<SUBMISSION>
<ACCESSION-NUMBER>0000948600-02-000080
<TYPE>S-3/A
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20021127
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PERMA FIX ENVIRONMENTAL SERVICES INC
<CIK>0000891532
<ASSIGNED-SIC>4955
<IRS-NUMBER>581954497
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3/A
<ACT>33
<FILE-NUMBER>333-70676
<FILM-NUMBER>02843687
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1940 NORTHWEST 67TH PLACE
<STREET2>SUITE A
<CITY>GAINESVILLE
<STATE>FL
<ZIP>32653
<PHONE>3523734200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1940 NW 67TH PL
<STREET2>SUITE A
<CITY>GAINESVILLE
<STATE>FL
<ZIP>32653
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>s3-amend4.htm
<DESCRIPTION>AMENDMENT NO. 4 TO THE FORM S-3 (11-27-2002)
<TEXT>
<HTML>
<HEAD>
<TITLE>Amendment No. 4 to Form S-3 Registration Statement</TITLE>
</HEAD>
<BODY TEXT="#000000" LINK="#0000ff" VLINK="#551a8b" ALINK="#ff0000" BGCOLOR="#c0c0c0">

<P ALIGN="CENTER">As filed with the Securities and Exchange Commission on <font color="#FF0000"><b>November
27</b></font>, 2002<br>
&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;&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;&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;&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;<STRONG>Registration No. 333-70676</STRONG></P>

<hr noshade size="5" color="#000080">
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C.  20549</P>

<P><U><CENTER>                                   </U><FONT SIZE="-1">________________________</CENTER>
</FONT></P>

<P ALIGN="CENTER"><STRONG><FONT SIZE="+1">FORM S-3/A<br>
AMENDMENT NO. </FONT> </STRONG> <b><font size="4" color="#FF0000">4</font></b></P>

<P ALIGN="CENTER">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<br>
<br>
________________________</P>

<P><FONT SIZE="+1"><STRONG><CENTER>PERMA-FIX ENVIRONMENTAL SERVICES, INC.<br>
</CENTER>
</STRONG></FONT><FONT SIZE="-2"><EM><CENTER>(Exact name of registrant as specified in charter)</EM></FONT></CENTER>
</P>

<P><STRONG>		<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DELAWARE</STRONG>&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;&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;&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;<STRONG>58-1954497<br>
</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<EM><FONT SIZE="-2">(State or other jurisdiction of&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;&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;&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;&nbsp;&nbsp;&nbsp;(I.R.S. Employer Identification No.)<br>
</FONT></EM>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<EM><FONT SIZE="-2">incorporation or organization)</FONT></EM></P>

<P align="center"><FONT SIZE="-1"><STRONG>1940 Northwest 67th Place<br>
Gainesville, Florida 32653<br>
(352) 373-4200<br>
</STRONG></FONT><FONT SIZE="-2"><EM>(Address, including zip code, and telephone number, including area code, of registrant's principal executive office)<br>
</EM></FONT><FONT SIZE="-1"><CENTER>                                   ________________________<br>
</CENTER>
</FONT>

</P>

<P align="center"><FONT SIZE="-1"><STRONG>DR. LOUIS F. CENTOFANTI<br>
Chairman of the Board<br>
Perma-Fix Environmental Services, Inc.<br>
1940 Northwest 67th Place<br>
Gainesville, Florida  32653<br>
(352) 373-4200<br>
</STRONG>
</FONT>

<FONT SIZE="-2"><EM>(Address, including zip code, and telephone number, including area code, of agent for service)<br>
</EM></FONT><FONT SIZE="-1">Copy to:<br>
<STRONG>Irwin H. Steinhorn, Esquire<br>
Conner &amp; Winters, A Professional Corporation<br>
One Leadership Square, Suite 1700<br>
211 North Robinson<br>
Oklahoma City, Oklahoma  73102<br>
(405) 272-5711<br>
________________________</STRONG></FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximate date of commencement of proposed sale to the public:<STRONG> As soon as practicable after this Registration Statement
becomes effective.</STRONG></FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the only securities being registered on this form are being offered pursuant to a dividend or interest reinvestment plans, please
check the following box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415
under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check
the following box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[X]</FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective registration statement for the same offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If delivery of the prospectus is expected to be made pursuant to Rule 434, check the following box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><STRONG>	The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay
its effective date until the Registrant shall file a further amendment which specifically states that this registration
statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this
registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.</STRONG></P>

<P><CENTER><STRONG>CALCULATION OF REGISTRATION FEE</STRONG><FONT SIZE="-1"></CENTER>
</FONT></P>

<TABLE WIDTH="100%" bordercolorlight="#000080" border="1" bordercolordark="#000080">
<TR VALIGN="TOP"><TD ALIGN="CENTER">
<font size="2"><b>
<BR WP="BR1">Title of Each Class<br>
of Securities to be<br>
Registered</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>
<BR WP="BR1">Number of<br>
  Shares to be<br>
  Registered</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>Proposed<br>
  Maximum<br>
  Offering Price<br>
  Per Share</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>Proposed<br>
  Maximum<br>
  Aggregate<br>
  Offering Price</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>
<BR WP="BR1">Amount of<br>
  Registration<br>
  Fee</b></font></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Common Stock</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT face="CG Times" SIZE="-1">17,931,966</FONT><FONT SIZE="-1"><SUP>(1)</SUP></FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">$ 2.45<SUP>(2)</SUP></FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">$43,933,316<SUP>(3)</SUP></FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">   $4,041.87<SUP>(4)</SUP>  </FONT></TD></TR></TABLE>
&nbsp;<P><FONT SIZE="-1">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes (a) 4,010,638 shares which have been
issued by the Company pursuant to a private placement;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font color="#FF0000">&nbsp;</font></b>(b) 1,793,178 shares which have been&nbsp;issued pursuant to an exchange agreement; and
(c) 12,128,150&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares issuable
by the Company upon the&nbsp;exercise of various warrants having exercise prices&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ranging from $1.20 to $1.9688.</FONT></P>

<P><FONT SIZE="-1">(2)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="-1">Estimated solely for the purposes of calculating the registration fee in accordance with Rule 457(c) and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on the basis of the
average of the high and low price as quoted on the NASDAQ Small Cap Market&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on September
26, 2002.</FONT></P>

<P><FONT SIZE="-1"></FONT><FONT SIZE="-1">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated in accordance with Rule 457(g) for the purpose of calculating the registration fee.</FONT></P>

<P><FONT SIZE="-1">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previously paid.</FONT></P>

<BR WP="BR1">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">

<P>&nbsp;</P>

<P><CENTER><FONT FACE="CG Times" COLOR="#ff0000"><STRONG>Subject to Completion:  Dated
November 27, 2002</STRONG></FONT><FONT FACE="CG Times"></CENTER>
</FONT></P>

<P><FONT FACE="CG Times"><STRONG><U>PROSPECTUS</U></STRONG></FONT><FONT FACE="CG Times">	</FONT></P>

<P><FONT FACE="CG Times">_____________________________________________________________________________</FONT></P>

<p align="center"><font face="CG Times" size="7">Perma</font><b><font face="CG Times" size="7">Fix<br>
</font></b><font size="4">environmental services</font>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><FONT FACE="CG Times"><STRONG>17,931,966 Shares</STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></p>
<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>PERMA-FIX
ENVIRONMENTAL SERVICES, INC.</STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>Common Stock</STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times">_____________________________________________________________________________</FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to the offer or sale of up to 17,931,966	shares of Perma-Fix Environmental
Services, Inc. common stock, or the Shares, from time to time by the Selling Stockholders listed in this
prospectus.  We will not receive any proceeds from the sale of the Shares by the Selling Stockholders.
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the Nasdaq SmallCap Market under the symbol "PESI" and on the
Boston Stock Exchange under the symbol "PES."  On </FONT><font face="CG Times" size="-1" color="#FF0000"><b>November
26</b></font><FONT FACE="CG Times" SIZE="-1">, 2002, the closing price of our common stock
as reported on the Nasdaq SmallCap Market was $2.50.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has agreed to pay all the costs and fees relating to the registration of the Shares
covered by this prospectus.  However, the Company will not pay any discounts, concessions, or commissions
payable to underwriters, dealers, or agents incident to the offering of the Shares or the fees and expenses incurred
by counsel for the Selling Stockholders.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><U><CENTER></U>___________________________________</CENTER>
</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG>Investment in these securities involves a high degree of risk.<br>
See "RISK FACTORS" beginning on page 2 of this prospectus.</STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG>_</STRONG>__________________________________</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG>Neither the Securities and Exchange Commission nor any state securities commission has approved or
disapproved these securities or passed upon the adequacy of this prospectus.  Any representation to the
contrary is a criminal offense</STRONG>.</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><U></U>___________________________________</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1">The date of this prospectus is ____________________, 2002.</FONT></P>

