SCM MICROSYSTEMS, INC. & IGATE 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 were able to close five positions; four for some nice gains and one for a loss.

IONA TECHNOLOGIES (8/5/04). Closed position 10/14/04 at $4.82 for a 53% GAIN.

CONVERA (9/5/04). Closed position 10/5/04 at $4.20 for a 60% GAIN.

GIGAMEDIA (7/20/04). Closed position 10/5/04 at $1.55 for a 55% GAIN.

GENETRONICS (10/5/00). Closed position 10/5/04 at $2.87 for a 55% LOSS. (price reflects 1 for 4 reverse stock split).

ZI CORPORATION (6/20/04). Closed position 10/1/04 at $3.45 for a 57% GAIN.

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TRIKON TECHNOLOGIES, INC. & CORIO, 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. ***

Dear Reader,

Since the last Newsletter, we closed another position.

ANALYSTS INTERNATIONAL (2/5/04). Closed position 9/30/04 at $4.58 for a 54% GAIN.

During the last four days of September, Analysts Int’l had pretty heavy trading volume on no apparent news, so, the 54% gain looked ripe for picking. Also, please note that Zi Corp. has gone through our 50% threshold and we will be closing this, quite soon.

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INTRAWARE, INC. & CHORDIANT 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,

Over the last week, or so, we closed three positions; two for some moderate gains and one for a long expected loss.

QUIDEL CORP (8/20/04). Closed position 9/13/04 at $4.92 for a 56% GAIN.

TEGAL CORP (8/20/04). Closed position 9/13/04 at $1.40 for a 55% GAIN.

DOR BIOPHARMA (9/20/00). Closed position 9/13/04 at 57¢ for a 77% LOSS.

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VITRIA TECHNOLOGY, INC. & CONVERA CORPORATION

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Hello Readers,

Finally! We had a mild reprieve from our drought as we were able to close a position.

METRON TECHNOLOGY (7/5/04). Closed position 8/17/04 at $4.39 for a 80% GAIN.

About once every thousand years we get very lucky and have a major company acquire one of our open positions for an eye-popping amount. Such was the case when Applied Materials announced it had agreed to buy Metron Technology for about $85 million in cash, and, with an 80% gain, it made sense to us.

Despite being stuck in our worst stretch in nearly 18 months, we still think that most of our Current Positions are way oversold. Of course, the sluggish market of the last three months has not helped us one bit. But, if the price of crude can keep dropping, and if the terrorists leave us alone, and if Bush gets traction in the polls, then maybe a nice rally will begin in early September.

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TEGAL CORORATION & QUIDEL 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,

Just when you think things cannot get any worse, they do. Is this the beginning of “The Kerry Market”? If the price of crude doesn’t drop big time, and soon, it may very well be. Right now, the markets are pricing in what $45 – $50 oil will mean to corporate P&Ls, and the diagnosis isn’t pretty. The Market is also factoring in what impact a Kerry victory will have, and things get downright ugly, particularly among the health care and drug stocks.

However, there are potential silver linings. We must believe that the Bush oil gang will soon figure out how to drive down oil’s price, i.e. tap the Strategic Petroleum Reserve; and that Bush will get a lift from the GOP convention. As for our Current Portfolio, it continues to get hammered along with the rest of the market, which still leads us to think that there should be a lot of good bottom fishing opportunities.

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IONA TECHNOLOGIES PLC & TRIPATH TECHNOLOGY, INC.

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Hello Readers,

The present market doldrums are reminiscent of the pre-Iraq War period, or, in a word, terrible. As for closing Current Portfolio positions, it has been almost two years since we have had this sort of a dry spell. Needless to say, much of the Portfolio has gotten whacked pretty hard, but this now may be a good buying opportunity.

Yes, election outcome jitters, higher energy prices, and prospects of more terrorism in the U.S. have contributed to the unease and uncertainty. However, despite all of the worries, we sense that there could be a late summer rally in here someplace. Perhaps around the time of the GOP convention?

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AVANEX CORPORATION & GIGAMEDIA, LTD.

***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,

No need to check the Track Record page for the last few weeks, because we didn’t close any positions since the last Newsletter. Also, in that period, the markets weakened even further, mostly due to what the gurus are calling “earnings’ misses”. Actually, many bellwether stocks came within estimates but fell short of the “high end” of expectations. Gimme a break! As a result, selling pressure prevailed.

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GENUS, INC. METRON TECHNOLOGY

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Hello Readers,

Since the last issue, we closed one position for a very nice gain.

CRYO-CELL INTERNATIONAL (5/5/03). Closed position 6/22/04 at $1.88 for a 71% GAIN.

Soon after we recommended CCEL just over a year ago, the stock got banged because of shareholder lawsuits that can be considered of questionable intent, and, as a result, the stock lingered despite the company’s promising outlook. Then, as we said last issue, President Reagan died and interest in stem cell research went bonkers. At over 70% gain, it was time to close CRYO-CELL.

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ALTAIR NANOTECHNOLOGIES, INC. ZI 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 issue, we closed one position for a gain:

ORTHOVITA (12/20/01). Closed position 6/8/04 at $5.06 for a 51% GAIN.

Orthovita finally nudged above our 50% threshold probably due to increased expectations over their biomaterial to repair vertebral compression fractures.

Should we press the “replay button” and repeat what we have been saying for the last few months? Yes, we are still bullish, but the markets will probably continue their current sloppiness until Bush’s poll numbers improve (if they improve), and we get a better vision of just how high rates will go over the next few months.

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NETWORK ENGINES, INC. BINDVIEW DEVELOPMENT CORP.

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Hello Readers,

Looks as if we are caught in one of those occasional dry spells where it seems as if we won’t be able to close any positions for the next hundred years. During the last week of May, the markets and our own Current Portfolio showed some life as oil prices eased a bit. However, energy prices need to drop a lot more to get Bush’s poll numbers up again, and, ergo, lift the markets. Yes, we still feel that the reason the markets are shaky is because Bush is wobbly. Some help from Dubya’s OPEC buddies would sure go a long way.

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