.com

INVESTOR RELATIONS

Rick Lutz The LC Group Ph: 404-261-1196 lcgroup@mindspring.com

SYMBOL:

• I

RoYALE ENERGY, INc. INVESTMENT BANKING/BUSINESS OBJECTIVE:

Royale Energy is currently Seeking Market Support.

COMPANY DESCRIPTION

Royale Energy's principal lines of business include acquisition of natural gas production; proven reserves, and drilling of both exploratory and develop­mental wells using 3D seismic imaging.

CONTACT INFORMATION

Royale Energy, Inc. Chanda Ida no, Director of Marketing Ph: 800-447-8505 chanda@royl.com www.royl.com

SYMBOL:

&--~ ifr~~~~rn • Resources

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Southern African Resources is seeking to secure a US listing to facilitate fur­ther investment by American investors, who already account for significant percentage of shareholder base. The Company's longer-term objective is to increase market capitalization by improving market awareness.

COMPANY DESCRIPTION

Southern African Resources is an exploration, investment and development business focused on plat inum and listed on the AIM market of the London Stock Exchange.

CONTACT INFORMATION

Southern African Resources Pic Ph: +44 (0) 20 7389 0500 info@sar-plc.com www.sar-plc.com

118 VALUERICH MAGAZINE 2005

INVESTOR RELATIONS

Kathy duPlessis duPlessis Associates Ph: +27 (0) 11 728 4701 platinum@dpapr.com

rellv

\ INVESTMENT BANKING/BUSINESS OBJECTIVE:

Reliv's investor relations business plan's primary goal is to increase trading vol­ume by building visibility among institutions and long-term investors.

COMPANY DESCRIPTION

Reliv International is an international manufacturer and network marketer of nutritional supplements.

CONTACT INFORMATION

Reliv International, Inc. Fred Nielson, Manager IR Phone: 636-537-9715, Fax: 636-537-9753 fnielson@relivinc.com www.reliv.com

SCOLR Pharma, Inc.

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SCOLR Pharma is currently seeking market support.

COMPANY DESCRIPTION

SYMBOL :

I I I

SCOLR Pharma is a specialty pharmaceutical company that leverages its for­mulation expertise, and its proprietary and patented drug delivery technolo­gies to introduce distinctive and novel pharmaceutical, Over-the-Counter, and nutritional products.

CONTACT INFORMATION

SCOLR Pharma, Inc. Daniel 0 . Wilds, President and CEO danowild@scolr.com Ph: 425-373-0171 www.scolr.com

Spatia Light ® Microdisplays

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Spatialight is currently seeking market support.

COMPANY DESCRIPTION

SYM BOL:

Spatialight, Inc. is a leading developer and manufacturer of state -of-the-art high resolution liquid crystal on silicon (LCoS) microdisplay devices for use in High Definition televisions and rear projection monitors.

CONTACT INFORMATION

Spatialight, Inc. Ph: 415-883-1693 ir@spatialight.com www.spatialight.com

www.valuerichonline .com

SYMBOL:

INVESTMENT BANKING/BUSINESS OBJECTIVE:

TechTeam is currently seeking to Seeking Market Support.

COMPANY DESCRIPTION

TechTeam Global delivers global, multilingual help-desk services and spe­cialized IT solutions via our global locations in the United States, the United Kingdom, Sweden, Germany, Belgium, Romania, and through our wholly owned subsidiaries Digital Support Corporation, Sytel, Inc., Tech Team A.N.E., and Tech Team Cyntergy.

CONTACT INFORMATION

Tech Team Global Inc. David W. Morgan, VP, Chief Financial Officer, Treasurer PH: 248-263-5741, Fax: 248-357-0840 dmorgan@techteam.com www.techteam.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

U.S. Global Investors is currently seeking market support.

COMPANY DESCRIPTION

SYMBOL:

US Global is focused on profitable niche markets around the world and pro­vides investment advisor, transfer agency and other services to U.S. Global Investors Funds and US Global Accolades Funds.