&nbsp;
<p>&nbsp;</p>
<p><font face="Arial" size="2">The information in this prospectus is not
complete and may be changed.&nbsp; These securities may not be sold until the
related registration statement filed with the SEC is effective.&nbsp; This
prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any state where the offer or sale is not
permitted.</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG>TABLE OF CONTENTS</STRONG></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<table border="0" cellpadding="0" cellspacing="1" width="100%">
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">ABOUT OUR BUSINESS. . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font FACE="CG Times" SIZE="-1">&nbsp;&nbsp;1</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">RISK FACTORS. . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font FACE="CG Times" SIZE="-1">&nbsp;&nbsp;2</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">SPECIAL NOTE REGARDING
      FORWARD-LOOKING STATEMENTS. . . . . . . . . . . . . . . . . . . . . . .</font></td>
    <td width="10%"><font SIZE="-1" face="CG Times" color="#000000">&nbsp;&nbsp;9</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">RECENT DEVELOPMENTS . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font face="CG Times" SIZE="-1" color="#000000">10</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">POTENTIAL CHANGE IN CONTROL.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font face="CG Times" SIZE="-1">13</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">USE OF PROCEEDS. . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font face="CG Times" SIZE="-1">14</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">SUMMARY OF SECURITIES BEING
      OFFERED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font face="CG Times" SIZE="-1">15</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">SELLING STOCKHOLDERS. . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . .</font></td>
    <td width="10%"><font face="CG Times" size="-1">22</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">PLAN OF DISTRIBUTION. . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . .</font></td>
    <td width="10%"><font FACE="CG Times" SIZE="-1">29</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">LEGAL OPINION. . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font face="CG Times" size="-1">30</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">EXPERTS . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . .&nbsp;</font></td>
    <td width="10%"><font face="CG Times" size="-1">30</font></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><font FACE="CG Times" SIZE="-1">WHERE YOU CAN FIND MORE
      INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . .</font></td>
    <td width="10%">
      <p><font FACE="CG Times" SIZE="-1" color="#000000">30</font></p>
    </td>
  </tr>
</table>
&nbsp;
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">i</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>ABOUT OUR BUSINESS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are engaged, through our subsidiaries, in the following lines of business:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER><STRONG><EM>Industrial Waste Management Services</EM></CENTER>
</STRONG></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Industrial Waste Management Services include:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"></FONT><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;treatment, storage, processing, and disposal of hazardous and nonhazardous waste;</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
industrial waste and wastewater management services, including the collection, treatment,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;processing and
disposal of hazardous and non-hazardous waste; and</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;various waste management services to certain governmental agencies.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These services are primarily conducted through six of our subsidiaries and through various locations within our
government services group:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix Treatment Services, Inc. located in Tulsa, Oklahoma;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix of Dayton, Inc. located in Dayton, Ohio;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="-1">Perma-Fix of Ft. Lauderdale, Inc. located in Davie, Florida;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix of Orlando, Inc. located in Orlando, Florida;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix of South Georgia, Inc. located in Valdosta, Georgia;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="-1">Perma-Fix of Michigan, Inc. located in Detroit, Michigan; and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix Government Services headquartered in Tulsa, Oklahoma.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER><STRONG><EM>Nuclear Waste Management Services</EM></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Nuclear Waste Management Services include:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;treatment, storage, processing and disposal of mixed waste (waste containing both low-level&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;radioactive and
hazardous waste); and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;nuclear and low-level radioactive waste treatment, processing and disposal, which includes&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;research,
development, and on and off-site waste remediation and processing.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These services are primarily conducted through three of our subsidiaries:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="-1">Perma-Fix of Florida, Inc. located in Gainesville, Florida;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diversified Scientific Services, Inc. located in Kingston, Tennessee; and<br>
</FONT><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;East Tennessee Materials and Energy Corporation located in Oak Ridge, Tennessee. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER><STRONG><EM>Consulting Engineering Services</EM></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Consulting Engineering Services include broad-scope environmental issues, including:<br>
<br>
</FONT><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;environmental management programs;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;regulatory permitting;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compliance and auditing;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;landfill design; and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="-1">field testing and characterization.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These services are primarily conducted through our subsidiary, Schreiber, Yonley &amp; Associates, Inc., located in
St.&nbsp;Louis, Missouri.	</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have grown through both acquisitions and internal development.  Our present objective is to focus on the
operations,  maximize profitability, and to continue the research and development of innovative technologies for the
treatment of nuclear, mixed and industrial waste. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We service research institutions, commercial companies, public utilities, and governmental agencies nationwide.
The distribution channels for services are through direct sales to customers or via intermediaries. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated in the State of Delaware in December 1990. Our executive offices are located at 1940 N.W.
67th Place, Gainesville, Florida 32653, and our telephone number is (352) 373-4200.  Our home page on the Internet is
<u>www.perma-fix.com</u>.&nbsp; The information contained in our web site is not incorporated by reference in this prospectus.<br>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>RISK FACTORS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prospective purchasers of the Shares pursuant to this prospectus should consider carefully the factors set forth
below, as well as the other information contained in this prospectus and incorporated herein by reference.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>We have a history of losses from operations and may continue to incur additional losses in the future which could
adversely affect our ability to operate and your investment in our common stock.</STRONG></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have reported consolidated net losses in all annual periods, except 1999, when we reported net income of $1,570,000,
before provision for preferred stock dividends, net of $120,000.  For the year ended December 31, 2001, we had an audited net loss
of $602,000, before provision for preferred stock dividends of $145,000.  Our audited consolidated balance sheet at December 31,
2001, reflected an accumulated deficit of approximately $22,216,000.  </FONT><FONT FACE="CG Times" SIZE="-1">For the
nine
months ended September 30, 2002, we had unaudited
net income of $2,354,000, before preferred stock dividends of
$111,000.  If we fail to become profitable or sustain profitability on
an annualized basis in the foreseeable future, we may be unable to fund our continuing operations.</FONT><FONT FACE="Times New Roman" SIZE="-1"></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>Our substantial amount of debt could adversely affect our operations.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times"><FONT SIZE="-1">&nbsp;We have a substantial amount of debt. At	October
31, 2002, our aggregate consolidated debt was approximately $31.4 million.  If our floating rates of interest experienced an upward increase of 1%, our debt service would increase by
approximately $164,000 annually.  Our leverage could have material adverse consequences on our ability to operate our
business, including the following:</FONT></font></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to obtain additional financing in the future for refinancing indebtedness, acquisitions,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;working
capital, capital expenditures or other purposes may be impaired;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;funds available to us for our operations and general corporate purposes or for capital expenditures&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will be
reduced because a substantial portion of our consolidated cash flow from operations will be&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dedicated to the
payment of the principal and interest on our indebtedness;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we may be more highly leveraged than certain of our competitors, which may place us at a competitive<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;disadvantage;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the agreements governing our long-term indebtedness and credit facility contain certain restrictive&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financial
and operating covenants;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if an event of default occurs, which is not cured or waived, under financial and operating covenants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;contained
in either our or our subsidiaries' debt instruments, this could result in and have a material&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adverse effect on
us;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we may be more vulnerable to a downturn in general economic conditions; and </FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-2-</font></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;certain of the borrowings under our debt agreements have floating rates of interest, which cause us&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to be
vulnerable to increases in interest rates. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to make principal and interest payments, or to refinance indebtedness, will depend on both our and our
subsidiaries' future operating performance and cash flow.  Prevailing economic conditions, interest rate levels, and
financial, competitive, business, and other factors affect us and our subsidiaries.  Many of these factors are beyond our
control.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Our industrial waste management services and nuclear waste management services subject us to potential
environmental liability.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business of rendering services in connection with management of waste, including certain types of hazardous
waste and low-level radioactive waste, subjects us to risks of liability for damages.  Such liability could involve, without
limitation:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="CG Times" SIZE="-1">claims for clean-up costs, personal injury or damage to the environment in cases in which we are&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;held
responsible for the release of hazardous or radioactive materials;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims of employees, customers, or third parties for personal injury or property damage occurring&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the
course of our operations; and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims alleging negligence or professional errors or omissions in the planning or performance of our services.<br>
<br>
 </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">We could also be deemed a responsible party for the cost of cleaning any property which may be contaminated by
hazardous substances generated by us and disposed at such property or transported by us to a site selected by us, including
properties we own or lease. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>The conversion of our convertible preferred stock and exercise of our outstanding warrants and options</STRONG> <STRONG>could cause
the market price of our common stock to fall, and may have dilution and other effects on our existing stockholders.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of our outstanding Series 17 Class Q Convertible Preferred Stock, par value $.001 per share (the
"Series 17 Preferred"), and the exercise of our outstanding warrants and options could result in the issuance of up to
18,760,619	shares of common stock, assuming all outstanding warrants and options are currently exercisable and subject to
adjustment pursuant to certain anti-dilution provisions.  Such issuances would significantly reduce the percentage
ownership of our existing common stockholders and could, among other things, depress the price of the common stock.
This result could detrimentally affect our ability to raise additional equity capital.  The issuance of such additional shares of
common stock may also result in a change in control.
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of our outstanding Series 17 Preferred could result in the issuance of up to 1,666,667 shares of
common stock at a conversion price of $1.50 per share of common stock, subject to adjustment pursuant to certain anti-dilution provisions.  The exercise of our outstanding warrants and options into common stock could result in the issuance
of up to approximately 14,411,552 shares, and 2,682,400	shares, respectfully (assuming that all options and warrants are
currently exercisable).  The exercise prices of the outstanding warrants and options range from $1.00 per share to $5.25
per share, subject to adjustment pursuant to certain anti-dilution provisions.  Consequently, upon such issuances, our
stockholders could experience a significant dilution of their investment.  Dilution of our common stock may potentially
have a substantial and material adverse impact on our earnings per share. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of all of our convertible preferred stock and the holders of many of our warrants and options may
immediately sell the full amount of common stock received upon conversion of the convertible preferred stock or exercise
of the warrants and options, as applicable.  As these shares are sold, the price of the common stock may decrease.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="2">-3-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Our outstanding preferred stock and warrants subject us to a potential change in control, which could have an
adverse effect on our management, the listing of our common stock, and our existing stockholders' ability to
influence our management and policies.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 12, 2002, Capital Bank-Grawe Gruppe AG ("Capital Bank"), f/k/a RBB Bank
Aktiengesellschaft, owned of record, as agent for certain of its investors, 9,258,672 shares of our common stock, or
approximately 27.0% of the outstanding shares of common stock, and had the right to acquire an additional 6,025,317
shares of common stock pursuant to the convertible preferred stock and warrants held in Capital Bank's
name, as agent for
certain investors. The Selling
Stockholders table beginning on page 22
of this prospectus includes 109 persons and entities which, in the aggregate,
beneficially own 3,143,115 shares of the common stock that are owned of record by Capital Bank and
2,725,548 shares
of common stock issuable upon the exercise of warrants held in Capital Bank's name. If Capital Bank acquires all of the
shares issuable to Capital Bank pursuant to such preferred stock and warrants, Capital Bank would own of record
15,283,989 shares of common stock, representing 37.9% of the then issued and outstanding common stock, assuming
we issue no other shares of common stock and Capital Bank does not dispose of any shares.  Consequently, if Capital Bank
seeks to control us, we may be unable to avoid a change in control.  See "POTENTIAL CHANGE IN CONTROL"
beginning on page 13
of this prospectus.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Capital Bank converts all of the preferred stock and exercises all the warrants that are held in its name, and all
of the other holders of our currently outstanding warrants and options to purchase common stock exercise such warrants
and options, then Capital Bank would own approximately 28.8% of our then issued and outstanding common stock,
assuming we do not issue any other shares of our common stock and Capital Bank does not dispose of any shares.&nbsp;</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
we are not aware of any agreement or understanding among Capital Bank's
investors to act as a group, if Capital
Bank's investors agree to, or reach an understanding to, act as a group or otherwise to act in concert for
the purposes of voting on matters subject to stockholder vote, our operations and management could be greatly impacted.
For instance, this investor group could instruct Capital Bank to vote for a significant change of&nbsp;
our directors or
for the approval of a merger proposal.  As a result, the ability of our other stockholders to influence our management and
policies could be limited, and their ability to realize opportunities to sell some or all of their stock at prices that represent a
premium over market prices could be lost.&nbsp;</FONT></P>

<P><font face="CG Times Regular" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="CG Times Regular"><font size="-1">&nbsp;Our
senior credit facility provides that a change of control will occur if (a) Dr.
Louis F. Centofanti, our Chairman, President, and Chief Executive Officer, or Richard T. Kelecy, our Chief Financial Officer, cease to serve as senior
executive officers in substantially the same capacity as served on the date of
the credit facility or the persons who were members of our Board on the closing
of the credit facility cease to constitute 50% of our Board.&nbsp; Each of these
events could be an event of default under the terms of the credit
facility.&nbsp; The terms of the Purchase Agreement covering our Subordinated
Notes provide that if Dr. Centofanti ceases to be our President and Chief
Executive Officer, the holders of the Subordinated Notes have the option to
require us to prepay all amounts owing under the Subordinated Notes.&nbsp; The
Purchase Agreement covering the Subordinated Notes also provides that if any
person or group is successful in electing its nominees to 50% or more of the
positions on our Board, then the holders of the Subordinated Notes have the
option to require us to prepay all amounts owing under the Subordinated Notes
plus a prepayment premium.&nbsp; If a group of Capital Bank investors were to
successfully attempt to cause any of these changes in our management or Board
membership, we would be in default under our senior credit facility or our
Subordinated Notes, or both of them.&nbsp; See &quot;If we cannot retain our key
personnel, we may lose sufficient revenues, be required to prepay our
Subordinated Notes, and default under our senior credit facility&quot; beginning
on page 7 of this prospectus.&nbsp; The Purchase Agreement and Subordinated
Notes are discussed under &quot;SUMMARY OF SECURITIES BEING OFFERED -- Note
Warrants&quot; beginning on page 15 of this prospectus.</font></font></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-4-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rules of the Nasdaq SmallCap Market (the "Nasdaq") could deem such a change in control to be a change in
financial structure or a merger or consolidation with Capital Bank.  If so, Nasdaq could require us to requalify under the
initial listing standards of Nasdaq to maintain the listing of our common stock on the Nasdaq.  If we are required to
requalify for listing on the Nasdaq, among other things, our common stock must have a minimum bid price of $4.00 per
share.  The market price of the common stock as of the effective date of this prospectus is below $4.00 and would not
meet Nasdaq initial listing requirements.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Our ability to successfully operate M&amp;EC could impact our future growth.  </STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, we acquired East Tennessee Materials and Energy Corporation ("M&amp;EC"), a mixed waste
processing facility in Oak Ridge, Tennessee.  Prior to the acquisition, we had loaned and advanced approximately $12.1
million to M&amp;EC for use in the operation and construction of M&amp;EC's facility.  At the closing of the M&amp;EC acquisition,
we advanced funds to M&amp;EC to pay certain liabilities to the Internal Revenue Service, certain 401(k) plans, and several
M&amp;EC debt holders, in the aggregate amount of approximately $2.1 million.  In order to acquire M&amp;EC and to finance
the construction of M&amp;EC's facility, we borrowed a substantial amount of funds.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M&amp;EC's facility is newly constructed, and M&amp;EC had limited operating history prior to our acquisition of
M&amp;EC.  We may be unable to effectively operate M&amp;EC to achieve long-term profitability.  If M&amp;EC's operations fail to
generate</FONT> <FONT FACE="CG Times" SIZE="-1">	revenue sufficient for us to recoup the amounts loaned to M&amp;EC and expended in the acquisition of M&amp;EC, the
potential growth of our business will be limited and our business, results of operations, and financial condition would
suffer.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If M&amp;EC is unable to maintain its DOE subcontracts, it could lose its primary revenue source.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, M&amp;EC's revenues are generated primarily pursuant to three subcontracts under contracts with the
U.&nbsp;S. Department of Energy (the "DOE").  Each of these subcontracts provides that the contractor, on its or the DOE's
behalf, may terminate the contracts under which the subcontracts were issued at any time by notifying us. If we fail to
maintain, renew, or replace these contracts, M&amp;EC's revenues could be materially reduced, and your investment could be
materially and adversely affected.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If we cannot maintain our government permits or cannot obtain any required permits, we may not be able to
continue or expand our operations.  </STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is subject to extensive, evolving, and increasingly stringent federal, state, and local environmental
laws and regulations.  Such federal, state, and local environmental laws and regulations govern our activities regarding the
treatment, storage, recycling, disposal, and transportation of hazardous and non-hazardous waste and low-level radioactive
waste.  We must obtain and maintain permits, licenses and/or approvals to conduct these activities in compliance with such
laws and regulations.  Failure to obtain and maintain the required permits, licenses and/or approvals would have a material
adverse effect on our operations and financial condition.  If we are unable to maintain our currently held permits, licenses,
and/or approvals or obtain any additional permits, licenses and/or approvals which may be required as we expand our
operations, we may not be able to continue certain of our operations.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Changes in environmental regulations and enforcement policies could subject us to additional liability and adversely
affect our ability to continue certain operations.  </STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the environmental industry continues to develop rapidly, we cannot predict the extent to which our
operations may be affected by future enforcement policies as applied to existing laws, by changes to current environmental
laws and regulations, or by the enactment of new environmental laws and regulations.  Any predictions regarding possible
liability under such laws are complicated further by current environmental laws which provide that we could be liable,
jointly and severally, for certain activities of third parties over whom we have limited or no control.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-5-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If we are unable to become profitable, we may be unable to comply with certain government regulations and could
become subject to substantial fines or lose our permits.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The standards imposed by federal, state, and local environmental laws require us to incur additional expenses as
necessary to upgrade our facility.  Our inability to become profitable on a long-term basis could have a negative impact on
our ability to remain in compliance with various federal, state, and local environmental regulations.  Violation of such
federal, state, and local regulations could result in the loss of one or more of our permits or subject us to substantial fines,
penalties, or other liabilities that could have a material adverse impact on our financial condition and our ability to continue
certain of our operations.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>As our operations expand, we may be subject to increased litigation which could have a negative impact on our
future financial results.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations are regulated by numerous laws regarding procedures for waste treatment, storage, recycling,
transportation, and disposal activities, all of which may provide the basis for litigation against us.  In recent years, the
waste treatment industry has experienced a significant increase in so-called "toxic-tort" litigation as those injured by
contamination seek to recover for personal injuries or property damage.  We believe that as our operations and activities
expand, there will be a similar increase in the potential for litigation alleging that we are responsible for contamination or
pollution caused by our normal operations, negligence or other misconduct, or for accidents which occur in the course of</FONT>
<FONT FACE="CG Times" SIZE="-1">	our business activities.  Such litigation, if significant and not adequately insured against, could adversely affect our
financial condition and our ability to fund our operations.  Protracted litigation would likely cause us to spend significant
amounts of our time, effort, and money.  This could prevent our management from focusing on our operations and
expansion.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If we cannot maintain adequate insurance coverage, we will be unable to continue certain operations.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business exposes us to various risks, including claims for causing damage to property and injuries to persons
which may involve allegations of negligence or professional errors or omissions in the performance of our services.  Such
claims could be substantial.  We believe that our insurance coverage is presently adequate and similar to, or greater than,
the coverage maintained by other companies in the industry of our size.  If we are unable to obtain adequate or required
insurance coverage in the future or, if our insurance is not available at affordable rates, we would violate our permit
conditions and other requirements of the environmental laws, rules, and regulations under which we operate.  Such
violations would render us unable to continue certain of our operations.  These events would have a material adverse effect
on our financial condition.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><STRONG>Our operations will suffer if we are unable to manage our rapid growth.</STRONG></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are currently experiencing a period of rapid growth through internal expansion and strategic acquisitions. This
growth has placed, and could continue to place, a significant strain on our management, personnel, and other resources.  Our
ability to grow will require us to effectively manage our collaborative arrangements and to continue to improve our
operational, management, and financial systems and controls, and to successfully train, motivate, and manage our employees.
If we are unable to effectively manage our growth, we may not realize the expected benefits of such growth, and such failure
could  have a material adverse effect on our operations and financial condition.</FONT><FONT FACE="CG Times" SIZE="-1"><U></U></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If we are unable to protect our proprietary technology, our growth could be limited.</STRONG> </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success is dependent upon our ability to maintain our proprietary technologies. There can be no assurance that
the steps taken by us to protect our proprietary technologies will be adequate to prevent misappropriation of these
technologies by third parties. Misappropriation of our proprietary technology could have an adverse effect on our
operations and financial condition.  Changes to current environmental laws and regulations also could limit the use of our
proprietary technology.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-6-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>If we cannot retain our key personnel, we may lose significant revenues, be required to prepay our subordinated
notes, and default under our senior credit facility.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success depends on the contributions of our key management, environmental and engineering personnel,
especially Dr. Louis F. Centofanti, Chairman, President, and Chief Executive Officer.  The loss of Dr. Centofanti could
have a material adverse effect on our operations, revenues, prospects, and our ability to raise additional funds.  Our future
success depends on our ability to retain and expand our staff of qualified personnel, including environmental specialists and
technicians, sales personnel, and engineers.  Without qualified personnel, we may incur delays in rendering our services or
be unable to render certain services.  We cannot be certain that we will be successful in our efforts to attract and retain
qualified personnel as their availability is limited due to the demand for hazardous waste management services and the
highly competitive nature of the hazardous waste management industry.  We do not maintain key person insurance on any
of our employees, officers, or directors. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our credit facility provides that a change of control will occur if Dr.&nbsp;Centofanti or Richard T. Kelecy, our Chief
Financial Officer, cease to serve as senior executive officers in substantially the same capacity as served on the date of the
credit facility.  Our credit facility also provides that a change of control results when the persons who are members of our
Board on the closing of the credit facility cease to constitute 50% of our Board.  Each of these events could be an event of
default under the terms of the credit facility.  The terms of the Purchase Agreement covering our Subordinated Notes
provide that if Dr. Centofanti ceases to be our President and Chief Executive Officer, the holders of the Subordinated&nbsp;</FONT>
<FONT FACE="CG Times" SIZE="-1">	Notes have the option to require us to prepay all amounts owing under the Subordinated Notes.  The Purchase Agreement
covering the Subordinated Notes also provides that if any person or group, including Capital Bank, is successful in electing
its nominees to 50% or more of the positions on our Board, the holders of the Subordinated Notes have the
option to
require us to prepay all amounts owing under the Subordinated Notes plus a prepayment premium.  The Purchase
Agreement and Subordinated Notes are discussed under "SUMMARY OF SECURITIES BEING OFFERED - Note
Warrants" beginning on page 14 of this prospectus.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If environmental regulation or enforcement is relaxed, the demand for our services will decrease.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The demand for our services is substantially dependent upon the public's concern with, and the continuation and
proliferation of, the laws and regulations governing the treatment, storage, recycling, and disposal of hazardous, non-hazardous, and low-level radioactive waste.  A decrease in the level of public concern, the repeal or modification of these
laws, or any significant relaxation of regulations relating to the treatment, storage, recycling, and disposal of hazardous
waste and low-level radioactive waste would significantly reduce the demand for our services and could have a material
adverse effect on our operations and financial condition.  We are not aware of any current federal or state government or
agency efforts in which a moratorium or limitation has been, or will be, placed upon the creation of new hazardous waste
regulations that would have a material adverse effect on us; however, no assurance can be made that such a moratorium or
limitation will not be implemented in the future.</FONT></P>

