Spelman Research Associates, Ltd.

has assembled a team of experienced securities analysts in order to offer expert, un-biased fundamental research on under-followed growth public companies. Our program of research coverage allows publicly traded companies bias free third party analyst coverage. Spelman Research reports and recommendations are used by both institutional and individual investors to obtain accurate, independently compiled securities data. In today's environment, companies that do not provide enough profit potential (i.e. Investment banking commissions, fees, trading profits etc.) for brokerage based/investment banking platforms tend not to be followed. We, at Spelman Research provide independent research for high quality, deserving public companies without the built in conflicts of interest that permeate the research community in this ever-changing regulatory climate. Using the preferable alternative of "paid-for" research compensation model, we provide significantly increased visibility and access to information for both individual and institutional investors. Spelman Research reports contain reliable and independently determined estimates for earnings models, as well as price targets and time horizons, investment recommendations and rating. Our teams of securities analysts are mostly CFA.s, seasoned professionals with years of specialized industry experience. Spelman Research reports contain independently determined estimates, a price target and time horizon, investment recommendation and industry peer research. As a way to eliminate pecuniary conflict of interest and in order to maintain full analyst independence, all of Spelman Research analysts are paid upfront for a full year of coverage. All analysts are also prohibited in owning, trading or dealing in the covered company's shares and are never compensated with the covered company debt or equity.

Out in the cold

Given the instability of today's stock market, for the potential stock purchaser who happens upon a stock with no coverage or no recommendation, it begins to feel rather lonely. The general impression is that no one else is interested, that these are unchartered waters at best and with no third party validation of the company's business plan, the natural course of action is to steer clear.

Increases investor assurance,
Maintains the momentum of the decision-making process

Our continuing year-long research coverage allows under-followed companies to obtain third party independent analysis and have it distributed to interested investors and institutions Our reports and recommendations, compiled from raw data and freshly arrived at by our team of securities analysts, can offer potential investors actionable direction with the clean, professional perspective which has become the trademark of Spelman Research Associates, Ltd.

Why Independent Investment Research?

Obtaining independent equity research coverage is almost impossible for companies that do not provide enough profit potential (i.e. Investment banking commissions, fees, trading profits etc.) for traditional brokerage based/investment banking firms. Because of cut backs in the number of analysts employed by these firms, this is also beginning to apply to larger cap stocks as well.

Four out of five U.S. small-cap firms (companies with market caps of $100 million) have no analyst coverage, and with Wall Streets' current trend of downsizing research departments, coverage is becoming even scarcer.

Given the absence of analyst coverage, the market value of many small-cap equities is often significantly below their intrinsic value, and often many times below their analyst-covered peers. The size of this disparity ranges up to 50%; clearly illustrating that many investors will not invest in those firms lacking analyst coverage.

Micro cap and small cap stocks have out-performed large and mid-cap companies in 2002. This fact has attracted investor interest in these two categories of equities.

A basic consideration in choosing any investment is liquidity. Analyst covered stocks are by and large much more liquid than their non-covered peers. This is especially true of equities in the small cap category.

There are three accepted methods for improving the liquidity of a stock: intrinsic growth, financing, and independent research. Spelman Research Associates, Ltd has made independent research available to the small cap segment of the market with the advantage of a pre-paid, un-biased recommendation which is unaffected by investment banking commissions or alliances. We offer truly independent analysis.

The Quality of Our Research

Spelman Research analysts are all specialists in their respective industries. This allows us to selectively place at the company's disposal an expert in the specific industry group. Our analysts will spend a good deal of time with management, and in the process, assess not only the unique financial picture, but also the company's market position.

We will, as stated in our contract, produce an initial Coverage Report. Our coverage of a company extends for one year, and will include quarterly updates following review of most 10Qs. Periodically, as our analyst deems necessary, we will issue comments or updates to our reports, recommendations and ratings; exclusive of our quarterly updates. Such changes are required in the event of major company announcements, intra-industry repositioning, etc., and are included as an intrinsic part to the yearly coverage of company.

Spelman's Research Distribution Network

Spelman Research receives a fee for yearly coverage prior to the initial phase of fact finding. Long before we issue our analyst's opinion, we and the analyst are in receipt of the funds. Therefore, we are under no obligation to present anything other than a totally bias free report.

We realize the tremendous weight of our research upon the volume and valuation of a covered company's equities. The combination of a respected research department coupled with our international distribution network, affords our covered companies previously unattainable publicity.
We distribute the initial research coverage report, by mail and/or fax to 50,000 industry professionals (i.e., brokers, money managers, institutions, etc.) who all have an interest in small cap stocks.

Our Distribution Managers know who the small cap institutional investors are, and we make it our business to see that they become aware of our covered companies. As a covered company, you will be exposed to large numbers of institutional and individual investors, news agencies and major research Web sites. There is no cost for interested parties for research on our covered companies, and investors are always interested in learning about an under-covered or un-covered stock, which suddenly has a respected research department reporting it.

Coverage Costs

The one-year coverage program requires a pre-paid fee of $26,500 prior to the on-set of any research activities. This fee includes all printing and distribution costs.

Spelman Research Associates, Ltd. will not accept payment of any of its fees in any form of securities from any company. We will undertake the coverage of any company solely on behalf of the investing public, and are not acting in the preparation of any research, report or recommendation as a service to any company or companies. It is understood that our findings will be bias-free, and based solely on empirical research.