<SUBMISSION>
<ACCESSION-NUMBER>0001144204-04-008491
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20040615
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>SEGMENTZ INC
<CIK>0001166003
<ASSIGNED-SIC>4700
<IRS-NUMBER>752928175
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>333-112899
<FILM-NUMBER>04864047
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>18302 HIGHWOODS PRESERVE PARKWAY
<CITY>TAMPA
<STATE>FL
<ZIP>33647
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>v03894_sb2a.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "Pre-Effective Amend">


<HTML>
<HEAD>
   <TITLE>Pre-Effective Amend</TITLE>
   <META name="HandheldFriendly" content="true">
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<BODY bgcolor="#ffffff">


<A name="page_1"></A>

<P align="right">
<font size="2">Registration No. 333-112899<br>
Filed Pursuant to Rule 424(b)(3)</font></P>
<P>
<B><FONT size="2" face="serif">PROSPECTUS</FONT></B>
</P>
<P align="center">
<B><FONT size="2" face="serif">SEGMENTZ, INC.</FONT></B>
</P>
<P align="center">
<B><FONT size="2" face="serif">27,520,445 Shares of Common Stock</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">This prospectus covers the 19,090,233 shares of common stock of Segmentz, Inc. being offered for resale by certain selling security holders. We will not receive any proceeds from the sale of the
shares by the selling security holders. This prospectus also covers 8,430,212 shares of common stock of Segmentz, Inc. underlying common stock purchase warrants being offered for resale by certain selling security holders. Upon exercise of the
common stock purchase warrants Segmentz, Inc. will receive proceeds in the amount of the exercise price, which proceeds will be used for working capital.</FONT>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our common stock
  is traded on the American Stock Exchange under the trading symbol &#147;SZI&#148;. On
  June 4, 2004, the closing price for our common stock was $1.75.</FONT> </P>
<hr noshade size="2" align="center" width="35%">
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.  YOU SHOULD PURCHASE SHARES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE &#147;RISK FACTORS&#148; BEGINNING ON PAGE 4.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES, OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</FONT>
</P>
<hr noshade size="2" align="center" width="35%"><BR>
<P align="center">
<FONT size="2" face="serif">The date of this prospectus is June 15, 2004</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_4"></A>

<P align="center">
<B><FONT size="2" face="serif">PROSPECTUS SUMMARY</FONT></B>
</P>
<P>
<B><FONT size="2" face="serif">THE COMPANY</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz, Inc. (the &#147;Company&#148;), is a Delaware corporation based in Tampa, Florida that provides transportation logistics management services and support for mid-sized and national corporate clients.
The Company serves direct users of transport, storage, staging, warehouse services and other logistics services. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company was initially incorporated in Florida as Rose Auto Stores Inc., (&#147;Rose&#148;} in 1952. On February 10, 1999, Rose filed a Petition of Bankruptcy pursuant to Chapter 11 and a Bankruptcy Plan was
confirmed on April 22, 1999. On May 17, 2000, Rose reincorporated in Delaware as RAS Acquisition Corp. (&#147;RAS&#148;), and on January 31, 2001, merged with WBNI and changed its name to WBNI, Inc. On October 29, 2001, WBNI acquired TRANSL
Holdings, Inc., which wholly owned Trans-Logistics, Inc., a Florida corporation (&#147;Trans-Logistics&#148;).  On November 1, 2001, WBNI, Inc. changed its name to Segmentz, Inc.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company has principal executive offices located at 18302 Highwoods Preserve Parkway, Suite 100, Tampa, Florida 33467. The telephone number is (813) 989-2232. The internet web site address is
http://www.segmentz.com.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">References throughout this prospectus to &#147;we&#148;, &#147;us&#148;, the &#147;Company&#148; and &#147;our&#148; are to Segmentz, Inc. and any subsidiaries it may have.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">THE OFFERING</FONT></B>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR valign="top">
    <TD><FONT size="2" face="serif">Securities Offered</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">19,090,233 shares of Common Stock
      and 8,430,212 shares of Common Stock issuable upon exercise of Common Stock
      Purchase Warrants. See &#147;Description of Securities.&#148;</FONT></TD>
  </TR>
  <TR valign="top">
    <TD>&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD><FONT size="2" face="serif">Common Stock Outstanding:</FONT></TD>
    <TD width="60%">&nbsp;</TD>
  </TR>
  <TR valign="top" bgcolor="#66FF99">
    <TD><FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;Prior to the Offering</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">25,951,305 shares</FONT></TD>
  </TR>
  <TR valign="top">
    <TD><FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;After the Offering</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">25,951,305 shares, excluding 8,430,212
      shares covered by this prospectus that are issuable upon exercise of common
      stock purchase warrants</FONT></TD>
  </TR>
  <TR valign="top">
    <TD>&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
  </TR>
  <TR valign="top" bgcolor="#66FF99">
    <TD><FONT size="2" face="serif">Common Stock Reserved</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">9,558,212 shares issuable upon
      exercise of common stock purchase warrants that have been issued.</FONT></TD>
  </TR>
  <TR valign="top">
    <TD>&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">2</FONT>
</P>

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<A name="page_5"></A>

<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR valign="top">
    <TD><FONT size="2" face="serif">Use of Proceeds by Company</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">Proceeds received upon the exercise of common
      stock purchase warrants will be used by the Company
      for working capital.</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="60%" align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD><FONT size="2" face="serif">Risk Factors</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">This offering involves a high
      degree of risk. See &#147;Risk
      Factors&#148;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">American Stock Exchange Symbol</FONT></TD>
    <TD width="60%"><FONT size="2" face="serif">Common Stock &#151; &#147;SZI&#148;</FONT></TD>
  </TR>
</TABLE>
<P>
<B><FONT size="2" face="serif">SELECTED CONSOLIDATED FINANCIAL DATA</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table presents selected consolidated financial data as of and for each of the fiscal years ended December 31, 2003 and 2002 which have been derived from our audited financial statements
included elsewhere in this Prospectus, as well as from our unaudited consolidated financial statements for the three month period ended March 31, 2004 and 2003. The information should be read in conjunction with &#147;Management&#8217;s Discussion and Analysis
of Financial Condition and Results of Operations&#148; and the Financial Statements and related notes. </FONT>
</P>
<TABLE border=0 cellspacing=0 cellpadding=0 width=100%>
  <TR>
    <TD width="60%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=5 align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">Years
      Ended December 31</FONT></B></TD>
    <TD align="center" nowrap><FONT size="2" face="serif"><B></B></FONT></TD>
    <TD colspan=6 align="center" valign="bottom" nowrap><b><font size=2 face="serif">3
      Months Ended March 31</font></b></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=5 align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">Audited</FONT></B></TD>
    <TD align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="6" align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">Unaudited</FONT></B></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=2 align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=2 align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="3" align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=2 align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD valign="bottom" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=2 align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">2002</FONT></B></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="3" align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="2" align="center" valign="bottom" nowrap><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD><font size="2" face="serif">&nbsp;</font></TD>
    <TD colspan="2"><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">STATEMENT OF OPERATIONS DATA:</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan="2" align="center">&nbsp;</TD>
    <TD align="center"><font size="2" face="serif">&nbsp;</font></TD>
    <TD colspan="2" align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap><FONT size=2 face="serif">Operating revenues</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">14,687,754</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">9,994,506</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">6,620,752</FONT></TD>
    <TD align="right"><font size="2" face="serif">&nbsp;</font></TD>
    <TD><font size="2" face="serif">&nbsp;</font></TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2,880,081</FONT></TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">Operating expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">14,510,556</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">9,620,391</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">7,244,783</FONT></TD>
    <TD align="right"><font size="2" face="serif">&nbsp;</font></TD>
    <TD><font size="2" face="serif">&nbsp;</font></TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2,703,380</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap><FONT size=2 face="serif">Net income (loss) from operations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><font size="2" face="serif">&nbsp;</font></TD>
    <TD><font size="2" face="serif">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">before taxes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">177,198</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">374,115</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">(624,031</FONT></TD>
    <TD><font size=2 face="serif">)</font></TD>
    <TD><font size="2" face="serif">&nbsp;</font></TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">184,342</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4></TD>
    <TD>&nbsp;</TD>
    <TD><hr noshade size=4></TD>
    <TD colspan="2"><HR noshade size=4></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4></TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">Basic earnings (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%" nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Per common share</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.04</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.06</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><font size=2 face="serif"> ( 0.02</font></TD>
    <TD><font size=2 face="serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><font size=2 face="serif">0.02</font></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3><HR noshade size=4></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=4></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center"><B></B></TD>
    <TD colspan=2 align="center" valign="bottom"><b><font size=2 face="serif">December
      31,<BR>2003</font></b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><B></B></TD>
    <TD colspan=3 align="center" valign="bottom"><b><font size=2 face="serif">March
      31,<BR>2004</font></b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=3><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">BALANCE SHEET DATA:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 align="center"><font size=2 face="serif">(Unaudited)</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap><FONT size=2 face="serif">Working capital</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><FONT size=2 face="serif">3,437,322</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><FONT size=2 face="serif">5,020,434</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">Current assets</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><FONT size=2 face="serif">7,290,699</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><FONT size=2 face="serif">7,633,413</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap><FONT size=2 face="serif">Total assets</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><font size=2 face="serif">12,982,036</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><font size=2 face="serif">13,440,260</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">Current liabilities</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><FONT size=2 face="serif">3,853,377</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><FONT size=2 face="serif">2,612,979</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap><FONT size=2 face="serif">Long-term debt</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><FONT size=2 face="serif">351,466</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><FONT size=2 face="serif">361,412</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%" nowrap><FONT size=2 face="serif">Total liabilities</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><FONT size=2 face="serif">4,655,822</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><FONT size=2 face="serif">3,425,370</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" nowrap><FONT size=2 face="serif">Shareholders&#146; equity</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD align="right"><FONT size=2 face="serif">8,326,214</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD><font size=2 face="serif">$</font></TD>
    <TD colspan="2" align="right"><font size=2 face="serif">10,014,890</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">3</FONT>
</P>

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<A name="page_6"></A>

<P align="center">
<B><FONT size="2" face="serif">RISK FACTORS</FONT></B>
</P>
<P>
<B><FONT size="2" face="serif">LOSSES FROM OPERATIONS; NO ASSURANCES OF PROFITABILITY </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We had net income from operations of $177,198 for the year ended December 31, 2003, $374,115 for the year ended December 31, 2002, and a net a loss from operations of $624,031 for the three months
ended March 31, 2004. There can be no assurance that we will not incur additional losses in the future. Our operating expenses have increased as our business has grown and can be expected to increase significantly as a result of our expansion
efforts. There can be no assurance that we will be able to generate sufficient revenue to meet its operating expenditures or to operate profitably.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">ECONOMIC RISKS; RISKS ASSOCIATED WITH THE BUSINESS OF TRANSPORTATION LOGISTICS MANAGEMENT</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our business is dependent upon a number of factors, over which we have little or no control, that may have a material adverse effect on our business. These factors include excess capacity in the
trucking industry, significant increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, government regulations, governmental and law enforcement anti-terrorism actions, tolls, license and registration fees, insurance premiums and
labor costs. It is difficult at times to attract and retain qualified drivers and owner-operators. Operations also are affected by recessionary economic cycles and downturns in our customers&#8217; business cycles, particularly in market segments and
industries (such as retail and paper products) in which we have a significant concentration of customers. Seasonal factors could also adversely effect us. Our customers tend to reduce shipments after the winter holiday season and operating expenses
tend to be higher in the winter months primarily due to increased operating costs in colder weather and higher fuel consumption as a result of increased idle time. Regional or nationwide fuel shortages could also have adverse effects.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">DEPENDENCE ON EQUIPMENT PROVIDED BY THIRD PARTIES; RELIANCE ON INDEPENDENT CONTRACTORS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The trucking industry is dependent upon transportation equipment such as chassis, containers and rail, truck and ocean services provided by independent third parties. Periods of equipment shortages have occurred historically in
the transportation industry, particularly in a strong economy. If we cannot secure sufficient transportation equipment or transportation services from these third parties to meet the customers&#8217; needs, the business, results of operations and
financial position could be materially adversely effected and customers could seek to have their transportation and logistics needs met by other third parties on a temporary or permanent basis. The reliance on agents and independent contractors
could reduce operating control and the strength of relationships with customers, and we may have trouble attracting and retaining agents and independent contractors.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">4</FONT>
</P>

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<A name="page_7"></A>

<P>
<B><FONT size="2" face="serif">NEW TRENDS AND TECHNOLOGY; CONSOLIDATION AMONG CUSTOMERS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">If, for any reason, our business of providing warehousing and logistic services ceases to be a preferred method of outsourcing these functions, or if new technological methods become available and widely utilized, our business
could be adversely effected. Moreover, increasing consolidation among customers and the resulting ability of such customers to utilize their size to negotiate lower outsourcing costs has, and may continue in the future to have, a depressing effect
on the pricing of third-party logistic services.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">INTERRUPTION OF BUSINESS DUE TO INCREASED SECURITY MEASURES IN RESPONSE TO TERRORISM </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The continued threat of terrorism within the United States and the ongoing military action and heightened security measures in response to such threat has and may cause significant disruption to
commerce.  Our business depends on the free flow of products and services through these channels of commerce. Recently, in response to terrorists&#8217; activities and threats aimed at the United States, transportation and other services have been slowed
or stopped altogether. Further delays or stoppages in transportation or other services could have a material adverse effect on our business, results of operations and financial condition. Furthermore, we may experience an increase in operating
costs, such as costs for transportation, insurance and security as a result of the activities and potential activities. We may also face interruption of services due to increased security measures in response to terrorism. The U.S. economy in
general is being adversely effected by the terrorist activities and potential activities. Any economic downturn could adversely impact our results of operations, impair our ability to raise capital or otherwise adversely effect our ability to grow
our business. It is impossible to predict how this may effect our business or the economy in the U.S. and in the world, generally. In the event of further threats or acts of terrorism, our business and operations may be severely and adversely
effected or destroyed.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">COMPETITION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The transportation services industry is heavily fragmented and intensely competitive and includes numerous regional, inter-regional and national competitors, none of which dominates the market.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">REGULATION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our operations are subject to various federal, state and local laws and regulations. Although compliance with these laws and regulations has not had a material effect on our operations or financial
condition, there is no assurance that additions or changes to current laws or regulations will not have a material effect on us, our profitability and our financial condition.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">5</FONT>
</P>

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<A name="page_8"></A>

<P>
<B><FONT size="2" face="serif">SUBSTANTIAL ALTERATION OF OUR CURRENT BUSINESS AND REVENUE MODEL</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our present business and revenue model represents the current view of the optimal business and revenue structure which is to derive revenues and achieve profitability in the shortest period of time.
There can be no assurance that current models will not be altered significantly or replaced with an alternative model that is driven by motivations other than near-term revenues and/or profitability (for example, building market share before our
competitors). Any such alteration or replacement of the business and revenue model may ultimately result in the deferring of certain revenues in favor of potentially establishing larger market share.  We cannot assure that any adjustment or change
in the business and revenue model will prove to be successful.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">INABILITY TO MANAGE GROWTH AND INTERNAL EXPANSION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We have not yet undergone the significant managerial and internal expansion that we expect will occur, and our inability to manage growth could hurt our results of operations. Expansion of our
operations will be required to address anticipated growth of our customer base and market opportunities.  Expansion will place a significant strain on our management, operational and financial resources. Currently, we have a limited number of
employees. We will need to improve existing procedures and controls as well as implement new transaction processing, operational and financial systems, procedures and controls to expand, train and manage our employee base. Our failure to manage
growth effectively could have a damaging effect on our business, results of operations and financial condition.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">DEPENDENCE ON KEY MANAGEMENT; LOSS OF KEY MANAGEMENT COULD HAVE A MATERIAL ADVERSE EFFECT ON OPERATIONS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We believe that the attraction and retention of qualified personnel is critical to success. If we lose key personnel or we are unable to recruit qualified personnel, the ability to manage the
day-today aspects of the business will be weakened. Our operations and prospects depend in large part on the performance of the senior management team. The loss of the services of one or more members of the senior management team, could have a
material adverse effect on the business, financial condition and results of operation. Because the senior management team has unique experience with us and within the transportation industry, it would be difficult to replace them without adversely
effecting our business operations. In addition to their unique experience, the management team has fostered key relationships with the our suppliers. These relationships are especially important to a non-asset based company such as Segmentz and the
loss of these relationships could have a material adverse effect on our profitability.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our business is dependent on the services of our Chairman and CEO, Allan Marshall. Loss of Mr. Marshall&#146;s services could have material adverse effect on operations. We have secured
&#147;Key-man&#148; life insurance on Mr. Marshall on behalf of the Company and its shareholders in an amount of three million dollars.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">6</FONT>
</P>

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<A name="page_9"></A>

<P>
<B><FONT size="2" face="serif">NEED FOR SUBSTANTIAL, ADDITIONAL FINANCING</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">There is no guarantee that we will be able to obtain financing required to continue to expand our business or that our present funding sources will continue to extend terms under which we can operate efficiently.  If we are
unable to secure financing under favorable terms, we may be materially adversely effected. We also rely on factors to expedite cash flow. There is no assurance that we will continue to be able to factor our receivables or to obtain either
replacement or additional financing on acceptable terms.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our continued viability depends on our ability to raise capital. Changes in economic, regulatory or competitive conditions may lead to cost increases. Management may also determine that it is in our
best interest to expand more rapidly than currently intended, to expand marketing activities, to develop new or enhance existing services or products, to respond to competitive pressures or to acquire complementary services, businesses or
technologies. In any such case or other change of circumstance, additional financing will be necessary. If any additional financing is required, there can be no assurances that we will be able to obtain such additional financing on terms acceptable
to us and at times required by us, if at all. In such event, we may be required to materially alter our business plan or curtail all or a part of our expansion plans. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">VOLATILITY OF THE MARKET PRICE OF OUR STOCK</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The market price of our common stock may be volatile, which could cause the value of your investment to decline. Any of the following factors could effect the market price of our common stock:</FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">changes in earnings estimates and outlook by financial analysts;</FONT><BR></LI>
<LI><FONT size="2" face="serif">our failure to meet financial analysts&#8217; and investors&#8217; performance expectations;</FONT><BR></LI>
<LI><FONT size="2" face="serif">changes in market valuations of other transportation and logistics companies; and</FONT><BR></LI>
<LI><FONT size="2" face="serif">general market and economic conditions.</FONT><BR></LI>
</UL>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In addition, many of the risks described elsewhere in this &#147;Risk Factors&#148; section could materially and adversely effect the stock price. The stock markets have experienced price and volume volatility
that have effected many companies&#8217; stock prices. Stock prices for many companies have experienced wide fluctuations that have often been unrelated to the operating performance of those companies. These types of fluctuations may effect the market
price of our common stock.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">APPLICABILITY OF LOW PRICED STOCK RISK DISCLOSURE REQUIREMENTS</FONT></B>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our common stock may be considered
  a low priced security under rules promulgated under the Securities Exchange
  Act of 1934 (&#147;Exchange Act&#148;). Under these rules, broker-dealers participating
  in transactions in low priced securities must first deliver a risk disclosure
  document which describes that risks associated with such stock, the broker-dealer&#8217;s
  duties, the customer&#8217;s rights and remedies, and certain market and other information,
  and make a suitability determination approving the customer for low priced stock
  transactions based on customer&#8217;s financial situation, investment
  experience and objectives. Broker-dealers must also disclose these restrictions
  in writing and provide monthly account statements to the customer, and obtain
  specific written consent of the customer. With these restrictions, the likely
  effect of designation as a low price stock, would be to decrease the willingness
  of broker-dealers to make a market for the stock, to decrease the liquidity
  of the stock and to increase the transaction costs of sales and purchase of
  such stocks compared to other securities.</font></P>
<P align="center">
<FONT size=2 face="serif">7</FONT>
</P>

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<A name="page_10"></A>

<P>
<B><FONT size="2" face="serif">DILUTION; RESALES UNDER THIS PROSPECTUS MAY SIGNIFICANTLY INCREASE THE NUMBER OF SHARES IN THE PUBLIC MARKET RESULTING IN MARKET PRESSURE THAT MAY CAUSE THE PRICE FOR OUR SHARES TO DROP OR REMAIN AT LOW LEVELS </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Prior to this offering, approximately 1,050,000 shares of our common stock were freely tradeable in the public market. The addition to the public market of the 19,090,233 shares covered by this
prospectus, in addition to the 8,430,212 shares covered by this Prospectus that will become free-trading upon exercise of common stock purchase warrants, could cause the market price of our shares to fall or remain at lower levels. The sale, or
availability for sale, of a substantial number of shares of common stock in the public market subsequent to the offering under Rule 144 under the Securities Act of 1933 (&#147;Securities Act&#148;) or this prospectus or otherwise, could have a major
negative effect on the market price of our common stock. It could also limit our ability to raise additional capital from the sale of our equity securities or debt financing. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">FORWARD LOOKING STATEMENTS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Certain statements contained in this prospectus regarding matters that are not historical facts are forward-looking statements. All statements which address operating performance, events or
developments that management expects or anticipates to incur in the future, including statements relating to sales and earnings growth or statements expressing general optimism about future operating results, are forward-looking statements. Because
such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements are based on management&#8217;s current views and
assumptions regarding future events and operating performance. Many factors could cause actual results to differ materially from estimates contained in management&#8217;s forward-looking statements. The differences may be caused by a variety of factors,
including, but not limited to, adverse economic conditions, competitive pressures, inadequate capital, unexpected costs, lower revenues, net income and forecasts, the possibility of fluctuation and volatility of our operating results and financial
condition, inability to carry out marketing and sales plans and loss of key executives, among other things. These factors, as well as others, are discussed under &#147;Risk Factors&#148; and elsewhere in this prospectus.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">8</FONT>
</P>

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<A name="page_11"></A>
<P>
<B><FONT size="2" face="serif">NO DIVIDENDS ANTICIPATED</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We intend to retain all future earnings for use in the development of our business and do not anticipate paying any cash dividends on the Common Stock in the foreseeable future. See &#147;Price Range of
Common Stock and Dividend Policy.&#148; </FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">USE OF PROCEEDS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We will not receive any proceeds upon the sale of shares by the selling security holders. We will received proceeds in the amount of the exercise price in the event the selling security holders
exercise their common stock purchase warrants. In the event that the Company receives proceeds consequential to the exercise of warrants in concert with this registration it will use proceeds to acquire additional companies, make capital investments
to enhance its technology and support expanding operational requirements, and for general working capital purposes. </FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">CAPITALIZATION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table sets forth our capitalization as of March 31, 2004. The table should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this
prospectus. The table does not give effect to the issuance of up to 9,558,212 shares of common stock in the event common stock purchase warrants that have been granted through May 28, 2004, are exercised.</FONT>
</P>
<TABLE width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD colspan=3 align="center" valign="bottom"><B><FONT size=2 face="serif">March
      31, 2004</FONT></B></TD>
    <TD align="center" width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD colspan=3><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD align="center" colspan=3><FONT size=2 face="serif">(Unaudited)</FONT></TD>
    <TD align="center" width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%"><FONT size=2 face="serif">Total Current Liabilities</FONT></TD>
    <TD width="25"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" width="84"><FONT size=2 face="serif">2,612,979</FONT></TD>
    <TD width="30">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="80%"><FONT size=2 face="serif">Long Term Loan</FONT></TD>
    <TD width="25"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="84" align="right"><FONT size=2 face="serif">361,412</FONT></TD>
    <TD width="30">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%"><FONT size=2 face="serif">Shareholder&#8217;s equity (deficit):</FONT></TD>
    <TD width="25">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%" valign="top"><FONT size=2 face="serif">Common Stock, $0.001 par value,
      40,000,000 shares authorized, 19,732,096 shares issued and outstanding</FONT></TD>
    <TD width="25" valign="bottom"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="84" align="right" valign="bottom"><FONT size=2 face="serif">19,732</FONT></TD>
    <TD width="30">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="80%"><FONT size=2 face="serif">Additional paid-in capital</FONT></TD>
    <TD width="25"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="84" align="right"><FONT size=2 face="serif">10,290,972</FONT></TD>
    <TD width="30" align="right">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%"><FONT size=2 face="serif">Accumulated deficit</FONT></TD>
    <TD width="25"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="84" align="right"><FONT size=2 face="serif">(295,814</FONT></TD>
    <TD width="30" align="left"><font size=2 face="serif">)</font></TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="80%"><FONT size=2 face="serif">Total shareholder&#8217;s equity</FONT></TD>
    <TD width="25"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="84" align="right"><FONT size=2 face="serif">10,014,890</FONT></TD>
    <TD width="30">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="80%">&nbsp;</TD>
    <TD><HR noshade size=3></TD>
    <TD><HR noshade size=3></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">9</FONT>
</P>

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<A name="page_12"></A>

<P>
<P align="center">
<B><FONT size="2" face="serif">PRICE RANGE OF COMMON STOCK AND DIVIDEND POLICY</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our shares of common stock were traded on the OTC Electronic Bulletin Board under the symbol &#147;SEGZ&#148; through May 11, 2004. Commencing May 12, 2004, our shares of common stock began trading on the American Stock Exchange under the symbol &#147;SZI.&#148; The reported high and low bid prices for the common stock are shown below. The closing price on June 4, 2004 was $1.75. The quotations on and before
May 11, 2004 reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not represent actual transactions.</FONT>
</P>
<TABLE width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD colspan=3 align="center" valign="bottom"><B><FONT size="2" face="serif">Period</FONT></B></TD>
    <TD align="center"><B></B></TD>
    <TD colspan=2 align="center" valign="bottom"><b><font size="2" face="serif">High</font></b></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align="center" valign="bottom"><B><FONT size="2" face="serif">Low</FONT></B></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="35%" align="center">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="35%" align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">January
      1, 2002</font></TD>
    <TD align="center"><font size=2 face="serif">-</font></TD>
    <TD nowrap><FONT size=2 face="serif">March 31, 2002</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.75</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.10</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap bgcolor="#66FF99">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">April
      1, 2002</font></TD>
    <TD align="center" bgcolor="#66FF99"><font size=2 face="serif">-</font></TD>
    <TD nowrap bgcolor="#66FF99"><FONT size=2 face="serif">June 30,
      2002</FONT></TD>
    <TD align="right" bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">0.75</FONT></TD>
    <TD bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">0.50</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">July
      1, 2002</font></TD>
    <TD align="center"><font size=2 face="serif">-</font></TD>
    <TD nowrap><FONT size=2 face="serif">September 30, 2002</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.75</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap bgcolor="#66FF99"><font size=2 face="serif">October
      1, 2002</font></TD>
    <TD align="center" bgcolor="#66FF99"><font size=2 face="serif">-</font></TD>
    <TD nowrap bgcolor="#66FF99"><FONT size=2 face="serif">December
      31, 2002</FONT></TD>
    <TD align="right" bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">1.47</FONT></TD>
    <TD bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">0.91</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap>&nbsp;&nbsp;&nbsp;<font size=2 face="serif">January
      1, 2003</font></TD>
    <TD align="center"><font size=2 face="serif">-</font></TD>
    <TD nowrap><FONT size=2 face="serif">March 31, 2003</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.45</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.76</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap bgcolor="#66FF99">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">April
      1, 2003</font></TD>
    <TD align="center" bgcolor="#66FF99"><font size=2 face="serif">-</font></TD>
    <TD nowrap bgcolor="#66FF99"><FONT size=2 face="serif">June 30,
      2003</FONT></TD>
    <TD align="right" bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">1.22</FONT></TD>
    <TD bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">0.76</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">July
      1, 2003</font></TD>
    <TD align="center"><font size=2 face="serif">-</font></TD>
    <TD nowrap><FONT size=2 face="serif">September 30, 2003</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.37</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">0.90</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap bgcolor="#66FF99"><font size=2 face="serif">October
      1, 2003</font></TD>
    <TD align="center" bgcolor="#66FF99"><font size=2 face="serif">-</font></TD>
    <TD nowrap bgcolor="#66FF99"><FONT size=2 face="serif">December
      31, 2003</FONT></TD>
    <TD align="right" bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">1.75</FONT></TD>
    <TD bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">1.12</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap>&nbsp;&nbsp;&nbsp;<font size=2 face="serif">January
      1, 2004</font></TD>
    <TD align="center"><font size=2 face="serif">-</font></TD>
    <TD nowrap><FONT size=2 face="serif">March 31, 2004</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.74</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.31</FONT></TD>
  </TR>
  <TR>
    <TD align="right" nowrap bgcolor="#66FF99">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">April
      1, 2004</font></TD>
    <TD align="center" bgcolor="#66FF99"><font size=2 face="serif">-</font></TD>
    <TD nowrap bgcolor="#66FF99"><FONT size=2 face="serif">June 4,
      2004</FONT></TD>
    <TD align="right" bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">2.65</FONT></TD>
    <TD bgcolor="#66FF99">&nbsp;</TD>
    <TD align="left" bgcolor="#66FF99"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" bgcolor="#66FF99"><FONT size=2 face="serif">1.75</FONT></TD>
  </TR>
</TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our common stock is owned of record by approximately 600 holders. We have never paid cash dividends on our common stock. We intend to keep future earnings, if any, to finance the expansion of our
business, and we do not anticipate that any cash dividends will be paid in the foreseeable future. Our future payment of dividends will depend on our earnings, capital requirements, expansion plans, financial condition and other relevant
factors.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The price of our common stock may be subject to wide fluctuations in response to the following and other factors:</FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">quarter-to-quarter variations in our operating results;</FONT><BR></LI>
<LI><FONT size="2" face="serif">our announcement of material events that effect our business;</FONT><BR></LI>
<LI><FONT size="2" face="serif">price fluctuations in sympathy to others engaged in our industry; and</FONT><BR></LI>
<LI><FONT size="2" face="serif">the effects of coverage of our business or our management by the press.</FONT><BR></LI>
</UL>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">If we do not have a substantial market for our shares, a significant number of shares being sold could greatly effect the market and cause a decline in the price of our common stock. Moreover,
historic market prices may not be indicative of the prices at which our shares can be bought or sold.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">10</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_13"></A>
<P align="center">
<B><FONT size="2" face="serif">SELLING SECURITY HOLDERS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table sets forth the name of each selling security holder, the number or shares of common stock beneficially owned by each selling security holder as of the date of this prospectus,
giving effect to the exercise of the selling security holders&#8217; options, if any, into shares of common stock, and the number of shares being offered by each selling security holder.  The shares of common stock being offered are being registered to permit public sales and the selling security holders may offer all or part of the shares for resale from time to time.  All expenses of the registration of the common stock on
behalf of the selling security holder are being borne by the Company. We will receive none of the proceeds of this offering. We will receive proceeds in the amount of the exercise price in the event the selling security holders exercise their common
stock purchase warrants.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table is derived from our books and records, as well as from those of our transfer agent.  No selling security holder is affiliated with us except Allan J. Marshall, our Chairman and
Chief Executive Officer, John S. Flynn, our President and Chief Financial Officer, and Dennis McCaffrey, our Chief Operating Officer. All shares listed for resale reflect currently outstanding shares of our common stock, unless otherwise
stated.</FONT>
</P>
<TABLE border=0 cellspacing=0 cellpadding=0 width=100%>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan="5" align="center" valign="bottom" nowrap><font size=2 face="serif">Shares
      Beneficially<br>
      Owned Prior to the Offering</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align="center" valign="bottom" nowrap><FONT size=2 face="serif">Shares
      Beneficially Owned<BR>
      After Completion of the Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=5 nowrap><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 nowrap><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="60%" nowrap><FONT size=2 face="serif">Selling Security Holder</FONT></TD>
    <TD align="center" nowrap>&nbsp;</TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Total Shares<BR>
      Beneficially<BR>
      Owned</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class Before<BR>
      Offering</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Number of
      Shares<BR>
      Offered Pursuant<BR>
      to this Prospectus</FONT></TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Shares Beneficially<BR>
      Owned After<BR>
      Offering</FONT></TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class After<BR>
      Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Paul Alberti </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Aludel Fund, L.P. </FONT><SUP><FONT size=2 face="serif">(24)
      (38)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">349,999</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.4</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">349,999</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Kenneth Ball &amp; Lora Ball </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Barron Partners, LP </FONT><SUP><FONT size=2 face="serif">(19)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">4,036,667</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">14.8</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">4,036,667</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Dominic Bassani </FONT><SUP><FONT size=2 face="serif">(45)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">62,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">62,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Anthony Beninato &amp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Johanne Beninato
      </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">John Bennice </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Patrick Boyce &amp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Sonja Boyce </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Jim Brownell </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Edward B. II Cloues</FONT><SUP><FONT size=2 face="serif">(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">119,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">119,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Dennis Codon </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Leonard Cohen </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">John E. Cole Jr.</FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Core Fund, L.P. </FONT><SUP><FONT size=2 face="serif">(33)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">375,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.5</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">375,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Mathew Crisp</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">1,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">1,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Dan Crowther </FONT><SUP><FONT size=2 face="serif">(46)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,416</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,416</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">CSL Associates LP </FONT><SUP><FONT size=2 face="serif">(25)(43)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Thomas Davison </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Fred Deoliviera &amp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Diane Deoliviera
      </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Henry E. Dietz Trust UTA</FONT><SUP><FONT size=2 face="serif">(1)(2)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">360,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.4</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">360,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Max Dieujuste </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">11</FONT>
</P>