<P><strong><font face="CG Times Regular" size="-1">Our operations are subject to seasonal factors which cause
our revenues to fluctuate.</font></strong></P>

<P><FONT face="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have experienced reduced revenues, operating losses or decreased operating profits during the first and fourth
quarters of our fiscal years due to a seasonal slowdown in operations from poor weather conditions and overall
reduced activities during the holiday season.  During our second and third fiscal quarters there has historically
been an increase in revenues and operating profits.</FONT></P>

<P><strong><font face="CG Times Regular" size="-1">Our revenues in
our Industrial Waste Management Services are subject to economic downturns.</font></strong></P>

<P><FONT face="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Industrial Waste Management Services segment is generally adversely
affected by economic downturns.
Reductions in industrial production results in reduced levels of hazardous and non-hazardous waste being generated and/or
sent off for treatment.&nbsp; We believe that our revenues and profits were negatively affected within this segment by
the downturn in economic conditions in 2001, and that this trend has continued into 2002.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times Regular" size="-1">-7-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>We do not intend to pay dividends on our common stock in the foreseeable future.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since our inception, we have not paid cash dividends on our common stock, and we do not anticipate paying any
cash dividends in the foreseeable future.  We intend to retain future earnings, if any, to provide funds for the operation
and/or expansion of our business.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Series 17 Preferred allow us to pay dividends on the outstanding Series 17 Preferred in cash or
common stock. We currently intend to pay the dividends accruing on the Series 17 Preferred in  common stock if, and
when, declared and paid by our Board of Directors.  The actual number of shares of common stock issuable in payment of
accrued dividends on the Series 17 Preferred will depend upon the length of time the Series 17 Preferred is outstanding and
the price of the common stock at the time of payment of dividends.  Our credit facility prohibits us from paying cash
dividends on the Series 17 Preferred without the lender's prior written consent. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>We will not realize a benefit from our loss carryforwards if we are unable to generate income.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have approximately
$</FONT><font face="CG Times" size="-1" color="#000000">19.2</font><FONT FACE="CG Times" SIZE="-1">	million in net operating loss carryforwards which will expire from 2007 to 2021 if
not used against future federal income tax liabilities.  Our net loss carryforwards are subject to various limitations and have
not</FONT> <FONT FACE="CG Times" SIZE="-1">	been approved by the Internal Revenue Service.  We anticipate the net loss carryforwards will be used to reduce the
federal income tax payments which we would otherwise be required to make with respect to income, if any, generated in
future years.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Delaware law, certain of our charter provisions, the presence of one substantial stockholder, and our stock option
plans may inhibit a change of control under circumstances that could give you an opportunity to realize a premium
over prevailing market prices.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a Delaware corporation governed, in part, by the provisions of Section 203 of the General Corporation
Law of Delaware, an anti-takeover law.  In general, Section 203 prohibits a Delaware public corporation from engaging in
a "business combination" with an "interested stockholder" for a period of three years after the date of the transaction in
which the person became an interested stockholder, unless the business contribution is approved in a prescribed manner.
As a result of Section 203, potential acquirers may be discouraged from attempting to effect acquisition transactions with
us, thereby possibly depriving our security holders of certain opportunities to sell, or otherwise dispose of, their stock in us
at above-market prices pursuant to such transactions.  Further, our 1991 Performance Equity Plan, 1992 Outside Directors
Stock Option Plan, and 1993 Nonqualified Stock Option Plan provide for the immediate acceleration of, and removal of
restrictions from, options and other awards under such plans upon a "change of control" (as defined in the respective
plans).  Such provisions may also have the result of discouraging acquisition of us.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times"><FONT SIZE="-1">The issued and outstanding shares of Series 17 Preferred held by Capital Bank and the warrants held by Capital
Bank, as agent for
certain investors, could discourage other persons from attempting to acquire us.  If Capital Bank acquires the 1,666,667 additional
shares of common stock issuable upon conversion of the outstanding Series 17 Preferred and the 4,358,650 additional
shares issuable upon the exercise of the warrants held in Capital Bank's name, then Capital Bank will own approximately
15,283,989	or 37.9%	of our outstanding common stock, which includes the 9,258,672	shares of common stock
directly held by Capital Bank as of September
12, 2002, but does not include the shares of common stock which may be
issuable in payment of dividends on the Series 17 Preferred.  This percentage assumes that no shares of common stock are
issued after September
12, 2002, other than to Capital Bank in connection with the conversion of the Series 17 Preferred
and exercise of the warrants.  In this event, </FONT><font size="-1" color="#000000" face="CG Times">if
Capital Bank's investors agree to act as a group for the purpose of voting on
matters subject to stockholder vote, </font><font size="-1" color="#FF0000" face="CG Times"> </font><FONT FACE="CG Times" SIZE="-1">we may have insufficient remedies to avoid an actual change in control in
favor of such group of Capital Bank
investors.  Consequently, the issued and outstanding shares of the Series 17 Preferred and the common stock
held by Capital Bank could discourage other persons from attempting to acquire us even if Capital Bank's
investors do not act as a group to seek to
obtain control.&nbsp;
We are not aware of any agreement or understanding among Capital Bank's
investors to act as a group.</FONT></font></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-8-</font></P>

<P>&nbsp;</P>

<P><font face="CG Times"><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Restated Certificate of Incorporation, as amended (the "Certificate"),
as of October 1, 2002, 40,701,618	shares of common
stock (including 988,000 treasury shares) are available for future issuance, of which
18,760,619	are reserved for issuance
under our outstanding preferred stock, options and warrants.  These authorized shares are necessary to provide us with the
ability to issue common stock from time to time as needed for proper corporate purposes, such as:
</FONT></font><FONT FACE="CG Times" SIZE="-1">	<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="CG Times" SIZE="-1">raising capital funds through private or public offerings;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquiring other companies;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declaring stock splits or stock dividends; and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issuing common stock under warrants, preferred stock, or other rights which may be granted by us&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from time
to time in the future.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional authorization of shares of common stock could be used by incumbent management to make it more
difficult, and thereby discourage, an attempt to acquire control of us, even though our stockholders may deem such an
acquisition desirable.  The issuance of new shares of common stock and/or preferred stock could also be used to dilute the
stock ownership and voting power of a third party seeking to remove the directors, replace incumbent directors,</FONT>
<FONT FACE="CG Times" SIZE="-1">	accomplish certain business combinations alter, amend, or repeal portions of our Certificate or discourage or prohibit a
takeover of us.  See "RECENT DEVELOPMENTS - Amendment to Our Charter."</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	This prospectus contains forward-looking statements.  All statements, other than statements of historical fact, in
this prospectus are forward-looking statements, including statements regarding, among other things:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="CG Times" SIZE="-1">our current objective to develop innovative technologies for the treatment of nuclear, mixed&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and industrial
waste;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability or inability to improve operations and become profitable on an annualized basis and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continue
our operations;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to protect our proprietary technologies;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our anticipated financial performance;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to utilize net operating loss carryforwards against future federal income tax liabilities;<br>
</FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to comply with our general working capital requirements;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to retain certain permits or licenses;</FONT><font face="CG Times"><FONT SIZE="-1"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our
ability to treat heavily contaminated wastewater streams at more competitive
prices than<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;traditional
methods; and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the adoption of moratoriums or limitations by
federa</FONT></font><FONT FACE="CG Times" SIZE="-1">l or state governments regarding the creation&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of new
hazardous waste regulations.</FONT></P>

