REPLIGEN CORPORATION & AEHR TEST SYSTEMS

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last issue we closed one position for a pretty bad loss.

V.I. Technologies (11/20/03). Closed position 3/16/05 at $5.25 for a 78% LOSS.

If you are a recent subscriber, this is not what you care to see in the opening paragraph of this Newsletter. However, in our defense, it is rare when a stock implodes this badly on us. V.I. Technologies, or VITX, seemed to do everything that most shareholders abhor. The recent 1 for 10 reverse stock split was the final nail for us as we close VITX for a 78% loss, and, yes, we will soon be placing it on the Track Record page.

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TUMBLEWEED COMMUNICATIONS CORP. & E-LOAN, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we have closed another position, for a pretty good gain.

QUICKLOGIC (12/20/04). Closed position 2/16/05 at $4.15 for a 60% GAIN.

As we said in the previous issue, we would soon close QuickLogic, which hit a 60% gain, probably due to some good earnings news.

With this issue of the Newsletter, we are now entering our ninth year of publishing on the Internet. In that time, we have made 442 stock picks and have closed 394 of them, which is about 4% of the total number of companies listed on the NYSE, NASDAQ, and AMEX. We can only hope that the next eight years are as fruitful as the previous eight

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MINDSPEED TECHNOLOGIES, INC. & CENTRA SOFTWARE, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we have closed another position, for a great gain. Also, by the time you read this, we should have closed QuickLogic, which has reached our 50% threshold.

ALTAIR NANOTECHNOLOGIES (6/20/04). Closed position 2/10/05 at $4.72 for a 105% GAIN.

On Thursday, 2/10, Altair more than doubled on news that it had achieved a breakthrough in Lithium Ion battery electrode materials, which will allow rechargeable batteries to have three times the power of existing ones, says the company. Sure ALTI could climb higher, but we’re very happy with the 105% gain, which is one of our biggest in a while.

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Savient Pharmaceuticals, Inc. & Three-Five Systems, Inc.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter we have closed two positions; one for a very very nice gain and one for a loss.

CORIO, INC. (10/5/04). Closed position 1/25/05 at $2.78 for a 85% GAIN.

ARGONAUT (4/20/02). Closed position 1/25/05 at 81¢ for a 69% LOSS.

Periodically, one of our picks gets taken over, and with Corio it was none other than blue chip stalwart IBM that has offered $2.82/share in cash. The 85% gain was a nice lift in what had been a disappointing January. We also closed Argonaut, which had been on the “Endangered List” for several months.

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INSWEB CORPORATION & XCYTE THERAPIES, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed our first position of 2005.

VITRIA TECHNOLOGY (9/5/04). Closed position 1/4/05 at $4.33 for a 52% GAIN.

In the last issue, we said that Vitria was near our 50%-plus threshold and that we would probably be closing it, soon. The day after we posted the last Newsletter, the stock hit for a 52% gain, and, so, we closed it. We have not yet posted it on the Track Record page since there was no rush to do so; however, it will soon appear on the 2005 Track Record page, which should be up shortly. During the last few weeks, VITR has dropped along with the rest of the markets and we sense it could go higher.

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B.O.S. BETTER ONLINE SOLUTIONS LTD. & BRILLIAN CORPORATION

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Happy 2005!

Since the last Newsletter, we closed two more positions for some nifty gains, and we suspect that both of them could climb even higher.

STEMCELLS (11/20/04). Closed position 12/28/04 at $4.24 for a 71% GAIN.

AXM PHARMA (12/5/04). Closed position 12/22/04 at $3.55 for a 53% GAIN.

Since we picked StemCells about seven weeks ago, the stock had been in black, and, last week, soared on news about a cat cloning and that South Korea is now allowing expanded stem cell research and that a Scottish biotech group ma5y soon be cloning human embryos. On rare occasions a pick is in the Current Portfolio for less than three weeks, and, then takes off, such as AXM Pharma, which broke our 50%-plus threshold on a slew of good news.

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ADVANCIS PHARMACEUTICAL CORP. & QUICKLOGIC CORPORATION

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed another position for a nice gain:

SCM MICROSYSTEMS (10/20/04). Closed position 12/7/04 at $4.56 for a 57% GAIN.

It’s not too often when a pick takes off after spending less than two months in the Current Portfolio, but SCM Microsystems did just that on news SCMM is to supply MPC computers with Smart Card readers for U.S. government programs.

This year has turned into one of the best for small stocks since the mid 1980’s and it also looks to be our best year since our inception in 1996. In 2004, we closed nearly 40 positions, all but six for gains of 50% or better. And yes, we know that of the 47 Current Positions that are still open, about a dozen are over a year old. However, that seems pretty good to us, considering that in the last eight years we have recommended over 430 stocks.

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ZHONE TECHNOLOGIES, INC. & AXM PHARMA, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed three positions; one for an extremely good gain, maybe one of the year’s best, one for a breakeven, and another for a loss.

VASCO DATA SECURITY (2/5/02). Closed position 11/26/04 at $6.35 for a 115% GAIN.

CE FRANKLIN (5/5/01). Closed position 11/26/04 at $3.84 for a 2% GAIN.

DIGITAL POWER (2/20/01). Closed position 11/26/04 at $1.11 for a 44% LOSS.

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APPLIED MICRO CIRCUITS CORP. & STEMCELLS, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Finally! The election nonsense has ended and we have returned to real life, and, from, all appearances, a Bush Bull Market (do we dare say that?).

Helping things are rapidly declining oil prices (do we dare say that, also?).

So what does this mean for the picks in our Current Portfolio? Traditionally, this has usually been a slow time of year for closing positions. Should the markets continue their upward trend, then we can anticipate what should be a really good to great start for 2005. For the most part, the first four or five months of a new year, have been relatively active ones for our Portfolio positions.

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NOVA MEASUREMENT INSTRUMENTS, LTD. & NET2PHONE, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

This Newsletter is being posted on November 1, the day prior to elections, so, there isn’t much point in giving a pep talk about the markets. We all know what the conventional wisdom is: if Bush wins, the markets will soar, and, if Kerry wins, they will tank. But, all too many times the markets go against conventional wisdom. Our one hope, right now, is that there is not a repeat of 2000, which set the markets into a steady downward grind. Whatever the outcome, we’ll be glad it’s over. However, there is something we learned from all of this, and that is there are entirely too many people with way too much time on their hands.

Here are the headlines since the last Newsletter about companies in the Current Portfolio. Dates in parentheses are when we first recommended them.

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