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<A name="page_14"></A>

<TABLE border=0 cellspacing=0 cellpadding=0 width=100%>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan="5" align="center" valign="bottom" nowrap><font size=2 face="serif">Shares
      Beneficially<br>
      Owned Prior to the Offering</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 align="center" valign="bottom" nowrap><FONT size=2 face="serif">Shares
      Beneficially Owned<BR>
      After Completion of the Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=5 nowrap><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 nowrap><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap colspan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center" nowrap colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="60%" nowrap><FONT size=2 face="serif">Selling Security Holder</FONT></TD>
    <TD align="center" nowrap>&nbsp;</TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Total Shares<BR>
      Beneficially<BR>
      Owned</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class Before<BR>
      Offering</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Number of
      Shares<BR>
      Offered Pursuant<BR>
      to this Prospectus</FONT></TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="center" nowrap colspan=2><FONT size=2 face="serif">Shares Beneficially<BR>
      Owned After<BR>
      Offering</FONT></TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class After<BR>
      Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan=2><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">John Evans &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Jeanne Evans
      </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Lawrence Feld </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">John S. Flynn </FONT><SUP><FONT size=2 face="serif">(47)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">500,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.9</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">450,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">1.7%</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Julie Foreman</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Robert Friess </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Peter Giroux </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Global Portal, Inc. </FONT><SUP><FONT size=2 face="serif">(1)(3)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Karen S. Goldaber </FONT><SUP><FONT size=2 face="serif">(18)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Sharon K. Goldaber </FONT><SUP><FONT size=2 face="serif">(18)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Ron Harden &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Kristina Harden </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Arthur Hawkins </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Marvin Hoffman </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Hutchinson Company </FONT><SUP><FONT size=2 face="serif">(1)(4)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Insiders Trend Fund, LP</FONT><SUP><FONT size=2 face="serif">(5)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">154,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">154,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Rajamal Jayakumar &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Arumugam Jayakumar </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Daniel L. Kaufman</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">330,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.3</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">330,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Kinderhook Partners </FONT><SUP><FONT size=2 face="serif">(25)(34)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">2,250,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">8.5</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2,250,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Kirlin Securities </FONT><SUP><FONT size=2 face="serif">(48)(83)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Alain Krakririan </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">The Larsen Family</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" align="left">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2000 Revocable
      Trust </FONT><FONT size=2 face="serif"><sup>(1)(6)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">James Lawrence </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Ned Laybourne &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%" align="left">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Lynne Laybourne
      </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">200,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">200,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Paul H LeFevre </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">William A. Lewis IV </FONT><FONT size=2 face="serif"><sup>(84)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">190,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">190,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Robert David Lilienthal</FONT><SUP><FONT size=2 face="serif">(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">156,331</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">156,331</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Ray Lubojasky </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Peter S. Lynch Charitable</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Remainder Unitrust </FONT><SUP><FONT size=2 face="serif">(26)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">307,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.2</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">307,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">The Lynch Foundation </FONT><SUP><FONT size=2 face="serif">(27)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">562,285</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.2</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">562,285</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Peter and Carolyn Lynch</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">JTWROS</FONT><SUP><FONT size=2 face="serif">(76)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">732,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.8</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">732,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Lynch Children&#146;s Trust</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">fbo Anne Lynch </FONT><SUP><FONT size=2 face="serif">(28)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">49,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">49,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Lynch Children&#146;s Trust</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">fbo Elizabeth Lynch </FONT><SUP><FONT size=2 face="serif">(29)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">49,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">49,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Lynch Children&#146;s Trust</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">fbo Mary Lynch </FONT><SUP><FONT size=2 face="serif">(30)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">49,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">49,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Peter S. Lynch Charitable</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Lead Annuity Trust </FONT><SUP><FONT size=2 face="serif">(31)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">45,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">45,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Peter S. Lynch Charitable</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Lead Unitrust </FONT><SUP><FONT size=2 face="serif">(32)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">51,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">51,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
</TABLE>
<hr noshade size=1>
<P align="center">
<FONT size=2 face="serif">12</FONT>
</P>
<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">
<A name="page_15"></A>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan="5" align="center" valign="bottom" nowrap><font size=2 face="serif">Shares
      Beneficially<br>
      Owned Prior to the Offering</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 align="center" valign="bottom" nowrap><FONT size=2 face="serif">Shares
      Beneficially Owned<BR>
      After Completion of the Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=5 nowrap><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 nowrap><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap colspan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center" nowrap colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="60%" nowrap><FONT size=2 face="serif">Selling Security Holder</FONT></TD>
    <TD align="center" nowrap>&nbsp;</TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Total Shares<BR>
      Beneficially<BR>
      Owned</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class Before<BR>
      Offering</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Number of
      Shares<BR>
      Offered Pursuant<BR>
      to this Prospectus</FONT></TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="center" nowrap colspan=2><FONT size=2 face="serif">Shares Beneficially<BR>
      Owned After<BR>
      Offering</FONT></TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class After<BR>
      Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan=2><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Margraf Investments LLC </FONT><SUP><FONT size=2 face="serif">(1)(7)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">90,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">90,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Adam Marshall </FONT><SUP><FONT size=2 face="serif">(49)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Max Communications </FONT><SUP><FONT size=2 face="serif">(36)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Dennis McCaffrey </FONT><SUP><FONT size=2 face="serif">(50)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">200,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Meadowbrook Capital</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Management, LP </FONT><SUP><FONT size=2 face="serif">(25)(42)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">375,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.4</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">375,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Milfam I LP </FONT><SUP><FONT size=2 face="serif">(1)(8)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">900,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">3.4</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">900,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Richard Molinsky</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Monarch Capital Group LLC </FONT><SUP><FONT size=2 face="serif">(39)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Michael Morris</FONT><SUP><FONT size=2 face="serif">(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">252,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.0</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">252,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Leo Mindel NON GST</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">EXEMPT Family Trust II</FONT><SUP><FONT size=2 face="serif">(9)(16)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Peter Morton &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Kathleen Morton </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Colleen Muellner &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Robert Muellner </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Muller Family Limited</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Partnership </FONT><SUP><FONT size=2 face="serif">(18)(20)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Richard Neslund </FONT><SUP><FONT size=2 face="serif">(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">466,662</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.8</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">466,662</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Richard Neslund </FONT><SUP><FONT size=2 face="serif">(21)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Eric G. Neumann </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Tolbert Norwood &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Iara Norwood </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Kevin E. O&#146;Connell </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Joseph Palermo &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Carol Palermo TTEES</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">1994 Joseph T Palermo</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">III &amp; Carol L Palermo</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Revocable Trust </FONT><SUP><FONT size=2 face="serif">(1)(10)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Jang S. Park </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Lewis Pell </FONT><SUP><FONT size=2 face="serif">(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Lewis Pell </FONT><SUP><FONT size=2 face="serif">(21)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Joseph M. Perillo </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Platinum Partners Value</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Arbitrage Fund, LP</FONT><SUP><FONT size=2 face="serif">(11)(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">466,669</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.8</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">466,669</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Michael Power </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Puglisi &amp; Co </FONT><SUP><FONT size=2 face="serif">(40)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">40,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">40,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Puglisi Capital</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Partners, LP </FONT><SUP><FONT size=2 face="serif">(25)(41)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">300,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.2</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">300,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Regina Rager &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Trina Rager </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Patricia A. Rusk</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Revocable Trust</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">U/A Dated 5/31/91 </FONT><SUP><FONT size=2 face="serif">(1)(12)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">13</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_16"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan="5" align="center" valign="bottom" nowrap><font size=2 face="serif">Shares
      Beneficially<br>
      Owned Prior to the Offering</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan=4 align="center" valign="bottom" nowrap><FONT size=2 face="serif">Shares
      Beneficially Owned<BR>
      After Completion of the Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=5 nowrap><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=4 nowrap><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap colspan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center" nowrap colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="60%" nowrap><FONT size=2 face="serif">Selling Security Holder</FONT></TD>
    <TD align="center" nowrap>&nbsp;</TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Total Shares<BR>
      Beneficially<BR>
      Owned</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class Before<BR>
      Offering</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Number of
      Shares<BR>
      Offered Pursuant<BR>
      to this Prospectus</FONT></TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="center" nowrap colspan=2><FONT size=2 face="serif">Shares Beneficially<BR>
      Owned After<BR>
      Offering</FONT></TD>
    <TD align="center" nowrap colspan="2"><FONT size=2 face="serif">Percent of<BR>
      Class After<BR>
      Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan=2><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Alan H. Sample &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Elaine Sample </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Sandor Capital Master</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Fund, L.P.</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">David Schales </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Alan B. Schriber </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">90,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">90,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Schottenfeld Qualified</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Associates LP </FONT><SUP><FONT size=2 face="serif">(25)(44)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">225,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">225,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Richard Smailes &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Yong Smailes </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Greg Small &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Patricia Small </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Gerald Smallberg </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Morris Smith &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Devora Smith</FONT><SUP><FONT size=2 face="serif">(16)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">198,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">198,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Spencer Beal Family</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Trust</FONT><SUP><FONT size=2 face="serif">(13)(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">238,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Stern &amp; Company </FONT><SUP><FONT size=2 face="serif">(37)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">39,999</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">39,999</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Peter Stephens </FONT><SUP><FONT size=2 face="serif">(46)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,416</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,416</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Ira Stoler </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Andrew Suedkamp &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Tara Suedkamp </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Richard Suedkamp </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Marc Tormey </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Anthony Turner </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">90,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">90,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Leonard Van Orden &amp;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Laura Van Orden </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Vestal Venture Capital</FONT><SUP><FONT size=2 face="serif">(14)(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">350,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.4</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">350,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Michael Weiss</FONT><SUP><FONT size=2 face="serif">(15)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">175,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">175,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Winslow Evans &amp; Crocker</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Incorporated </FONT><SUP><FONT size=2 face="serif">(35)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">200,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">200,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Androula Xenophontos </FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Adorno &amp; Yoss, PA </FONT><SUP><FONT size=2 face="serif">(17)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Allan Marshall </FONT><FONT size=2 face="serif"><sup>(51)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,196,161</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">12.3</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">300,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">2,896,161</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">11.2</FONT></TD>
    <TD align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">A.C. Isreal Enterprises, Inc.<sup><font size=2 face="serif">(52)(54)</font></sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><SUP></SUP><FONT size=2 face="serif">360,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.4</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">360,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">A. Spector Capital, LLC </FONT><SUP><FONT size=2 face="serif">(52)(55)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">348,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.3</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">348,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Atlas Capital Master</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Fund, L.P.</FONT><SUP><FONT size=2 face="serif">(52)(56)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">510,480</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.0</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">510,480</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Atlas Capital (Q.P.), L.P. </FONT><sup><FONT size=2 face="serif">(52)(57)</FONT></sup></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">209,520</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">209,520</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Bonanza Master Fund LTD<sup><font size=2 face="serif">(52)(58)</font></sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><SUP></SUP><FONT size=2 face="serif">660,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.5</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">660,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Crestview Capital</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Master LLC</FONT><SUP><FONT size=2 face="serif">(52)(59)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">1,200,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">4.6</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1,200,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Lake Street Fund L.P. </FONT><FONT size=2 face="serif"><sup>(52)(60)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">108,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">108,000</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Midsouth Investor</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Fund LP </FONT><SUP><FONT size=2 face="serif">(52)(61)</FONT></SUP></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">291,429</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.1</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">291,429</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Lyman O. Heidtke </FONT><FONT size=2 face="serif"><sup>(52)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">68,572</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">68,572</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
</table>
<P align="center">
<FONT size=2 face="serif">14</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_17"></A>

<TABLE border=0 cellspacing=0 cellpadding=0 width=100%>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD colspan="5" align="center" valign="bottom" nowrap><font size=2 face="serif">Shares
      Beneficially<br>
      Owned Prior to the Offering</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 align="center" valign="bottom" nowrap><FONT size=2 face="serif">Shares
      Beneficially Owned<BR>
      After Completion of the Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=5 nowrap><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3 nowrap><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap colspan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center" nowrap colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="60%" nowrap><FONT size=2 face="serif">Selling Security Holder</FONT></TD>
    <TD align="center" nowrap>&nbsp;</TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Total Shares<BR>
      Beneficially<BR>
      Owned</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class Before<BR>
      Offering</FONT></TD>
    <TD colspan="2" align="center" nowrap><FONT size=2 face="serif">Number of
      Shares<BR>
      Offered Pursuant<BR>
      to this Prospectus</FONT></TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="center" nowrap colspan=2><FONT size=2 face="serif">Shares Beneficially<BR>
      Owned After<BR>
      Offering</FONT></TD>
    <TD align="center" nowrap><FONT size=2 face="serif">Percent of<BR>
      Class After<BR>
      Offering</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan=2><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;</TD>
    <TD align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Pequot Navigator Onshore</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Fund, L.P. <SUP>(52)(62)</SUP></FONT></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">346,666</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.3</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">346,666</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Pequot Scout Fund, L.P.<sup>(52)(63)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">685,334</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.6</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">685,334</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Frost National Bank FBO, BFS</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">US Special Opportunities</FONT></font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Trust PLC, Trust No.</FONT></font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">W00118000 <SUP>(52)(64)</SUP></FONT></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">720,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.8</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">720,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Frost National Bank FBO,</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Renaissance US Growth</FONT></font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Investment Trust PLC,
      Trust</FONT></font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">No. W00740100 <sup>(52)(65)</sup></FONT></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">720,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2.8</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">720,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Ridgecrest Partners</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">QP LP <sup>(52)(66)</sup></FONT></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">132,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">132,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Ridgecrest Partners</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">L.P. </FONT></font><FONT size=2 face="serif"><sup>(52)(67)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,200</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,200</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Ridgecrest Partners LTD<sup>(52)(68)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">34,800</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">34,800</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Quantum Partners LDC </FONT><font size="2"><SUP><FONT size="2" face="serif">(52)(69)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">105,600</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">105,600</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Catalyst Partners LP </FONT><font size="2"><SUP><FONT size="2" face="serif">(52)(70)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">40,800</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">40,800</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Catalyst International </FONT><font size="2"><SUP><FONT size="2" face="serif">(52)(71)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">39,600</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">39,600</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">PointeVedra Partners LTD</FONT><font size="2"><SUP><FONT size="2" face="serif">(53)(72)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Pinnacle Asset Management</FONT><font size="2"><SUP><FONT size="2" face="serif">(53)(73)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Massaniso &amp; Co. </FONT><font size="2"><SUP><FONT size="2" face="serif">(53)(74)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Peter A. Massaniso </FONT><font size="2"><SUP><FONT size="2" face="serif">(53)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">60,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Frank P. Massaniso Irrevocable</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Tr. LTD <SUP>(53)(75)</SUP></FONT></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Peter S. Lynch and Carolyn A.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><font size="2">&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Lynch 1999 Unitrust
      </FONT></font><FONT size=2 face="serif"><sup>(53)(77)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">168,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">168,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">John Castans </FONT><font size="2"><SUP><FONT size="2" face="serif">(78)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Chris White </FONT><font size="2"><SUP><FONT size="2" face="serif">(79)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">30,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Jesse Shelmire </FONT><font size="2"><SUP><FONT size="2" face="serif">(80)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">253,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.0</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">253,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Scott Griffith </FONT><font size="2"><SUP><FONT size="2" face="serif">(81)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">253,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1.0</FONT></TD>
    <TD><FONT size=2 face="serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">253,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Kirlin Securities, Inc. </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)(83)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">121,340</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">121,340</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">David O. Lindner </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">82,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">82,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Anthony J. Kirincic </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">82,500</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">82,500</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">John McAuliffe<sup>(82)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">62,010</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">62,010</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Joseph Betti </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">18,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">18,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Michael Farrell </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,200</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,200</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">David Jeromin </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">6,750</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">6,750</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Adam Gross </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">6,000</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">6,000</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Aeryn Seto </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">4,950</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">4,950</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">William Silva </FONT><font size="2"><SUP><FONT size="2" face="serif">(82)</FONT></SUP></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,450</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,450</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">Andrew Grossman<sup>(82)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,150</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,150</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD width="60%"><FONT size=2 face="serif">Brian Kuhns<sup>(82)</sup></FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,150</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,150</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">0</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">*</FONT></TD>
  </TR>
  <TR>
    <TD width="60%"><FONT size=2 face="serif">TOTAL</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">27,520,445</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,496,161</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="60%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=3></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<hr noshade size="1" width="15%" align="left">
<p align="left"><font size=2 face="serif">* Less than 1.0%</font></p>
<P align="center">
<FONT size=2 face="serif">15</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">
<A name="page_18"></A>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width="5%" align="right" valign="top"><font size=2 face="serif">(1)</font></td>
    <td width="3%">&nbsp;</td>
    <td width="92%" colspan=2 valign="top"><font size=2 face="serif">1 of every 3 of the shares
      listed for each shareholder in the column titled &#147;Number of Shares
      Offered Pursuant to this Prospectus&#148; is issuable upon exercise of common
      stock purchase warrants, at an exercise price of $ 1.25 per share, until
      July 9, 2008.</font></td>
  </tr>
  <tr>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td align="right" valign="top"><font size=2 face="serif">(2)</font></td>
    <td width="3%">&nbsp;</td>
    <td width="92%" colspan=2 align="left" valign="top"><font size=2 face="serif">Henry E.
      Dietz has investment and voting control over the shares of common stock
      beneficially owned by the Henry E. Dietz Trust UTA.</font></td>
  </tr>
  <tr>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td align="right" valign="top"><font size=2 face="serif">(3)</font></td>
    <td width="3%">&nbsp;</td>
    <td width="92%" colspan=2 align="left" valign="top"><font size=2 face="serif">James Kozlik
      has investment and voting control over the shares of common stock beneficially
      owned by Global Portal, Inc.</font></td>
  </tr>
  <tr>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td align="right" valign="top"><font size=2 face="serif">(4)</font></td>
    <td width="3%">&nbsp;</td>
    <td width="92%" colspan=2 align="left" valign="top"><font size=2 face="serif">James Hutchinson
      has investment and voting control over the shares of common stock beneficially
      owned by Hutchinson Company.</font></td>
  </tr>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="4%" align="right" valign="top"><div align="right"><FONT size=2 face="serif">(5)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top"><FONT size=2 face="serif">Anthony Marchese has
      investment and voting control over the shares of common stock beneficially
      owned by Insiders Trend Fund, LP. Includes 50,000 shares issuable upon exercise
      of common stock purchase warrants, at an exercise price of $1.35 per share,
      until September 9, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(6)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top"><FONT size=2 face="serif">David and Kristen Larsen
      have investment and voting control over the shares of common stock beneficially
      owned by The Larsen Family 2000 Revocable Trust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(7)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top"><FONT size=2 face="serif">Tim Margraf has investment
      and voting control over the shares of common stock beneficially owned by
      Margraf Investments LLC.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(8)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top"><FONT size=2 face="serif">Lloyd Miller has investment
      and voting control over the shares of common stock beneficially owned by
      Milfam I LP.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(9)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top"><FONT size=2 face="serif">Meg Mindel has investment
      and voting control over the shares of common stock beneficially owned by
      Leo Mindel NON GST EXEMPT Family Trust II.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(10)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan="4" valign="top"><FONT size=2 face="serif">Joseph Palermo &amp;
      Carol Palermo have investment and voting control over the shares of common
      stock beneficially owned by 1994 Joseph T Palermo III &amp; Carol L Palermo
      Revocable Trust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(11)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top"><FONT size=2 face="serif">Mark Nordlicht has investment
      and voting control over the shares of common stock beneficially owned by
      Platinum Partners Value Arbitrage Fund, LP.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(12)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD colspan="4" valign="top"><FONT size=2 face="serif">Patricia A. Rusk has
      investment and voting control over the shares of common stock beneficially
      owned by Patricia A. Rusk Revocable Trust U/A Dated 5/31/91.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(13)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 valign="top"><FONT size=2 face="serif">Spencer Beal
      has investment and voting control over the shares of common stock beneficially
      owned by Spencer Beal Family Trust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(14)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 valign="top"><FONT size=2 face="serif">Alan Lyons
      has investment and voting control over the shares of common stock beneficially
      owned by Vestal Venture Capital.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(15)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 valign="top"><FONT size=2 face="serif">3 of every
      7 of the shares listed for each shareholder in the column titled &#147;Number
      of Shares Offered Pursuant to this Prospectus&#148; are issuable upon exercise
      of common stock purchase warrants, at an exercise price of $1.40 per share,
      until September 9, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(16)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">1
      of every 3 of the shares listed for each shareholder in the column titled
      &#147;Number of Shares Offered Pursuant to this Prospectus&#148; is issuable
      upon exercise of common stock purchase warrants, at an exercise price of
      $1.35 per share, until September 9, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(17)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Includes
      100,000 shares issuable upon exercise of common stock purchase warrants,
      at $1.00 per share, until June 9, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(18)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">1
      of every 3 of the shares listed for each shareholder in the column titled
      &#147;Number of Shares Offered Pursuant to this Prospectus&#148; is issuable
      upon exercise of common stock purchase warrants, at an exercise price of
      $1.35 per share, until October 14, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(19)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Andrew
      Worden has investment and voting control over the shares of common stock
      beneficially owned by Barron Partners, LP. Includes 1,400,000 shares issuable
      upon exercise of common stock purchase warrants at an exercise price of
      $1.40 per share, until September 22, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(20)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">William
      Muller has investment and voting control over the shares of common stock
      beneficially owned by Muller Family Limited Partnership.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(24)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Alex
      Fuchs has investment and voting control over the shares of common stock
      beneficially owned by Aludel Fund, L.P.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(25)</FONT></div></TD>
    <TD width="4%" valign="top">&nbsp;</TD>
    <TD width="92%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">1
      of every 3 of the shares listed for the shareholder in the column titled
      &#147;Number of Shares Offered Pursuant to this Prospectus&#148; is issuable
      upon exercise of common stock purchase warrants, at an exercise price of
      $1.50 per share, for a period of 5 years.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">16</FONT>
</P>

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<A name="page_19"></A>

<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="4%" align="right" valign="top"><div align="right"><FONT size=2 face="serif">(26)</FONT></div></TD>
    <TD width="3%" valign="top">&nbsp;</TD>
    <TD width="93%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Peter
      S. Lynch has investment and voting control over the shares of common stock
      beneficially owned by Peter S. Lynch Charitable Remainder Unitrust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(27)</FONT></div></TD>
    <TD width="3%" valign="top">&nbsp;</TD>
    <TD colspan="4" valign="top"><FONT size=2 face="serif">Peter S. Lynch has
      investment and voting control over the shares of common stock beneficially
      owned by The Lynch Foundation. Includes 25,714 shares issuable upon the
      exercise of common stock purchase warrants, at an exercise price of $2.20
      per share, until April 30, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(28)</FONT></div></TD>
    <TD width="3%" valign="top">&nbsp;</TD>
    <TD width="93%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Peter
      S. Lynch has investment and voting control over the shares of common stock
      beneficially owned by Lynch Children&#146;s Trust fbo Anne Lynch.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(29)</FONT></div></TD>
    <TD width="3%" valign="top">&nbsp;</TD>
    <TD width="93%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Peter
      S. Lynch has investment and voting control over the shares of common stock
      beneficially owned by Lynch Children&#146;s Trust fbo Elizabeth Lynch.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"></div></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><div align="right"><FONT size=2 face="serif">(30)</FONT></div></TD>
    <TD width="3%" valign="top">&nbsp;</TD>
    <TD width="93%" colspan=4 align="left" valign="top"><FONT size=2 face="serif">Peter
      S. Lynch has investment and voting control over the shares of common stock
      beneficially owned by Lynch Children&#146;s Trust fbo Mary Lynch.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(31)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Peter S. Lynch has investment and
      voting control over the shares of common stock beneficially owned by Peter
      S. Lynch Charitable Lead Annuity Trust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(32)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=6 valign="top"><FONT size=2 face="serif">Peter S.
      Lynch has investment and voting control over the shares of common stock
      beneficially owned by Peter S. Lynch Charitable Lead Unitrust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(33)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=6 valign="top"><FONT size=2 face="serif">David Boker
      has investment and voting control over the shares of common stock beneficially
      owned by Core Fund. L.P.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(34)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Steven Clearman has investment
      and voting control over the shares of common stock beneficially owned by
      Kinderhook Partners.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(35)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Bob Malone has investment and voting
      control over the shares of common stock beneficially owned by Winslow Evans
      &amp; Crocker Incorporated. Includes 100,000 shares of common stock issuable
      upon exercise of common stock purchase warrants, at $1.40 per share, for
      a period of 5 years, and 100,000 shares of common stock issuable upon exercise
      of common stock purchase warrants, at $1.50 per share, for a period of 3
      years.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(36)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Richard Melinsky has investment
      and voting control over the shares of common stock beneficially owned by
      Max Communications, Inc. Includes 50,000 shares of common stock issuable
      upon exercise of common stock purchase warrants, at $1.40 per share, for
      a period of 3 years.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(37)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=6 valign="top"><FONT size=2 face="serif">Shai Stern
      has investment and voting control over the shares of common stock beneficially
      owned by Stern &amp; Company.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(38)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">Includes 150,000 shares
      of common stock issuable upon exercise of common stock purchase warrants,
      at $1.40 per share, for a period of 5 years.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(39)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=6 align="left" valign="top"><FONT size=2 face="serif">Anthony
      Marchese has investment and voting control over the shares of common stock
      beneficially owned by Monarch Capital Group LLC. Includes 7,500 shares of
      common stock issuable upon exercise of common stock purchase warrants, at
      $1.25 per share, for a period of 5 years.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(40)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=6 align="left" valign="top"><FONT size=2 face="serif">Jeff
      Puglisi has investment and voting control over the shares of common stock
      beneficially owned by Puglisi &amp; Co. Includes 40,000 shares of common
      stock issuable upon exercise of common stock purchase warrants, at </FONT><B><FONT size=2 face="serif">$</FONT></B><FONT size=2 face="serif">1.50
      per share, for a period of 5 years.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(41)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=6 align="left" valign="top"><FONT size=2 face="serif">Jeff
      Puglisi has investment and voting control over the shares of common stock
      beneficially owned by Puglisi Capital Partners, LP.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(42)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Evan Greenberg has investment and
      voting control over the shares of common stock beneficially owned by Meadowbrook
      Capital Management, LP.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(43)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Chuck Lipson has investment and
      voting control over the shares of common stock beneficially owned by CSL
      Associates, LP.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(44)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Rick Schottenfeld has investment
      and voting control over the shares of common stock beneficially owned by
      Schottenfeld Qualified Associates LP.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(45)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">Includes 16,667 shares
      of common stock issuable upon exercise of common stock purchase warrants
      at $1.15 per share until July 9,2008, and 12,500 shares of common stock
      issuable upon exercise of common stock purchase warrants, at $1.50 per share,
      until March 24, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(46)</FONT></FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">Includes 8,333 shares
      of common stock issuable upon exercise of common stock purchase warrants
      at $1.15 per share until July 9,2008, 12,500 shares of common stock issuable
      upon exercise of common stock purchase warrants, at $1.40 per share, until
      October 1, 2008, and 6,250 shares of common stock issuable upon exercise
      of common stock purchase warrants, at $1.50 per share, until March 24, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
</table>
<P align="center">
<FONT size=2 face="serif">17</FONT>
</P>