<FONT FACE="CG Times" SIZE="-1">Although we believe our expectations reflected in those forward-looking statements are based on reasonable assumptions,
we cannot assure you that these expectations will prove to be correct.</FONT>
<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Important factors which could cause actual results and future outcomes to differ materially from those described in
this prospectus include, but are not limited to, the following:<br>
<br>
 </FONT><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general economic conditions;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;material reduction in revenues;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;inability to collect in a timely manner a material amount of receivables;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;increased competitive pressures;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;inability to maintain and obtain required permits and approvals to conduct operations;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reduction in revenues and profitability of services provided by us due to increased competition;</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-9-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;future federal tax audit or audits which could reduce our loss
carryforwards;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;limitations imposed by the Internal Revenue Code or our inability to utilize our loss
carryforwards;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;inability to develop new and existing technologies in the conduct of operations or to develop such<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;technologies for commercial use;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in federal, state, and local laws and regulations, especially environmental regulations, or&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the
interpretation of such laws and regulations;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;potential increases in equipment, maintenance, operating or labor costs;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;management retention and development;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;inability to become profitable, and, if unable to become profitable, our inability to secure additional&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liquidity in the form of additional equity or debt;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;inability to maintain the listing of our common stock on the
Nasdaq;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cancellation of one or more subcontracts issued to M&amp;EC in connection with government contracts;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M&amp;EC's limited operating history; and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the factors set forth under "Risk Factors" beginning on page 2 of this prospectus.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should,"
"could," "would," "expect," "plan," "anticipate," "believe," "continue," or the derivative of these terms or other similar
expressions. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified by the
cautionary statements included in this prospectus. We undertake no obligation to update or revise our</FONT>
 <FONT FACE="CG Times" SIZE="-1">forward-looking
statements, whether as a result of new information, future events or otherwise.&nbsp;
In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this prospectus might not occur.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>RECENT DEVELOPMENTS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>Private Placement: Unit Warrants and Placement Agent Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 30, 2001, we completed a private placement offering of units (the "Private Placement") to accredited
investors.  Each unit is comprised of one share of our common stock and one warrant to purchase one share of common
stock (a "Unit Warrant").  The purchase price for each unit was $1.75, and the exercise price of each Unit Warrant is
$1.75, subject to adjustment under certain conditions.  We accepted subscriptions for 4,397,566 of the maximum
4,400,000 units offered, for an aggregate purchase price of $7,695,740.
</FONT><font face="CG Times Regular"><FONT SIZE="-1">  This prospectus is part of the
registration statement which registers for resale 4,010,638 of the
4,397,566 shares of common stock issued pursuant to the Private Placement and 4,352,893 of the 4,397,566 shares of
common stock issuable
</FONT></font><FONT FACE="CG Times Regular" SIZE="-1"> upon the exercise of the Unit Warrants issued pursuant to the Private Placement.
</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Private Placement, we appointed Larkspur Capital Corporation ("Larkspur"), Ryan, Beck
&amp; Co., formerly
Ryan, Beck &amp; Co., L.L.C. ("Ryan Beck"), and National Securities Corporation ("National") as placement agents (each, a "Placement
Agent") to place the units as our agent and to assist in completing the Private Placement.  We paid each Placement Agent a
private placement fee equal to 7.5% of the aggregate purchase price for units placed by that particular Placement Agent.
We also issued to each Placement Agent warrants to purchase up to the number of shares of common stock equal to 7% of
the aggregate purchase price for units placed by that particular Placement Agent, divided by $1.75 (the "Placement Agent
Warrants").  The Placement Agent Warrants are for a term of five years and have an exercise price of $1.75 per share.
As a result, we paid the Placement Agents $202,500 in total fees and issued to them Placement Agent Warrants for the
purchase of up to an aggregate of 108,000 shares of common stock.  On June 26, 2002, Ryan Beck assigned a portion of
its Placement Agent Warrants for the purchase of 11,000 shares to managing directors of Ryan Beck.  On July 17, 2002,
Larkspur assigned all of its Placement Agent Warrants for the purchase of 34,000 shares to certain managing directors of
Larkspur.  On July&nbsp;30, 2002, Ryan Beck assigned to Associated Mezzanine Investors, L.L.C. ("AMI") a portion of such
warrants for the purchase of 10,000 shares, and Larkspur assigned to AMI a portion of such warrants for the purchase of
10,000 shares.&nbsp; This
prospectus is part of the registration statement which registers for resale the
108,000 shares issuable upon the exercise of the Placement Agent Warrants.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-10-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and the number of shares of common stock issuable upon the exercise of the Unit Warrants and
Placement Agent Warrants are subject to adjustment, from time to time, if we:</FONT></P>

<FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;pay a dividend in, or make a distribution of, shares of capital stock on our outstanding common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock;
(b) subdivide our outstanding shares of common stock into a greater number of shares; or&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) combine
our outstanding shares of common stock into a smaller number of shares; and</FONT>
<p><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consolidate with, or merge into, another corporation (other than a consolidation or merger which does&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not
result in any reclassification or change of the outstanding common stock).</FONT>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Private Placement was sold only to accredited investors as that term is defined under Regulation D of the Act.
Capital Bank, as agent for certain of its investors, subscribed for 842,995 units under the Private Placement.  Asserting
Austrian law, Capital Bank would not disclose the identities of its investors to us at the time of the Private Placement, but
Capital Bank did represent to us that all of its investors were accredited investors.  Capital Bank directly owns, as agent for
its investors, 9,258,672	shares of common stock, or 27.0%	of our outstanding common stock as of September 12,
2002, and holds warrants and convertible preferred stock entitling it to purchase or receive up to an additional 6,025,317
shares of common stock.  See "POTENTIAL CHANGE IN CONTROL" beginning
on page 13 of this prospectus for a discussion of Capital Bank's ownership of
our securities as agent for its various investors. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is listed for trading on the Nasdaq and the Boston Stock Exchange ("BSE").  Although the
BSE approved the listing of the shares of common stock to be issued in connection with the Private Placement and upon the
exercise of the Unit Warrants and the Placement Agent Warrants, the Nasdaq advised the Company that the Private
Placement could violate Nasdaq Rule 4350(i)(1)(D) governing the listing of additional securities on the Nasdaq as
originally structured.  </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rule 4350(i)(1)(D)	generally
provides that a corporation may not, through a private offering such as the Private Placement,
issue a number of shares of common stock equal to or greater than 20% of the corporation's outstanding common stock at
a price less than the greater of book or market value of the common stock without first obtaining shareholder approval.
Because the price of our common stock as reported on the Nasdaq rose from $1.6875 per share on the date the Private
Placement commenced to $2.27 on the date the Private Placement terminated, numerous subscription agreements were
executed at a time when the market value per share of common stock was greater than the $1.75 purchase price per unit.
The Nasdaq claimed that the subscription agreements executed on a date when the market price was greater than the $1.75
unit purchase price represented sales at less than the greater of book or market value of the common stock, thereby
violating Rule 4350(i)(1)(D). </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with Rule 4350(i)(1)(D), we agreed with Nasdaq to restructure the Private Placement so that
(a) the number of Units offered was reduced from 5,000,000 to 4,400,000, and (b) the Unit Warrants and the Placement
Agent Warrants could not be exercisable until our stockholders approved the issuance of the shares of common stock upon
the exercise of the Unit Warrants and the Placement Agent Warrants.  As a result of the modifications, only 4,397,566
shares of common stock, representing approximately 19.5% of the issued and outstanding shares of common stock as of
the commencement of the Private Placement, were issued under the Private Placement without stockholder approval.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 14, 2002, we held a special meeting of our stockholders (the "Special Meeting").  At the Special
Meeting, the stockholders entitled to vote approved the issuance of the shares of common stock issuable upon the exercise
of the Unit Warrants and the Placement Agent Warrants.&nbsp;
</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times Regular" size="-1">-11-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG><U>Amendment to our Charter</U></STRONG></FONT><FONT FACE="CG Times" SIZE="-1"></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to our Special Meeting held on June 14, 2002, our Restated Certificate of Incorporation, as amended (the
"Certificate"), authorized 52,000,000 shares of capital stock of the Company, comprised of 50,000,000 shares of
authorized common stock, par value $.001 per share, and 2,000,000 shares of authorized preferred stock, par value $.001
per share.  At the Special M</FONT><font face="CG Times"><FONT SIZE="-1">eeting, </FONT><font size="-1" color="#FF0000" face="CG Times">our
</font><FONT FACE="CG Times" SIZE="-1">Board of Directors recommended, and our stockholders approved,
an amendment to the Certificate increasing our aut</FONT></font><FONT FACE="CG Times" SIZE="-1">horized shares of common stock from 50,000,000 to
75,000,000 (the "Amendment").</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times"><FONT SIZE="-1">The Amendment was necessary to allow the issuance of common stock upon the exercise or conversion of all of
our outstanding convertible securities and other rights to acquire our common stock.  As of September 12, 2002,
34,298,382	shares of common stock were issued and outstanding, leaving 40,701,618	authorized shares (including
988,000 treasury shares) available to satisfy our existing reserve obligations.  As of that date, at least
20,356,763	shares
of common stock are required to be reserved for potential issuances, which include the following shares:</FONT></font> </P>

<FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,100 shares issuable or which could be issuable under our 1991 Performance Equity Plan;</FONT>
<p><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;315,669 shares issuable or which could be issuable under our 1992 Outside Directors Stock Option&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
Incentive Plan;</FONT>
<p><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;approximately 3,681,691 shares issuable or which could be issuable under our 1993 Nonqualified Stock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option Plan;</FONT>
<p>
<FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;approximately 194,084
</FONT>
<FONT FACE="CG Times" SIZE="-1">	shares issuable or which could be issuable under our 1996 Employee Stock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Plan;</FONT>
<p><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,411,552 shares issuable upon exercise of outstanding warrants granted by the Company&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including the
various warrants included in this prospectus); and</FONT>
<p><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;up to 1,666,667 shares issuable upon conversion of 2,500 outstanding shares of our Series 17&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class Q
Convertible Preferred Stock (the "Series 17 Preferred").</FONT>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By increasing the number of authorized shares of common stock beyond the existing reserve requirement, shares
will be available for issuance from time to time as needed for such proper corporate purposes as may be determined by the
Board of Directors.  These corporate purposes might include the following:</FONT></P>

<FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the raising of capital funds through private or public offerings;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the acquisition by us of other companies,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the declaration of stock splits or stock dividends, and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the issuance of common stock under warrants, preferred stock, or other rights which may be granted&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
us from time to time in the future.</FONT>

<P><FONT FACE="CG Times" SIZE="-1">The Board may issue authorized common stock without future stockholder approval, except as may be required by
applicable law or rule of the BSE or Nasdaq (if the Company's securities are then listed on the BSE or the Nasdaq).  The
issuance of additional shares of common stock could have a detrimental effect upon existing holders of the Company's
common stock (see "RISK FACTORS").</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-12-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG><U>Amendments to the Oak Ridge Contracts</U></STRONG></FONT><FONT FACE="CG Times" SIZE="-1"></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously discussed in this prospectus, our subsidiary, M&amp;EC, is primarily operating under three subcontracts
involving contracts with the DOE.  For a number of months, M&amp;EC has been in negotiations with the general contractor
to amend the pricing terms of the subcontracts to allow M&amp;EC to bill additional amounts primarily for drum density and
chemical content and for certain surcharges under other conditions.  On July 2, 2002, the pricing structure under the
subcontracts was amended to allow M&amp;EC to charge additional amounts for certain waste drums received primarily in
connection with drum density and chemical content.  The amended pricing structure applies to all waste received by
M&amp;EC under the subcontracts from January 1, 2002, and on all future waste received under these subcontracts.
</FONT><FONT face="CG Times" SIZE="-1" color="#000000">	 As </FONT><FONT FACE="CG Times" SIZE="-1">	a
result of these amendments, M&amp;EC billed	approximately an additional
$2 </FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000"> </FONT> </b><FONT FACE="CG Times" SIZE="-1">	million
</FONT><font face="CG Times"><FONT SIZE="-1">	in the third quarter for work completed during the first
six months of 2002.  M&amp;EC is still in negotiations as to any surcharges that may be added to the
</FONT></font><FONT FACE="CG Times" SIZE="-1"> pricing structure under the
subcontracts.</FONT></P>

<P><font face="CG Times" size="-1"><b>Bio-Fix<sup>(R) </sup> Process</b><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="CG Times"><font size="-1">&nbsp;In
September
2002, we </font></font><font face="CG Times" size="-1">
 completed the construction of our new Bio-Fix<sup>(R)</sup> process at our Ohio
waste treatment facility.&nbsp; The facility has begun accepting commercial
wastewater for treatment through this process.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bio-Fix<sup>(R)</sup>
process is a new technology which we developed utilizing our patented variable
depth biological treatment process and several proprietary water treatment
processes.&nbsp; The Bio-Fix<sup>(R) </sup> process is designed to remove
certain organic constituents from highly
organic, contaminated wastewaters.&nbsp; We believe that the Bio-Fix<sup>(R)</sup> process
will enable us to treat heavily contaminated wastewater streams, such as waste
oils, phenals, and &quot;lean&quot; waters, at more competitive prices than
traditional methods.</font></P>

<P><font face="CG Times" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
new process meets the EPA's new centralized treatment standards that become
effective in 2003, potentially giving us an advantage over competing treatment
facilities.</font></P>

<P><FONT FACE="CG Times Regular" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1">	</FONT><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><CENTER>POTENTIAL CHANGE IN CONTROL</CENTER>
</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 12, 2002, Capital Bank owned of record, as agent for certain accredited investors,
9,258,672
shares of common stock representing 27.0% of our issued and outstanding common stock.  As of that date, Capital Bank
also had the right to acquire an additional 6,025,317 shares of common stock, comprised of (a)&nbsp;842,995 shares issuable
upon exercise of the Unit Warrants purchased in the Private Placement by Capital Bank as agent for certain investors; (b)
3,515,655 shares of common stock issuable under various other warrants held by Capital Bank, as agent for certain
investors; and (c) 1,666,667 shares of common stock issuable to Capital Bank upon the conversion of 2,500 shares of
Series 17 Preferred held by Capital Bank.  The Selling Stockholders table beginning on page	22
of this prospectus includes
</FONT>
<FONT FACE="CG Times Regular" SIZE="-1"> 109 persons and entities which, in the aggregate, beneficially own
3,143,115 shares of the common stock that are owned
of record by Capital Bank and 2,725,548 shares of common stock issuable upon the exercise of warrants held in Capital
Bank's name,
all as of September 12, 2002.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Capital Bank were to acquire all of the shares of common stock issuable upon exercise of the various warrants
held by Capital Bank and the shares of common stock issuable upon conversion of the Series 17 Preferred, then Capital
Bank would own of record 15,283,989	shares of common stock, representing 37.9%	of the issued and outstanding
common stock.  The foregoing estimates assume that we do not issue any other shares of common stock; no other warrants
or options are exercised; we do not acquire additional shares of common stock as treasury stock; and Capital Bank does not
dispose of any shares of common stock.&nbsp; </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank has advised us that it is a banking institution regulated by the banking regulations of Austria which
holds shares of our common stock on behalf of numerous investors.  Capital Bank asserts that it is precluded by Austrian
law from disclosing the identities of its investors, unless so approved by each such investor.  Asserting Austrian law,
Capital Bank would not disclose to us the identities of its investors but did represent that all of its investors are accredited
investors under Rule 501 of Regulation D promulgated under the Act.  In addition, Capital Bank has advised us that none
of</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-13-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	its investors beneficially own more than 4.9% of our common stock.  Certain of its investors recently gave Capital Bank
permission to disclose their identities in order to be included as Selling Stockholders in this prospectus.  Capital Bank has
further informed us that its clients (and not Capital Bank) maintain full voting and dispositive power over such shares.
Consequently, Capital Bank has advised us that it believes it is not the beneficial owner, as such term is defined in Rule
13d-3, of the shares of our common stock registered in the name of Capital Bank because it has neither voting nor
investment power, as such terms are defined in Rule 13d-3, over such shares.  Capital Bank has informed us that it does
not believe that it is required to file, and has not filed, reports under Section 16(a) or to file either Schedule 13D or
Schedule 13G in connection with the shares of our common stock registered in the name of Capital Bank.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Capital Bank's investors agree to, or reach an understanding to, act as a group or otherwise to act in concert for
the purposes of voting on matters subject to stockholder vote, our operations and management could be greatly impacted.
For example, if Capital Bank acquires the shares of common stock described in the previous paragraph, the Capital Bank
investor group may be able to cause a change in at least 50% of the members of our Board of Directors.  This change in
Board membership could be an event of default under our $22 million credit facility (the "Credit Facility") and our $5.6
million outstanding Subordinated Notes.  If the Capital Bank investor group were to cause Dr. Louis Centofanti to be
removed from our Board of Directors or as our president and chief executive officer, the removal could be an event of
default under the Credit Facility and the Subordinated Notes.  The Company is not aware of any agreement or
understanding among Capital Bank's investors to act as a group.</FONT></P>