CONTACT INFORMATION

U.S. Global Investors Ph: 800-873-8637 www.us-global .com

VoiP, INC. INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

VoiP welcomes investment banking relationships that can pinpoint synergis­tic technologies and M&A candidates, and present our company to additional institutional and private investors.

COMPANY DESCRIPTION

VoiP is an emerging global service provider of superior quality Voice over IP based solutions offering residential and business customers more user friendly and affordable ways to communicate.

CONTACT INFORMATION

VoiP Steven Ivester, CEO sivester@voipincorporated.com Ph: 954-434-2000 www.voipincorporated.com

www.vrexpo .net

SYMBOL :

INVESTMENT BANKING I BUSINESS OBJECTIVES:

Tri-S Security is currently seeking market support.

COMPANY DESCRIPTION

Tri-S Security provides contract services to Federal government agencies pur­suant to long-term contracts. These services include providing uniformed and armed guards for access control, personnel protection, plant security, theft prevention, vehicular and foot patrol and prevention of sabotage, terrorist and criminal activities.

CONTACT INFORMATION

Tri-S Security Corporation Ph: 770-625-4945

INVESTOR RELATIONS

Tony Schor Investor Awareness, Inc. Ph: 847-945-2222 tony@investorawareness.com

SYMBOL:

Y VERILINK" INVESTMENT BANKING I BUSINESS OBJECTIVES:

Verilink is looking to expand its relationship with the investment banking com­munity in order to broaden its base of institutional investors and increase vis­ibility through research coverage.

COMPANY DESCRIPTION

Verilink Corporation develops, manufactures and markets a broad suite of products that enable carriers (ILECs, CLECs, IXCs, and IOCs) and enterprises to build converged access networks to cost -effectively deliver next-generation communications services to their end customers.

CONTACT INFORMATION

Veri link Corporation Ph: 303-968-3000 ir@verilink.com www.verilink.com

INVESTMENT BANKING I BUSINESS OBJECTIVES:

SYMBOL:

ZAP is currently seeking analyst coverage.

COMPANY DESCRIPTION

ZAP, which stands for Zero Air Pollutions, was incorporated in California in 1994 to develop, manufacture, and market electric vehicles, scooters, and other recreation vehicles.

CONTACT INFORMATION

Zap Ph: 707-525-8658 zap@zapworld.com www.zapworld.com

INVESTOR RELATIONS

Steven Kim, Director of IR Ph: 707-525-8658 (ext 298) investor@zapworld.com

SUM 2005 VALUERICH MAGAZINE 119

$849,000 Magnificent 1.3 acre mountalntiop lot makes this THE ideal location for an affluent family or a discriminating investor seeking a piece of paradise to develop for sumptuous vacations or lavish retreats. Enjoy shaded sunrises, gentle showers and magical sunsets that illuminate world renowned Waimea Bay and Oahu's exquisite North shore.

This location is 30 minutes from downtown Honolulu. Nearby activities are seasonal. During the winter experience the splendor and beauty of the largest ridable waves in the world. In the summer snorkel, scuba dive or enjoy hiking trails to ancient Hawaiian sites.

Oahu's North shore is more reasonably priced than similar locations in Maui, Kailua-Kana's "Gold Coast" and most of the "Mainland's" metropolitan areas. Prime real estate inventory in Hawaii is limited. Call me if your goal is to buy or sell land, an estate, luxury home or condo in Hawaii.

Why Be Cash Poor When You're Paper Rich? www.stocklending.com

Secure individual or corporate loans with Free Trading, Rest ricted and Treasury stock. Gain liquidity without fear of margin call, personal liability, selling or losing the benefits of

equity ownership. Call AmeriFund Capital Finance, because selling is not an option!

AmeriFund Capital Finance, LLC • 225 NE Mizner Blvd, Suite 300 • Boca Raton FL 33432 Phone 561 742 1106 • Fax 561 620 3241 • Email info@stocklending.com