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<A name="page_20"></A>

<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="4%" align="right" valign="top"><FONT size=2 face="serif">(47)</FONT></FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="92%" colspan=6 valign="top"><FONT size=2 face="serif">Includes 100,000 shares
      of common stock issuable upon exercise of common stock purchase warrants,
      at $1.25 per share, until October 1, 2008 and 100,000 shares of common stock
      issuable upon exercise of common stock</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(48)</FONT></FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">purchase warrants, at
      $1.31 per share, until January 1, 2009. Includes 50,000 shares of common
      stock issuable upon exercise of common stock purchase warrants, at $1.15
      per share, until January 1, 2006.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(49)</FONT></FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">Includes 150,000 shares
      of common stock issuable upon exercise of common stock purchase warrants,
      at $1.15 per share, until October 1, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(50)</FONT></FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">Includes 100,000 shares
      of common stock issuable upon exercise of common stock purchase warrants,
      at $1.25 per share, until October 1, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(51)</FONT></FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD colspan=6 valign="top"><FONT size=2 face="serif">Allan Marshall is our
      Chairman, Chief Executive Officer and a Director. Includes 100,000 shares
      underlying common stock purchase warrants exercisable at $1.25 per share,
      and 8,285 shares of common stock held by Mr. Marshall&#146;s wife Christine
      Otten. Mr. Marshall disclaims any beneficial interest in the shares owned
      by his wife Christine Otten.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="right" valign="top"><FONT size=2 face="serif">(52)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">1 of every 6 of the shares
      listed for each shareholder in the column titled &#147;Number of Shares Offered
      Pursuant to this Prospectus&#148; is issuable
      upon exercise of common stock purchase warrants, at an exercise price of
      $2.20 per share, until April 30, 2009.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(53)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">1 of every
      6 of the shares listed for each shareholder in the column titled &#147;Number
      of Shares Offered Pursuantto this Prospectus&#148; is issuable upon exercise of common stock purchase warrants, at an exercise price of $2.20 per share, until May 6, 2009.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(54)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Tom Israel
      has investment and voting control over the shares of common stock beneficially
      owned by A.C. Isreal Enterprises, Inc.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(55)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Arthur Spector
      has investment and voting control over the shares of common stock beneficially
      owned by A. Spector Capital, LLC.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(56)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Robert Alpert
      has investment and voting control over the shares of common stock beneficially
      owned by Atlas Capital Master Fund, L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(57)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Robert Alpert
      has investment and voting control over the shares of common stock beneficially
      owned by Atlas Capital (Q.P.), L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(58)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Bernay Box
      has investment and voting control over the shares of common stock beneficially
      owned by Bonanza Master Fund LTD.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(59)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Stewart
      Flink has investment and voting control over the shares of common stock
      beneficially owned by Crestview Capital
      Master LLC.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(60)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Scott Hood
      has investment and voting control over the shares of common stock beneficially
      owned by Lake Street Fund L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(61)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Buzz Heidtke
      has investment and voting control over the shares of common stock beneficially
      owned by Midsouth Investor Fund L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(62)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="serif">Art Samberg has
      investment and voting control over the shares of common stock beneficially
      owned by Pequot Navigator Onshore Fund,
      L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(63)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="serif">Art Samberg has
      investment and voting control over the shares of common stock beneficially
      owned by Pequot Scout Fund, L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(64)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Russell
      Cleveland has investment and voting control over the shares of common stock
      beneficially owned by Frost National Bank
      FBO, BFS US Special Opportunities Trust PLC, Trust No. W00118000.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(65)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Russell
      Cleveland has investment and voting control over the shares of common stock
      beneficially owned by Frost National Bank
      FBO, Renaissance US Growth Investment Trust PLC, Trust No. W00740100.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(66)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="serif">Sanford Prater has
      investment and voting control over the shares of common stock beneficially
      owned by Ridgecrest Partners QP LP.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(67)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Sanford
      Prater has investment and voting control over the shares of common stock
      beneficially owned by Ridgecrest Partners
      L.P.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(68)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Sanford
      Prater has investment and voting control over the shares of common stock
      beneficially owned by Ridgecrest Partners
      LTD.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(69)</FONT></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Sanford
      Prater has investment and voting control over the shares of common stock
      beneficially owned by Quantum Partners LDC.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
</table>
<P align="center">
<FONT size=2 face="serif">18</FONT>
</P>

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<A name="page_21"></A>

<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
    <TD width="4%" align="right" valign="top"><FONT size=2 face="serif">(70)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Sanford
      Prater has investment and voting control over the shares of common stock
      beneficially owned by Catalyst Partners
      LP.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(71)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Sanford
      Prater has investment and voting control over the shares of common stock
      beneficially owned by Catalyst International.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(72)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Peter Massaniso
      has investment and voting control over the shares of common stock beneficially
      owned by Pointe Vedra Partners LTD.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(73)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="serif">Peter Massaniso has
      investment and voting control over the shares of common stock beneficially
      owned by Pinnacle Asset Management.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(74)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="serif">Peter Massaniso has
      investment and voting control over the shares of common stock beneficially
      owned by Massaniso &amp; Co.</FONT></TD>
  </TR>  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(75)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="serif">Peter Massaniso has
      investment and voting control over the shares of common stock beneficially
      owned by Frank P. Massaniso Irrevocable
      Tr. LTD.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
<TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(76)</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%" colspan=2 align="left" valign="top"><FONT size=2 face="serif">Includes
      32,000 shares issuable upon the exercise of common stock purchase warrants,
      at an exercise price of $2.20 per share,
      until April 30, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="3%" align="right" valign="top"><FONT size=2 face="serif">(77)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Peter S. Lynch has investment and voting control
      over the shares held by the Peter S. Lynch and Carolyn A. Lynch
      1999 Unitrust.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(78)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Includes 30,000 shares issuable upon exercise
      of common stock purchase warrants at $2.20 per share, until May
      6, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(79)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Includes 30,000 shares issuable upon exercise
      of common stock purchase warrants at $2.20 per share, until May
      6, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(80)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Includes 253,500 shares issuable upon exercise
      of common stock purchase warrants at $2.20 per share, until May
      6, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(81)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Includes 253,500 shares issuable upon exercise
      of common stock purchase warrants at $2.20 per share, until May
      6, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(82)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">The shares listed for each shareholder
      in the column titled &#147;Number of Shares Offered
      Pursuant to this Prospectus&#148;
      underlie a Purchase Option that provides the shareholder with the right
      to purchase units consisting of 2 shares
      of common stock of Segmentz, Inc. and 1 common stock purchase warrant. The
      Purchase Option is exercisable until July
      8, 2008, for $1.50 per unit. The warrants
      underlying the units are exercisable until July
      9, 2008, for $1.25 per share.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(83)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">David Lindner has investment and voting control
      of the shares beneficially owned by Kirlin Securities, Inc.</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=4 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="top"><FONT size=2 face="serif">(84)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif">Includes 50,000 shares issuable upon exercise
      of common stock purchase warrants, at an exercise price of $1.50 per
      share, for a period of 5 years, and 40,000 shares issuable upon exercise
      of common stock purchase warrants, at an
      exercise price of $1.50 per share, for
      a period of 5 years.</FONT></TD>
  </TR>
</TABLE>
<P align="center">
<B><FONT size="2" face="serif">PLAN OF DISTRIBUTION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The shares covered by this prospectus may be distributed from time to time by the selling security holders in one or more transactions that may take place on the American Stock Exchange. These include
ordinary broker&#146;s transactions, privately-negotiated transactions or through sales to one or more broker-dealers for resale of these shares as principals, at market prices existing at the time of sale, at prices related to existing market
prices, through Rule 144 transactions or at negotiated prices. Usual and customary or specifically negotiated brokerage fees or commissions may be paid by the selling security holders in connection with sales of securities.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The selling security holders may sell the securities in one or more of the following methods, which may include crosses or block transactions:</FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">through floor specialist on the American Stock Exchange, in transactions which may include special offerings, exchange distributions and/or secondary distributions, pursuant to and in accordance with the rules of such
exchanges, including sales to underwriters who acquire the shares for their own account and resell them in one or more transactions or through brokers, acting as principal or agent;</FONT><BR></LI>
<LI><FONT size="2" face="serif">in transactions other than on such exchanges or in the over-the-counter market, or a combination of such transactions, including sales through brokers, acting as principal or agent, sales in privately negotiated transactions,
or dispositions for value by any selling security holder to its partners or members, subject to rules relating to sales by affiliates;</FONT><BR></LI>
<LI><FONT size="2" face="serif">through the issuance of securities by issuers other than us, convertible into, exchangeable for, or payable in our shares; or</FONT><BR></LI>
<LI><FONT size="2" face="serif">through the writing of options on our shares, whether or not such options are listed on an exchange, or other transactions requiring delivery of our shares, or the delivery of our shares to close out a short
position.</FONT><BR></LI>
</UL>
<P align="center">
<FONT size=2 face="serif">19</FONT>
</P>

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<A name="page_22"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Any such transactions may be effected at market prices prevailing at the time of sale, at prices related to such prevailing market prices, at negotiated prices or at fixed prices. In making sales,
brokers or dealers used by the selling security holders may arrange for other brokers or dealers to participate. The selling security holders and others through whom such securities are sold may be &#147;underwriters&#148; within the meaning of the
Securities Act for the securities offered, and any profits realized or commission received may be considered underwriting compensation.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">At the time a particular offer of the securities is made by or on behalf of a selling security holder, to the extent required, a prospectus is to be delivered. The prospectus will include the number
of shares of common stock being offered and the terms of the offering, including the name or names of any underwriters, dealers or agents, the purchase price paid by any underwriter for the shares of common stock purchased from the selling security
holder, and any discounts, commissions or concessions allowed or reallowed or paid to dealers, and the proposed selling price to the public.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We have informed the selling security holders that the anti-manipulative rules under the Securities Exchange Act of 1934, including Regulation M, may apply to their sales in the market. We have also
told the selling security holders of the need for delivery of copies of this prospectus in connection with any sale of securities that are registered by this prospectus. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Sales of securities by us and the selling security holders or even the potential of these sales may have a negative effect on the market price for shares of our common stock.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">20</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">
<a name="page_23"></a>
<P align="center"> <B><FONT size="2" face="serif">MANAGEMENT&#8217;S DISCUSSION
  AND ANALYSIS OF FINANCIAL </FONT></B> <BR>
  <B><FONT size="2" face="serif">CONDITION AND RESULTS OF OPERATIONS</FONT></B> </P>
<P>
<B><FONT size="2" face="serif">INTRODUCTION</FONT></B>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">This discussion is intended
  to further the reader&#8217;s understanding of the Company&#8217;s financial condition and
  results of operations and should be read in conjunction with the Company&#8217;s consolidated
  financial statements and related notes included elsewhere herein. This discussion
  also contains forward-looking statements. The Company&#8217;s actual results could
  differ materially from those anticipated in these forward-looking statements
  as a result of the risks and uncertainties set forth elsewhere in this Prospectus
  and in the Company&#8217;s other SEC filings. Readers are cautioned not to place undue
  reliance on any forward-looking statements, which speak only as of the date hereof. The company is not party to any transactions that
  would be considered &#147;off balance sheet&#148; pursuant to disclosure requirements
  under ITEM 303(c). </FONT> </P>




<P>
<B><FONT size="2" face="serif">OVERVIEW</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz provides transportation and logistics services to over 1,000 active customers, specializing in time definite delivery in support of specific supply chain requirements. Services include
expedited transportation, deferred airfreight transportation, local cartage, aircraft charters, dedicated delivery, consolidation, warehouse management and fulfillment. The Company has expanded its network, operating service stations in over 20
cities, five located at international gateways, in the Midwest and Southeast United States providing scheduled airport-to-airport line haul movements. The Company offers a 24 hour, seven day a week call center allowing the customer immediate
communication and status of time sensitive shipments in transit. The Company also provides the customer with remote order entry capability, shipment tracking, proof of delivery reconciliation, billing status, and performance reports via a custom
designed web site. The Company is dedicated to providing services that are customized to meet its client&#8217;s individual needs and flexible enough to cope with an ever-changing business environment. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company is uniquely positioned in the industry to market its services to both commercial shippers and third party logistics companies such as; warehouse management, transportation management,
air/ocean freight forwarders, integrated air carriers, passenger and cargo airlines. The Company offers a high level of service with emphasis on time critical and damage free delivery. The Company locates facilities in close proximity to airports to
maintain strict service schedules. The majority of shipments handled in the Company&#8217;s network are delivered overnight. Segmentz objective is to build a Company that supports &#147;segments&#148; of customer&#8217;s supply chain initiatives. The Company sustains a
competitive advantage by providing flexible, customized, end-to-end solutions, which utilize experienced personnel and technology to exceed the customer&#8217;s expectations. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Segmentz acquisition strategy focuses on integrating logistics businesses that will enhance service offerings within our current market areas as well as extend our network to targeted locations in
the Midwestern and Southeastern United States. The Company selects acquisition targets based upon their ability to demonstrate: (1) consistent profitability; (2) history of service level delivery and brand identity; (3) regional or service niche and
position that is accretive to our current footprint and overlaps or enhances our current service offerings; and (4) creates maximum capacity and equipment utilization to stabilize a platform that will support continued enterprise revenue growth that
drives profitability. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz intends to create additional stockholder value by: (1) improving productivity by adopting enhanced technologies and business processes; (2) improving transportation margins by leveraging our
growing purchasing power and (3) enhancing the opportunity for organic growth by cross-selling and offering expanded services to new and existing customers. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">21</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_24"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">There are a variety of risks associated with the Company&#8217;s ability to achieve strategic objectives, including the ability to acquire and profitably manage additional businesses, current reliance on
key customers, the risks inherent in expanding, and the intense competition in the industry for customers and for the acquisition of additional businesses. </FONT>
</P>
<P>
<FONT size="2" face="serif"> 	The following tables summarize the Company&#8217;s total revenues, net transportation revenues and other revenues: </FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="329">&nbsp;</TD>
    <TD width="116">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom"><FONT size="2" face="serif">2003</FONT></TD>
    <TD width="30" valign="bottom">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom"><FONT size="2" face="serif">2002</FONT></TD>
    <TD width="29" valign="bottom">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom"><FONT size="2" face="serif">Change</FONT></TD>
    <TD width="27" valign="bottom">&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom"><FONT size="2" face="serif">Percent</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size="2" face="serif">Total revenue</FONT></TD>
    <TD align="center" width="116">&nbsp;</TD>
    <TD width="13"><font size="2" face="serif">$</font></TD>
    <TD align="right" width="101"><font size="2" face="serif">14,687,754</font></TD>
    <TD width="13">&nbsp;</TD>
    <TD width="30">&nbsp;</TD>
    <TD width="10"><font size="2" face="serif">$</font></TD>
    <TD align="right" width="91"><FONT size="2" face="serif">9,994,506</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13"><FONT size="2" face="serif">$</FONT></TD>
    <TD align="right" width="81"><FONT size="2" face="serif">4,693,248</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD align="right" width="57"><FONT size="2" face="serif">47</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size="2" face="serif">Cost of goods sold</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD colspan=2 align="right"><FONT size="2" face="serif">11,118,710</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD colspan=3 align="right"><FONT size="2" face="serif">7,781,632</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD width="81" align="right"><FONT size="2" face="serif">3,337,078</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD width="57" align="right"><FONT size="2" face="serif">43</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size="2" face="serif">Gross Profit</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" width="101"><FONT size="2" face="serif">3,569,044</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" colspan=3><FONT size="2" face="serif">2,212,874</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" width="81"><FONT size="2" face="serif">1,356,170</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD align="right" width="57"><FONT size="2" face="serif">61</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size="2" face="serif">Selling, General &amp; Administrative</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD width="101" align="right"><FONT size="2" face="serif">3,309,875</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD colspan=3 align="right"><FONT size="2" face="serif">1,743,476</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD width="81" align="right"><FONT size="2" face="serif">1,566,399</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD width="57" align="right"><FONT size="2" face="serif">90</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size="2" face="serif">Net income</FONT></TD>
    <TD align="center" width="116">&nbsp;</TD>
    <TD width="13"><font size="2" face="serif">$</font></TD>
    <TD align="right" width="101"><FONT size="2" face="serif">203,163</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD width="30">&nbsp;</TD>
    <TD width="10"><font size="2" face="serif">$</font></TD>
    <TD align="right" width="91"><FONT size="2" face="serif">374,115</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13"><FONT size="2" face="serif">$</FONT></TD>
    <TD align="right" width="81"><FONT size="2" face="serif">(170,952</FONT></TD>
    <TD width="21"><FONT size="2" face="serif">)</FONT></TD>
    <TD width="27">&nbsp;</TD>
    <TD align="right" width="57"><FONT size="2" face="serif">(46</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">)%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="116">&nbsp;</TD>
    <TD colspan="7" align="center" valign="bottom"><FONT size="2" face="serif">3 Months Ended March 31</FONT></TD>
    <TD width="29" valign="bottom">&nbsp;</TD>
    <TD width="13" valign="bottom">&nbsp;</TD>
    <TD width="81" valign="bottom">&nbsp;</TD>
    <TD width="21" valign="bottom">&nbsp;</TD>
    <TD width="27" valign="bottom">&nbsp;</TD>
    <TD width="57" valign="bottom">&nbsp;</TD>
    <TD width="29" valign="bottom">&nbsp;</TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="116">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom"><FONT size="2" face="serif">2004</FONT></TD>
    <TD width="30" valign="bottom">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom"><FONT size="2" face="serif">2003</FONT></TD>
    <TD width="29" valign="bottom">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom"><FONT size="2" face="serif">Change</FONT></TD>
    <TD width="27" valign="bottom">&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom"><FONT size="2" face="serif">Percent</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size="2" face="serif">Total revenue</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13"><FONT size="2" face="serif">$</FONT></TD>
    <TD width="101" align="right"><FONT size="2" face="serif">6,620,752</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD width="30">&nbsp;</TD>
    <TD width="10"><font size="2" face="serif">$</font></TD>
    <TD width="91" align="right"><FONT size="2" face="serif">2,887,722</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13"><FONT size="2" face="serif">$</FONT></TD>
    <TD width="81" align="right"><FONT size="2" face="serif">3,733,030</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD width="57" align="right"><FONT size="2" face="serif">129</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size="2" face="serif">Cost of goods sold</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" width="101"><FONT size="2" face="serif">5,470,921</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" colspan=3><FONT size="2" face="serif">2,190,190</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" width="81"><FONT size="2" face="serif">3,280,731</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD align="right" width="57"><FONT size="2" face="serif">150</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size="2" face="serif">Gross Profit</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD width="101" align="right"><FONT size="2" face="serif">1,149,831</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD width="30">&nbsp;</TD>
    <TD width="10">&nbsp;</TD>
    <TD width="91" align="right"><FONT size="2" face="serif">697,532</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD width="81" align="right"><FONT size="2" face="serif">452,299</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD width="57" align="right"><FONT size="2" face="serif">65</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size="2" face="serif">Selling, General &amp; Administrative</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" width="101"><FONT size="2" face="serif">1,702,762</FONT></TD>
    <TD width="13">&nbsp;</TD>
    <TD width="30">&nbsp;</TD>
    <TD width="10">&nbsp;</TD>
    <TD align="right" width="91"><FONT size="2" face="serif">502,737</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13">&nbsp;</TD>
    <TD align="right" width="81"><FONT size="2" face="serif">1,200,025</FONT></TD>
    <TD width="21">&nbsp;</TD>
    <TD width="27">&nbsp;</TD>
    <TD align="right" width="57"><FONT size="2" face="serif">239</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Net income</FONT></TD>
    <TD width="116">&nbsp;</TD>
    <TD width="13"><FONT size="2" face="serif">$</FONT></TD>
    <TD width="101" align="right"><FONT size="2" face="serif">(404,031</FONT></TD>
    <TD width="13"><FONT size="2" face="serif">)</FONT></TD>
    <TD width="30">&nbsp;</TD>
    <TD width="10"><FONT size="2" face="serif">$</FONT></TD>
    <TD width="91" align="right"><FONT size="2" face="serif">130,842</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="29">&nbsp;</TD>
    <TD width="13"><FONT size="2" face="serif">$</FONT></TD>
    <TD width="81" align="right"><FONT size="2" face="serif">(534,873</FONT></TD>
    <TD width="21"><FONT size="2" face="serif">)</FONT></TD>
    <TD width="27">&nbsp;</TD>
    <TD width="57" align="right"><FONT size="2" face="serif">(409</FONT></TD>
    <TD width="29"><FONT size="2" face="serif">)%</FONT></TD>
    <TD width="28">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">22</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">
<A name="page_25"></A>
<P>
<B><FONT size="2" face="serif">CRITICAL ACCOUNTING POLICIES</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. The Company reviews its estimates, including but not limited to, recoverability of long-lived assets, recoverability of prepaid expenses, valuation of investments and allowance for doubtful accounts, on a regular basis and makes adjustments
based on historical experiences and existing and expected future conditions. These evaluations are performed and adjustments are made as information is available. Management believes that these estimates are reasonable; however, actual results could differ from these estimates.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Financial instruments, which potentially subject the Company to concentrations of credit risk, are cash and cash equivalents and accounts receivables. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The majority of cash is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Generally, these
deposits may be redeemed upon demand, and, therefore, bear minimal risk. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Concentration of credit risk with respect to trade receivables is limited due to the Company&#8217;s large number of customers and wide range of industries and locations served. No customer comprised more
than ten percent of the December 31, 2003 or 2002 customer accounts receivable balance. One customer represented approximately 20% of the sales for the year ended December 31, 2003 and another customer represented approximately 18% of sales for the
year ended December 31, 2002. The one significant customer for the year ended 2003 is related to a multi-year contract with a national logistics company, providing service to an investment credit grade, Fortune 500(TM) manufacturing company.
</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company extends credit to its various customers based on evaluation of the customer&#8217;s financial condition and ability to pay the Company within the payment terms. The Company provides for
estimated losses on accounts receivable considering a number of factors, including the overall aging of the receivables, previous history with the customer and the customer&#8217;s current ability to pay its obligation. Based on managements&#8217; review of
accounts receivable and other receivables, an allowance for doubtful accounts of approximately $1,080,000 and $137,000 is considered necessary as of December 31, 2003 and 2002, respectively. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Accrued liabilities consist primarily of estimates that take into account potential income or expense that may be generated related to credits, offsets, deposits or prepaid amounts that may become
payable to customers. These amounts are accrued to estimate the potential liability that may exist and are based on managements&#8217; review of historical data and projections regarding credits or offsets that might become due. Management believes that
the estimated accrued liabilities are reasonable in comparison to such historical data; however, actual results could differ from these estimates. A ten percent variation from this estimate could be an additional expense or income of approximately
$24,000. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">23</FONT>
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<P>
<B><FONT size="2" face="serif">YEAR ENDED DECEMBER 31, 2003 COMPARED TO YEAR ENDED DECEMBER 31, 2002</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
<B><FONT size="2" face="serif">Results of Operations</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Total revenues were approximately $14,688,000 for the year ended December 31, 2003, an increase of approximately $4,693,000 million or 47% over total revenues of approximately $9,995,000 the
comparable period in 2002. Approximately $600,000 or 12% of the increase in total revenues was attributable to the operations of the businesses the Company acquired in 2003; approximately $4,093,000 or 88% was due to an increase in Segmentz&#8217; core revenues (&#147;organic growth&#148;); and Segmentz terminated
relationships with its largest customer in 2002, representing approximately $1,191,000 of business during the year ending December 31, 2002, resulting in approximately 60% of organic growth for Segmentz during the year ending December 31, 2003.
Revenues were lower than expected in the fourth quarter due to the timing of holiday schedules. Additionally, the Company did not complete its Dasher Express acquisition until December 31, 2003. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Costs of services provided, which consist primarily of payment for trucking services, fuel, insurance, sales, marketing and general and administrative support increased by approximately $3,337,100 or
43%, to approximately $11,118,700 for the year ended December 31, 2003, as compared to approximately $7,781,600 for the year ended December 31, 2002. As a percentage of revenues, trucking and transport related services of fuel, insurance, sales and
marketing are aggregated as cost of goods sold and amounted to 77% of related revenues for the year ended December 31, 2003, as compared to 78% for the year ended December 31, 2002. The increase in cost of services provided resulted primarily from
corresponding increase in business, as well as increased network size resulting from planning for expansion and delivery of stated service levels to our customers. The Company had a $30,000 claim in the fourth quarter which was a contributing factor
in the increase in cost of services. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Gross margin increased by approximately $1,356,170 or 61%, to approximately $3,569,044 for the year ended December 31, 2003, as compared to approximately $2,212,874 for the year ended December 31,
2002. This increase is primarily attributed to (i) increased sales; (ii) acquisitions; and (iii) successful cross-selling and marketing within the Company&#8217;s facilities based network. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">General and administrative expenses increased by approximately $1,566,400 or 90%, to approximately $3,309,900 for the year ended December 31, 2003, up from approximately $1,743,500 for the year ended
December 31, 2002. This increase was a result of (i) significant costs incurred to prepare company infrastructure for rapid integration and expansion of target entities; (ii) increased costs of being a fully reporting public company; and (iii) an
increase in staff and facilities costs through the year to manage growth. The Company believes it is sufficiently staffed for it&#8217;s 2004 anticipated growth. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company earned $203,163 for the fiscal year ended December 31, 2003, as opposed to approximately $374,115 for the fiscal year ended December 31, 2002. This reduction in earnings was primarily due
to (i) cost associated with the Company expanding infrastructure to support growth; (ii) $30,000 claim in the fourth quarter; (iii) timing of the holiday schedule in quarter four; and (iv) the delay in obtaining a more favorable credit facility.
</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Basic earnings per share from continuing operations for the year ended December 31, 2003, decreased by $.04 per share to $.02 per share, as compared to $.06 per share for December 31, 2002.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">24</FONT>
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<A name="page_27"></A>