<P><FONT face="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the representations by Capital Bank are incorrect or Capital Bank was historically acting on behalf of its
investors as a group, rather than on behalf of each investor independent of other investors, then Capital Bank and/or the
investor group would have become a beneficial owner (as that term is defined under Rule 13d-3 as promulgated under the
Exchange Act of 1934, as amended (the "Exchange Act")) of more than 10% of our common stock.  Capital Bank and/or
its investor group has not filed with the Securities and Exchange Commission and the Company, among other reports, any
Forms 3, 4 or 5, and has not filed any applicable Schedules 13D or 13G as a result of acquiring shares of our voting equity
securities.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because Capital Bank (a) has advised us that it holds the common stock as a nominee only and that it does not
</FONT><b><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	have or
share</FONT></b><FONT FACE="CG Times Regular" SIZE="-1"> voting or investment power over our common stock held in its name and that no one investor of Capital Bank for
which it holds our common stock holds more than 4.9% of our issued and outstanding common stock; (b) has no right to,
and is not believed to possess the power to, exercise control over our management or our policies; (c) has not nominated,
and has not sought to nominate, a director to our board; and (d) has no representative serving as an executive officer of the
Company, we do not believe that Capital Bank is an affiliate of the Company</FONT><FONT FACE="Times New Roman" SIZE="-1">.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1">	<CENTER><STRONG>USE OF PROCEEDS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any part of the proceeds of the sale of Shares.  We will receive approximately $19,732,000 if
the Selling Stockholders exercise, for cash, all of the warrants covering Shares included in this prospectus.  However, this
amount would be reduced by $6,689,000 if all of the warrants having a cashless exercise option are exercised on a cashless
basis.  Any proceeds received by us from the exercise of these warrants<STRONG> </STRONG>will be used by us for general corporate purposes.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to pay all costs and fees relating to the registration of the common stock covered by this
prospectus, except for any discounts, concessions, or commissions payable to underwriters, dealers, or agents incident to
the offering of the Shares covered by this prospectus, or any legal fees incurred by any Selling Stockholders relating to this
offering.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-14-</font></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>SUMMARY OF SECURITIES BEING OFFERED</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">The 17,931,966 Shares covered by this prospectus are comprised of the following: </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,010,638	shares issued pursuant to our Private Placement (see page 10);</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,352,893 shares issuable upon the exercise of the Unit Warrants (see page 10);</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;108,000 shares issuable upon the exercise of the Placement Agent Warrants (see page 10);</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,281,731 shares issuable upon the exercise of the Note
Warra</FONT><font face="CG Times"><FONT SIZE="-1">nts (see page 15);</FONT></font></P>

<P><font face="CG Times"><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,793,178 shares issued pursuant to the Exchange Agreement (see page
17);</FONT></font></P>

<P><font face="CG Times"><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,741,926 shares issuable upon the exercise of the Exchange Warrant (see page
17);</FONT></font></P>

<P><font face="CG Times"><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;625,000 shares issuable upon the exercise of the Capital Exchange Warrant (see page
17);</FONT></font></P>

<P><FONT face="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;817,142 shares issuable upon the exercise of the BHC Warrants (see page 18);</FONT></P>

<P><font face="CG Times"><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;610,000 shares issuable upon the exercise of the National Warrants (see page
20); and</FONT></font></P>

<P><FONT face="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,591,458 shares issuable upon the exercise of the Consultant Warrants (see page 20).</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Private Placement; Unit Warrants; and Placement Agent Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 4,010,638	shares issued pursuant to our recent Private
Place</FONT><font face="CG Times"><FONT SIZE="-1">ment, the 4,352,893 shares issuable upon the
exercise of Unit Warrants, and the 108,000 shares issuable upon the exercise of the Placement Agent Warrants	are
registered for resale in the registration statement, of which this prospectus
</FONT><font SIZE="-1" color="#FF0000" face="CG Times">is
a part.&nbsp; These shares are</font><font SIZE="-1"> discussed under "RECENT DEVELOPMENTS - Private Placement; Unit Warrants and
Placement Agent Warrants" beginning on page 10 of this prospectus.  An additional 386,928	shares issued pursuant to the
Private Placement and 44,673 shares issuable upon the exercise of Unit Warrants are not included in the Shares covered by
this prospectu</font></font><font face="CG Times" SIZE="-1">s.</font></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Note Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 31, 2001, we issued approximately $5.6 million of our 13.50% Senior Subordinated Notes due July 31,
2006 (the "Subordinated Notes").  The Subordinated Notes were issued pursuant to the terms of a Note and Warrant
Purchase Agreement, dated July 31, 2001 (the "Purchase Agreement"), between Associated Mezzanine Investors - PESI
(I), L.P. ("AMI"), Bridge East Capital, L.P. ("BEC"), and us. The Subordinated Notes are unsecured and are
unconditionally guaranteed by our subsidiaries.  Our payment obligations under the Notes are subordinate to our payment
obligations to</FONT> <FONT FACE="CG Times Regular" SIZE="-1">	our primary lender and to certain other of our debts up to an aggregate amount of $25 million.  The net
proceeds from the sale of the Subordinated Notes were used to repay certain short-term loans.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Purchase Agreement, we issued to AMI and BEC warrants to purchase up to 1,281,731
shares of our common stock at an initial exercise price of $1.50 per share (the "Note Warrants").  The Note Warrants may
be exercised at any time during a seven-year term and provide for cashless exercise.  The number of shares issuable upon
exercise of the Warrants is subject to adjustment pursuant to certain anti-dilution provisions.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Note Warrants are exercisable at any time, from time to time, beginning July 31, 2001, until July&nbsp;31, 2008 at
an exercise price of $1.50 per share of common stock.  The Note Warrants may also be exercised at the option of the
holder pursuant to a cashless exercise provision, which permits the holder to surrender the Note Warrants in exchange for
the  </FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-15-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	number of shares of common stock equal to the product of the number of shares of common stock designated to be
exercised multiplied by a fraction, the numerator of which is the current market price of the common stock less $1.50, the
denominator of which is the current market price.  The number of shares of common stock issuable upon exercise of the
Note Warrants and the exercise price of the Note Warrants are subject to adjustment under certain circumstances
summarized below.  </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at any time after July 31, 2001, we issue or sell additional shares of common stock (including certain option
and convertible securities under which common stock may be issued) without consideration or for a consideration per share
less than the market price of the common stock on the date of, and immediately prior to, such issue or sale, the exercise
price of the Note Warrants will be reduced to a price determined by multiplying the exercise price by a fraction:</FONT></P>

<FONT FACE="CG Times Regular" SIZE="-1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the numerator of which will be:</FONT>

<P><FONT FACE="CG Times Regular" SIZE="-1">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the number of shares of common stock outstanding immediately prior to such issue or sale, plus </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the number of shares of common stock which the aggregate consideration received by us for the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;total
number of such additional shares of common stock issued or sold would purchase at the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;then market
price; and </FONT></P>

<font face="CG Times Regular" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT FACE="CG Times" SIZE="-1">the denominator of which will be the number of shares of common stock outstanding immediately&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after such
issue or sale.  </FONT>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon an adjustment in the exercise price of the Note Warrants, the number of shares issuable upon exercise of the
Note Warrants will be adjusted by multiplying the number of shares of common stock which would otherwise be issuable
upon such exercise by a fraction:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the numerator of which is $1.50; and </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the denominator of which is the exercise price, as may be adjusted under the terms of the Note Warrants. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If after July 31, 2001, we declare a dividend or other distribution on our common stock other than a dividend
payable in common stock or options for common stock or a regular periodic dividend payable in cash and declared out of</FONT>
<FONT FACE="CG Times" SIZE="-1">	earned surplus of the Company, the exercise price in effect prior to the record date for such dividend will be reduced to a
price determined by multiplying the exercise price by a fraction (a) the numerator of which will be the current market
price on such record date less the value of the dividend or distribution applicable to one share of common stock; and (b)
the denominator of which shall be the current market price.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Note Warrants' anti-dilution terms further provide that, if after July 31, 2001, we:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consolidate with or merge into another person without being the continuing or surviving corporation; or </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consolidate or merge with another person in which we are the continuing or surviving corporation but&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our
common stock or other securities are exchanged for other securities of another person; or </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we transfer all or substantially all of our properties; or </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we effect a capital reorganization or reclassification of our common stock or other securities which are&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not
subject to the anti-dilution provisions discussed above, </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">then the holders of the Note Warrants will be entitled to receive the amount of cash, securities or other property, which the
holder would have been entitled to receive if holder had exercised the Note Warrants immediately prior to the transaction.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-16-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">An exception to the above sentence is if a purchase, tender, or  exchange offer has been accepted by our stockholders and
following such purchase, tender, or exchange offer, the maker thereof, together with its affiliates own more than 50% of
our outstanding common stock, then holders of the Note Warrants have the option to receive the amount of cash,
securities, or other property to which the holder would have been entitled, if the holder of the Note Warrants had exercised
the Note Warrants prior to the expiration of such purchase, tender or exchange offer and accepted such offer, and all of the
common stock held by such holder had purchased pursuant to such purchase, tender or exchange offer.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times"><FONT SIZE="-1">The Subordinated Notes and Note Warrants were sold pursuant to an exemption from registration under Section
4(2) of the Securities Act of 1933, as amended (the "Act"), and/or Rule 506 of Regulation D promulgated under the Act,
and, therefore, were not registered under the Act.  The holders of the Note Warrants have the right to demand registration
of the shares of common stock issuable under the Note Warrants on two occasions and also have certain piggyback
registration rights.  This prospectus is part of the
registration statement which registers for resale the 1,281,731 shares of our common stock that are issuable upon the exercise
of the Note Warrants. </FONT></font></P>

<P><FONT face="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the sale of the Subordinated Notes, we entered into an Option Agreement, dated July&nbsp;31, 2001,
with AMI and BEC (the "Option Agreement"). Pursuant to the Option Agreement, we granted each purchaser of the
Subordinated Notes an irrevocable option requiring us to purchase any or all of the Note Warrants or the shares of
common stock issuable under the Note Warrants then held by the purchaser (the "Put Option"). The Put Option may be
exercised at any time commencing July 31, 2004, and ending July</FONT><FONT FACE="CG Times" SIZE="-1"> 31, 2008. In addition, each purchaser granted us an
irrevocable option to purchase all the Note Warrants or the shares of common stock issuable under the Note Warrants then
held by the purchaser (the "Call Option"). The Call Option may be exercised at any time commencing July 31, 2005, and
ending July 31, 2008. The purchase price under the Put Option and the Call Option is based on the quotient obtained by
dividing (a) the sum of six times our consolidated EBITDA for the period of the 12 most recent consecutive months minus
Net Debt plus the Warrant Proceeds by (b) the number of Diluted Shares (as the terms EBITDA, Net Debt, Warrant
Proceeds, and Diluted Shares are defined in the Option Agreement). </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the guidance under EITF 00-19 on accounting for, and financial presentation of, securities that could
potentially be settled in our stock, the Put Option would be classified outside of equity, based on the ability of the holder to
require cash settlement. Also, EITF Topic D-98 discusses the accounting for a security that will become redeemable at a
future determinable date and its redemption is variable. This is the case with the Note Warrants as the date is fixed, but the
put or call price varies. The EITF gives two possible methodologies for valuing the securities. We have selected to</FONT>
<FONT FACE="CG Times" SIZE="-1">	account
for the changes in redemption value immediately as they occur, and we will adjust the carrying value of the security to
equal the redemption value at the end of each reporting period. On June 30, 2002, the purchase price under the Put Option
was in a negative position and, as a result, no liability was recorded for the redemption of the Put Option.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>Exchange Agreement and Exchange Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 9, 2001, we entered into an agreement (the "Exchange Agreement") with Capital Bank to issue to Capital
Bank, as agent for certain of its accredited investors, 1,893,505 shares of common stock and a warrant to purchase up to
1,839,405 shares of common stock at an exercise price of $1.75 per share (the "Exchange Warrant") in satisfaction of all
amounts due or to become due under the Loan Agreement, dated August 29, 2000, between us and Capital Bank (the "$3
Million Loan") and a related Unsecured Promissory Note issued by us in favor of Capital Bank in the original principal
amount of $3,000,000 (the "$3 Million Note"), including our obligations to issue to Capital Bank shares of common stock
if the $3 Million Note was not paid by certain due dates.  The $3 Million Note was due on July&nbsp;1, 2001.
</FONT><font face="CG Times Regular"><FONT SIZE="-1">	This prospectus is part of a
registration statement which registers for resale
(a) 1,793,178 of the 1,893,505 shares issu</FONT></font><FONT FACE="CG Times Regular" SIZE="-1">ed on July 9, 2001, pursuant to the Exchange Agreement and (b)
1,741,926 of the 1,839,405 shares issuable upon the exercise of the Exchange Warrant.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the closing of the Exchange Agreement effective July 9, 2001, we paid to Capital Bank a closing fee of
$325,000, payable in $75,000 cash and by issuing to Capital Bank 105,932 shares of common stock, with the number of
shares being equal to the quotient of $250,000 divided by the last closing bid price of the common stock as quoted on the </FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-17-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	Nasdaq on June 26, 2001.  In addition, for consulting services in connection with the Exchange Agreement, we issued to
Herbert Strauss a five-year warrant for the purchase of up to 625,000 shares of common stock at a purchase price of $1.75
per share (the "Capital Exchange Warrant").  The terms of the Exchange Warrant and the Capital Exchange Warrant are
substantively similar. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Exchange Warrant is exercisable at any time, from time to time, on or after July 9, 2001, and prior to July 9,
2006.  If we propose to sell substantially all of our assets or merge or consolidate, or effect a merger or consolidation in
which we are not the survivor, and the consideration to be received by us or our shareholders consists solely of cash, then
the Exchange Warrant will terminate unless exercised by the effective date of the sale or merger transaction.  If the
consideration to be received by us or our shareholders consists, in whole or in part, of consideration other than cash, the
holder of the Exchange Warrant will have the right thereafter to purchase the kind and amount of the shares and other
securities  and property which would have been owned or entitled to be received after such sale or merger transaction had
the Exchange Warrant been exercised immediately prior to such transaction. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and the number of shares of common stock issuable upon exercise of the Exchange Warrant are
subject to adjustment, from time to time, if we:</FONT></P>

<FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declare and pay a dividend in shares of common stock or make a distribution, without receipt of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consideration,
in shares of common stock to holders of our outstanding common stock,</FONT>
<p><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subdivide our outstanding shares of common stock, </FONT>
<p><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;combine our outstanding shares of common stock into a smaller number of shares of common stock, or </FONT>
<p><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue any shares of our capital stock in reclassification of our common stock for the number of shares&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
common stock issuable upon exercise of the Exchange Warrant.</FONT>

<P><FONT FACE="CG Times Regular" SIZE="-1">Upon any such transaction, the Exchange Warrant will be adjusted so that the holder of the Exchange Warrant will be
entitled to receive the kind and number of shares of common stock or of our other securities which the holder would have
owned or been entitled to receive had the Exchange Warrant been exercised in advance of such transaction. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holder of the Exchange Warrant will be entitled to purchase the number of shares of common stock or other
securities, resulting from such adjustment at an exercise price per share of common stock or other security determined by: </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;multiplying the exercise price in effect immediately prior to such adjustment by the number of shares&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of common stock purchasable pursuant to the Exchange Warrant immediately prior to such
adjustment,&nbsp;<br>
&nbsp;&nbsp;&nbsp;</FONT><font size="2"><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;divided by,<br>
<br>
&nbsp;&nbsp;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times Regular" SIZE="-1">the number of shares of common stock or other securities resulting from such adjustment.</FONT></font></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issuance of the common stock, the Exchange Warrant and the Capital Exchange Warrant under the terms of
the Exchange Agreement was made pursuant to Section 4(2) and/or Rule 506 under Regulation D promulgated under the
Act.  Capital Bank has advised us that it is precluded by Austrian law from disclosing the identities of its investors at the
time of the Exchange Agreement transaction, without the investors' permission.  Asserting Austrian law, Capital Bank
would not disclose to us the identities of its investors, but did represent to us that all of its investors are accredited
investors under Rule 501 of Regulation D promulgated under the Act.  Certain of its investors recently gave permission to
Capital Bank to disclose their identities in order to be included as a Selling Stockholder in this prospectus.  In addition,
Capital Bank has advised the Company that none of its investors beneficially own more than 4.9% of our common stock.
See "POTENTIAL CHANGE OF CONTROL" for a discussion of Capital Bank's holdings of our securities.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-18-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until the summer of 2001, Herbert Strauss was employed by Capital Bank and was the Company's relationship
contact at Capital Bank.  During the summer of 2001, Capital Bank undertook a series of management changes.  These
changes included Mr. Strauss terminating his employment at Capital Bank and becoming a consultant to Capital Bank with
the obligation to fulfill certain of his prior duties.  It was during this period in which Mr. Strauss assisted the Company
with the exchange of debt for equity.  As compensation for his assistance to the Company, Mr. Strauss was issued the
Common Stock Purchase Warrant, dated July 9, 2001, for the right to purchase up to 625,000 shares of the Company's
common stock at an exercise price of $1.75 per share.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective January 1, 2002, the Company and Mr. Strauss entered into a Consulting Agreement in which Mr.
Strauss agreed to provide certain financial advisory and consulting services with respect to European investors only.  Such
services include assisting the Company with the introduction to investment bankers, general business development, and
market exposure in Europe.  The term of this agreement is one year, but will be terminated earlier if Capital Bank advises
the Company that Capital Bank does not approve of the consulting arrangement.  Mr. Strauss will be paid a consulting fee
of $5,000 per month during the term of the agreement.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>BHC Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 31, 2001, we entered into a definitive loan agreement with BHC Interim Funding, L.P. ("BHC"),
pursuant to which BHC loaned us $6 million (the "BHC Loan").  The BHC Loan was payable on March&nbsp;31, 2002, with
interest payable monthly on the outstanding principal balance of the BHC Loan at the annual rate of 13.75%.  We repaid
the BHC Loan in full on July 31, 2001.  Pursuant to the terms of the BHC Loan, we issued to BHC certain warrants (the
"BHC Warrants") for the purchase of up to 817,142 shares of common stock at an initial exercise price of $1.4578 per
share.</FONT><FONT FACE="CG Times" SIZE="-1">   This prospect</FONT> <FONT face="CG Times" SIZE="-1" color="#FF0000">
is part of the registration statement which registers for resale the 817,142 shares issuable upon the exercise of the BHC Warrants</FONT><FONT FACE="CG Times Regular" SIZE="-1">.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The BHC Warrants allow the holder to exercise the BHC Warrant without paying the exercise price in cash.
Upon a cashless exercise, the holder will receive the number of shares of common stock equal to: </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares as to which the BHC Warrants are being exercised, minus </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares having an aggregate fair market value equal to the product of (a) the exercise&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;price
multiplied by (b) the number of shares as to which the BHC Warrants are being exercised.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and the number of shares of common stock issuable upon exercise of the BHC Warrants are
subject to adjustment, from time to time, upon the occurrence of any of the following events.  If we issue shares of
common stock for a price per share less than the exercise price in effect before such issuance, the exercise price will be
reduced to a price determined by multiplying the exercise price by a fraction having:</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the numerator equal to the total number of common stock shares outstanding plus the number of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
common stock which the aggregate consideration received by us would purchase at&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such exercise price; and</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the denominator equal to the total number of shares of common stock outstanding immediately&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after such
issuance.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">These adjustments will not be made as a result of the grant or exercise of rights or options under our existing stock
purchase and stock option plans or under our warrants which were outstanding on January 1, 2001.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we issue options or rights to subscribe for shares of common stock, or any securities convertible into or
exchangeable for shares of common stock, for a price less than the exercise price, the exercise price in effect immediately
prior to such issuance will be reduced to a price computed by the above-listed method.  If we subdivide, combine, or pay a
dividend in shares of common stock outstanding, the exercise price and number of shares issuable upon exercise of the</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-19-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	BHC Warrants will be proportionately decreased, or increased, as appropriate.  If the exercise price is adjusted, the
number of shares of common stock issuable upon the exercise of the BHC Warrant will be equal to:</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the product of: (a) the number of shares of common stock issuable upon the exercise of the BHC Warrant<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;immediately prior to such adjustment, and (b) the exercise price immediately prior to such adjustment,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;divided
by</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the exercise price immediately after such adjustment.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and the number of shares of common stock issuable upon exercise of the BHC Warrants are
subject to adjustment, from time to time, if we:</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reorganize or reclassify the outstanding shares of common stock; </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;merge or consolidate with another corporation; or</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sell, lease or convey all, or substantially all, of our property, assets, business and goodwill to another&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;entity.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">Upon any such transaction, the BHC Warrant will be adjusted so that the holder of the BHC Warrant will be entitled to
receive the kind and number of shares of common stock or of our other securities which the holder would have owned or
been entitled to receive had the BHC Warrant been exercised in advance of such transaction.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we make a distribution of assets or securities to our stockholders, prior to the expiration of the BHC Warrant
and prior to the exercise of the BHC Warrant, the holder of the BHC Warrant will be entitled, upon the exercise, to
receive, in addition to the common stock it is entitled to receive, the same kind and amount of assets or securities as would
have been distributed to it in a distribution had it been the holder of record of shares of common stock receivable upon
exercise of the BHC Warrant on the record date for determination of those entitled to receive the distribution.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we dissolve, liquidate, or wind up our affairs at any time prior to the expiration or exercise of the BHC
Warrant, the holder of the BHC Warrant will be entitled to receive, in lieu of our common stock, the same kind and
amount of assets as</FONT> <FONT FACE="CG Times Regular" SIZE="-1">	would have been issued, distributed or paid to it upon the exercise of the BHC Warrant on the record
date for the determination of those entitled to receive any such liquidating distribution.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holder of the BHC Warrants may, at any time and from time to time during the term of the BHC Warrants,
request the registration of the BHC Warrant and common stock issuable upon the exercise of the BHC Warrants.  In</FONT>
<FONT FACE="CG Times Regular" SIZE="-1">addition, the holder of the BHC Warrants is entitled, subject to certain conditions, to include the BHC Warrant and
common stock issuable upon the exercise of the BHC Warrant in a registration statement covering other securities which
the Registrant proposes to register.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>National Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 5, 2000, we entered into a financial advisory and consulting agreement (the "Advisory and
Consulting Agreement") with National Securities Corporation ("National").  Pursuant to the terms of the Advisory and
Consulting Agreement, National performed various financial advisory services for the Company, including disseminating
information to the investment community at large; and advising us as to the timing and structure of future offerings of
equity securities.  Pursuant to the terms of the Advisory and Consulting Agreement, we issued to National two warrants
(collectively, the "National Warrants"), consisting of (a) a warrant, dated June 1, 2001, for the purchase of up to 250,000
shares of common stock and exercisable for a period of five years at an exercise price of $1.50 per share, and (b) a
warrant, dated June 1, 2001, for the purchase of up to 360,000 shares of common stock and exercisable for a period of
five years at an exercise price of $1.75 per share.  On July 30, 2002, National assigned a portion of the National Warrants
to various</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-20-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	brokers and entities controlled by brokers of National entitling the assignees to acquire 247,000 shares of
common stock at an exercise price of $1.50 per share and 340,000 shares of common stock at an exercise price of $1.75
per share.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U></U></STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the National Warrants provide that the holder may exercise a National Warrant without paying the
exercise price in cash.  Upon a cashless exercise, the holder will receive the number of shares equal to the product of (a)
the number of shares of common stock as to which the National Warrant is being exercised, multiplied by (b) a fraction,
the numerator of which is the market price of our common stock minus the exercise price, and the denominator is the
market price.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we declare and pay a dividend in common stock into a greater number of shares, or if the outstanding shares of
common stock are subdivided, combined or consolidated, then the number of shares issuable upon the exercise of the
National Warrant or the exercise price will be proportionately increased or decreased, as appropriate.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we merge or consolidate with another entity and we are not the surviving entity, or if we sell or convey all or
substantially all of our property, the holder of a National Warrant may receive, upon its exercise, the kind and number of
shares of common stock or of our other securities which the holder would have owned or been entitled to receive had the
National Warrant been exercised in advance of such transaction. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1">	</FONT><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times Regular"><FONT SIZE="-1">The terms of the National Warrants provide that the holder has certain piggyback registration rights.  This
prospectus is
part of the registration statement which registers for resale the 610,000 shares of our common stock that are issuable upon exercise of the National Warrants.</FONT></font></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Consultant Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have issued an aggregate of 2,591,458 warrants to purchase common stock (collectively, the "Consultant
Warrants") in connection with retaining and compensating Larkspur Capital Corporation ("Larkspur"), Ryan, Beck &amp;
Co. ("Ryan Beck"), and Strategic Growth International, Inc. ("Strategic") for consulting and advisory services rendered
to us.  These consulting services related to the negotiation and completion of our $22 million credit facility, the BHC
Loan, and the Purchase Agreement covering our Subordinated Notes.  A portion of the Consultant Warrants issued to
Larkspur and Ryan Beck were assigned by Larkspur and Ryan Beck to certain officers and/or managing directors of
Larkspur and Ryan Beck or trusts controlled by such officer or managing director.  Except as otherwise noted below, each
of these warrants</FONT> <FONT FACE="CG Times" SIZE="-1">	are for a term of five years with an exercise price of $1.44 per share.  This prospectus
</FONT><font face="CG Times"><FONT SIZE="-1">	is part of the
registration statement which registers for resale	the
2,591,458 shares of our common stock that are issuable upon the exercise of the Consultant Warrants.</FONT></font></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with retaining the services of Larkspur, Ryan Beck, and Strategic, we issued warrants to purchase
an aggregate of 630,000 shares of common stock, consisting of (a) warrants issued to each of Larkspur and Ryan Beck,
dated January 25, 2000, for the purchase of up to 75,000 shares and (b) warrants issued to Strategic, dated April 1, 1999,
for the</FONT> <FONT FACE="CG Times" SIZE="-1">	purchase of up to 480,000 shares.  The warrants granted to Strategic are for a term of four years and have an
exercise price of $1.20 per share as to 240,000 shares and $1.40 per share as to 240,000 shares.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the negotiation and completion of our $22 million credit facility, we issued warrants for the
purchase of an aggregate of 1,283,332 shares of common stock, consisting of (a) warrants issued to each of Larkspur and
Ryan Beck, dated December 22, 2000, for the purchase of up to 534,722 shares, and (b) warrants issued to Strategic,
dated December 22, 2000, for the purchase of up to 213,888 shares.   </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the negotiation and completion of the BHC Loan, we issued warrants for the purchase of an
aggregate of 349,999 shares of common stock, consisting of (a) warrants issued to each of Larkspur and Ryan Beck, dated
January 31, 2001, for the purchase of up to 85,069 shares, (b) warrants issued to Strategic dated February 1, 2001, for the
purchase of up to 34,028 shares, (c) warrants issued to each of Larkspur and Ryan Beck, dated March 9, 2001, for the
purchase of up to 60,764 shares, and (d) warrants issued to Strategic, dated March 9, 2001, for the purchase of up to
24,305 shares. </FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-21-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the negotiation and completion of the Purchase Agreement and our Subordinated Notes, we
issued warrants for the purchases of up to an aggregate of 328,127 shares of common stock consisting of (a) warrants
issued to each of Larkspur and Ryan Beck, dated July 31, 2001, for the purchase of up to 136,720 shares, and (b) warrants
issued to Strategic, dated July 31, 2001, for the purchase of up to 54,687 shares. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Consultant Warrants provide that the holder may exercise a Consultant Warrant without paying
the exercise price in cash.  Upon a cashless exercise, the holder will receive the number of shares equal to the product of
(a) the number of warrant shares as to which the warrant is being exercised, multiplied by (b) a fraction, the numerator of
which is the market price of our common stock minus the exercise price, and the denominator is the market price.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price or number of shares issuable upon exercise of the Consultant Warrants may be proportionately
increased or decreased, as appropriate, if we subdivide or combine our common stock, or pay a dividend in common
stock.  When the exercise price is adjusted, the number of shares issuable upon exercise will also be adjusted multiplying a
number equal to the exercise price in effect immediately prior to such adjustment by the number of shares issuable upon
exercise of the Consultant Warrants immediately prior to such adjustment and dividing the product by the adjusted exercise
price.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>SELLING STOCKHOLDERS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth as to each Selling Stockholder: (a) the name of each Selling Stockholder, (b)&nbsp;the
amount of shares beneficially owned as of </FONT><font face="CG Times"><FONT SIZE="-1">
September 12,
2002, (</FONT></font><FONT FACE="CG Times" SIZE="-1">c) the number of shares of common stock owned by
each Selling Stockholder which are included under this prospectus, (d) the number of shares beneficially owned after the
offering, assuming that all shares of common stock being offered hereby are sold and that such are outstanding, and (e) the
percentage of common stock beneficially owned after completion of the offering.  Unless otherwise noted, each Selling
Stockholder has sole voting and investment power over the shares of common stock listed as beneficially owned by the
Selling Stockholder.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock being offered includes shares of common stock which may be acquired upon: (a) the exercise
of outstanding warrants, whether such are currently exercisable, and/or (b) conversion of outstanding shares of preferred
stock, whether or not such are currently convertible.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The percentage of common stock beneficially owned after completion of this offering assumes: (a) all shares of
common stock covered by this prospectus are sold, (b) the Selling Stockholder does not acquire beneficial ownership of
additional shares of common stock after the date of this prospectus, and (c) we do not issue any additional shares of
common stock after the date of this prospectus, except the shares of common stock which a person has the right to acquire
upon the exercise of warrants and conversion of preferred stock outstanding as of the date of this prospectus, but such
shares are not determined to be outstanding for the purpose of computing the percentage ownership of any other person.
The amounts indicated are based on outstanding common stock of </FONT><font face="CG Times"><FONT SIZE="-1">34,298,382	shares as of September 12, 2002.</FONT></font></P>