<P>
<B><FONT size="2" face="serif">THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THREE MONTHS ENDED MARCH 31, 2003</FONT></B>
</P>
<P>
<B><FONT size="2" face="serif">Results of Operations</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Revenues increased approximately $3,733,000, or 129%, to approximately $6,621,000 for the period ended March 31, 2004, as compared to approximately $2,888,000 for the period ended March 31, 2003. The
increases in revenue primarily relate to (i) the three recent acquisitions (ii) expansion of the Chicago terminal location, (iii) a dedicated delivery services (DDS) contract to provide staging, processing, delivery and report integration from a
regional cross-dock hub facility in Evansville, IN., (iv) cross-selling of expanded company services and points of service throughout the Company&#8217;s client base, (v) increased ability to provide expedited service through increases in scheduled
services within the Company&#8217;s freight network and, (vi) general increases resulting from marketing efforts and brand awareness.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Costs of services provided, which consist primarily of payment for trucking services, fuel, insurance, cross dock facilities, equipment costs and payroll expenses increased by approximately
$3,281,000, or 150%, to approximately $5,471,000 for the period ended March 31, 2004, as compared to approximately $2,190,000 for the period ended March 31, 2003. As a percentage of revenues cost of services amounted to approximately 83% of related
revenues for the period ended March 31, 2004, as compared with approximately 76% for the period ended March 31, 2003. Increased costs of service for the first quarter result primarily from (i) lower freight volume in accordance with historical
results and expectations, (ii) rental equipment costs and repair costs, related to the short term needs to integrate our time scheduled operations and expedited operating requirements, and (iii) a significant increase in depreciation and
amortization related to the recent acquisitions, which should reduce as we integrate equipment plans with operational consolidation. The Company anticipates costs returning to historical levels during the second, third and fourth quarters as we
complete the integration of acquired companies, in addition to additional freight volume in our current network. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">General and administrative expense increased by approximately $1,200,000 or 239% to approximately $1,703,000 as compared to approximately $503,000 for the period ended March 31, 2003. The increase of
general and administrative expenses resulted primarily to (i) expansion of technology, equipment, personnel and infrastructure for increased sales and anticipated increases in the second and third quarter, (ii) expansion of facilities in several
cities to allow us to meet significant opportunities, (iii) expenses directly related to integration of acquisitions, (iv) additional sales, marketing and branding efforts to introduce our expanded locations, service offerings and brands to our new
and expanding client base and (v) expenses related to prospective acquisitions. The Company had anticipated these increases in general and administrative costs in connection with acquisitions and internally generated growth and believes it will be
able to reduce expenses to historical percentage levels as acquisitions are completed, integrated and synergies are capitalized upon.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">25</FONT>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company realized a loss from continuing operations before provisions for income taxes of approximately $624,000 for the period ended March 31, 2004, compared with income from continuing operations
before provisions for income taxes of approximately $184,000 for the period ended March 31, 2003.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The income tax benefit was approximately $220,000 for the three months ended March 31, 2004 compared to a provision of $53,500 for the three months ended March 31, 2003. Differences between the
effective tax rate used for 2004 and 2003, as compared to the U.S. federal statutory rate, are primarily due to permanent differences and adjustments to the deferred tax asset valuation allowance. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Basic loss per share from continuing operations for the period ended March 31, 2004 was $.02, compared with basic earnings of $.02 for the period ended March 31, 2003. Diluted loss per share from
continuing operations for the period ended March 31, 2004 was $.02, compared with diluted earnings per share of $.02 for the period ended March 31, 2003.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">Liquidity and Capital Resources</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">As of March 31, 2004 the Company has approximately $5,000,000 of working capital and has cash and cash equivalents of approximately $1,553,000, compared with a cash overdraft at March 31, 2003. This
increase was primarily a result of the Company&#8217;s capital transaction during the year ended December 31, 2003 and the three months ended March 31, 2004.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">During the period ended March 31, 2004, the Company received approximately $1,737,500 in gross proceeds from a private placement offering of the Company&#8217;s stock that was made in accordance with
exemption under Regulation D, Rule 506 of the Securities and Exchange Act of 1933, as amended, in which the Company sold approximately 400,000 units to accredited investors at a price of $2.00 per unit, each unit consisting of two shares of common
stock and one warrant to purchase a share of common stock of the Company at an exercise price of $1.50 per share, and two investor exercised purchase rights under the terms of options issued in connection with this placement, buying 625,000 shares
for $1.50 per share.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In March 2002, the Company issued 350,000 warrants to purchase common stock in the Company for between $1.01 and $1.15 in connection with a term note that has been repaid. In February of 2004 the
company received approximately $367,500 related to these warrants being exercised.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company incurred offering costs of approximately $170,000 during the period ended March 31, 2004. </FONT>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In January of 2004, the Company
  entered into a term credit facility with Merrill Lynch Business Financial Services
  (MLBFS) with a stated credit limit of $1.75 million. This facility is a revolving
  facility that provides for advance against the Company&#8217;s eligible accounts receivable
  balances. The facility bears interest at London InterBank Over the Counter Rate
  (LIBOR) plus 275 basis points. The LIBOR rate at the
  closing of the facility was 1.09. As of March 31, 2004, the Company had $1,100,000
  available under this credit facility.</font></P>
<P align="center">
<FONT size=2 face="serif">26</FONT>
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<P>&nbsp; </P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company may receive proceeds in the future from the exercise of warrants and options outstanding as of March 31, 2004 in accordance with the following schedule:</FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="672">&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom" nowrap><FONT size="2" face="serif">Number of
      Shares</FONT></TD>
    <TD width="32" valign="bottom">&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap><FONT size="2" face="serif">Proceeds</FONT></TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">Options outstanding under the Company&#8217;s Stock Option
      Plan</FONT></TD>
    <TD align="right" width="100"><FONT size="2" face="serif">500,000</FONT></TD>
    <TD align="right" width="28">&nbsp;</TD>
    <TD width="32">&nbsp;</TD>
    <TD align="left" width="27"><FONT size="2" face="serif">$</FONT></TD>
    <TD align="right" width="104"><FONT size="2" face="serif">655,000</FONT></TD>
    <TD align="right" width="30">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD><FONT size="2" face="serif">Non-Plan Options</FONT></TD>
    <TD width="100" align="right"><FONT size="2" face="serif">310,000</FONT></TD>
    <TD width="28" align="right">&nbsp;</TD>
    <TD width="32">&nbsp;</TD>
    <TD width="27" align="left">&nbsp;</TD>
    <TD width="104" align="right"><FONT size="2" face="serif">432,000</FONT></TD>
    <TD width="30" align="right">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">Warrants</FONT></TD>
    <TD width="100" align="right"><FONT size="2" face="serif">6,703,200</FONT></TD>
    <TD width="28" align="right">&nbsp;</TD>
    <TD width="32">&nbsp;</TD>
    <TD width="27" align="left">&nbsp;</TD>
    <TD width="104" align="right"><FONT size="2" face="serif">9,205,000</FONT></TD>
    <TD width="30" align="right">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD><FONT size="2" face="serif">Total</FONT></TD>
    <TD width="100" align="right"><FONT size="2" face="serif">7,513,200</FONT></TD>
    <TD width="28" align="right">&nbsp;</TD>
    <TD width="32">&nbsp;</TD>
    <TD width="27" align="left"><FONT size="2" face="serif">$</FONT></TD>
    <TD width="104" align="right"><FONT size="2" face="serif">10,292,000</FONT></TD>
    <TD width="30" align="right">&nbsp;</TD>
    <TD width="18">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=3></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=3></TD>
    <TD colspan="2"><HR noshade size=3></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Since March 31, 2004, the Company received approximately $10,672,500 in gross proceeds from a private placement offering of the Company&#8217;s stock that was made in accordance with exemption under
regulation D, Rule 506 of the Securities and Exchange Act of 1933, as amended, in which the Company sold 6,098,571 units to accredited investors (each of which was a qualified institutional buyer) at a price of $1.75 per unit, each unit consisting
of one share of common stock and two tenths of a warrant to purchase a share of common stock for an exercise price of $2.20 per share . The Company incurred offering costs of approximately $1,100,000.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company has embarked on upgrades to technology and support infrastructure that it believes will enhance cash flows by providing customers and customer service representatives with access to
delivery information and documentation that will enable efficient collections of accounts receivable from customers. There is no assurance that we will be able to obtain financing on terms favorable to the Company or successfully implement
infrastructure upgrades pursuant to our plans.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our strategy is to continue to expand through acquisitions and internal development. We intend to seek, on a selective basis, acquisition of businesses that have product lines or services which
complement and expand our existing services and product lines, and provide us with strategic distribution locations or attractive customer bases. Our ability to implement our growth will depend on a number of things, which may be beyond our control.
Successful deployment of this strategy will be dependent on our ability to identify, consummate and assimilate such acquisitions on desirable economic terms. There can be no assurance that we will be successful in implementing our growth strategy.
Our ability to implement our growth strategy will also be dependent upon obtaining adequate financing. We may not be able to obtain financing on favorable terms.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">27</FONT>
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<P align="center">
<B><FONT size="2" face="serif">BUSINESS</FONT></B>
</P>
<P>
<B><FONT size="2" face="serif">OVERVIEW</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz provides transportation and logistics services to over 1,000 active customers, specializing in time definite delivery in support of specific supply chain requirements. Services
include expedited transportation, deferred airfreight transportation, local cartage, aircraft charters, dedicated delivery, consolidation, warehouse management and fulfillment. The Company has expanded its network, with operating
service stations in over 20 cities, five located at international gateways, in the Midwest and Southeast United States providing scheduled airport-to-airport line haul movements. The Company offers a 24 hour, seven day a week call center allowing
the customer immediate communication and status of time sensitive shipments in transit. The Company also provides the customer remote order entry capability, shipment tracking, proof of delivery reconciliation, billing status and performance reports
via a custom designed web site. The Company is dedicated to providing services that are customized to meet its client&#8217;s individual needs and flexible enough to cope with an ever-changing business environment. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company is positioned in the industry to market its services to both commercial shippers and third party logistics companies such as; warehouse management, transportation management, air/ocean
freight forwarders, integrated air carriers, passenger and cargo airlines. The Company offers a high level of service with emphasis on time critical and damage free delivery. The Company locates facilities in close proximity to airports to maintain
strict service schedules. The majority of shipments handled in the Company&#8217;s network are delivered overnight. Segmentz objective is to build a company that supports &#147;segments&#148; of customer&#8217;s supply chain initiatives. The Company sustains a
competitive advantage by providing flexible, customized, end-to-end solutions, which utilize experienced personnel and technology to exceed the customer&#8217;s expectations. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Segmentz acquisition strategy focuses on integrating logistics businesses that will enhance service offerings within our current market areas as well as extend our network to targeted locations in
the Midwestern and Southeastern United States. The Company selects acquisition targets based upon their ability to demonstrate: (1) consistent profitability; (2) history of service level delivery and brand identity; (3) regional or service niche and
position that is accretive to our current footprint and overlaps or enhances our current service offerings; and (4) creates maximum capacity and equipment utilization to stabilize a platform that will support continued enterprise revenue growth that
drives profitability. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz intends to create additional stockholder value by: (1) improving productivity by adopting enhanced technologies and business processes; (2) improving transportation margins by leveraging our
growing purchasing power and (3) enhancing the opportunity for organic growth by cross-selling and offering expanded services to new and existing customers. </FONT>
</P>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Through March 25, 2004, Segmentz has completed the acquisition of three strategically located logistics and transportation providers. The acquisition companies are as follow: Dasher Express, Inc.,
(&#147;Dasher&#148;) on December 31, 2003, certain assets of Frontline Freight (&#147;Frontline&#148;) on January 8, 2004, and Bullet Freight Systems (&#147;Bullet&#148;) on October 1, 2003. The Company has developed and implemented a comprehensive process, which has allowed
rapid integration of these companies into the network. The Company&#8217;s focus has been to solidify and expand the time definite network of facilities in the Midwestern and Southeastern United States. The next phase of the Company&#8217;s acquisition strategy
is to further enhance expedited delivery services, expand logistics services offerings and increase market share. In 2004, the Company plans to continue acquisition activity. The Company has researched and identified a number of companies that may be suitable candidates. Although there is no
assurance that the Company will be able to complete any acquisitions, the Company is currently in preliminary discussions with a select number of them. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">There are a variety of risks associated with the Company&#8217;s ability to achieve strategic objectives, including the ability to acquire and profitably manage additional businesses, current reliance on
key customers, the risks inherent in expanding, and the intense competition in the industry for customers and for the acquisition of additional businesses.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">INDUSTRY OVERVIEW</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The third party logistics industry is rapidly changing to keep pace with shippers&#8217; demands, technology innovation and the influx of capital. These dynamics will pose major challenges and opportunities
to both users and service providers, demanding the attention of all supply chain professionals. Businesses are striving to reduce inventory levels, reduce order and cycle lengths, perform manufacturing and assembly operations in low cost locations
and distribute their products throughout global markets. This trend has increased the need for expedited or time-definite shipment services. Furthermore, customers increasingly cite an efficient supply chain as a critical element in improving their
financial performance. To remain competitive, successful companies must achieve success in their core businesses and execute quickly and accurately. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Modern third-party logistics providers have emerged recently because of transportation deregulation in the 1980s, tax advantages to outsourcing, predictability of costs, capital savings and the
shipper emphasis on &#147;core competencies&#148; in the 1990s. As a result, outsourcing has dramatically increased. In the last decade, according to research by investment banker Lazard Freres and BG Strategic Advisors, the third party logistics (&#147;3PL&#148;)
category has grown at a rate greater than 20 percent per year. Many companies have grown as the market has grown, including Expeditors, CH Robinson, and Landstar. This has spawned an entire industry of small and midsized logistics providers, which
number approximately 1,000 today. Many observers have predicted that the logistics provider industry will continue to expand at a rate of 15-20 percent annually. A recent Lazard Freres study shows that while 37 percent of high-volume shippers
outsourced transportation in 2000, 73 percent expected to do so by 2005. As the outsourcing trend continues the third party logistics industry will benefit. Less frequently noted is the enormous fragmentation in the logistics industry. The four core
logistics sectors-warehousing, transportation management, air/ocean freight forwarding, and dedicated contract carriage are growing at a rate of 15-25 percent annually. The market share available for small companies in the third party logistics
sector of the industry is between 30 and 80 percent. To put this in perspective, the parcel sector of the industry is growing at 4 percent, and the market share available for small companies is zero. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">29</FONT>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">This combination of high growth and high fragmentation makes the logistics industry ripe for consolidation. A growing market supports a broad range of successful companies that attract
expansion-minded buyers. At the same time, fragmentation translates into a plethora of small acquisition opportunities for larger, cash-rich companies. Further, as the market inevitably matures, businesses that were used to 20% growth will likely supplement their organic operations with acquisitions. The Company believes
logistics companies that can successfully position their businesses to benefit from these trends will enjoy an exciting future. These will be the companies with broad multimodal capabilities, geographic scope, and technological leadership. The
Company also believes smart, midsized companies must invest aggressively in niche strategies and technologies that create differentiation and drive growth. Consolidation is an unmistakable reality. The choice to raise capital to pursue a niche
strategy, sell to a larger player, or harvest the business-is not easy. However, just as UPS and FedEx achieved domination in the once-fragmented parcel industry, today&#8217;s logistics providers who pick a unique strategy and make the necessary
investments can be very successful going forward </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The total U.S. expedited cargo market, including air and surface, was estimated to generate $81.4 billion in revenue in 2003. The U.S. domestic airfreight market estimated to be approximately $30.7
billion, or 37.7% of this market. Approximately $3.7 billion, or 11.9% of that market, made up of heavyweight overnight and deferred airfreight, representing the portion of the market within which the Company primarily competes. Although aircraft
normally transports expedited airfreight, freight forwarders often elect to transport cargo by truck, especially for shipments without time sensitive transit times. Generally, the cost of shipping freight, especially heavy freight, by truck is
substantially less than shipping by aircraft. The Company believes there is an increasing demand for lower-cost truck transportation of expedited airfreight. Integrated air cargo carriers that transport heavy freight are targeting their marketing
efforts at higher yielding overnight freight to better utilize their high fixed-cost infrastructures. As a result, these carriers are outsourcing deferred freight to surface transportation providers. Domestic airlines have eliminated many cargo
aircraft while the demand for air cargo services has increased creating capacity constraints. Thus, the reduced capacity of air cargo space has resulted in increased demand for surface transportation of cargo. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company also feels that the large third party logistics providers have not targeted the middle market of the industry. Web-based transportation and warehousing management systems now enable mid
sized logistics companies to provide leading edge services to smaller customers. Historically, large logistics service providers would not do business with small to midsized companies, which are defined as under $50 million in annual transportation
spending. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company&#8217;s competitive advantage is its ability to serve commercial shippers and collaborate with global logistics providers. The company is following industry trends by creating a strong expedited
delivery network to support both commercial shipments and deferred airfreight. The Company has strategically positioned its service stations to respond quickly to customer needs providing comprehensive solutions. Segmentz culture promotes attention
to detail, understanding the customer&#8217;s unique parameters and offering the services that support &#147;segments&#148; of that customers supply chain to increase efficiency and reduce costs. </FONT>
</P>
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<P>
<B><FONT size="2" face="serif">GROWTH STRATEGY</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company&#8217;s current growth strategy is to increase capacity and leverage the expanding expedited delivery network to maximize profitability. The principal components of the Company&#8217;s growth strategy
are to: </FONT>
</P>
<UL>
  <LI><FONT size="2" face="serif">Increasing Market Share &#151; The Company will continue to
    market directly to new and existing customers to capture additional freight
    volume. The Company believes that there is significant potential for increased
    freight volume from passenger and cargo airlines as well as from the integrated
    air cargo carriers. As third party logistics providers who rapidly grow in
    size, they must collaborate with providers like Segmentz to execute time definite
    supply chain services. As the Company expands into new cities, leverage the
    existing network to increase volumes at all service stations. Additionally,
    the Company will promote end-to-end expedited solutions that are not offered
    by the competition, in most markets.</FONT><BR>
  </LI>
  <LI><FONT size="2" face="serif">Cross Selling Services &#151; The Company expects to fuel
    internal growth by cross-selling services to new customers and existing customers
    to leverage acquisitions to bring the added results needed to extract shareholder
    value. By cross-utilizing assets to serve multiple customers, we ensure the
    best return on assets and equity as our expansion meets or exceeds milestones
    we have set.</FONT><BR>
  </LI>
  <LI><FONT size="2" face="serif">Developing Brand Recognition &#151; The Company must continue
    to develop the &#147;Segmentz&#148; brand and intends to leverage the Company&#8217;s broader
    set of capabilities with the goal of capturing business opportunities, which
    would not normally be available to a regional logistics company.</FONT><BR>
  </LI>
  <LI><FONT size="2" face="serif">Improving Efficiency of the Expedited Network &#151; The Company
    will constantly seek to improve the efficiency of the expedited network without
    changing the infrastructure or incurring significant capital expenditures.</FONT><BR>
  </LI>
  <LI><FONT size="2" face="serif">Expanding Logistics Services &#151; The Company will continue
    to expand logistics service offerings to increase revenue, improving utilization
    of all service stations and labor force. Due to the timing of the arrival
    and departure of cargo, the service stations that are not sufficiently utilized
    during portions of the day, allowing the Company to add a number of logistics
    services without significantly increasing costs. The Company plans to make
    the service stations multi-functional providing dedicated delivery, warehousing,
    customs clearance, consolidation and handling services. These services directly
    benefit the Company&#8217;s existing customers and the ability to attract new customers.</FONT><BR>
  </LI>
  <LI><FONT size="2" face="serif">Increasing Owner Operator Fleet &#151; The Company seeks to
    establish long-term relationships with owner-operators to assure dependable
    service and availability, and strive to maintain a low turnover rate. The
    Company has established guidelines relating to safety records, driving experience
    and personnel evaluations that are used to select qualified owner-operators.
    Additionally, the owner operator model allows the
    Company to reduce fixed costs related to equipment, insurance and payroll
    and allows the Company to react favorably to seasonal fluctuations without
    impacting costs and ultimately capture more revenue. </font> <BR>
  </LI>
</UL>
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<P>
<B><FONT size="2" face="serif">ACQUISITION STRATEGY</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company believes there are many attractive acquisition candidates in this industry because of the highly fragmented composition of the marketplace, the industry participants&#8217; need for capital and
their owners&#8217; desire for liquidity. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company will continue to expand the business by acquiring select candidates. &#147;Service&#148; or &#147;Region&#148; drives the Company&#8217;s acquisitions, with each candidate either offering specialty services,
technology, personnel (&#147;Service&#148;) or locations that fit into the network, thus significantly expanding by offering the Company&#8217;s services and cross selling to their customers. (&#147;Region&#148;). </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">A &#147;Service&#148; acquisition is significant to the brand recognition of the Company. It will provide increased industry recognition for excellence in service and a client base that will further enhance
brand identity. It may take more time and effort to integrate this type of company, as the corporate culture must be maintained while integrated into the Segmentz culture . </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">A &#147;Region&#148; acquisition, on the other hand, will more likely be geographical in nature, will be a generally smaller acquisition and will enable Segmentz to expand into new markets. When justified by
the size and service offerings of a Region acquisition, the Company expects to retain the management, along with the operations, sales and technical personnel of the acquired company, while seeking to improve the company&#8217;s profitability by
implementing the Company&#8217;s operating strategies. In most instances where there is overlap of geographic coverage, the operations acquired by Region acquisitions can be integrated into existing operations in that market, resulting in the elimination
of duplicating overhead and operating costs. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company believes it can successfully implement the acquisition strategy due to: (i) few exit opportunities that exist for smaller transportation services providers; (ii) single source selling
strategy that empowers acquired companies to meet or surpass their profit expectations as part of Segmentz; (iii) delivery of lower insurance, human resource and central operational costs; (iv) the liquidity provided at the time of sale combined
with upside from the stock of the public company; (v) continued involvement of the management of the acquired companies in branding Segmentz expanding offerings; and (vi) the ability of management to integrate acquisitions while maintaining internal
growth and customer satisfaction. </FONT>
</P>
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<P>
<B><FONT size="2" face="serif">OPERATIONS</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company&#8217;s primary business operation involves obtaining shipments from customers and delivering a wide range of logistics solutions to meet specific requirements and arranging and monitoring all
aspects of the shipment utilizing advanced information technology systems. These logistics solutions include expedited transportation, deferred airfreight transportation, local cartage, aircraft charters, dedicated delivery, consolidation, warehouse management and fulfillment. Additionally, the company picks up shipments from business partners such as air freight forwarders, integrated air cargo carriers, and
passenger and cargo airlines consolidating these shipments at the Company&#8217;s service stations. The Company will then cross-dock and transport these shipments through the Segmentz network to service stations nearest the ultimate destinations of the
shipments. The Company operates regularly scheduled service to and from each of the service stations through regional hubs. When a shipment arrives at the service station nearest its destination, the shipments go through sorting, segregating and
then routing for delivery to its final destination. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">SERVICES</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz provides three core services to over 1,000 customers: </FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">Expedited or Time-definite Transportation</FONT><BR></LI>
<LI><FONT size="2" face="serif">Time-definite ground transportation of cargo as a cost effective, reliable alternative to air transportation.</FONT><BR></LI>
<LI><FONT size="2" face="serif">Daily scheduled transportation between airport locations in the Southeast and Midwest.</FONT><BR></LI>
<LI><FONT size="2" face="serif">Pick up and delivery services to residential as well as commercial addresses.</FONT><BR></LI>
<LI><FONT size="2" face="serif">Premium, exclusive use vehicle transportation services such as expedited, aircraft charter, white glove and specialized handling throughout all 48 states</FONT><BR></LI>
<LI><FONT size="2" face="serif">Third-Party Logistics Services (3PL)</FONT><BR></LI>
<LI><FONT size="2" face="serif">Comprehensive inbound, outbound and aftermarket services to support the client&#8217;s entire supply chain.</FONT><BR></LI>
<LI><FONT size="2" face="serif">3PL services include Dedicated Delivery, Transportation Management, Warehouse Management, Yard Management, Reverse Logistics and Trade Show Transportation Management.</FONT><BR></LI>
<LI><FONT size="2" face="serif">Nationwide Truckload and Less-than-truckload Service</FONT><BR></LI>
<LI><FONT size="2" face="serif">Segmentz arranges truckload transportation with dedicated company equipment, owner operator fleet and extensive agent partners throughout all 48 states.</FONT><BR></LI>
<LI><FONT size="2" face="serif">Each day Segmentz manages hundreds of shipments throughout North America, utilizing over 5,000 contracted carriers to provide capacity to its customers.</FONT><BR></LI>
</UL>
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<P>
<B><FONT size="2" face="serif">INFORMATION SYSTEMS</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">A key component of the Segmentz growth strategy is the significant capital, planning and corporate intelligence that is deployed towards technology to enhance service levels, productivity and customer
access to information. The third-party logistics services business increasingly relies upon advanced information technology to link the shipper with its inventory and as an analytical tool to optimize transportation solutions. This trend favors the
larger, more professionally managed companies that have the resources to support a sophisticated information technology infrastructure. By outsourcing all non-core business services to third party providers, companies can help to control costs,
eliminate staff and focus on internal business. Furthermore, this kind of outsourcing is often done in lockstep with &#147;unit pricing&#148; models that provide for a variable price that is less than the current pricing available to a company. This method is
calculated on a unit basis, enabling a company to price logistics, storage, shipping, staging and related services into their wholesale pricing matrix and providing a scalable solution that can scale downwards in an off economy, as well as upwards
as the market demands. Such models are popular as &#147;risk sharing,&#148; an outsourcing concept that has been adopted in many support and third party service arenas, enabling outsourced companies to build critical mass, method and pricing efficiencies, and
to pass these efficiencies on to clients in pricing schedules that help clients build competitive market positions that are measurably more predictable. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In executing this strategy, the Company has and will continue to invest significant management and financial resources to deliver these technologies. The Company believes these technologies will
provide financial and competitive advantages in the years ahead and will increase our sustainable competitive advantages in the marketplace. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">CUSTOMERS, SALES AND MARKETING</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz has many commercial customers that range from small companies to Fortune 100 companies. The Company also serves third party logistics providers, airfreight forwarders, integrated air cargo
carriers and passenger or cargo airlines. The Company&#8217;s third party logistics customers vary in size from small, independent, single facility companies to large, global logistics companies, such as Eagle Global, Schneider Logistics, Nippon Express,
Danzas/AEI, Exel and Pilot Air Freight. Segmentz maintains a reputation for dependable service, which has allowed the Company to provide overflow capacity to integrated air cargo carriers such as United Parcel Service, Federal Express, DHL Worldwide
Express and Menlo Worldwide. The Company also provides services to passenger and cargo airline customers including British Airways, Continental, United Airlines, Northwest Airlines, Alliance Airlines, Kitty Hawk Cargo, Delta Airlines and Air Cargo,
Inc. </FONT>
</P>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz markets services throughout the United States through the business development staff, facilities management and agents. The Executive management team is also actively involved in sales and
marketing at the national account level, which supports local sales activity. The Company&#8217;s sales focus will be to promote single source logistics and transportation solutions. The Company has a strong commitment to marketing to the airfreight
community that has time-sensitive shipping needs requiring customized services, and has also developed a network of consulting firms
and specialty professional firms that introduce the Company to contract based freight management and logistics opportunities. The Company will allocate resources to respond to such requests for proposal (RFP), that build upon the
Company&#8217;s logistics and contract services offerings. The Company participates in industry trade shows, direct mail programs, advertises in industry journals, and is listed with prominent internet search engines. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">For large-scale contract logistics projects, the Company offers onsite personnel and &#147;White Paper&#148; support of customer initiatives. This offering provides customers with experienced personnel and case
study data developed with a stated goal of examination of a customer&#8217;s historical requirements, their customer&#8217;s requirements and the likelihood that change will occur in the immediate future. The onsite personnel build relationships with customers
by maintaining interactive analysis capabilities that leverage experience in the freight and delivery environment, offering customers the intelligence and tools to stay ahead of their competitors. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company has created the Segmentz name with the intention of building a branded identifiable organization known by customers and within the industry. The Company has branded each acquired company &#147;a Segmentz company&#148; to leverage our brand with the brand of each acquired company. In the near future, the Company will consolidate acquisitions into service defined operating companies ultimately re-branding under the &#147;Segmentz&#148; name. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">COMPETITION AND BUSINESS CONDITIONS</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The volume of domestic and international trade directly affects the Company&#8217;s business. The volume of this trade is influenced by many factors, including economic and political conditions in the
United States and abroad, major work stoppages, exchange controls, currency fluctuations, acts of war, terrorism and other armed conflicts, and United States and international laws relating to tariffs, trade restrictions, foreign investments and
taxation. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The logistics service and transportation industries are intensely competitive and should remain so for the near future. Segmentz competitors include regional trucking companies that specialize in
handling deferred airfreight and national and regional less-than-truckload carriers. To a lesser extent, the Company competes with integrated air cargo carriers and passenger and cargo airlines. The Company believes competition is based primarily on
service, on-time delivery, flexibility and reliability, as well as rates. The Company offers services at rates that generally are significantly below the charge to transport the same shipment to the same destination by air. The Company believes that
it has an advantage over less-than-truckload carriers based upon the Company&#8217;s reputation for faster, more reliable service between multiple cities. </FONT>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company has competition
  from a large number of firms, which have only one office or a small number of
  offices, and can not offer the breadth of services and integrated approach that
  the Company offers. However, some of this competition comes from major United
  States and foreign-owned firms, which have networks of offices and offer a wide
  variety of services. The Company believes that quality of service, including
  information systems capability, global network capacity,
  reliability, responsiveness, expertise and convenience, scope of operations,
  customized program design and implementation and price are important competitive
  factors in the industry.</font> </P>
<P align="center">
<FONT size=2 face="serif">35</FONT>
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<P>
<B><FONT size="2" face="serif">REGULATION</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company is licensed by the Department of Transportation as a motor carrier and broker. The Company does not believe that transportation related regulatory compliance has had a material adverse
impact on operations to date. However, failure to comply with the applicable regulations or to maintain required permits or licenses could result in substantial fines or revocation of operating permits or authorities. The Company cannot give
assurance as to the degree or cost of future regulations on business. Some of the regulations affecting the Company&#8217;s operations are described below. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Surface Transportation Board and U.S. Department of Transportation also have the authority to regulate interstate motor carrier operations, including the regulation of certain rates, charges and
accounting systems, to require periodic financial reporting, and to regulate insurance, driver qualifications, operation of motor vehicles, parts and accessories for motor vehicle equipment, hours of service of drivers, inspection, repair,
maintenance standards and other safety related matters. The federal laws governing interstate motor carriers have both direct and indirect application to the Company. The breadth and scope of the federal regulations may affect the operations of the
Company and the motor carriers, which the Company uses to provide transportation services. In certain locations, state or local permits or registrations may also be required to provide or obtain intrastate motor carrier services for the Company.
Property brokerage operations similarly subject the Company to various federal statutes and regulation as a property broker by the Surface Transportation Board, and the Company has obtained a property broker license and posted a surety bond as
required by federal law. In the United States, the Company is also subject to federal, state and local provisions relating to the discharge of materials into the environment or otherwise for the protection of the environment. Similar laws apply in
many foreign jurisdictions in which the Company operates or may operate in the future. Although current operations have not been significantly affected by compliance with these environmental laws, governments are becoming increasingly sensitive to
environmental issues, and the Company cannot predict what impact future environmental regulations may have on the business. The Company does not anticipate making any material capital expenditures for environmental control purposes. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">SEASONALITY</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Historically, the Company&#8217;s revenues and profitability have been subject to quarterly seasonal trends. The first quarter has traditionally been the weakest and the third and fourth quarters have
traditionally been the strongest. Typically, this pattern has been the result of factors such as climate, national holidays, customer demand and economic conditions. Additionally, a significant portion of the Company&#8217;s revenue is from customers
whose business levels are impacted by the economy. </FONT>
</P>
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<FONT size=2 face="serif">36</FONT>
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<P>
<B><FONT size="2" face="serif">PERSONNEL</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">At December 31, 2003, the Company had approximately 365 employees for Segmentz. At this time, none of the Company&#8217;s employees are covered by a collective bargaining agreement. The Company recognizes
the employees as its most valuable asset and provides above industry average compensation and benefits. The recruitment, training and retention of qualified employees are essential to support continued growth and to meet the service requirements of
customers. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">RISK MANAGEMENT</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company maintains general liability, auto liability, cargo, physical damage, trailer interchange, inland marine, contents and workers&#8217; compensation insurance. The Company also carries an excess
auto and general liability policy in compliance with Ford Motor Company&#8217;s global terms and conditions for dedicated service providers. The Company could incur claims in excess of the policy limits or incur claims not covered by the insurance policy.
</FONT>
</P>
<P>
<B><FONT size="2" face="serif">CORPORATE INFORMATION</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Segmentz, Inc. was incorporated in Delaware in 2001. The Company&#8217;s principal executive offices are located at 18302 Highwoods Preserve Parkway, Suite 100, Tampa, FL 33647. The telephone number is
(813) 989-2232 and the internet website address is www.segmentz.com. The Company makes available on the website all materials filed with the Securities and Exchange Commission, including the Annual Report on Form 10-KSB, Quarterly Reports on Form
10-QSB, Current Reports on Form 8-K and amendments to these reports as soon as such materials have been filed with, the Securities and Exchange Commission. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">PROPERTIES</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company&#8217;s executive offices are located in 8,500 square feet of leased office space located at 18302 Highwoods Preserve Parkway, Suite 100, Tampa, FL 33467. Monthly rent expense is $7,819 per
month under a lease that expires August 2005. The initial lease term is for a period of 5 years and the lease agreement includes an optional lease period of an additional 3 years. The Company also leases certain equipment under non-cancelable
operating leases. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following is an annual schedule of future minimum rental payments required under operating facilities leases that have an initial or remaining non-cancelable lease term in excess of 1 year as of
December 31, 2003: </FONT>
</P>
<TABLE width="506" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="86" valign="bottom">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Year Ending</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD colspan=3 align="center" valign="bottom"><FONT size=2 face="serif">Minimum</FONT></TD>
  </TR>
  <TR>
    <TD align="center" valign="bottom"><FONT size=2 face="serif">December 31</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD colspan=3 align="center" valign="bottom"><FONT size=2 face="serif">Rental Payments</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=3><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2004</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD align="center" width="34"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" width="107"><FONT size=2 face="serif">147,338</FONT></TD>
    <TD width="38">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2005</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD width="34" align="center"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="107" align="right"><FONT size=2 face="serif">143,875</FONT></TD>
    <TD width="38">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2006</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD align="center" width="34"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" width="107"><FONT size=2 face="serif">140,972</FONT></TD>
    <TD width="38">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2007</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD width="34" align="center"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="107" align="right"><FONT size=2 face="serif">79,089</FONT></TD>
    <TD width="38">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total</FONT></TD>
    <TD width="241">&nbsp;</TD>
    <TD align="center" width="34"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" width="107"><FONT size=2 face="serif">511,274</FONT></TD>
    <TD width="38">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=3></TD>
    <TD><HR noshade size=3></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company currently services over twenty locations in the Midwestern and Southeastern United States, offering pickup, delivery, truckload, less-than-truckload and expedited services in facilities
that range in size between 7,000-30,000 square feet. The Company has regional services stations that support supply chain requirements of various manufacturers, importers, freight forwarders and distributors, throughout these regions, including the
following locations: </FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">301 West Touhy Avenue, Bensenville, IL</FONT><BR></LI>
<LI><FONT size="2" face="serif">1488 Cox Avenue, Cincinnati, OH</FONT><BR></LI>
<LI><FONT size="2" face="serif">2100 South 9th Street, Louisville, KY</FONT><BR></LI>
<LI><FONT size="2" face="serif">951 Air Freight Drive, Lexington, KY</FONT><BR></LI>
<LI><FONT size="2" face="serif">7600 Airline Drive, Greensboro, NC</FONT><BR></LI>
<LI><FONT size="2" face="serif">3414 Hensen Road, Unit #4, Knoxville, TN</FONT><BR></LI>
<LI><FONT size="2" face="serif">1400 Glendale-Milford Road, Cincinnati, OH</FONT><BR></LI>
<LI><FONT size="2" face="serif">11311 W. Airport Service Road, Swanton, OH</FONT><BR></LI>
<LI><FONT size="2" face="serif">One Air Cargo Parkway, Swanton, OH</FONT><BR></LI>
<LI><FONT size="2" face="serif">10</FONT>&nbsp;<FONT size="2" face="serif">Southwoods Parkway, Suite 200, Atlanta, GA</FONT><BR></LI>
<LI><FONT size="2" face="serif">7270 NW 35th Terrace, Miami, FL</FONT><BR></LI>
<LI><FONT size="2" face="serif">1520 Latham Road, West Palm Beach, FL</FONT><BR></LI>
<LI><FONT size="2" face="serif">9210 Boggy Creek Road, Orlando, FL</FONT><BR></LI>
<LI><FONT size="2" face="serif">15000B Highway 41 North, Evansville, IN</FONT></LI>
</UL>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company also operates 3 sales agent offices across the United States in New Jersey, Florida and Texas. These offices are located at: </FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">9</FONT>&nbsp;<FONT size="2" face="serif">Beacon Hill, East Brunswick, NJ</FONT><BR></LI>
<LI><FONT size="2" face="serif">11448 Rene Drive, Jacksonville, FL</FONT><BR></LI>
<LI><FONT size="2" face="serif">4772 FM 3080, Maybank, TX</FONT><BR></LI>
</UL>
<P align="center">
<FONT size=2 face="serif">38</FONT>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company believes the facilities are the correct size and adequately provide for the Company&#8217;s immediate and foreseeable needs in the future. In the opinion of management, these properties are
adequately insured, in good condition and are suitable for the Company&#8217;s anticipated future use. Additionally, The Company owns a building and land at 771 Enterprise Drive Lexington KY that it acquired as part of its purchase of Dasher Express in
December 31, 2003. There was a $62,000 mortgage related to this property, which was paid in February 2004. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">LITIGATION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material
adverse effect on the Company&#8217;s consolidated financial position, results of operations or liquidity. No accruals have been established for any pending legal proceedings. </FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">MANAGEMENT</FONT></B>
</P>
<P>
<B><FONT size="2" face="serif">DIRECTORS AND EXECUTIVE OFFICERS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company&#146;s directors and executive officers as of March 15, 2004 were as follows:</FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="13%" align="center" valign="bottom"><FONT size=2 face="serif">Name</FONT></TD>
    <TD width="6%" align="center" valign="bottom">&nbsp;</TD>
    <TD width="5%" align="center" valign="bottom"><FONT size=2 face="serif">Age</FONT></TD>
    <TD width="6%" valign="bottom">&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap><FONT size=2 face="serif">Position with Segmentz</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD width="16%"><HR noshade size=1></TD>
    <TD width="54%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Allan J. Marshall</FONT><SUP><FONT size=2 face="serif">(2)</FONT></SUP></TD>
    <TD align="center" width="6%">&nbsp;</TD>
    <TD align="center" width="5%"><FONT size=2 face="serif">37</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">Chairman of the Board of
      Directors and Chief Executive Officer</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">John S. Flynn</FONT></TD>
    <TD width="6%" align="center">&nbsp;</TD>
    <TD width="5%" align="center"><FONT size=2 face="serif">39</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">President and Chief Financial
      Officer, Director</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Dennis M. McCaffrey</FONT></TD>
    <TD align="center" width="6%">&nbsp;</TD>
    <TD align="center" width="5%"><FONT size=2 face="serif">35</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">Chief Operations Officer,
      Director</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">Andrew J. Norstrud</FONT></TD>
    <TD width="6%" align="center">&nbsp;</TD>
    <TD width="5%" align="center"><FONT size=2 face="serif">30</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">Chief Accounting Officer</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">David J. Hare</FONT><SUP><FONT size=2 face="serif">(1)(2)</FONT></SUP></TD>
    <TD align="center" width="6%">&nbsp;</TD>
    <TD align="center" width="5%"><FONT size=2 face="serif">57</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">Director</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">Robert D. Gries</FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD width="6%" align="center">&nbsp;</TD>
    <TD width="5%" align="center"><FONT size=2 face="serif">46</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">Director</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Jay N. Taylor</FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="center" width="6%">&nbsp;</TD>
    <TD align="center" width="5%"><FONT size=2 face="serif">55</FONT></TD>
    <TD width="6%">&nbsp;</TD>
    <TD colspan="2" nowrap><FONT size=2 face="serif">Director</FONT></TD>
  </TR>
</table>
<p align="center"></p>
<hr align="left" width="15%" size="1" noshade>
<P align="left">
<sup><font size=2 face="serif">(1) </font></sup><font size=2 face="serif">Member
of Audit Committee</font><BR>
<sup><font size=2 face="serif">(2) </font></sup><font size=2 face="serif">Member
of Compensation Committee</font></p>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following is a brief summary of the business experience of the foregoing directors and executive officers. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following sets forth information concerning the officers and directors, including their ages, present principal occupations, other business experience during the last 5 years, membership on
committees of the board of directors and directorships in other publicly-held companies. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">39</FONT>
</P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Allan J. Marshall</FONT></B><FONT size="2" face="serif">, age 37, has over eighteen years experience in the transportation and logistics industry. Mr. Marshall founded Segmentz, Inc. in November of 2000 and
has since served as the company&#8217;s Chairman and the Chief Executive Officer. Prior to Segmentz, Mr. Marshall founded U.S. Transportation Services, Inc. (&#147;UST&#148;) in 1995, whose main focus was third party logistics. UST was sold to Professional
Transportation Group, Inc. in January 2000 and Professional Transportation Group ceased business in November 2000. Prior to 1995, Mr. Marshall served as Vice President of U.S. Traffic Ltd, a Canadian company, where he founded their United States
logistics division and had previously founded a successful driver leasing company in Toronto, Ontario, Canada. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">John S. Flynn</FONT></B><FONT size="2" face="serif">, age 39, has held senior management positions previously in a number of Companies, public and private. He was the Chairman and co-founder of Remote
Lojix, a New York based computer service company, from January 1994-November 1998, at which time the company was sold to Avtel Communications, he was a consultant for Saliva Diagnostics that worked on a restructuring for the Board of Directors from
December 1998-May 2000 that resulted in saving the company $3 million in debt based obligations and enabled it to continue operations without interruption, he was President of Corporate Computing, Inc., a New York based computer service company
serving Fortune 100(tm) companies with onsite service and parts from approximately mid 2000- late 2000, and has always been a managing member of Aspen Rhodes Capital Corporation, an eleven year old advisory firm providing merger, financing and
strategic consulting to small to mid-sized companies in various industries, whose clients included Westbury Metals Group, Computerrepair.com, Hugeclick.com, US Automotive, Bio Reference Laboratories, Riviera Finance, Segmentz, Inc., Chancellor
Leasing Corporation, RT Industries and Private Retreats. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Dennis M. McCaffrey</FONT></B><FONT size="2" face="serif">, age 35, is one of the founding partners of Segmentz, Inc. and served as Chief Operations Officer of US Transportation Services since 1996, prior
to joining the company in November of 2000. Mr. McCaffrey is currently responsible for creating and implementing strategic business plans, supervising operations staff, designing and managing all sales and marketing programs. Additionally, Mr.
McCaffrey has assisted in the development of the company&#8217;s internal software program and formed strategic alliances with partners across all modes of transportation. Mr. McCaffrey has a Bachelor of Science degree in Marketing from University of
South Florida and also served in the United States Marine Corps. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Andrew J. Norstrud</FONT></B><FONT size="2" face="serif">, age 30, joined Segmentz, as the Chief Accounting Officer in May of 2003. Mr. Norstrud has both public accounting and private industry experience
and was most recently an assurance manager with Grant Thornton LLP; specializing in fast growth, middle market companies. Mr. Norstrud has experience with the redesigning and implementation of accounting processes and procedures to streamline
reporting while also improving financial controls. As well as financial experience, Mr. Norstrud has experience in computer assurance services and computer system operations. Mr. Norstrud earned a Master of Accounting with a systems emphasis from
the University of Florida and is a Florida licensed Certified Public Accountant. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">40</FONT>
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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">David J. Hare</FONT></B><FONT size="2" face="serif">, age 57, has been President and Chief Executive Officer of Perkins Shearer, Inc., a world-renowned exclusive group of upscale specialty stores, since
1974. Beginning that year, Mr. Hare would guide the growth and development of Perkins Shearer. In 1981, the Perkins Shearer concept grew to include the first of nine freestanding Polo/Ralph Lauren stores to open over the next eight years under his
leadership. During this period, Mr. Hare would become the largest Polo/Ralph Lauren licensee in the United States and was responsible for launch of the tremendously successful home furnishings concept in these stores. This growth culminated in 1991
in a joint venture with Ralph Lauren, to own and operate all of the Polo/Ralph Lauren stores in the United States. Mr. Hare was appointed President and Chief Executive Officer of Polo Retail corporation and served in this capacity through 1998, when
Perkins Shearer sold its&#8217; interests in all retail stores to concentrate on private investment and retail consulting business. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Robert D. Gries, Jr.</FONT></B><FONT size="2" face="serif">, age 46 is the President of Sports Funding, Inc., which specializes in providing bridge loans and mezzanine financing for corporations and real
estate projects. He is also a board member and the largest shareholder of Arena Football&#8217;s Orlando Predators. Prior to forming Sports Funding, Mr. Gries was the managing member of an entity which developed the $25 million, 43,000 square foot WWF-New
York entertainment facility in Times Square New York. Mr. Gries has previously been a General Partner with Beacon Sports Capital, which is an investment-banking firm active in the professional sports industry. Mr. Gries is the former majority owner,
President and Chief Executive Officer of the Tampa Bay Storm, an Arena Football franchise that he owned from 1991-1994, and was elected League Executive of the Year in 1993. Prior to that, Mr. Gries was the owner, President and Chief Executive
Officer of CIC-Disc Corporation, a computer software company that provided investment and back-office services to the financial industry. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Jay N. Taylor</FONT></B><FONT size="2" face="serif">, age 55, was recently the co-founding partner of Capital Resource Partners, Inc., an investment banking firm focused on providing merger and acquisition
services to the transportation and logistics industry. From 1979 to 1987, Mr. Taylor was the Vice President of Schneider National, Inc. where he was responsible for marketing, planning and business development at the corporate level for the then
$700 million revenue motor carrier. He then became the Senior Vice President for Tri-State Motor Transit, Inc. and acquired the same position at Country Wide Truck Service, Inc. In 1995, Mr. Taylor was Founder and became the President and CEO for
Ampace Corporation, which is an asset, based, publicly traded transportation company servicing Fortune 500 shippers. Mr. Taylor received his MBA from the University of Iowa in finance and his BS from Iowa State University, concentrating in
transportation. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">AUDIT COMMITTEE</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Audit Committee consists
  of Mr. Hare, Mr. Gries, and Mr. Taylor. The Audit Committee selects the independent
  auditors; reviews the results and scope of the audit and other services provided
  by the Company&#8217;s independent auditors, and reviews and evaluates the Company&#8217;s
  internal control functions. As an advisory function of the committee, members
  also participate in financings, review budgets prior to presentation to the
  Board of Directors and review budgets vs. actual reports. The board of directors
  has determined that Mr. Hare is the audit committee &#147;financial expert&#148;, as such
  term is defined under federal securities law, and is independent. Mr. Hare is
  an expert by virtue of: (i) education and experience as a principal financial
  officer, principal accounting officer, controller, public accountant or auditor
  or experience in one or more positions that involve the performance
  of similar functions; (ii) experience actively supervising a principal financial
  officer, principal accounting officer, controller, public accountant, auditor
  or person performing similar functions; (iii) experience overseeing or assessing
  the performance of companies or public accountants with respect to the preparation,
  auditing or evaluation of financial statements; and (iv) other relevant experience.
  </font> </P>
<P align="center">
<FONT size=2 face="serif">41</FONT>
</P>

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<P>&nbsp; </P>
<P>
<B><FONT size="2" face="serif">COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Section 16(a) of the Securities and Exchange Act of 1934 (the &#147;Exchange Act&#148;) requires the Company&#8217;s directors and executive officers, and persons who own more than 10% of a registered class of the
Company&#8217;s equity securities, to file with the Securities and Exchange Commission (&#147;SEC&#148;) and any securities exchanges on which the equities of the Company trade, initial reports of ownership and reports of changes in ownership of common stock and
other equity securities of the Company. Officers, directors and greater than 10% shareholders are required by SEC regulation to furnish the Company with copies of all Section 16(a) forms they file. No filings of such persons have been made to
date.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">LIMITATION ON LIABILITY AND INDEMNIFICATION MATTERS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">As authorized by the Delaware General Corporation Law, our certificate of incorporation and bylaws provide that none of our directors shall be personally liable to us or our shareholders for monetary
damages for breach of fiduciary duty as a director, except for:</FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">any breach of the director&#8217;s duty of loyalty to the Company or its shareholders;</FONT><BR></LI>
<LI><FONT size="2" face="serif">acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;</FONT><BR></LI>
<LI><FONT size="2" face="serif">unlawful payments of dividends or unlawful stock redemptions or repurchases; or</FONT><BR></LI>
<LI><FONT size="2" face="serif">any transaction from which the director derived an improper personal benefit.</FONT><BR></LI>
</UL>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">These provisions limit our rights and the rights of our shareholders to recover monetary damages against a director for breach of the fiduciary duty of care except in the situations described above.
These provisions do not limit our rights or the rights of any shareholder to seek injunctive relief or rescission if a director breaches his duty of care. These provisions will not alter the liability of directors under federal securities
laws.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our certificate of incorporation and bylaws further provide for the indemnification of any and all persons who serve as our director, officer, employee or agent to the fullest extent permitted under
Delaware law. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the
opinion of the SEC, this indemnification is against public policy as expressed in the securities laws, and is, therefore unenforceable.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">42</FONT>
</P>

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<P>
<B><FONT size="2" face="serif">EXECUTIVE COMPENSATION</FONT></B>
</P>
<P>
<B><FONT size="2" face="serif">Summary Compensation Table</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table sets forth a summary of the compensation paid or accrued for the three fiscal years ended December 31, 2003 to or for the benefit of the Company&#8217;s Chief Executive Officer and the
Company&#8217;s four most highly compensated executive officers whose total annual salary and bonus compensation exceeded $100,000 (the &#147;Named Executive Officers&#148;).</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">43</FONT>
</P>

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<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="151"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="6"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=4 align="center" valign="bottom"><FONT size=2 face="serif">Long
      Term</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=6 align="center" valign="bottom"><FONT size=2 face="serif">Annual
      Compensation</FONT></TD>
    <TD align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan=4 align="center" valign="bottom"><FONT size=2 face="serif">Compensation
      Awards</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=6><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan=4><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="124"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="3"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="79"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center" width="17"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="85" align="center" valign="bottom"><FONT size=2 face="serif">Restricted</FONT></TD>
    <TD colspan="2" align="center" valign="bottom"><FONT size=2 face="serif">Number
      of</FONT></TD>
    <TD width="88" align="center" valign="bottom"><FONT size=2 face="serif">All
      Other</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD nowrap><FONT size=2 face="serif">Name/Principal Position</FONT></TD>
    <TD width="124" align="center"><FONT size=2 face="serif">Year</FONT></TD>
    <TD width="23"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD colspan="3" align="center"><FONT size=2 face="serif">Salary</FONT></TD>
    <TD width="79" align="center"><FONT size=2 face="serif">Bonus</FONT></TD>
    <TD width="17" align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="85" align="center"><FONT size=2 face="serif">Stock Awards</FONT></TD>
    <TD colspan="2" align="center"><FONT size=2 face="serif">Options<SUP>(1)</SUP></FONT></TD>
    <TD width="88" align="center"><FONT size=2 face="serif">Compensation<SUP>(2)</SUP></FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="3"> <HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Allan J. Marshall, Chairman</FONT></TD>
    <TD align="center" width="124"><FONT size=2 face="serif">2003</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD align="left" width="14"><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right" width="59"><FONT size=2 face="serif">150,000</FONT></TD>
    <TD align="right" width="23">&nbsp;</TD>
    <TD align="center" width="79">&#151;</TD>
    <TD align="center" width="17">&nbsp;</TD>
    <TD align="center" width="85">&#151;</TD>
    <TD colspan="2" align="center"><FONT size=2 face="serif">100,000</FONT><SUP><FONT size=2 face="serif">(1)</FONT></SUP></TD>
    <TD align="center" width="88">&#151;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">and Chief Executive
      Officer</FONT></TD>
    <TD align="center" width="124"><FONT size=2 face="serif">2002</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD align="left" width="14"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD align="center" width="79">&#151;</TD>
    <TD align="center" width="17">&nbsp;</TD>
    <TD align="center" width="85">&#151;</TD>
    <TD colspan="2" align="center">&#151;</TD>
    <TD align="center" width="88">&#151;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" width="124"><FONT size=2 face="serif">2001</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD align="left" width="14"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">120,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD align="center" width="79">&#151;</TD>
    <TD align="center" width="17">&nbsp;</TD>
    <TD align="center" width="85">&#151;</TD>
    <TD colspan="2" align="center">&#151;</TD>
    <TD align="center" width="88">&#151;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">John S. Flynn, President,</FONT></TD>
    <TD width="124" align="center"><FONT size=2 face="serif">2003</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="14" align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">110,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD width="79" align="center">&#151;</TD>
    <TD width="17" align="center">&nbsp;</TD>
    <TD width="85" align="center">&#151;</TD>
    <TD colspan="2" align="center"><FONT size=2 face="serif">100,000</FONT><SUP><FONT size=2 face="serif">(2)</FONT></SUP></TD>
    <TD width="88" align="center">&#151;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Chief Financial Officer</FONT></TD>
    <TD width="124" align="center"><FONT size=2 face="serif">2002</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="14" align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">138,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD width="79" align="center">&#151;</TD>
    <TD width="17" align="center">&nbsp;</TD>
    <TD width="85" align="center">&#151;</TD>
    <TD colspan="2" align="center">&#151;</TD>
    <TD width="88" align="center">&#151;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">and Director</FONT></TD>
    <TD width="124" align="center"><FONT size=2 face="serif">2001</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD width="14" align="left"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">65,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD width="79" align="center">&#151;</TD>
    <TD width="17" align="center">&nbsp;</TD>
    <TD width="85" align="center">&#151;</TD>
    <TD colspan="2" align="center">&#151;</TD>
    <TD width="88" align="center">&#151;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Dennis M. McCaffrey</FONT></TD>
    <TD align="center" width="124"><FONT size=2 face="serif">2003</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD align="left" width="14"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">96,250</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD align="center" width="79">&#151;</TD>
    <TD align="center" width="17">&nbsp;</TD>
    <TD align="center" width="85">&#151;</TD>
    <TD colspan="2" align="center">&#151;</TD>
    <TD align="center" width="88">&#151;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Chief Operations Officer</FONT></TD>
    <TD align="center" width="124"><FONT size=2 face="serif">2002</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD align="left" width="14"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">75,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD align="center" width="79">&#151;</TD>
    <TD align="center" width="17">&nbsp;</TD>
    <TD align="center" width="85">&#151;</TD>
    <TD colspan="2" align="center"><FONT size=2 face="serif">100,000</FONT><SUP><FONT size=2 face="serif">(3)</FONT></SUP></TD>
    <TD align="center" width="88">&#151;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" width="124"><FONT size=2 face="serif">2001</FONT></TD>
    <TD width="23">&nbsp;</TD>
    <TD align="left" width="14"><FONT size=2 face="serif">$</FONT></TD>
    <TD width="59" align="right"><FONT size=2 face="serif">75,000</FONT></TD>
    <TD width="23" align="right">&nbsp;</TD>
    <TD align="center" width="79">&#151;</TD>
    <TD align="center" width="17">&nbsp;</TD>
    <TD align="center" width="85">&#151;</TD>
    <TD colspan="2" align="center">&#151;</TD>
    <TD align="center" width="88">&#151;</TD>
  </TR>
</table>
<P></P>
<p align="left">
<HR noshade size="1" width="15%" align="left"><FONT size=2 face="serif">(1) For previous years at a strike price of $1.25 per share<BR>
(2) For previous years at a strike price of $1.25 per share<BR>
(3) For previous years at a strike price of $1.25 per share</FONT>
</p>
<P>
<B><FONT size="2" face="serif">Director Compensation </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company&#8217;s Board appoints the executive officers to serve at the discretion of the Board. Directors who are also employees receive no compensation for serving on the Board. The Company&#8217;s
non-employee directors receive options to purchase shares of common stock at the market price on the date they agree to serve on the Board, reimbursement of expenses incurred consequential to their service and additional options at each anniversary
of service. The Company intends to reimburse non-employee directors for travel and other expenses incurred in connection with attending the Board meetings. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">Employment Agreements</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company entered into an employment agreement with Allan Marshall, the Company&#8217;s Chief Executive Officer, on November 15, 2001, which terminates on November 15, 2006. The agreement shall be
automatically extended for an additional one-year period after the initial term unless at least 30 days prior to the termination date either the Company or Mr. Marshall give written notice to the other that the employment agreement will not be
renewed. In addition to auto, cellular and other expense allowances, Mr. Marshall&#8217;s starting base salary was $150,000 under the terms of the agreement, with provisions for annual increase in base salary of ten percent each year. Mr. Marshall may
also be eligible to receive an annual bonus based on the Company&#8217;s financial performance in the form of stock options and cash not to exceed 15% of his base salary. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In January 2004, the Company entered into an employment agreement with John S. Flynn, the Company&#8217;s President, which terminates December 31, 2006, replacing the agreement that had been agreed to in
December 2002. In addition to auto, health and cellular phone reimbursement, this agreement provides for an initial annual base salary of $110,000, and an annual bonus at the discretion of the Board of Directors. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">44</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_47"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In September 2003, the Company entered into an employment agreement with Dennis M. McCaffrey, the Company&#8217;s Chief Operations Officer, which terminates December 31, 2006. In addition to auto, health,
cellular phone reimbursement, this agreement will provide for an annual base salary of $96,250 and bonus at the discretion of the Board of Directors. </FONT>
</P>
<P>
<B><FONT size="2" face="serif">Option Grants in Last Fiscal Year</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table sets forth information concerning the Company&#8217;s grant of options to purchase shares of the Company&#8217;s common stock and stock appreciation rights (&#147;SARs&#148;) during the fiscal year
ended December 31, 2003, to the Company&#8217;s President and Chief Executive Officer and to each of the Company&#8217;s executive officers who earned more than $100,000 during the fiscal year ended December 31, 2003: </FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="18%" align="center" valign="bottom"><FONT size=2 face="serif">Percent of</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="15%" align="center" valign="bottom"><FONT size=2 face="serif">Number of</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="18%" align="center" valign="bottom"><FONT size=2 face="serif">Total Options/</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="15%" align="center" valign="bottom"><FONT size=2 face="serif">Securities</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="18%" align="center" valign="bottom"><FONT size=2 face="serif">SARs Granted</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="15%" align="center" valign="bottom"><FONT size=2 face="serif">Underlying</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="18%" align="center" valign="bottom"><FONT size=2 face="serif">to Employees</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="19%" align="center" valign="bottom"><FONT size=2 face="serif">Exercise or</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="15%" align="center" valign="bottom"><FONT size=2 face="serif">Options/SARs</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="18%" align="center" valign="bottom"><FONT size=2 face="serif">In Fiscal</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="19%" align="center" valign="bottom"><FONT size=2 face="serif">Base Price</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD valign="bottom"><FONT size=2 face="serif">Name/Position</FONT></TD>
    <TD width="14%" align="center" valign="bottom"><FONT size=2 face="serif">Granted (#)</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="15%" align="center" valign="bottom"><FONT size=2 face="serif">Year</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="18%" align="center" valign="bottom"><FONT size=2 face="serif">($/Sh)</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="19%" align="center" valign="bottom"><FONT size=2 face="serif">Expiration Date</FONT></TD>
    <TD width="3%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Allan J. Marshall, CEO</FONT></TD>
    <TD align="center" width="14%"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="15%"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="18%"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="19%"><FONT size=2 face="serif">1.25</FONT></TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="19%"><FONT size=2 face="serif">10/1/2008</FONT></TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD><FONT size=2 face="serif">John S. Flynn</FONT></TD>
    <TD width="14%" align="center"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%" align="center"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%" align="center"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="19%" align="center"><FONT size=2 face="serif">1.25</FONT></TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">President, CFO</FONT></TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="19%" align="center"><FONT size=2 face="serif">9/4/2008</FONT></TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Dennis M. McCaffrey</FONT></TD>
    <TD align="center" width="14%"><FONT size=2 face="serif">100,000</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="15%"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="18%"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="19%"><FONT size=2 face="serif">1.25</FONT></TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">COO</FONT></TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD align="center" width="19%"><FONT size=2 face="serif">9/4/2008</FONT></TD>
    <TD width="3%">&nbsp;</TD>
  </TR>
</TABLE>
<P>
<B><FONT size="2" face="serif">Stock Option Plan</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">On November 1, 2001, the
  Company&#8217;s majority stockholders approved the 2001 Stock Compensation Plan (&#147;2001
  Plan&#148;). The number of shares of common stock which may be issued under the 2001
  Plan shall initially be 600,000 shares which amount may, at the discretion of
  the Board, be increased from time to time to a number of shares of common stock
  equal to 5% of the total outstanding shares of common stock, provided that the
  aggregate number of shares of common stock which may be granted under the 2001
  Plan shall not exceed 600,000 shares. The Company may also grant options under
  the 2001 Plan to attract qualified individuals to become employees and non-employee
  directors, as well as to ensure the retention of management of any acquired
  business operations. Under the 2001 Plan, the Company may also grant restricted
  stock awards. Restricted stock represents shares of common stock issued to eligible
  participants under the 2001 Plan subject to the satisfaction by the recipient
  of certain conditions and enumerated in the specific restricted stock grant.
  Conditions that may be imposed include, but are not limited to, specified periods
  of employment, attainment of personal performance standards or the Company&#8217;s
  overall financial performance. The granting of restricted stock represents an
  additional incentive for eligible participants under the 2001 Plan to promote
  the Company&#8217;s development and growth and may be used by Management as another
  means of attracting and retaining qualified individuals to serve as the
  Company&#8217;s employees and directors. Currently, the Company has granted the 600,000
  options as provided for in its 2001 Plan.</FONT></P>
<P align="center">
<FONT size=2 face="serif">45</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_48"></A>