<TABLE WIDTH="651" height="4794">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" size="2">Associated
    Mezzanine-PESI(I), L.P.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" size="2">712,073<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" size="2">712,073</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" size="2">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" size="2">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" size="2">Associated Mezzanine Investors,
    L.L.C.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><font size="2">20,000<FONT FACE="CG Times"><SUP>(1)</SUP>  </FONT></font></TD>
<TD ALIGN="RIGHT" width="106" height="20"><font size="2">20,000</font></TD>
<TD ALIGN="RIGHT" width="89" height="20"><font size="2">0</font></TD>
<TD ALIGN="CENTER" width="87" height="20"><font size="2">*</font>  </TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" size="2">David Avital</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" size="2">286,000<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" size="2">286,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" size="2">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" size="2">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Michael Bergin</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">184,500<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">184,500</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"></TD>
<TD ALIGN="RIGHT" width="115" height="20"></TD>
<TD ALIGN="RIGHT" width="106" height="20"></TD>
<TD ALIGN="RIGHT" width="89" height="20"></TD>
<TD ALIGN="CENTER" width="87" height="20"></TD></TR>
<TR VALIGN="TOP"><TD width="619" height="20" colspan="5">&nbsp;
    <p align="center"><font face="CG Times" size="-1">-22-</font></p>
    <p>&nbsp;</TD>
</TR>
<TR VALIGN="TOP"><TD width="619" height="20" colspan="5"></TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD>
</tr>
<TR VALIGN="TOP"><TD width="222" height="20"><font face="CG Times"><FONT SIZE="-1">BHC Interim Funding,
    L.P.**</FONT></font></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">817,142<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">817,142</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT face="CG Times" SIZE="-1">Bridge East Capital, L.P.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">569,658<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">569,658</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><font face="CG Times"><FONT SIZE="-1">Catalyst Venture Capital,
    LLC**</FONT></font></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">185,000<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">185,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">CICI 1999 Qualified Annuity</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">171,430<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">171,430</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Gerald B. Cramer</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">171,430<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">171,430</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">CRM 1999 Enterprise Fund 3</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">400,000<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">400,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Paul Cronson**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">289,745<SUP>(1)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">289,745</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Michael DiDonna**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">1,000<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">1,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Craig S.
    Eckenthal**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">114,286<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">114,286</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Danny Ellis Living Trust</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">700,000<SUP>(3)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">500,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">200,000</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Europa International, Inc.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">800,601<sup>(4)</sup></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">800,601</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Harvey Gelfenbein</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">57,142<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Charlie Giaimo**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">7,000<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">7,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Christopher Todd Goodwin
    Trust**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">3,000<SUP>(1)    </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">3,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Kelsey Ann Goodwin
    Trust**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">3,000<SUP>(1)  </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">3,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Robert L.
    Goodwin**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">283,747<SUP>(1)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">283,747</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">   0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">A.C. Israel Enterprises</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">571,430<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">571,430</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Michael J.
    Kollender**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">265,542<SUP>(1)   </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">265,542</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Kuekenhof Partners, L.P.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">80,000<SUP>(2) </SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">80,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Kuekenhof Equity Fund, L.P.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">120,000<SUP>(2) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">120,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Jack Lahav</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">1,158,026<sup>(5)</sup></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">1,142,858</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">15,168</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Joseph LaMotta</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">57,142<SUP>(2) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Jay B. Langner</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">57,142<SUP>(2) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Rocco LaVista**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">13,000<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">13,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Carl </FONT><FONT FACE="CG Times Regular" SIZE="-1">Leschinski**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">10,000<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">10,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">The F. M. Grandchildren Trust</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">85,714<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">85,714</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Mathers Associates</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">457,142<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">457,142</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Robert C. Mayer,
    Jr.**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">289,746<SUP>(1)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">289,746</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Peter
    Melhado**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">230,000<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">230,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Meera
    Murdeshwar**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">47,037<SUP>(1)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">47,037</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">National Securities
    Corporation**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">63,000<SUP>(1)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">63,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"></TD>
<TD ALIGN="RIGHT" width="115" height="20"></TD>
<TD ALIGN="RIGHT" width="106" height="20"></TD>
<TD ALIGN="RIGHT" width="89" height="20"></TD>
<TD ALIGN="CENTER" width="87" height="20"></TD></TR>
<TR VALIGN="TOP"><TD width="619" height="20" colspan="5" align="center">&nbsp;
    <p>&nbsp;</p>
    <p align="center"><font size="2">-23-</font></p>
    <p>&nbsp;</TD>
</TR>
<TR VALIGN="TOP"><TD width="222" height="20"></TD>
<TD ALIGN="RIGHT" width="115" height="20"></TD>
<TD ALIGN="RIGHT" width="106" height="20"></TD>
<TD ALIGN="RIGHT" width="89" height="20"></TD>
<TD ALIGN="CENTER" width="87" height="20"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD>
</tr>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Pamela Equities</FONT><FONT FACE="CG Times" SIZE="-1"> Corp.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">85,714<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">85,714</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Josef Paradis</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">286,000<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">286,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Princeton Avenue Partners,
    LLC**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">185,000<SUP>(1) </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">185,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Readington Associates</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">114,286<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">114,286</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Dr. Ralph Richart</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">684,250<sup>(6)</sup></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT face="CG Times" SIZE="-1">450,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">234,250</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Randy F. Rock**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">265,540<SUP>(1)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">265,540</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="32"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Edward J. Rosenthal</FONT><FONT FACE="CG Times" SIZE="-1"> Profit<br>
    &nbsp;&nbsp;&nbsp;Sharing Plan</FONT>

  </TD>
<TD ALIGN="RIGHT" width="115" height="32"><FONT FACE="CG Times" SIZE="-1">57,142<SUP>(2)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="32"><FONT FACE="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="32"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="32"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Ryan Beck &amp;
    Co.**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">381,838<SUP>(1)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">381,838</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Yariv Sapir IRA</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">171,428<SUP>(2)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">171,428</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Jeffrey Sherry**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">3,355<SUP>(1)  </SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">3,355</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Strategic Growth International,&nbsp;Inc.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">806,908<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">806,908</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Herbert Strauss</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">625,000<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">625,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">Scott Wheeler**</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">1,500<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">1,500</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times Regular" SIZE="-1">Bruce Wrobel</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT FACE="CG Times" SIZE="-1">300,000<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">300,000</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="50"><FONT FACE="CG Times" SIZE="-1">Capital Bank-Grawe Gruppe AG, as
agent for the following Selling
Stockholders:<sup>(7)(8)</sup></FONT></TD>
<TD COLSPAN="4" ALIGN="RIGHT" width="415" height="50"><FONT FACE="CG Times" SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ewald Altrichter</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">19,802   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">19,802</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thomas Amtmann</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">80,793   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">80,793</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Thomas Bauer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Thomas Bernhart</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Otto W. Beuchert</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Leben</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">260,400   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">260,400</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Draxler Christa</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">23,763   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">23,763</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class Financial Holdings Ltd.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">486,249<SUP>(9)</SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">257,430</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT face="CG Times" SIZE="-1">228,819</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabriele Diesel</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">17,228   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">17,228</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang Diesel</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">74,853   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">74,853</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diesel Kinobetriebsgmbh</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">22,773   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">22,773</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ing. Otto Dragoun</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">149,507   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">149,507</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dragoun Projektentwicklung</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">173,270   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">173,270</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Manfred Ecker</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">114,853   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">114,853</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<TR VALIGN="TOP"><TD width="619" height="17" colspan="5" align="center">&nbsp;
    <p align="center"><font size="2">-24-</font></p>
    <p>&nbsp;</p>
    <p>&nbsp;</TD>
</TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD>
</tr>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Wolfgang Egger</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang Erber</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT face="CG Times" SIZE="-1">35,644   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">35,644</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jakob Falkner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">264,697<SUP>(10)</SUP></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">230,697</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">34,000</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Heidelinde Felber</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter Felber</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">14,852   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">14,852</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang Fellner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">22,773   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">22,773</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FMZ Privatstiftung</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">39,605   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">39,605</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eifl Franz</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">17,228   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">17,228</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ing. Wilhelm Fritsch</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881 </FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Stefan Gfrerer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Markus Gfrerer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">17,228   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">17,228</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter Grasser</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">79,209   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">79,209</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dir. G&uuml;nther Grassl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Andreas Grassl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Ursula Groier</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Joachim Grutsch</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alex Hahl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Christian Harisch</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,386   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,386</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J&uuml;rgen Hasenh&uuml;tl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Helfried Heidinger</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">35,644   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">35,644</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Thomas Heidinger</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">29,703   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">29,703</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Andreas Heresch</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ing. Peter Hittaller</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">22,773   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">22,773</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Margareta H&ouml;dl-Ganster</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">79,209   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">79,209</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Ferdinand Jeindl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">13,862   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">13,862</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Erich Jeindl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">122,774   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">122,774</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Oskar Jurinec</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Margarete Karner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">202,616<sup>(11)</sup></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">158,418</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">44,200</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bernhard Kaufmann</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">45,545   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">45,545</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Claudius Kern</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kurt Kinast</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">16,832   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">16,832</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<TR VALIGN="TOP"><TD width="619" height="17" colspan="5" align="center">&nbsp;
    <p><font size="2">-25-</font></p>
    <p>&nbsp;</TD>
</TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD>
</tr>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Roland Klar</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">23,763   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">23,763</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="32"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Walter o. Mag. Elisabeth<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kleinsasse</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="32"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="32"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="32"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="32"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gertaud oder Peter J. Kneissl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">55,446   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">55,446</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alfred Knollm&uuml;ller</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ingrid K&ouml;berl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">14,852   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">14,852</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Wilfried K&ouml;hler</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,386   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,386</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kurt Koller</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Gernot Kornar</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">26,535   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">26,535</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Ursula Krachler</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Gerhard Krammer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karin Krekel</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">45,545   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">45,545</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maria Regina Krenn</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">23,763   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">23,763</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="20"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kronberg Intern. Holdings S.A.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="20"><FONT face="CG Times" SIZE="-1">544,749<sup>(12)</sup></FONT></TD>
<TD ALIGN="RIGHT" width="106" height="20"><FONT FACE="CG Times" SIZE="-1">114,853</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="20"><FONT FACE="CG Times" SIZE="-1">429,896</FONT></TD>
<TD ALIGN="CENTER" width="87" height="20"><FONT FACE="CG Times" SIZE="-1">1.3%</FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerlinde Lang</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rudolf Laudon</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Helga o. Dr. Robert Lipa</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerald Mariacher</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">13,862   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">13,862</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renate Melcher</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">19,802   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">19,802</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="32"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elisabeth oder Michael<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mittendrein</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="32"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="32"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="32"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="32"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manfred Mostbacher</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang oder Martina Nu&szlig;hold</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">138,616   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">138,616</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dietrich Oberdorfer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Herbert Orthaber</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vinzenz Pagger</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Helga Pfeifer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">17,288   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">17,228</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Markus Plank</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Georg Plochberger</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">345,550   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">345,550</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hermann oder Karin P&ouml;ltl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">79,209   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">79,209</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Anne Prem</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">57,427   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">57,427</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Privatstiftung Hofmann</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">346,540   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">346,540</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<TR VALIGN="TOP"><TD width="619" height="17" colspan="5">&nbsp;
    <p align="center"><font size="2">-26-</font></p>
    <p>&nbsp;</TD>
</TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD>
</tr>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Gerhard Rauchenwald</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Oliver Reistenhofer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">79,209   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">79,209</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert Ringbauer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Divoky Rudolf</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elisabeth Rumpf</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gernot Rumpold</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">69,308   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">69,308</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Josef Russold</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">25,743   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">25,743</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Oliver Sauer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Erika Schatzmann</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">59,407   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">59,407</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claudia Schiller</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jutta Schnirring</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">45,545   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">45,545</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leopold Schreiber</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Helga o. Josef Schubert</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">29,703   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">29,703</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evelyn Schwarz</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">22,773   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">22,773</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dipl. Ing. Wolgang Steinbauer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Georg St&ouml;ttner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">34,654   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">34,654</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franz oder Karin Teuschler</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">22,773   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">22,773</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ingeborg Teuschler</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rebecca u. Olivia Thomas</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Siegwald T&ouml;fferl</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">57,427   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">57,427</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Venus Privatstiftung</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">79,209   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">79,209</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merkur Versicherung</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">118,814   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">118,814</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gottfried Vorraber</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. G. Wagner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerald Weindorfer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Albert Wiedner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franz Wiedner</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anton Wieser jun.</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">55,446   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">55,446</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hannelore Wilhelmer</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Helrnfried Winter</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">138,616   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">138,616</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<TR VALIGN="TOP"><TD width="619" height="17" colspan="5" align="center">&nbsp;
    <p><font size="2">-27-</font></p>
    <p>&nbsp;</TD>
</TR>
<TR VALIGN="TOP"><TD width="222" height="17"></TD>
<TD ALIGN="RIGHT" width="115" height="17"></TD>
<TD ALIGN="RIGHT" width="106" height="17"></TD>
<TD ALIGN="RIGHT" width="89" height="17"></TD>
<TD ALIGN="CENTER" width="87" height="17"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="222" height="77">
<font size="2"><b>
<br>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2"><FONT FACE="CG Times"><U>Selling Stockholder</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="115" height="77"><font size="2"><b>
<BR WP="BR1">Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
 <U>Prior to Offering</U></FONT></b></font></TD>
<TD ALIGN="CENTER" width="106" height="77"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
Common Stock<FONT FACE="CG Times"><U><br>
Being Offered</U></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="182" height="77"><font size="2"><b>
Common Stock<br>
  <FONT FACE="CG Times">Beneficially<br>
  &nbsp;Owned<br>
  </FONT></b></font><U>    <FONT FACE="CG Times" size="2"><b>    After Offering<br>
  </b></FONT>    </U><b><FONT FACE="CG Times" size="2"><U>Number</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>%  of Class</U></FONT></b></TD>
</tr>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christina Wolf</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.Otto Wusche</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,485   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,485</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Susan Wuthe</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">11,881   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">11,881</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="222" height="17"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Alexander Zrost</FONT></TD>
<TD ALIGN="RIGHT" width="115" height="17"><FONT FACE="CG Times" SIZE="-1">57,427   </FONT></TD>
<TD ALIGN="RIGHT" width="106" height="17"><FONT FACE="CG Times" SIZE="-1">57,427</FONT></TD>
<TD ALIGN="RIGHT" width="89" height="17"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="87" height="17"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR></TABLE>