<P>
<B><FONT size="2" face="serif">Option Exercises and Holdings</FONT></B><FONT size="2" face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table contains information with respect to the exercise of options to purchase shares of common stock during the fiscal year ended December 31, 2003, to the Company&#8217;s President and Chief
Executive Officer and to each of the Company&#8217;s executive officers who earned more than $100,000 during the fiscal year ended December 31, 2003: </FONT>
</P>
<P>
<B><FONT size="2" face="serif">Aggregated Option/SAR Exercised in Last Fiscal Year and Fiscal Year-End Option/SAR Values </FONT></B>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Number of</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Securities</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Underlying</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%" align="center" valign="bottom"><FONT size=2 face="serif">Value of</FONT></TD>
    <TD width="12%" align="center" valign="bottom"><FONT size=2 face="serif">Shares</FONT></TD>
    <TD width="20%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Unexercised</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%" align="center" valign="bottom"><FONT size=2 face="serif">In-The-Money</FONT></TD>
    <TD width="12%" align="center" valign="bottom"><FONT size=2 face="serif">Acquired</FONT></TD>
    <TD width="20%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Options/SARs</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%" align="center" valign="bottom"><FONT size=2 face="serif">Options/SARs</FONT></TD>
    <TD width="12%" align="center" valign="bottom"><FONT size=2 face="serif">on</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Value</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">At FY-End(#)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="23%" align="center" valign="bottom"><FONT size=2 face="serif">at FY-End ($)</FONT></TD>
    <TD width="12%" align="center" valign="bottom"><FONT size=2 face="serif">Exercise</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Realized</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Exercisable/</FONT></TD>
  </TR>
  <TR>
    <TD valign="bottom"><FONT size=2 face="serif">Name/Position</FONT></TD>
    <TD width="23%" align="center" valign="bottom"><FONT size=2 face="serif">Exercisable/(#)</FONT></TD>
    <TD width="12%" align="center" valign="bottom"><FONT size=2 face="serif">($)</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Unexercisable</FONT></TD>
    <TD width="20%" align="center" valign="bottom"><FONT size=2 face="serif">Unexercisable</FONT></TD>
  </TR>
  <TR>
    <TD colspan=5><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Allan J. Marshall</FONT></TD>
    <TD align="center" width="23%"><FONT size=2 face="serif">105,000</FONT></TD>
    <TD align="center" width="12%">&#151;</TD>
    <TD align="center" width="20%">&#151;</TD>
    <TD align="center" width="20%">&#151;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">CEO</FONT></TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD><FONT size=2 face="serif">John S. Flynn</FONT></TD>
    <TD width="23%" align="center"><FONT size=2 face="serif">110,000</FONT></TD>
    <TD width="12%" align="center">&#151;</TD>
    <TD width="20%" align="center">&#151;</TD>
    <TD width="20%" align="center">&#151;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD><FONT size=2 face="serif">President, CFO</FONT></TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Dennis M. McCaffrey</FONT></TD>
    <TD align="center" width="23%"><FONT size=2 face="serif">110,000</FONT></TD>
    <TD align="center" width="12%">&#151;</TD>
    <TD align="center" width="20%">&#151;</TD>
    <TD align="center" width="20%">&#151;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">COO</FONT></TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<B><FONT size="2" face="serif">PRINCIPAL SHAREHOLDERS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table sets forth information known to us, as of the date of this Prospectus filing, relating to the beneficial ownership of shares of common stock by: </FONT>
</P>
<UL>
<LI><FONT size="2" face="serif">each person who is known by us to be the beneficial owner of more than 5% of the Company&#8217;s outstanding common stock;</FONT><BR></LI>
<LI><FONT size="2" face="serif">each director;</FONT><BR></LI>
<LI><FONT size="2" face="serif">each executive officer; and</FONT><BR></LI>
<LI><FONT size="2" face="serif">all executive officers and directors as a group</FONT><BR></LI>
</UL>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Under securities laws, a
  person is considered to be the beneficial owner of securities owned by him (or
  certain persons whose ownership is attributed to him) and that can be acquired
  by him within 60 days from the date of this filing, including upon the exercise
  of options, warrants or convertible securities. The
  Company determined a beneficial owner&#8217;s percentage ownership by assuming that
  options, warrants or convertible securities that are held by him, but not those
  held by any other person, and which are exercisable within 60 days of the date
  of this filing, have been exercised or converted. </FONT> </P>
<P align="center">
<FONT size=2 face="serif">46</FONT>
</P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Except with respect to beneficial ownership of shares attributed to the named person, the following table does not give effect to the issuance of shares in the event outstanding common stock purchase
warrants are exercised. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company believes that all persons named in the table have sole voting and investment power with respect to all shares of common stock shown as being owned by them. Unless otherwise indicated, the
address of each beneficial owner in the table set forth below is care of Segmentz, Inc., 18302 Highwoods Preserve Parkway, Suite 100 Tampa, Florida 33647. </FONT>
</P>
<TABLE width="80%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="174" valign="bottom" nowrap><FONT size=2 face="serif">Name/Address of</FONT></TD>
    <TD width="72" nowrap>&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom" nowrap><FONT size=2 face="serif">Amount and
      Nature of</FONT></TD>
    <TD width="93" nowrap>&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom" nowrap><FONT size=2 face="serif">Percentage</FONT></TD>
  </TR>
  <TR>
    <TD valign="bottom" nowrap><FONT size=2 face="serif">Beneficial Owner</FONT></TD>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom" nowrap><FONT size=2 face="serif">Beneficial
      Ownership</FONT></TD>
    <TD width="93" nowrap>&nbsp;</TD>
    <TD colspan="2" align="center" valign="bottom" nowrap><FONT size=2 face="serif">of Class</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2"><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Allan J. Marshall <sup>(1)</sup></FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" width="120"><FONT size=2 face="serif">3,196,161</FONT></TD>
    <TD align="right" width="64">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD align="right" width="78"><FONT size=2 face="serif">12.3</FONT></TD>
    <TD align="left" width="40"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">John S. Flynn </FONT><SUP><FONT size=2 face="serif">(2)</FONT></SUP></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">500,000</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">1.9</FONT></TD>
    <TD width="40" align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Dennis M. McCaffrey <sup>(3)</sup></FONT></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">200,000</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD width="40" align="right">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">Robert D. Gries <sup>(6)</sup></FONT></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">400,000</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">1.5</FONT></TD>
    <TD width="40" align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">David J. Hare <sup>(7)</sup></FONT></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD width="40" align="right">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">Barron Partners, LP <sup>(4)</sup></FONT></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">4,036,667</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">14.8</FONT></TD>
    <TD width="40" align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Kinderhook Partners <sup>(5)</sup></FONT></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">2,250,000</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">8.5</FONT></TD>
    <TD width="40" align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">Peter Lynch Foundation</FONT><SUP><FONT size=2 face="serif">(8)</FONT></SUP></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">1,845,285</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">7.1</FONT></TD>
    <TD width="40" align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
  <TR>
    <TD nowrap><FONT size=2 face="serif">Jay N. Taylor</FONT><SUP><FONT size=2 face="serif">(9)</FONT></SUP></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">50,000</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">*</FONT></TD>
    <TD width="40" align="right">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap><FONT size=2 face="serif">Executive Officers and</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR bgcolor="#66FF99">
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Directors (as a group of 6)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD width="120" align="right"><FONT size=2 face="serif">4,396,161</FONT></TD>
    <TD width="64" align="right">&nbsp;</TD>
    <TD width="93">&nbsp;</TD>
    <TD width="78" align="right"><FONT size=2 face="serif">16.7</FONT></TD>
    <TD width="40" align="left"><FONT size=2 face="serif">%</FONT></TD>
  </TR>
</TABLE>
<P align="left">
<hr align="left" width="15%" size="1" noshade>
<FONT size=2 face="serif">* Less than one percent</FONT>
</P>
<P></P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="4%" valign="top"><FONT size=2 face="serif">(1)</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%" valign="top"><FONT size=2 face="serif"> Mr. Marshall is the
      Company&#8217;s Chairman, Chief Executive
      Officer and a Director. Includes 100,000
      shares underlying common stock purchase
      warrants exercisable at $1.25 per share, and 8,285 shares of common stock
      held  by Mr. Marshall&#8217;s wife Christine Otten.
      Mr. Marshall disclaims any beneficial interest in the shares owned by his wife
      Christine Otten.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(2)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Mr. Flynn is the Company&#8217;s President,
      Chief Financial Officer and a Director. Includes 200,000 shares underlying common
      stock purchase warrants exercisable at $1.25 and $1.31 per
      share.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Mr. McCaffrey is the Company&#8217;s
      Chief Operating Officer and a Director. Includes 100,000 shares underlying common
      stock purchase warrants exercisable at $1.25 per share.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(4)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Andrew Worden has investment and
      voting control over the shares of common stock beneficially owned by Barron Partners,
      LP. Includes 1,404,999 shares underlying common stock purchase warrants
      exercisable at $1.40 per share until
      September 22, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(5)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Steven Clearman has investment
      and voting control over the
      shares of common stock beneficially owned
      by Kinderhook Partners. Includes 750,000
      shares underlying common stock purchase warrants exercisable at $1.50 per share
      until December 31, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(6)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Mr. Gries is a Director. Includes
      50,000 warrants to purchase shares at $2.75, expiring February 10, 2009.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(7)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Mr. Hare is a Director. Includes
      50,000 shares underlying common stock purchase warrants exercisable at $1.30 per
      share until October 30, 2008.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(8)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Mr. Peter Lynch has investment
      and voting control over the shares of common stock beneficially owned by
      the Peter Lynch Foundation.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="serif">(9)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="serif"> Mr. Taylor is a Director. Includes
      50,000 shares underlying common stock purchase warrants exercisable at $2.75 per
      share until February 11, 2009.</FONT></TD>
  </TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">47</FONT>
</P>

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<P align="center">
<B><FONT size="2" face="serif">CERTAIN TRANSACTIONS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">During the year ended December 31, 2002, a stockholder of the Company consented to a reduction in balance due to it from the Company pursuant to an agreement to offset credit losses in connection with
Huff Timber Company, a former customer, and Logistics Management Resources, Inc., and the receivable losses experienced by the Company in the year ended December 31, 2002. The amount of offset was approximately $299,300 and is reflected as a
reduction to G&amp;A expenses in the consolidated financial statements for the year ended December 31, 2002. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The Company utilizes the services of tractor owner-operators that are employed by Bryant Plastics, a stockholder in the Company. The Company&#8217;s agreement with Bryant Plastics is identical to its
agreement with any independent owner-operators, and Bryant receives payment terms and percentages that are identical to other agreements with unrelated entities. The Company believes these terms to be equitable and fair and believes that these
transactions are treated in the normal course of business as if Bryant had no relationship with the Company other than that of an owner-operator. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In October 2003, the Company entered into an agreement to sell several owned vehicles to Bryant Plastics, Inc., resulting in a gain on sale of $76,000. In this transaction, Bryant exchanged 90,000
shares of stock at $1.40 per share in exchange for clear title to several tractors that had been purchased by Segmentz previously. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">In July 2003, the Company consented to utilize &#147;best efforts&#148; to retire all preferred shares by fiscal year end. In concert with this agreement, the Company&#8217;s officers entered into negotiations with
the CEO of the Company that resulted in the purchase of 414,923 shares of preferred series A stock for the price of $.58 per share, a total of $240,655. Because the purchase price of these shares had been set at $1.00 at the time of their issuance
resulting from them having been converted from debt at face value, this purchase resulted in a gain for the Company in the amount of $174,268. </FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">DESCRIPTION OF SECURITIES</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Our authorized capital stock consists of 40,000,000 shares of common stock, $.001 par value per share and 10,000,000 shares of preferred stock, $1.00 par value per share. As of the date of this
prospectus, there are 25,951,305 shares of common stock issued and outstanding, which are held of record by approximately 600 holders. As of the date of this prospectus, all shares of preferred stock have been either redeemed by the Company or
converted into common stock.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">COMMON STOCK</FONT></B>
</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Holders of our common stock
  are entitled to one vote for each share on all matters submitted to a shareholder
  vote. Holders of common stock do not have cumulative voting rights. Therefore,
  holders of a majority of the shares of common stock voting for the election
  of directors can elect all of the directors. Holders of common stock are entitled
  to share in all dividends that the board of directors,
  in its discretion, declares from legally available funds. In the event of our
  liquidation, dissolution or winding up, each outstanding share entitles its
  holder to participate in all assets that remain after payment of liabilities
  and after providing for each class of stock, if any, having preference over
  the common stock.</FONT></P>
<P align="center">
<FONT size=2 face="serif">48</FONT>
</P>

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<A name="page_51"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Holders of our common stock have no conversion, preemptive or other subscription rights, and there are no redemption provisions for the common stock. The rights of the holders of common stock are
subject to any rights that may be fixed for holders of preferred stock, when and if any preferred stock is authorized and issued. All outstanding shares of common stock and the shares underlying all option and warrants will be duly authorized,
validly issued, fully paid and non-assessable upon our issuance of these shares.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">PREFERRED STOCK</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">As of the date of the this prospectus we have the following series of preferred stock designated:</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Series A-1 Preferred Stock</FONT></B><FONT size="2" face="serif">. The series A-1 preferred stock (i) does not accrue dividends, (ii) votes on an as converted basis with the common stock on all matters to
be voted upon by the holders of the common stock, (iii) is convertible into common stock at the greater of $1.00 per share or a 30% discount to the average closing bid price of the common stock for the 5 trading days prior to the date of conversion,
and (iv) is not redeemable by us. All Series A-1 preferred stock has been converted into common stock.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Series B-1 Preferred Stock</FONT></B><FONT size="2" face="serif">. All Series B-1 preferred stock was retired on December 17, 2003.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size="2" face="serif">Series C Preferred Stock</FONT></B><FONT size="2" face="serif">. The series C preferred stock (i) accrues dividends at a rate of 10% of the stated value ($100 per share) per year, (ii) has no voting rights,
(iii) is not convertible, and (iv) is redeemable by the Company for $60,000 on the 6 month anniversary of the date of issuance. If the Company does not redeem the shares of series C preferred stock on the 6 month anniversary, we are required to
issue to the holders of the series C preferred stock 5 shares of common stock for every 1 share of series C preferred stock held on each of the 7, 8, and 9 month anniversaries (or 3,000 shares of common stock per month in the aggregate). If we do
not redeem the series C preferred stock on the 9 month anniversary, the series C preferred stock is automatically converted into debt, payable upon demand, accruing interest at a rate of 12% per year. All series C preferred Stock has been
redeemed.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We may issue additional series of preferred stock from time to time, with such designations, preferences, conversion rights, cumulative, relative, participating, optional or other rights, including
voting rights, qualifications, limitations or restrictions as are determined by our Board of Directors. We have no present intention of issuing shares of preferred stock.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">49</FONT>
</P>

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<A name="page_52"></A>

<P>
<B><FONT size="2" face="serif">COMMON STOCK PURCHASE WARRANTS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">As of May 28, 2004, we had 9,558,212 common stock purchase warrants outstanding entitling the holders to purchase 9,558,212 shares of our common stock for a weighted average exercise price of $1.53
per share.</FONT>
</P>
<P>
<B><FONT size="2" face="serif">TRANSFER AGENT AND REGISTRAR </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The transfer agent for our common stock is Securities Transfer Corporation. Its address is 2591 Dallas Parkway, Suite 102, Frisco, TX 75034.</FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">SHARES ELIGIBLE FOR FUTURE SALE</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">On May 25, 2004 we had 25,951,305 shares of common stock issued and outstanding. Of those shares approximately 1,050,000 shares are freely tradeable without restriction or further registration under
the Securities Act, except for any shares purchased by an affiliate of ours. This does not include shares being registered under this Prospectus or shares that may be issued upon exercise of options or warrants.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The remaining 5,811,072 shares of common stock outstanding as of May 28, 2004 (not including the 19,090,233 shares of common stock being registered under this Prospectus and 9,558,212 shares
underlying issued and outstanding warrants) are restricted securities, and will become eligible for public sale at various times, provided the investors comply with the requirements of Rule 144. In general, Rule 144 permits a shareholder who has
owned restricted shares for at least 1 year, to sell without registration, within a 3 month period, up to 1% of our then outstanding common stock.  We must be current in our reporting obligations in order for a shareholder to sell shares under Rule
144. In addition, shareholders other than our officers, directors or 5% or greater shareholders who have owned their shares for at least 2 years, may sell them without volume limitation or the need for our reports to be current.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We cannot predict the effect, if any, that market sales of common stock or the availability of these shares for sale will have on the market price of our shares from time to time. Nevertheless, the
possibility that substantial amounts of common stock may be sold in the public market could negatively damage effect market prices for the common stock and could damage our ability to raise capital through the sale of our equity securities.</FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">LEGAL MATTERS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The validity of the securities offered by this prospectus will be passed upon for us by Adorno &amp; Yoss, P.A., 350 East Las Olas Boulevard, Suite 1700, Fort Lauderdale, FL 33301. Adorno &amp; Yoss,
P.A. owns 100,000 common stock purchase warrants, exercisable at $1.40 per share until January 8, 2006.</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">50</FONT>
</P>

<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">




<A name="page_53"></A>

<P align="center">
<B><FONT size="2" face="serif">EXPERTS</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The consolidated audited financial statements as of December 31, 2003, and December 31, 2002, and for each of the 2 years in the period ended December 31, 2003, appearing in this prospectus and
registration statement have been audited by Pender Newkirk &amp; Company, independent auditors, as set forth in their report thereon appearing elsewhere in this prospectus, and are included in reliance upon this report given on the authority of
Pender Newkirk &amp; Company as experts in auditing and accounting. </FONT>
</P>
<P align="center">
<B><FONT size="2" face="serif">AVAILABLE INFORMATION</FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">We have filed with the SEC a registration statement on Form SB-2 under the Securities Act for the common stock offered by this prospectus. This prospectus, which is a part of the registration
statement, does not contain all of the information in the registration statement and the exhibits filed with it, portions of which have been omitted as permitted by SEC rules and regulations. For further information concerning us and the securities
offered by this prospectus, we refer to the registration statement and to the exhibits filed with it. Statements contained in this prospectus as to the content of any contract or other document referred to are not necessarily complete. In each
instance, we refer you to the copy of the contracts and/or other documents filed as exhibits to the registration statement, and these statements are qualified in their entirety by reference to the contract or document.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The registration statement, including all exhibits, may be inspected without charge at the SEC&#8217;s Public Reference Room at 450 Fifth Street, N.W. Washington, D.C. 20549, and at the SEC&#8217;s regional
offices located at the Woolworth Building, 233 Broadway, New York, New York 10279 and Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies of these materials may also be obtained from the SEC&#8217;s Public Reference at
450 Fifth Street, N.W., Room 1024, Washington D.C. 20549, upon the payment of prescribed fees. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The registration statement, including all exhibits and schedules and amendments, has been filed with the SEC through the Electronic Data Gathering, Analysis and Retrieval system, and is publicly
available through the SEC&#146;s Web site located at http://www.sec.gov. </FONT>
</P>
<P align="center">
<FONT size=2 face="serif">51</FONT>
</P>
</div></font>
<HR noshade width="100%" size=1 color="#66FF99" style="PAGE-BREAK-AFTER: always">









<A name="page_54">
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Consolidated Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years Ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Independent Auditors' Report </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B><A name=index></A>Contents </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>

  <TR>
    <TD width="93%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="3%"></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504054260/d10ksb.htm#fin69724_21">Independent
      Auditors' Report </A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>F-1</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=2 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Financial Statements:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=2 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504054260/d10ksb.htm#fin69724_22">Consolidated
      Balance Sheets</A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>F-2</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504054260/d10ksb.htm#fin69724_23">Consolidated
      Statements of Operations</A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>F-3</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504054260/d10ksb.htm#fin69724_24">Consolidated
      Statements of Changes in Stockholders' Equity</A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>F-4</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504054260/d10ksb.htm#fin69724_25">Consolidated
      Statements of Cash Flows</A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>F-5</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504054260/d10ksb.htm#fin69724_26">Notes
      to Consolidated Financial Statements</A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>F-6-29</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B><A name=fin69724_21></A>Independent Auditors' Report </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Board of Directors </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Tampa, Florida </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>We have audited the accompanying consolidated balance sheets of Segmentz,
Inc. as of December 31, 2003 and 2002 and the related consolidated statements of
operations, changes in stockholders' equity, and cash flows for the years then
ended. These consolidated financial statements are the responsibility of the
management of Segmentz, Inc. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. These standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position of
Segmentz, Inc. as of December 31, 2003 and 2002 and the results of its
consolidated operations and its consolidated cash flows for the years then ended
in conformity with accounting principles generally accepted in the United States
of America. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Pender Newkirk &amp; Company </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Certified Public Accountants </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Tampa, Florida </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>February 27, 2004 </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=fin69724_22></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Consolidated Balance Sheets </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="79%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman"
      size=1><B>December 31,</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Assets</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current assets:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cash and cash equivalents</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,029,298</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,758</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts receivable, net of allowances of
      $1,080,177 and $136,644 at December 31, 2003 and 2002,
      respectively</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>4,402,657</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,017,091</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>40,741</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>40,000</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Prepaid expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>818,744</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>295,425</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,290,699</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,357,015</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Property &amp; equipment, net of accumulated
      depreciation</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,072,010</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>211,063</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Goodwill</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,550,446</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other long-term assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>963,938</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Loans and advances</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>104,943</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>25,611</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total other assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,619,327</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>25,611</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>12,982,036</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,593,689</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Liabilities and Stockholders'
      Equity</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current liabilities:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,492,896</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>706,407</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued salaries and wages</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>175,288</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,770</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued expenses, other</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>320,829</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>161,033</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Short-term portion of long-term
      debt</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>791,200</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Advances from shareholder</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>51,177</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other current liabilities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>40,456</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Obligation due under factoring
      arrangement</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,032,708</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,709,097</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total current liabilities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,853,377</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,634,484</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Long-term liabilities:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Notes payable and capital
    leases</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>351,466</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Deferred tax liability</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>450,979</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Stockholders' equity:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Convertible preferred stock; 10,000,000
      shares authorized; 773,896 and 1,189,019 shares issued and outstanding at
      December 31, 2003 and 2002, respectively</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>773,896</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,202,639</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Common stock; $.001 par value; 40,000,000
      shares authorized; 17,087,840 and 6,778,913 shares issued and outstanding
      at December 31, 2003 and 2002, respectively</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>17,088</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,779</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Additional paid-in capital</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,427,013</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>19,001</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Retained earnings (accumulated
      deficit)</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>108,217</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(269,214</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total stockholders' equity</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>8,326,214</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>959,205</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>12,982,036</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,593,689</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>The accompanying notes are an integral part of
the financial statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-2 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=fin69724_23></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Consolidated Statements of Operations </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="79%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>Years Ended December 31,</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Revenues:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Operating revenue</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>14,390,113</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>9,960,810</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Consulting and other revenue</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>297,641</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>33,696</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>14,687,754</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>9,994,506</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Expenses:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Operating expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>11,118,710</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,781,632</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>General and administrative
      expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,309,875</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,743,476</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Gain on sale of fixed asset</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(71,742</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(43,830</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other income</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(103,808</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Interest expense</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>257,521</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>139,113</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>14,510,556</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>9,620,391</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Income before taxes</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>177,198</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Income tax expense</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(25,965</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>203,163</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Gain on repurchase of preferred
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>174,268</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income applicable to common
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>377,431</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic income per share of common
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.04</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.06</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Weighted average common stock
      outstanding</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>9,403,695</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,565,242</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income per share of common
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.04</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.05</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Weighted average diluted common stock
      outstanding</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,630,956</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,956,009</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>The accompanying notes are an integral part of
the financial statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-3 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=fin69724_24></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Consolidated Statements of Changes in
Stockholders' Equity </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Years Ended December 31, 2003 and 2002 </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="32%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="8%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman"
      size=1><B>Preferred Stock</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman"
      size=1><B>Common Stock</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=2><FONT
      face="Times New Roman"
      size=1><B>Additional<BR>Paid-In<BR>Capital</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=2><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=2><FONT
      face="Times New Roman"
      size=1><B>Retained<BR>Earnings<BR>(Accumulated<BR>Deficit)</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=2><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=2><FONT
      face="Times New Roman" size=1><B>Total</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=2><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Shares</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Amount</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Shares</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Amount</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Balance, December 31, 2001</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,200,794</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,200,794</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,502,913</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,503</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(6,403</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(643,329</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>557,565</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Redemption of Series B redeemable
      convertible preferred stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(11,975</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(11,975</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(11,975</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Series C redeemable convertible preferred
      &amp; common stock payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>200</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>13,820</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>26,000</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
    size=2>26</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>16,154</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>30,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Issuance of common stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>250,000</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>250</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,250</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,500</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Issuance of warrants for
    services</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=bottom>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">
      <font face="Times New Roman">&nbsp;</font></P>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT
      face="Times New Roman" size=2>Balance, December 31, 2002</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>1,189,019</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>1,202,639</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>6,778,913</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,779</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>19,001</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(269,214</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>959,205</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Redemption of series B &amp; C preferred
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(415,123</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(428,743</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(428,743</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Issuance of common stock, net</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,308,927</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,309</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,408,012</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,418,321</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income applicable to common
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>377,431</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>377,431</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Balance, December 31, 2003</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>773,896</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>773,896</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>17,087,840</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>17,088</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,427,013</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>108,217</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>8,326,214</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>The accompanying notes are an integral part of
the financial statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-4 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=fin69724_25></A>Consolidated Statements of
Cash Flows </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="79%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>Years Ended December 31,</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Operating activities</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income applicable to common
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>377,431</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Adjustments to reconcile net income to net
      cash used in operating activities:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Provisions for allowance for doubtful
      accounts</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>132,529</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>210,279</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Depreciation and amortization</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>179,171</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>101,764</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Gain on the redemption of preferred
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(174,268</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Gain on forgiveness of debt</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(98,829</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Gain on sale of asset</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(71,742</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Non-cash expense relating to issuance of
      stock and warrants</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>44,583</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Valuation on deferred tax
asset</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(97,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Changes in:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(245,846</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(2,218,794</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Prepaid expenses and other current
      assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(40,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(69,428</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(496,122</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>40,741</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(65,326</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>433,101</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>82,730</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(129,092</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>20,869</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued salaries and wages</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>128,540</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other liabilities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(8,565</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total adjustments</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(468,736</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,909,590</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net cash used in operating
      activities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(91,305</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,535,475</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Investing activities</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Acquisition of business, net of cash
      acquired</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,500,543</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Acquisition of Murphy Assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,951,851</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Acquisition of property and
      equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(857,570</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(42,339</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Loans and advances</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(72,607</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Proceeds from sale of
equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>95,150</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Loans, advances, and other
      receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(5,736</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net cash provided by (used in) investing
      activities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(4,310,829</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>47,075</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Financing activities</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net obligations incurred under factoring
      arrangements</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(676,389</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,069,636</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Redemption or conversion of preferred
      shares</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(254,475</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Proceeds from sale of equity</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,404,009</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>32,500</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Proceeds and payments from debt,
      net</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>954,529</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Advances from stockholder</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>350,533</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net cash provided by financing
      activities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,427,674</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,452,669</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Net increase (decrease) in cash and cash
      equivalents</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,025,540</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(35,731</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Cash and cash equivalents, beginning of
      year</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,758</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>39,489</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Cash and cash equivalents, end of
      period</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,029,298</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,758</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Supplemental disclosure of cash flow
      information and non-cash financing activities:</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cash paid during the year for
      interest</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>254,500</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>155,192</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the year ended December 31, 2002, a stockholder offset $299,256 of
amounts due him against receivables which were deemed to be uncollectible in
accordance with a guarantee of that stockholder, and the majority stockholder
satisfied $11,975 of proceeds he owed the Company by redeeming 11,975 shares of
his preferred stock. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>The accompanying notes are an integral part of
the financial statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-5 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=fin69724_26></A>Notes to Consolidated
Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>1.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman"
      size=2><B>Significant Accounting Principles
</B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Basis of Presentation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Segmentz, Inc. and its wholly owned subsidiaries ("the Company") provide
regional outsourced trucking, time definite transportation, dedicated delivery
and supply chain management services within a network of cross dock facilities
throughout the east. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Principles of Consolidation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The accompanying consolidated financial statements include the accounts
of Segmentz, Inc. and all of its wholly-owned subsidiaries. All significant
inter-company balances and transactions have been eliminated in consolidation.
The Company does not have any variable interest entities whose financial results
are not included in the consolidated financial statements. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Use of Estimates </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company prepares its consolidated financial statements in conformity
with accounting principles generally accepted in the United States of America.
These principles require management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. The Company reviews its estimates, including but not limited
to, recoverability of long-lived assets, recoverability of prepaid expenses,
valuation of investments and allowance for doubtful accounts, on a regular basis
and makes adjustments based on historical experiences and existing and expected
future conditions. These evaluations are performed and adjustments are made as
information is available. Management believes that these estimates are
reasonable; however, actual results could differ from these estimates.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Reclassifications </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Certain prior year amounts shown in the accompanying consolidated
financial statements have been reclassified to conform with the 2003
presentation. These reclassifications did not have any effect on total assets,
total liabilities, total stockholders' equity or net income. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-6 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Cash and Cash Equivalents </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Cash and cash equivalents include cash on hand and investments in money
market funds with high quality financial institutions. The Company considers all
highly liquid instruments purchased with a remaining maturity of less than three
months at the time of purchase as cash equivalents. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Concentration of Risk </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Financial instruments, which potentially subject the Company to
concentrations of credit risk, are cash and cash equivalents and accounts
receivables. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The majority of cash is maintained with a major financial institution in
the United States. Deposits with this bank may exceed the amount of insurance
provided on such deposits. Generally, these deposits may be redeemed upon
demand, and, therefore, bear minimal risk. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Concentration of credit risk with respect to trade receivables is limited
due to the Company's large number of customers and wide range of industries and
locations served. No customer comprised more than ten percent of the December
31, 2003 or 2002 customer accounts receivable balance. One customer represented
approximately 20% of the sales for the year ended December 31, 2003 and another
customer represented approximately 18% of sales for the year ended December 31,
2002. The one significant customer for the year ended 2003 is related to a
multi-year contract with a national logistics company, providing service to a
Fortune 500<FONT face="Times New Roman" color=#000000 size=1><SUP>(TM)</SUP></FONT> manufacturing company
(whose credit is investment grade). </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company extends credit to its various customers based on evaluation
of the customer's financial condition and ability to pay the Company in
accordance with the payment terms. The Company provides for estimated losses on
accounts receivable considering a number of factors, including the overall aging
of accounts receivables, customers payment history and the customer's current
ability to pay its obligation. Based on managements' review of accounts
receivable and other receivables, an allowance for doubtful accounts of
approximately $1,080,000 and $137,000 is considered necessary as of December 31,
2003 and 2002, respectively. We do not accrue interest on past due receivables.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-7 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Factoring Arrangement </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the second quarter of 2002, the Company entered into an agreement
with a factoring company to provide for the borrowing against eligible
receivables of up to ninety percent (90%) of the face value of such receivables.
The borrowings against eligible receivables is not a true sale and the company
maintains any advances under this agreement as an obligation due under factoring
arrangement and any receivables, net of allowances for losses, as assets
pursuant to Statements of Financial Accounting Standards ("SFAS") No. 140
"Accounting for transfers and servicing of financial assets and extinguishment
of liabilities," such amounts are not sold without recourse and therefore
reported in accordance with provisions of applicable rules and guidelines. As of
January 31, 2004 the company terminated this arrangement and paid the obligation
due under factoring arrangement in full. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Property and Equipment </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Property and equipment are stated at cost. Expenditures for maintenance
and repair costs are expensed as incurred. Major improvements that increase the
estimated useful life of an asset are capitalized. When property and equipment
are sold or otherwise disposed of, the asset account and related accumulated
depreciation account are relieved, and any gain or loss is included in the
results of operations. Depreciation is calculated by the straight-line method
over the following estimated useful lives of the related assets: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>

  <TR>
    <TD width="89%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="7%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B><I>Years</I></B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Land</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>0</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Building and improvements</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>39</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>2-7</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Office equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>3-10</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Warehouse equipment and
    shelving</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>3-7</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Computer equipment and
software</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>2-5</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Leasehold improvements</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>Lease&nbsp;term</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-8 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Goodwill </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Goodwill consists of the excess of cost over the fair value of net assets
acquired in business combinations. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company follows the provisions of Statement of Financial Accounting
Standards ("SFAS") No. 142, <I>Goodwill and Other Intangible Assets</I>. SFAS
No. 142 requires an annual impairment test for goodwill and intangible assets
with indefinite lives. Under the provisions of SFAS No. 142, the first step of
the impairment test requires that the Company determine the fair value of each
reporting unit, and compare the fair value to the reporting unit's carrying
amount. To the extent a reporting unit's carrying amount exceeds its fair value,
an indication exists that the reporting unit's goodwill may be impaired and the
Company must perform a second more detailed impairment assessment. The second
impairment assessment involves allocating the reporting unit's fair value to all
of its recognized and unrecognized assets and liabilities in order to determine
the implied fair value of the reporting unit's goodwill as of the assessment
date. The implied fair value of the reporting unit's goodwill is then compared
to the carrying amount of goodwill to quantify an impairment charge as of the
assessment date. The Company acquired all of the goodwill in the current year
and is in the process of obtaining a valuation on each acquisition. Management
does not believe there is any impairment of goodwill at December 31, 2003 In the
future, the Company expects to perform the annual test during its fiscal third
quarter unless events or circumstances indicate impairment of the goodwill may
have occurred before that time </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-9 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Other Long-Lived Assets </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Other long-lived assets primarily related to capitalized set up costs
that are recovered over the term of multi-year contacts and acquired
identifiable intangible assets. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the year ended December 31, 2003 the Company capitalized
approximately $162,000 of direct and incremental setup costs that are scheduled
to be reimbursed by a customer over the term of the contract. These costs are
amortized over the remaining life of that contract. As of December 31, 2003
accumulated amortization related to these setup costs was approximately $25,000.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Acquired identifiable intangible assets of approximately $825,000 consist
of the present value of excess cash flows from favorable lease transactions and
favorable insurance rates, and safety history from an asset acquisition. These
intangibles are amortized on a straight-line method over 1 to 5 years and
favorable lease agreements are amortized using the straight-line method over
contract period, which is five years. As of December 31, 2003, there was no
accumulated amortization related to these identifiable intangible assets. The
yearly amortization expense related to these assets will be approximately
$210,000 in 2004 and $155,000 for subsequent years. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company follows the provisions of SFAS No. 144, <I>Accounting for the
Impairment or Disposal of Long-Lived Assets,</I> which establishes accounting
standards for the impairment of long-lived assets such as property, plant and
equipment and intangible assets subject to amortization. The Company reviews
long-lived assets to be held-and-used for impairment whenever events or changes
in circumstances indicate that the carrying amount of the assets may not be
recoverable. If the sum of the undiscounted expected future cash flows over the
remaining useful life of a long-lived asset is less than its carrying amount,
the asset is considered to be impaired. Impairment losses are measured as the
amount by which the carrying amount of the asset exceeds the fair value of the
asset. When fair values are not available, the Company estimates fair value
using the expected future cash flows discounted at a rate commensurate with the
risks associated with the recovery of the asset. For the year ended December 31,
2003 there was no impairment recorded related to these long-lived assets.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-10 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Accrued Expenses, Other </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Accrued liabilities consist primarily of estimates that take into account
potential income or expense that may be generated related to credits, offsets,
deposits or prepaid amounts that may become payable to customers. These amounts
are accrued to estimate the potential liability that may exist and are based on
managements' review of historical data and projections regarding credits or
offsets that might become due. Management believes that the estimated accrued
liabilities are reasonable in comparison to such historical data; however,
actual results could differ from these estimates. A ten percent variation from
this estimate could be an additional expense or income of approximately $24,000.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Estimated fair value of financial instruments </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The aggregated net fair value estimates discussed herein are based upon
certain market assumptions and pertinent information available to management.
The respective carrying value of certain on-balance-sheet financial instruments
approximated their fair values. These financial instruments include cash and
cash equivalents, receivables, payable, accrued expenses and short-term
borrowings. Fair values were assumed to approximate carrying values for these
financial instruments since they are short-term in nature and their carrying
amounts approximate fair values or they are receivable or payable on demand. The
fair value of the Company's debt is estimated based upon the quoted market
prices for the same or similar issues or on the current rates offered to the
Company for debt of the same remaining maturities. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Revenue Recognition </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Operating revenues for the Company are recognized on the date the freight
is delivered or the services are performed. Related costs of delivery of
shipments in transit or services in progress are accrued as incurred and
expensed when the revenue is recognized. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-11 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Income Taxes </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Taxes on income are provided in accordance with SFAS No. 109,
<I>Accounting for Income Taxes</I>. Deferred income tax assets and liabilities
are recognized for the expected future tax consequences of events that have been
reflected in the consolidated financial statements. Deferred tax assets and
liabilities are determined based on the differences between the book values and
the tax bases of particular assets and liabilities and the tax effects of net
operating loss and capital loss carry forwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to
recovered or settled. The effect on deferred tax assets and liabilities of a
change in the tax rate is recognized as income or expense in the period that
included the enactment date. A valuation allowance is provided to offset the net
deferred tax assets if, based upon the available evidence, it is more likely
than not that some or all of the deferred tax assets will not be realized.
During the year ended December 31, 2003 it became evident to management that the
valuation allowance related to prior year deferred tax assets was no longer
deemed necessary and the valuation of approximately $97,000 was reversed.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Stock-Based Compensation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company accounts for stock based compensation under the intrinsic
value method of accounting for stock based compensation and has disclosed pro
forma net income and earnings per share amounts using the fair value based
method prescribed by Statement of Financial Accounting Standards ("SFAS") No.
123, "Accounting for Stock Based Compensation." The Company has implemented the
disclosure provisions of SFAS No. 148, <I>Accounting for Stock-Based
Compensation - Transition and Disclosure</I>. There was no stock based
compensation given to employees during the year ended December 31, 2002.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-12 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>For the year ended December 31, 2003: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="88%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income applicable to common
      stockholders:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>As reported</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>377,431</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total stock-based employee compensation
      expense included in reported net income applicable to common stockholder,
      net of tax</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total stock-based employee compensation
      determined under fair value based method, net of related tax
      effects</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(86,805</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Pro forma</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net income applicable to common
      stockholders</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>290,626</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Earnings per share</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic - as reported</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>0.04</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic - pro forma</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>0.03</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted earnings per share</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted - as reported</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>0.04</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted - pro forma</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>0.03</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The preceding pro forma results were calculated with the use of the
Black-Scholes option pricing model. The following assumptions were used for the
year ended December 31, 2003 (1) risk-free interest rate of 2.80%, (2) no
dividend yield (3) expected lives of between 4.0 and 5.0 years (4) volatility of
50%. Results may vary depending on the assumptions applied within the model.
Compensation expense recognized in providing pro forma disclosures may not be
representative of the effects on net income for future years. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Earnings Per Share </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Earnings per common share are computed in accordance with SFAS No. 128,
"Earnings Per Share," which requires companies to present basic earnings per
share and diluted earnings per share. Basic earnings per share are computed by
dividing net income by the weighted average number of shares of common stock
outstanding during the year. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-13 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Diluted earnings per common share are computed by dividing net income by
the weighted average number of shares of common stock outstanding and dilutive
options outstanding during the year. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Recently Issued Financial Accounting Standards </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>"Consolidation of Variable Interest Entities" </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities." This interpretation of Accounting
Research Bulletin 51, "Consolidated Financial Statements," addresses
consolidation by business enterprises of variable interest entities in which an
enterprise absorbs a majority of the entity's expected losses, receives a
majority of the entity's expected residual returns, or both, as a result of
ownership, contractual or other financial interests in the entity. The
interpretation requires that if a business enterprise has a controlling
financial interest in a variable interest entity, the assets, liabilities, and
results of the activities of the variable interest entity must be included in
the consolidated financial statements with those of the business enterprise. The
Company does not have any variable interest entities whose financial results are
not included in the consolidated financial statement. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
Financial Instruments with Characteristics of Both Liabilities and Equity." This
statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity. This statement is effective for financial instruments entered into or
modified after May 31, 2003 and pre-existing instruments as of the beginning of
the first interim period that commences after June 15, 2003, except for
mandatorily redeemable financial instruments. Mandatorily redeemable financial
instruments are subject to the provisions of this statement beginning on January
1, 2004. We have not entered into or modified any financial instruments
subsequent to May 31, 2003 affected by this statement. We do not expect the
adoption of this statement will have a material impact on our financial
condition or results of operations. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-14 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>2.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Property
      and Equipment </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Property and equipment consists of the following: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="81%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>December 31,</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Land</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>100,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Building and improvements</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>350,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Leasehold improvements</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>329,813</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>4,462</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Office equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>363,088</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>56,620</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,605,206</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Warehouse equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>148,760</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>148,760</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Warehouse shelving</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>51,947</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>51,947</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Computer equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>135,363</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>61,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Computer software</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>295,131</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>41,140</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,379,308</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>363,929</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Less: Accumulated depreciation and
      amortization</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(307,298</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(152,866</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,072,010</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>211,063</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Depreciation and amortization expense of property and equipment totaled
approximately $154,000 and $103,000 for 2003 and 2002, respectively. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>3.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Loans and
      Advances </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Loans and advances primarily relates to a stockholder of the company,
which borrowed approximately $80,000. The loan is due in 2004 and bears interest
and six percent per annum. This loan is collateralized by 773,896 shares of the
Company's preferred A stock, which have a face value of $1.00 per share. In the
event that the Preferred Shares are converted to Common Stock, such stock will
collateralize this loan until it is repaid. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-15 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>4.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Goodwill
      </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The change in the carrying amount of goodwill for the year ended December
31, 2003 is as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>December 31, 2002</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Acquisition (see note 11 to consolidated
      financial statements)</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,550,446</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>December 31, 2003</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,550,446</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>5.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman"
      size=2><B>Obligations Due Under Factoring Arrangement
  </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company factors a significant portion of its accounts receivable.
During the years ended December 31, 2003 and 2002, the Company utilized the
services of several factoring companies. Accounts receivable are factored to
companies with full recourse for unpaid invoices in excess of 90 days old. The
most recent agreement provides for the payment of factoring fees at 2.5 percent
of each invoice factored. As of January 31, 2004 the Company terminated the
factoring agreement and the obligation due under factoring arrangement was fully
satisfied. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>6.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Notes
      Payable and Capital Leases </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In February 2003 the Company entered into a note with Sports Funding, Inc
for a term of eighteen months. The note was for $250,000, at an interest rate of
12% per annum plus an origination fee of $5,000 and 250,000 three-year warrants
at $1.01 per share. In addition to all assets of the Company, tangible or
intangible, collateralizing the loan, the Chief Executive Officer and the Chief
Financial Officer personally pledged a security interest in all the Segmentz,
Inc. common stock and preferred stock owned by them. Interest was payable
monthly with the entire principle balance being due at the end of eighteen
months. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In April 2003 the above agreement was amended to increase the borrowed
amount by $100,000. The terms of the loan were the same as above with an
additional 100,000 three-year warrants issued at a price of $1.15 per share. All
of the warrants were callable by the Company if the last sale price of the
common stock is at least 166.6% of the then current exercise price for 10
consecutive trading days. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-16 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>6.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Notes
      Payable and Capital Leases (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In consideration for accelerating the due date from August 2004 to
February 2004, Sports Funding forgave approximately $98,800 of the outstanding
principle. For the year ended December 31, 2003 the gain on the forgiveness of
debt was recognized as other income. Subsequent to Segmentz, Inc. paying off the
debt, the President of Sports Funding, Inc. was nominated and accepted a
position on the Board of Directors. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In July 2003 the Company entered into a $270,000 note with Fifth Third
Bank for a term of 24 month at an interest rate of 8% per annum. The note was
executed as partial consideration for equipment and other assets purchase from
Fifth Third Bank. The purchased assets collateralize the loan. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In July of 2003 the Company entered into two loans with Daimler Chrysler
Services to purchase equipment. The terms were for 24 months and 30 months with
interest rates of approximately 9.5% and 9.8% respectively. The purchased assets
collateralize the loans. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In September of 2003 the Company entered into a master agreement with GE
Capital Fleet Services for up to $750,000 of credit related to either loans or
capital leases. Under that master agreement the Company entered into a 36 month
loan with an interest rate of approximately 5.85%. The purchased assets
collateralize the loan. At December 31, 2003 there was approximately $545,000
available borrowing under that master agreement. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>As part of an acquisition in October 2003 the Company assumed a variable
rate promissory note with Commerce Bank with a term of five years. At December
31, 2003 the interest rate was approximately 5%. As of December 31, 2003 the
loan was classified current as the note was fully paid as of January 2004.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>As part of an acquisition at December 31, 2003 the Company assumed a
"504" note with the U.S. Small Business Administration under the Certified
Development Company Program for a term of 20 years. The note was originally for
$85,000 at an interest rate of 8.374% and was collateralized by the Lexington,
Kentucky building. As of December 31, 2003 the loan was classified as current as
it was fully paid as of February 2004 </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>As part of an acquisition at December 31, 2003 the Company assumed
various other notes payable, which are collateralized by equipment. The terms
range from three to five years with interest rates ranging from 0% to 7% with
varying payoff dates during 2004. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-17 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>6.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Notes
      Payable and Capital Leases (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the year ended December 31, 2003 the Company entered into several
capital leases for computer software, computer equipment and operational
equipment. The terms range from two to four years with interest rates ranging
from approximately 5.8% to approximately 12%. All of the assets either transfer
ownership at the end of the lease or have a bargain purchase agreement.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The balances outstanding as of December 31, 2003 on the above debt
instruments are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="8%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Sports Funding loan</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>251,171</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Fifth Third loan</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>205,143</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Daimler Chrysler loan</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>150,751</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>GE Capital loan</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>143,383</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Commerce Bank loan</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>128,333</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>SBA loan</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>61,961</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other notes payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>18,550</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Interchange (capital leases)</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>93,959</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>GE Capital (capital leases)</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>62,570</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other capital leases</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>26,845</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,142,666</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Less: current portion</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>791,200</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Long-term portion of notes
    payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>351,466</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following is a schedule by year of future minimum principle payments
required under the terms of the above notes payable as of December 31, 2003:
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2004</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>791,200</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2005</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>234,446</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2006</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>115,813</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2007</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,207</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2008</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Thereafter</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,142,666</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-18 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>7.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman"
      size=2><B>Commitments and Contingencies</B> </FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Lease Commitments </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following is a schedule by year of future minimum payments required
under operating leases that have an initial or remaining non-cancelable lease
term in excess of one year as of December 31, 2003: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2004</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>672,769</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2005</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>625,952</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2006</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>405,538</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2007</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>99,600</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>2008</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,558</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Thereafter</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,805,417</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company rents equipment and facilities under operating leases with
lease terms of less than one year. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Rent expense amounted to approximately $295,000 and $276,000 for the
years ended December 31, 2003 and 2002, respectively. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Litigation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In the ordinary course of business, the Company may be a party to a
variety of legal actions that affect any business. The Company does not
anticipate any of these matters or any matters in the aggregate to have a
material adverse effect on the Company's business or its financial position or
results of operations. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Regulatory Compliance </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company's activities are regulated by state and federal regulatory
agencies under requirements that are subject to broad interpretations. The
Company cannot predict the position that may be taken by these third parties
that could require changes to the manner in which the Company operates.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-19 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>8.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Equity
      </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Convertible Preferred Stock </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The authorized preferred stock of the Company consists of 10,000,000
shares at $.001 par value, of which 773,896 shares of Series A convertible
preferred stock ("Series A Preferred Stock") outstanding as of December 31, 2003
and 2002 and 414,923 shares of Series B convertible preferred stock ("Series B
Preferred Stock") was outstanding as of December 31, 2002. In addition the
Company authorized the issuance of up to 250,000 shares of Series C Redeemable
Convertible Preferred Stock ("Series C Preferred Stock"). There were no
outstanding shares at December 31, 2003 and 20,000 shares outstanding at
December 31, 2002. The company records preferred stock as issued when the
consideration is received or the obligation is incurred. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Series A Redeemable Convertible Preferred Stock </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Each share of the Series A Preferred Stock is convertible, at the option
of the holder, at any time into shares of common stock of the Company at a
conversion price equal to the trading price of the shares or at the price of the
last placement of shares by the Company, whichever is less. Interest on the
shares of the Series A Preferred Stock does not accrue. The Series A Preferred
Stock is redeemable at the option of the Company for cash at a rate of $1.00 per
share. The holders of the preferred stock are entitled to vote, together with
the holders of common stock, on all matters submitted to stockholders for a
vote. Each preferred stockholder is entitled to the number of votes equal to the
number of shares of preferred stock convertible at the time of such vote.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In the event of any distribution or liquidation event, the holders of the
then outstanding Series A Preferred Stock shall receive a pro-rata distribution
to be determined by performing a fictional conversion into common stock, and
determining the pro-rata distribution of such proceeds on the basis "as-if
converted" which is subordinate in classification to any debt classes which may
be outstanding at the time of such events. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-20 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>8.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Equity
      (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Series B Convertible Preferred Stock </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Each share of the Series B Preferred Stock is convertible, at the option
of the holder, at any time into shares of common stock of the Company at a
conversion price equal to the trading price of the shares or at the price of the
last placement of shares by the Company, or at $1.00, whichever is greater. In
addition to voting rights and preferred liquidation rights. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the year ended December 31, 2002 the Company elected to retire
11,975 shares of Series B Stock based upon a then-favorable conversion when
compared with the potential floor conversion price of $.50 per share, reducing
the number of shares outstanding to 414,923. The Company subsequently
renegotiated a revision in the floor of the conversion price to $1.00 per share.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Pursuant to a condition of the Company's private placement and agreed to
by the Company and the preferred stock holder, the Company redeemed all 414,923
outstanding shares of preferred B stock for the price of approximately $240,655.
At the time of redemption, the value of the preferred shares was approximately
$414,923 and the Company recognized a gain on repurchase of preferred shares of
approximately $174,268. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Series C Redeemable Convertible Preferred Stock </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Each share of the Series C Preferred Stock is redeemable for $100 within
six months of their date of issuance, in addition to interest of ten percent per
annum; or bears penalty interest of 5 shares of Common Stock of the Company for
each month the Company fails to redeem after the six month period has expired,
or can convert, at the Holders option, after failure to redeem within nine
months into Senior Debt of the Company, subordinate in nature to any Senior Debt
that is in place at the time of the conversion, bearing interest at 12% per
annum on the face value of $100 per share. As of December 31, 2003 there was no
outstanding Series C Preferred Stock. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-21 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>8.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Equity
      (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Common Stock </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Each share of common stock is entitled to one vote. The holders of common
stock are also entitled to receive dividends whenever funds are legally
available and when declared by the Board of Directors (the "Board"), subject to
the prior rights of the holders of all classes of stock outstanding. The company
records stock as issued when the consideration is received or the obligation is
incurred. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following summarizes the Company's stock option and warrant activity
and related information: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="65%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="6%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="2%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Shares</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Range&nbsp;of&nbsp;exercise<BR>prices</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Weighted&nbsp;average<BR>exercise price</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Outstanding at January 1, 2003</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Warrants Granted</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,886,498</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>1.01-1.50</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1.35</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Warrants Cancelled</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Options Granted</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>500,000</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>1.01-1.50</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1.23</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Options Cancelled</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Outstanding at December 31,
    2003</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,386,498</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>1.01-1.50</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1.35</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following table summarizes information about options and warrants
outstanding and exercisable as of December 31, 2003: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="14%"></TD>
    <TD vAlign=bottom width="10%"></TD>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="10%"></TD>
    <TD width="3%"></TD>
    <TD vAlign=bottom width="10%"></TD>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD vAlign=bottom width="10%"></TD>
    <TD width="3%"></TD>
    <TD vAlign=bottom width="10%"></TD>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="10%"></TD>
    <TD width="1%"></TD>
    <TD width="2%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>Outstanding Warrants and Options</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>Exercisable Warrants and Options</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD vAlign=bottom align=middle>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Range of<BR>Exercise Price</B></FONT></P>
      <HR width=76 color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Number<BR>Outstanding</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Weighted Average<BR>Remaining Life</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Weighted Average<BR>Price</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Weighted Average<BR>Remaining&nbsp;Life</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle><FONT face="Times New Roman"
      size=1><B>Number<BR>Exercisable</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Weighted Average<BR>Price</B></FONT><font face="Times New Roman"><BR>
      </font>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>$1.01-1.50</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,386,498</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5
      years</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1.35</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5
      years</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,136,498</FONT></TD>
    <TD vAlign=bottom><FONT size=1 face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1.35</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font face="Times New Roman">&nbsp;</font></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-22 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

</A>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>&nbsp;</P>


<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>8.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Equity
      (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Equity funding </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In July of 2003, the Company closed a private placement pursuant to which
the Company issued a total of 2,673,334 shares of its common stock, par value
$0.001 per share, and warrants to purchase up to 1,336,667 shares of its common
stock, par value $0.001 per share, for $1.25 per share for a period of 5 years,
to 58 accredited investors. The Company received $2,005,000 in consideration for
the issuance of the securities, less placement fees and other offering costs
associated with the private placement. The securities were issued pursuant to
the exemption from registration provided by Rule 506 of Regulation D. The
Company incurred offering costs of approximately $310,000 in cash and issued an
option to buy 267,334 units at $1.50 per unit. Each unit consisted of two shares
of common stock, in addition to one warrant to purchase stock at an exercise
price of $1.25 per share. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In the third quarter of 2003 ten institutional investors, existing
shareholders, and accredited investors purchased approximately 4,000,000 shares
of common stock, par value $0.001 per share, and warrants to purchase
approximately 2,852,500 shares of the Company's common stock, par value $0.001
per share, at a weighted average price of $1.40 per share for a period of 5
years under an exemption from registration provided by Section 4(2) of the
Securities Act of 1933, as amended. The Company received $2,810,000 in
connection with this offering and incurred offering costs approximating $510,000
in cash and 300,000 options to purchase common stock at a strike price of $1.40
per share. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In December of 2003 the Company raised approximately $2,750,000 through
the issuance of a total of 2,750,000 shares of the Company's common stock, par
value $0.001 per share, and warrants to purchase up to 1,375,000 shares of the
Company's common stock, par value $0.001 per share, for $1.50 per share for a
period of 5 years, to 3 institutional investors. The securities were issued
pursuant to the exemption from registration provided by Section 4(2) of the
Securities Act of 1933, as amended. In connection with this offering the Company
incurred offering costs of approximately $500,000 in cash and approximately
200,000 options to purchase stock at a strike price of $1.50 per share.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Each investor received current information about the Company's company
and had the opportunity to ask questions about the Company's company. These
investors purchased the securities for investment purposes and the securities
they received were marked with the appropriate restrictive legend. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-23 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>9.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Segment
      Information </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Historically the Company has had two reportable segments; truck hauling
and warehouse operations, although the Company continues to provide these two
services, the warehousing segment has become an immaterial component of
providing overall third party logistical support to the Company's customers and
no longer meets the criteria for a reportable segment. Therefore, for the year
ending December 31, 2003 the Company has only one reportable segment.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>For the year ended December 31, 2002, information regarding operations by
segment was as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="61%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Trucking</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Warehouse</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>Total</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Revenue</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>8,061,123</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,899,687</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>9,960,810</FONT></TD></TR>
  <TR>
    <TD height=5></TD>
    <TD colSpan=3 height=5></TD>
    <TD colSpan=3 height=5></TD>
    <TD colSpan=3 height=5></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>33,696</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
    size=2>0</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>33,696</FONT></TD></TR>
  <TR>
    <TD height=5></TD>
    <TD colSpan=3 height=5></TD>
    <TD colSpan=3 height=5></TD>
    <TD colSpan=3 height=5></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Interest expense</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>139,113</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
    size=2>0</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>139,113</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Depreciation</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>11,734</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>90.030</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>101,764</FONT></TD></TR>
  <TR>
    <TD height=5></TD>
    <TD colSpan=3 height=5></TD>
    <TD colSpan=3 height=5></TD>
    <TD colSpan=3 height=5></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net (loss) income</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>295,521</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>78,594</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>374,115</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Equipment, net of accumulated
      depreciation</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>34,524</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>176,539</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>211,063</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Segment assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,214,150</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>379,539</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,593,689</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>10.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Asset
      Acquisition </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In May 2003, the Company received indication from Fifth Third Bank, the
sole senior secured creditor in the bankruptcy filing of Murphy Surf Air
Trucking, Inc., one of the Company's agent firms, that it bid to acquire various
assets from Murphy's bankruptcy filing under terms and conditions that were
agreed upon between the parties. The sale was effected and the terms have been
modified several times during the fiscal year and at year end the sale had been
consummated for all business intents and purposes in that Segmentz continues to
serve its customers and operate in all of the Company's cities. The total
purchase price was $1,952,206, which includes acquisition costs and advances in
excess of the agency agreement of approximately $1,402,206. The following table
summarizes the allocation of the purchase price based on management's estimate
of the fair value of assets acquired and liabilities assumed at December 31,
2003. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Fixed assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,126,100</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Identifiable intangible assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>825,751</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total assets acquired</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,951,851</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The acquired intangible assets have a weighted average life of 4.68
years. The intangible assets include safety and insurance record with a life of
five years, their motor carrier permits with a life of one year and a below
market lease with a life of five years. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-24 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>11.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Business
      Acquisitions </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>On October 1, 2003 Segmentz Inc. acquired all of the outstanding stock of
Bullet Freight Systems of Miami, Inc., Bullet Freight Systems of Palm Beach,
Inc., Bullet Courier Services, Inc., Bullet Freight Systems of Orlando, Inc.,
Bullet Freight Systems, Inc. and B.C.S. Transportation ("Bullet"). Bullet
provides local pickup, delivery, warehouse management and expedited freight
services in Miami and Palm Beach, FL. As consideration for the purchase the
Company paid $225,000 in cash, which was available from working capital and
225,000 shares of common stock of Segmentz, Inc., and conditional payments that
could total $400,000 over a four year period based on the financial performance
of the business. The total purchase price, which includes acquisition costs of
approximately $20,000, but excludes the contingent consideration, was $497,000.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following table summarizes the estimated fair values of the assets
acquired and liabilities assumed at the date of the acquisition. Segmentz, Inc.
is in the process of obtaining a third-party valuation of certain intangible
assets, and thus the allocation of the purchase price is preliminary and subject
to change. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="87%"></TD>
    <TD vAlign=bottom width="7%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>242,291</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Fixed assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>266,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Identifiable intangible assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Goodwill</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>340,428</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total assets acquired</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>849,319</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current liabilities assumed</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(183,213</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Capital lease obligation</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(33,756</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Notes payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(135,350</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net assets acquired</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>497,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-25 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>11.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Business
      Acquisitions (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>On December 31, 2003, the Segmentz, Inc. acquired all of the outstanding
capital stock of Dasher Express, Inc. ("Dasher"). Dasher is in the business of
providing expedited trucking, schedule line haul movements, trade show
transportation and integrated third party logistics services. As consideration
for the purchase the Company paid $1,300,000 cash, 538,462 shares of Segmentz,
Inc.'s common stock and conditional payments that could total up to $800,000
over a four year period based on the financial performance of the business. The
total purchase price includes acquisition costs of approximately $50,000, but
excludes the contingent consideration, was $2,050,000. A $500,000 deferred tax
liability has been recorded related to this acquisition. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following table summarizes the estimated fair values of the assets
acquired and liabilities assumed at the date of the acquisition. Segmentz, Inc.
is in the process of evaluating possible tax liabilities and obtaining a
third-party valuation of certain intangible assets, and thus the allocation of
the purchase price is preliminary and subject to change. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,268,441</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Fixed assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>765,109</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other long-term assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,725</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Identifiable intangible assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Goodwill</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,210,018</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total assets acquired</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,350,293</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current liabilities assumed</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,200,293</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net assets acquired</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,050,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-26 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>11.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Business
      Acquisitions (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The following unaudited pro forma information is presented as if the
purchase of the stock of Bullet and Dasher had occurred on January 1, 2002:
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="80%"
align=center border=0>

  <TR>
    <TD width="72%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="8%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="8%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>December 31,<BR>2003</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>December 31,<BR>2002</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total Revenues</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>22,946,539</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>18,886,164</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net Income applicable to common
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>420,402</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>277,627</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Earnings per share:</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.04</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.02</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.04</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.02</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>12.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Income
      Taxes </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><I>The provision for income taxes is as follows: </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%"
align=center border=0>

  <TR>
    <TD width="83%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="2%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>Years Ended<BR>December 31,</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Federal</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>State</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Deferred</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Federal</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>(23,460</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>State</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>(2,505</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>(25,965</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Provision for income taxes</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman"
      size=2>(25,965</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>-&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-27 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>12.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Income
      Taxes (con't) </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The provision for income taxes is different from that which would be
obtained by applying the statutory federal income tax rate to income before
income taxes. The items causing this difference are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%"
align=center border=0>

  <TR>
    <TD width="79%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Tax expense (benefit) at U.S. statutory
      rate</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>60,248</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>129,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>State income tax expense (benefit), net of
      federal benefit</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,663</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>13,800</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Effect of non-deductible
    expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>4,724</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>4,300</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Change in valuation allowance</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(97,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(147,700</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$(25,965)</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
    size=2>0</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and deferred tax liabilities at December 31,
2003 and 2002 are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%"
align=center border=0>

  <TR>
    <TD width="79%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2002</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Deferred tax assets
    (liability):</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts and loan receivables due to bad
      debts</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>82,920</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>51,400</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Capital loss carryforward</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>14,695</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>29,700</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net operating loss
carryforward</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>188,434</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>15,900</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Prepaid expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(94,410</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Depreciation variance</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(283,808</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)*</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts receivable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(200,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)*</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Intangible assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(130,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)*</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Contract set up costs</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(51,866</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total gross deferred tax
assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(474,035</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>97,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Less valuation allowance</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(97,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net deferred tax liability</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(474,035</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
    size=2>0</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>A valuation allowance is provided when it is more likely than not that
some portion of the deferred tax asset will not be realized. No valuation
allowance was considered necessary at December 31, 2003 based on the Company's
expectations of future taxable income. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>As of December 31, 2003, the Company had federal and state net operating
loss carry-forwards totaling approximately $502,620, which begin expiring in
2021. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2>*</FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2>A $500,000
      deferred tax liability was recorded related to acquisitions during the
      year ended December 31, 2003. </FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-28 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Consolidated Financial Statements
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><I>Years ended December 31, 2003 and 2002
</I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>13.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman" size=2><B>Related
      Party Transactions </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the year ended December 31, 2002, a stockholder of the Company
consented to a reduction in balance due to it from the Company pursuant to an
agreement to offset credit losses in connection with Huff Timber Company, a
former customer, and Logistics Management Resources, Inc., and the receivable
losses experienced by the Company in the year ended December 31, 2002. The
amount of offset was approximately $299,300 and is reflected as a reduction to
G&amp;A expenses in the consolidated financial statements for the year ended
December 31, 2002. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company utilizes the services of tractor owner-operators that are
employed by Bryant Plastics, a stockholder in the Company. The Company's
agreement with Bryant Plastics is identical to its agreement with any
independent owner-operators, and Bryant receives payment terms and percentages
that are identical to other agreements with unrelated entities. The Company
believes these terms to be equitable and fair and believes that these
transactions are treated in the normal course of business as if Bryant had no
relationship with the Company other than that of an owner-operator. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In October 2003, the Company entered into an agreement to sell several
owned vehicles to Bryant Plastics, Inc., resulting in a gain on sale of $76,000.
In this transaction, Bryant exchanged 90,000 shares of stock at $1.40 per share
in exchange for clear title to several tractors that had been purchased by
Segmentz previously. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In July 2003, the Company consented to utilize "best efforts" to retire
all preferred shares by fiscal year end. In concert with this agreement, the
Company's officers entered into negotiations with the CEO of the Company that
resulted in the purchase of 414,923 shares of preferred series A stock for the
price of $.58 per share, a total of $240,655. Because the purchase price of
these shares had been set at $1.00 at the time of their issuance resulting from
them having been converted from debt at face value, this purchase resulted in a
gain for the Company in the amount of $174,268. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="4%"><FONT face="Times New Roman"
      size=2><B>14.</B></FONT></TD>
    <TD vAlign=top align=left><FONT face="Times New Roman"
      size=2><B>Subsequent Events </B></FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Since December 31, 2003, the Company received approximately $1,550,000 in
gross proceeds from a private placement offering of the Company's stock that was
made in accordance with exemption under Regulation D, Rule 506 of the Securities
and Exchange Act of 1933, as amended, in which the Company sold approximately
400,000 units to accredited investors at a price of $2.00 per unit, each unit
consisting of two shares of common stock and one warrant to purchase a share of
common stock of the Company at an exercise price of $1.50 per share, and one
investor exercised purchase rights under the terms of options issued in
connection with this placement, buying 500,000 shares for $1.50 per share.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Since December 31, 2003, the Company entered into a term credit facility
with Merrill Lynch Business Financial Services (MLBFS) with a stated credit
limit of $1.75 million. This facility is a revolving facility that provides for
advance against the Company's eligible accounts receivable balances. The
facility bears interest at London InterBank Over the Counter Rate (LIBOR) plus
275 basis points. The LIBOR rate at the closing of the facility was 1.21%. As of
January 31, 2004, the Company has drawn approximately $600,000 against its
available credit line. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In January 2004, the Company entered into an agreement to acquire
selected assets and to assume certain liabilities of Frontline Freight Systems,
Inc. In concert with this acquisition, the Company issued 77,000 shares of
Segmentz stock that is held in escrow, pending the achievement of revenue
milestones, and assumed certain liabilities that have been defined not to exceed
the collection of assets acquired by the Company in connection with this
transaction. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>F-29 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>


<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=toc></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 and 2003
(Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Contents </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>

  <TR>
    <TD width="94%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="2%"></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Financial Statements:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=2 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504089519/d10qsb.htm#tx66184_1">Balance
      Sheet</A></FONT></P></TD>
    <TD vAlign=bottom colspan="2"><FONT face="Times New Roman"
    size=2>F-31</FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504089519/d10qsb.htm#tx66184_2">Statements
      of Operations</A></FONT></P></TD>
    <TD vAlign=bottom><FONT size=2>F-32&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504089519/d10qsb.htm#tx66184_3">Statement
      of Changes in Stockholders' Equity</A></FONT></P></TD>
    <TD vAlign=bottom><font size="2">F-33</font></TD>
    <TD vAlign=bottom align=right>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504089519/d10qsb.htm#tx66184_4">Statements
      of Cash Flows</A></FONT></P></TD>
    <TD vAlign=bottom><font size="2">F-34</font></TD>
    <TD vAlign=bottom align=right>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><A
      href="http://www.sec.gov/Archives/edgar/data/1166003/000119312504089519/d10qsb.htm#tx66184_5">Notes
      to Financial Statements</A></FONT></P></TD>
    <TD vAlign=bottom><font size="2">F-35</font></TD>
    <TD vAlign=bottom noWrap align=right>&nbsp;</TD></TR></TABLE>
<P style="PAGE-BREAK-BEFORE: always">
<p style="page-break-before: always">&nbsp;</p>
<p style="page-break-before: always" align="center"><font size="2">F-30</font></p>
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=tx66184_1></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Balance Sheet </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>March 31, 2004 (Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD>
    <TD width="1%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Assets</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current assets:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cash and cash equivalents</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,553,021</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts receivable, net of allowance of
      $1,054,396</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>4,468,468</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Prepaid expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,374,979</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>236,945</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,633,413</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Property and equipment, net of accumulated
      depreciation</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,157,413</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Goodwill</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,550,446</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Loans and advances</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>103,286</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other long term assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>995,702</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>13,440,260</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Liabilities and Stockholders'
      Equity</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Current liabilities:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>757,868</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued salaries and wages</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>333,866</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued expenses, other</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>524,919</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Line of credit</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>637,248</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Short-term portion of long-term
      debt</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>340,928</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other current liabilities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>18,150</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total current liabilities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,612,979</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Notes payable and capital
    leases</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>361,412</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Deferred tax liability</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>450,979</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Stockholders' equity:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Common stock, $.001 par value; 40,000,000
      shares Authorized; 19,732,096 shares issued and outstanding</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>19,732</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Additional paid-in capital</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,290,972</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accumulated deficit</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(295,814</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total stockholders' equity</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,014,890</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>13,440,260</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><I>The accompanying notes are an integral part of the financial
statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-31</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=tx66184_2></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Statements of Operations (Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="74%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman"
      size=1><B>Three Months Ended</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>March 31,<BR>2004</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>March 31,<BR>2003</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Revenues:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Operating revenue</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,620,752</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,880,081</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Consulting and other revenue</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,641</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,620,752</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,887,722</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Expenses:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cost of Services</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>5,470,921</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,190,190</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>General and administrative
      expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,702,762</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>502,737</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Interest expense</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>71,100</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,453</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,244,783</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,703,380</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Income (loss) before tax (benefit)
      provision</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(624,031</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>184,342</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD>
    <TD colSpan=3 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Income tax (benefit) provision</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(220,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>53,500</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net (loss) income</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(404,031</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>130,842</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic (loss) earnings per common
      share</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(.02</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.02</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic weighted average common shares
      outstanding</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>18,926,748</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>6,797,847</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted (loss) earnings per common
      share</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(.02</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>.02</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted weighted average common shares
      outstanding</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>18,926,748</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,993,499</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><I>The accompanying notes are an integral part of the financial
statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-32</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=tx66184_3></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Statement of Changes in Stockholders' Equity
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 (Unaudited)
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="20%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="9%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="8%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="7%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom rowSpan=4><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman"
      size=1><B>Preferred Stock</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman"
      size=1><B>Capital Stock</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=4><FONT
      face="Times New Roman"
      size=1><B>Additional<BR>Paid-In<BR>Capital</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=4>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Retained</B></FONT></P>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Earnings</B></FONT></P>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>(Accumulated</B></FONT></P>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Deficit)</B></FONT></P>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=4><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=4><FONT
      face="Times New Roman" size=1><B>Total</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=4><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle rowSpan=3>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Shares</B></FONT></P>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=3><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=3>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Amount</B></FONT></P>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom rowSpan=3><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle rowSpan=3>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Shares</B></FONT></P>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2 rowSpan=3>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Amount</B></FONT></P>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Balance, December 31, 2003</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>773,896</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>773,896</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>17,087,840</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>17,088</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>7,427,013</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>108,217</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>8,326,214</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Conversion of series A preferred
      stock</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(773,896</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(773,896</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>763,923</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>764</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>773,132</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Issuance of common stock for
      acquisition</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>77,000</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
    size=2>77</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>99,923</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>100,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Issuance of common stock, net</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,803,333</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,803</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,990,904</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,992,707</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top noWrap>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net loss through March&nbsp;31,
      2004</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(404,031</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(404,031</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Balance, March 31, 2004</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>19,732,096</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>19,732</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,290,972</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(295,814</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,014,890</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><I>The accompanying notes are an integral part of the financial
statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-33</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=tx66184_4></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><B>Statements of Cash Flows (Unaudited)
</B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0
width="100%" align=center border=0>

  <TR>
    <TD width="76%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD vAlign=bottom width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=6>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>Three Months Ended</B></FONT></P>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
      face="Times New Roman" size=1><B>March 31,</B></FONT></P>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2004</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman"
      size=1><B>2003</B></FONT><BR>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Operating activities</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net (loss) income</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(404,031</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>130,842</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Adjustments to reconcile net (loss) income
      to net cash used in operating activities:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Provision for doubtful accounts
      receivable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(25,783</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>22,658</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Depreciation and amortization</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>239,296</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>21,526</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Valuation on deferred tax
asset</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(15,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Non-cash expenses related to issuance of
      stock and warrants</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>17,195</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>10,453</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Changes in:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts and other trade
      receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(40,028</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>273,154</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other current assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(196,945</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Prepaid expenses and other
    assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(395,352</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(341,622</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>27,988</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other assets</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(125,426</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accounts payable</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(735,028</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(310,736</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued expenses</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>204,090</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>70,169</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Accrued salaries and wages</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>158,578</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>12,400</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Other liabilities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(22,306</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total adjustments</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(796,283</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(355,036</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net cash used in operating
      activities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,200,314</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(224,194</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Investing activities</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Purchases of equipment</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(256,463</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Deposit on equipment purchase</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(145,514</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Loans, advances, and other
      receivables</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,657</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,492</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net cash used in investing
      activities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(400,320</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,492</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Financing activities</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net obligations under factoring
      arrangements</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(1,032,708</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(244,528</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Proceeds from line of credit,
    net</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>637,248</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Proceeds from issuance of debt and capital
      leases</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>99,366</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>355,000</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Payment on debt and capital
    leases</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(539,692</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Overdraft facility</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>70,675</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Proceeds from issuance of equity,
      net</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,960,143</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>40,781</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net cash provided by financing
      activities</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,124,357</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>221,928</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Net decrease in cash</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(476,277</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(3,758</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Cash, beginning of
    period</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>2,029,298</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>3,758</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Cash, end of period</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>1,553,021</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=3>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=3>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2><B>Supplemental disclosure of cash flow
      information and non-cash financing activities:</B></FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Cash paid during the period for
      interest</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>55,600</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><I>The accompanying notes are an integral part of the financial
statements. </I></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-34</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2><A name=tx66184_5></A>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 and 2003
(Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>1. Significant Accounting Principles </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Basis of Presentation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In the opinion of management, all adjustments consisting of normal
recurring adjustments necessary for a fair statement of (a) the financial
position at March 31, 2004, (b) the results of operations for the three month
periods ended March 31, 2004 and 2003, and (c) cash flows for the three month
periods ended March 31, 2004 and 2003, have been made. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The unaudited financial statements and notes are presented as permitted
by Form 10-QSB. Accordingly, certain information and note disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been omitted.
The accompanying financial statements and notes should be read in conjunction
with the audited financial statements and notes of the Company for the fiscal
year ended December 31, 2003. The results of operations for the three-month
period ended March 31, 2004 are not necessarily indicative of those to be
expected for the entire year. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Stock-Based Compensation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Segmentz, Inc. (the Company) accounts for stock based compensation under
the intrinsic value method of accounting for stock based compensation and has
disclosed pro forma net income and earnings per share amounts using the fair
value based method prescribed by Statement of Financial Accounting Standards
("SFAS") No. 123, "Accounting for Stock Based Compensation." The Company has
implemented the disclosure provisions of SFAS No. 148, <I>Accounting for
Stock-Based Compensation - Transition and Disclosure</I>. There was no stock
based compensation given to employees during the period ended March 31, 2003.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%"
align=center border=0>

  <TR>
    <TD width="86%"></TD>
    <TD vAlign=bottom width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="6%"></TD>
    <TD width="1%"></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>For the three-months ended March 31,
      2004:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net loss:</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>As reported</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(404,031</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total stock-based employee compensation
      expense included in reported net income applicable to common stockholder,
      net of tax</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>-&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
    size=2>&nbsp;</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Total stock-based employee compensation
      determined under fair value based method, net of related tax
      effects</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(134,100</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom>
      <HR align=right color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR color=#000000 noShade SIZE=1>
    </TD>
    <TD vAlign=bottom>
      <HR align=left width=0 color=#ffffff noShade SIZE=1>
    </TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Pro forma</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Net loss</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(538,131</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Earnings per share</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic - as reported</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(0.02</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Basic - pro forma</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(0.03</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted earnings per share</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR>
  <TR>
    <TD height=8></TD>
    <TD colSpan=4 height=8></TD></TR>
  <TR bgColor=#cceeff>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted - as reported</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(0.02</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
size=2>)</FONT></TD></TR>
  <TR>
    <TD vAlign=top>
      <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT
      face="Times New Roman" size=2>Diluted - pro forma</FONT></P></TD>
    <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right><FONT face="Times New Roman"
      size=2>(0.03</FONT></TD>
    <TD vAlign=bottom noWrap><FONT face="Times New Roman"
  size=2>)</FONT></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-35</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 and 2003
(Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>1. Significant Accounting Principles -continued </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Stock-Based Compensation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The preceding pro forma results were calculated with the use of the
Black-Scholes option pricing model. The following assumptions were used for the
period ended March 31, 2004 (1) risk-free interest rate of 2.80%, (2) no
dividend yield (3) expected lives of between 3.0 and 5.0 years (4) volatility of
85%. Results may vary depending on the assumptions applied within the model.
Compensation expense recognized in providing pro forma disclosures may not be
representative of the effects on net income for future years. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Use of Estimates </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company prepares its consolidated financial statements in conformity
with accounting principles generally accepted in the United States of America.
These principles require management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. The Company reviews its estimates, including but not limited
to, recoverability of long-lived assets, recoverability of prepaid expenses,
valuation of investments and allowance for doubtful accounts, on a regular basis
and makes adjustments based on historical experiences and existing and expected
future conditions. These evaluations are performed and adjustments are made as
information is available. Management believes that these estimates are
reasonable; however, actual results could differ from these estimates.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-36</font></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 and 2003
(Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>1. Significant Accounting Principles -continued </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Income Taxes </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Taxes on income are provided in accordance with SFAS No. 109,
<I>Accounting for Income Taxes</I>. Deferred income tax assets and liabilities
are recognized for the expected future tax consequences of events that have been
reflected in the consolidated financial statements. Deferred tax assets and
liabilities are determined based on the differences between the book values and
the tax bases of particular assets and liabilities and the tax effects of net
operating loss and capital loss carry forwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to
recovered or settled. The effect on deferred tax assets and liabilities of a
change in the tax rate is recognized as income or expense in the period that
included the enactment date. A valuation allowance is provided to offset the net
deferred tax assets if, based upon the available evidence, it is more likely
than not that some or all of the deferred tax assets will not be realized. There
is no allowance recorded as of March 31, 2004 on any deferred tax assets.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Earnings Per Share </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Earnings per common share are computed in accordance with SFAS No. 128,
"Earnings Per Share," which requires companies to present basic earnings per
share and diluted earnings per share. Basic earnings per share are computed by
dividing net income by the weighted average number of shares of common stock
outstanding during the year. Diluted earnings per common share are computed by
dividing net income by the weighted average number of shares of common stock
outstanding and dilutive options outstanding during the year. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Common stock equivalents in the three-month period ended March 31, 2004
was anti-dilutive due to the net losses sustained by the Company during this
period. Therefore, the diluted weighted average common shares outstanding in
this period is the same as the basic weighted average common shares outstanding.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>2. Obligations Due Under Factoring Arrangement </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>As of January 31, 2004 the Company terminated the factoring agreement and
the obligation due under factoring arrangement was fully satisfied. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-3</font><FONT
face="Times New Roman" size=2>7 </FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 and 2003
(Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>3. Commitments and Contingencies </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Litigation </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In the ordinary course of business, the Company may be a party to a
variety of legal actions that affect any business. The Company does not
anticipate any of these matters or any matters in the aggregate to have a
material adverse effect on the Company's business or its financial position or
results of operations. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>Regulatory Compliance </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company's activities are regulated by state and federal regulatory
agencies under requirements that are subject to broad interpretations. The
Company cannot predict the position that may be taken by these third parties
that could require changes to the manner in which the Company operates.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>4. Line of Credit </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In January of 2004, the Company entered into a term credit facility with
Merrill Lynch Business Financial Services (MLBFS) with a stated credit limit of
$1.75 million. This facility is a revolving facility that provides for advances
against the Company's eligible accounts receivable balances. The facility bears
interest at London InterBank Over the Counter Rate (LIBOR) plus 275 basis
points. The LIBOR rate at March 31, 2004 was 1.09%. As of March 31, 2004, the
Company had approximately $1,100,000 available under this credit facility.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-3</font><FONT
face="Times New Roman" size=2>8</FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>

<H5 align=left>&nbsp;</H5>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Segmentz, Inc. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Notes to Financial Statements </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT
face="Times New Roman" size=2>Three Months Ended March 31, 2004 and 2003
(Unaudited) </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>5. Equity </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the period ended March 31, 2004 the Series A Preferred Stock was
converted into 763,923 shares of common stock </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>During the period ended March 31, 2004, the Company received
approximately $1,737,500 in gross proceeds from a private placement offering of
the Company's stock that was made in accordance with exemption under Regulation
D, Rule 506 of the Securities and Exchange Act of 1933, as amended, in which the
Company sold approximately 400,000 units to accredited investors at a price of
$2.00 per unit, each unit consisting of two shares of common stock and one
warrant to purchase a share of common stock of the Company at an exercise price
of $1.50 per share, and two investor exercised purchase rights under the terms
of options issued in connection with this placement, buying 625,000 shares for
$1.50 per share. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In March 2002, the Company issued 350,000 warrants to purchase common
stock in the Company for between $1.01 and $1.15 in connection with a term note
to Sports Funding Inc. that has been repaid. In February of 2004 the company
received approximately $367,500 related to these warrants being exercised.
Subsequent to the repayment of the loan and the warrants being exercised the
President of Sports Funding joined the Segmentz, Inc. Board of Directors.
</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>The Company incurred offering costs of approximately $170,000 during the
period ended March 31, 2004. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>6. Acquisitions </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>In January 2004, the Company entered into an agreement to acquire
selected assets and to assume certain liabilities of Frontline Freight Systems,
Inc. In concert with this acquisition, the Company issued 77,000 shares of
Segmentz stock that is held in escrow, pending the achievement of revenue
milestones, and assumed certain liabilities that have been defined not to exceed
the collection of assets acquired by the Company in connection with this
transaction. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2><B>7. Subsequent Events </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman"
size=2>Since March 31, 2004, the Company received approximately $10,672,500 in
gross proceeds from a private placement offering of the Company's stock that was
made in accordance with exemption under regulation D, Rule 506 of the Securities
and Exchange Act of 1933, as amended, in which the Company sold 6,098,571 units
to accredited investors at a price of $1.75 per unit, each unit consisting of
one share of common stock and two tenths of a warrant to purchase a share of
common stock for an exercise price of $2.20 per share. The Company incurred
offering costs of approximately $1,100,000. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><font size="2">F-3</font><FONT
face="Times New Roman" size=2>9</FONT></P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>



<P>
<B><FONT size=2 face="serif">No dealer, sales representative or any other person has been authorized to give any information or to make any representations other than those contained in this prospectus and, if given or made, such information or
representation must not be relied upon as having been authorized by the Company or any of the underwriters. This prospectus does not constitute an offer of any securities other than those to which it relates or an offer to sell, or a solicitation of
any offer to buy, to any person in any jurisdiction where such an offer or solicitation would be unlawful. Neither the delivery of this prospectus nor any sale made hereunder shall, under any circumstances, create an implication that the information
set forth herein is correct as of any time subsequent to the date hereof.</FONT></B>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD colspan="3" align="center"><B><FONT size=2 face="serif">TABLE OF CONTENTS</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" width="27%"><FONT size=2 face="serif">Page</FONT></TD>
    <TD align="center" width="27%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Prospectus Summary</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;2</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Risk Factors</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;4</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Use of Proceeds</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;9</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Capitalization</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;9</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Price Range of Common Stock</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD align="center" width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
      Dividend Policy</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;10</FONT></TD>
    <TD width="27%" align="center"><B><FONT size=2 face="serif">27,520,445 SHARES</FONT></B></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Selling Security Holders</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;11</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Plan of Distribution</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;19</FONT></TD>
    <TD width="27%" align="center"><B><FONT size=2 face="serif">SEGMENTZ, INC.</FONT></B></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Management&#8217;s Discussion and</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Analysis
      of Financial Condition</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;and Results of Operations</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;21</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Business</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;28</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Management</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;39</FONT></TD>
    <TD width="27%" align="center"><B><FONT size=2 face="serif">PROSPECTUS</FONT></B></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Executive Compensation</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;43</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Principal Shareholders</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;46</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Certain Transactions</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;48</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Description of Securities</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;48</FONT></TD>
    <TD align="center" width="27%"><HR noshade size=1></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Shares Eligible for Future Sale</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;50</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Legal Matters</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;50</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD>
    <p dir="ltr"><FONT size=2 face="serif">Experts</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;51</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Available Information</FONT></TD>
    <TD width="27%">
    <p align="center"><FONT size="2" face="serif">&nbsp;51</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Financial Statements</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2" face="serif">&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P>
<B><FONT size=2 face="serif">Until September 15, 2004, 90 days after the date of this Prospectus, all dealers effecting transactions in the registered securities, whether or not participating in this distribution, may be required to deliver a
Prospectus. This delivery requirement is in addition to the obligations of dealers to deliver a Prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions. </FONT></B>
</P>

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