<P><FONT FACE="CG Times" SIZE="-1">* 	Less than 1%.</FONT></P>

<P><FONT face="CG Times" SIZE="-1">**	This Selling Stockholder is an affiliate of a registered broker-dealer.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><SUP>(1)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;All of the shares indicated are issuable upon the exercise of warrants.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><SUP>(2)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;One-half of the shares indicated are issuable upon the exercise of warrants.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><SUP>(3)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;Includes 250,000 shares issuable upon the exercise of warrants and 100,000 owned of record by D.W.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments, Inc. of which Mr. Ellis is the sole stockholder.</FONT></P>

<P><SUP><FONT face="CG Times" SIZE="-1">(4)</FONT></SUP><FONT face="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Includes
571,428 shares issuable upon the exercise of warrants.</FONT></P>

<P><sup><FONT face="CG Times" SIZE="-1">(5)</FONT></sup><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Includes 571,429 shares issuable upon the exercise of warrants and 15,000 issuable upon the exercise of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;options. </FONT></P>

<P><sup><FONT face="CG Times" SIZE="-1">(6)</FONT></sup><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Includes 225,000 shares issuable upon the exercise of warrants.</FONT></P>

<P><sup><FONT face="CG Times" SIZE="-1">(7)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></sup><FONT FACE="Times New Roman" SIZE="-1">As of September
12, 2002, Capital Bank owned of record, as agent for certain accredited investors,
9,258,672&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of common stock representing
27.0% of our issued and outstanding common stock.  As of that date,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
Bank also had the right to acquire an additional 6,025,317 shares of common stock, comprised of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 4,358,650
shares of common stock issuable under various warrants held by Capital Bank, as agent for&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;certain investors and (b)
1,666,667 shares of common stock issuable to Capital Bank upon the conversion&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of 2,500 shares of Series 17
Preferred held by Capital Bank,
as agent for certain investors. </FONT><FONT FACE="CG Times" SIZE="-1">If Capital Bank&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;were to acquire all of the shares&nbsp;of common stock issuable upon
exercise of the various warrants held&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by Capital Bank and the shares of
comm</FONT><FONT SIZE="-1"><font face="CG Times">on stock issuable upon conversion of
the Series 17 Preferred,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;then Capital Bank would own of&nbsp;record
15,283,989 shares of common stock,
representing 37.9% of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the issued and outstanding common&nbsp;stock (assuming no other issuances of our common
stock).&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Selling Stockholders identified in this table&nbsp;under the caption "Capital Bank-Grawe Gruppe&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AG, as
agent for the following Selling Stockholders"&nbsp;include 109 persons and entities which, in&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the aggregate, beneficially
own 3,143,115 shares of the&nbsp;common stock that are owned of record by&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank and 2,725,548 shares of
common stock issuable&nbsp;upon the exercise of warrants held in&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank's name.  The warrants held in Capital
Bank's name are&nbsp;exercisable at exercise prices&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ranging from $1.4219 to $1.9688 per share of common stock.
Capital Bank&nbsp;may also acquire&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></FONT><font face="CG Times"><FONT SIZE="-1">&nbsp;additional shares as payment of dividends on the Series 17 Preferred.  None of the
shares&nbsp;included<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in this prospectus are being offered for the account of Capital Bank.   Capital Bank has advised&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;us
that it is holding these warrants and shares on behalf of numerous clients, all of which are&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accredited
investors.  Although Capital Bank is the record holder of the shares of common stock and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;warrants described in
this note, Capital Bank has advised us that (a)
Capital Bank does not believe<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it is a beneficial owner of the common
stock; (b) Capital
Bank does not believe that it is required to&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;file reports under Section 16(a) or Section&nbsp;13(d) of the Exchange
Act; and (c)
Capital Bank holds&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the common&nbsp;stock as a nominee only, it does not
exercise voting or investment power over the common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock held in its name, and
no one investor of Capital
Bank for which it holds our
common&nbsp;stock</FONT></font></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-28-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times"><FONT SIZE="-1">&nbsp;&nbsp;beneficially
owns more than 4.9% of our
issued and outstanding common
stock.&nbsp; Based on
these&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;representations by Capital
Bank, we believe that Capital Bank does not <font color="#FF0000"><b>have, or
share,</b></font> voting or dispositive<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;control, either directly
or indirectly, of the shares of common stock owned of record by Capital Bank.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, based on Capital
Bank's representations and because Capital Bank (x)
has no right to, and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;is not believed to possess
the power to, exercise control over our
management&nbsp;or our
policies; (y)&nbsp;has&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not nominated, and has not sought to nominate, a director
to our
board; and (z) has no representative&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;serving as our
executive officer, we
do not believe that Capital Bank is our
affiliate.&nbsp; Capital Bank's&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;address is Burgring 16, 8010&nbsp;Graz, Austria.&nbsp;
Capital Bank has advised us
that it is a banking institution&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;regulated by the&nbsp;banking
regulations of Austria.  Capital Bank is a wholly owned subsidiary of Grazer&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wechselseitige&nbsp;Versicherung
Aktiengesellschaft ("Grazer").  Capital Bank has advised us
that Grazer&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;is wholly&nbsp;owned by Grawe
Vermogensverwaltung, a mutual insurance association ("Grawe").&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank has&nbsp;further advised
us that the owners of Grawe are all insurance holders of Grazer with an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;insurance agreement for more than one year.
See "POTENTIAL CHANGE IN CONTROL."</FONT></font></P>

<P><font face="CG Times"><sup><FONT SIZE="-1">(8)</FONT></sup><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, of the number of shares of common stock beneficially owned by each of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;individuals and entities listed under the heading "Capital Bank Grawe-Gruppe AG, as agent for the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following
Selling Stockholders," approximately 50.5% are issued and outstanding, and approximately&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.5% are issuable
upon the issuance of outstanding warrants.  For example, if a Selling Stockholder listed&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under such heading is
noted as beneficially owning 10,000 shares, those shares would be comprised of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,050 issued and outstanding
shares and 4,950 shares issuable upon the exercise of warrants.</FONT></font></P>

<P><font face="CG Times"><SUP><FONT SIZE="-1">(9)</FONT></SUP><FONT face="CG Times" SIZE="-1" color="#FF0000">&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1">&nbsp;Includes 200,530 shares issuable upon the exercise of warrants.</FONT></font></P>

<P><font face="CG Times"><sup><FONT SIZE="-1">(10)</FONT></sup><FONT SIZE="-1">&nbsp;&nbsp;Includes 148,197 shares issuable upon the exercise of warrants.</FONT></font></P>

<P><font face="CG Times"><sup><FONT SIZE="-1">(11)</FONT></sup><FONT SIZE="-1">&nbsp;&nbsp;Includes 122,618 shares issuable upon the exercise of warrants.</FONT></font></P>

<P><font face="CG Times"><sup><FONT SIZE="-1">(12)</FONT></sup><FONT SIZE="-1">&nbsp;&nbsp;Includes 90,853 shares issuable upon the exercise of warrants.<SUP><br>
</SUP></FONT></font></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>PLAN OF DISTRIBUTION</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Shares may be offered and sold from time to time by the Selling Stockholders, or by pledges, donees,
transferees or other successors in interest.  The Selling Stockholders will act independently of us in making decisions with
respect to the timing, market, or otherwise at prices related to the then current market price or in negotiated transactions.
The Shares may be sold by the Selling Stockholders in one or more transactions on the Nasdaq and the BSE or otherwise at
market prices then prevailing or in privately negotiated transactions.  The Shares may be sold by one or more of the
following: </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ordinary brokerage transactions and transactions in which the broker solicits purchasers; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchases and resale by a broker-dealer for its account pursuant to this prospectus; and </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a block trade in which the broker-dealer so engaged will attempt to sell the shares as agent but&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;may position
and resell a portion of the block as principal to facilitate the transaction.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not been advised by the Selling Stockholders that they have, as of the date hereof, made any
arrangements relating to the distribution of the Shares covered by this prospectus, except that certain of the Selling
Stockholders are broker-dealers.  See "SELLING STOCKHOLDERS."  Each Selling Stockholder that is an affiliate of a
broker-dealer has advised us that such Selling Stockholder (a) acquired the shares covered by this prospectus in the
ordinary course of business, and (b) at the time of such purchase, the Selling Stockholder had no agreements or
understandings, directly or indirectly, with any person to distribute such shares.  In effecting sales, broker-dealers</FONT>
<FONT FACE="CG Times" SIZE="-1">	engaged
by the Selling Stockholders may arrange for other broker-dealers to participate, and, in such case, broker-dealers will
receive commissions or discounts from the Selling Stockholders in amounts to be negotiated immediately prior to sale.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In offering the Shares, the Selling Stockholders and any broker-dealers and any other participating broker-dealers
who execute sales for the Selling Stockholders may be deemed to be "underwriters" within the meaning of the&nbsp;</FONT></P>

<P align="center"><font size="2">-29-</font></P>

<P><FONT FACE="CG Times" SIZE="-1">	Act in connection with such sales.  Accordingly, any profits realized by the Selling Stockholders and the compensation of such
broker-dealer may be deemed to be underwriting discounts and commissions.  Any Shares covered by this prospectus
which qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>LEGAL OPINION</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conner &amp; Winters, P.C., Oklahoma City, Oklahoma will opine as to the validity of the shares of Common stock
being offered hereby.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER></FONT><FONT FACE="CG Times" SIZE="-2"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>EXPERTS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our financial statements and schedules included in our annual report on Form 10-K for the year ended December
31, 2001, have been audited by BDO Seidman LLP, independent certified public accountants to the extent and for the
periods set forth in their report incorporated herein by reference, and are incorporated by reference herein in reliance upon
such report given upon the authority of said firm as experts in auditing and accounting. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements of M&amp;EC for the years ended December 31, 2000, and 1999 included in our definitive
proxy statement, filed May 9, 2002, relating to our Special Meeting (the "Special Meeting Proxy") have been audited by
Gallogly Fernandez &amp; Riley, LLP ("GFR"), independent certified public accountants to the extent and for the periods set
forth in their report incorporated herein by reference, and are incorporated by reference herein in reliance upon such
report given upon the authority of said firm as experts in auditing and accounting.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately 95% and 94% of the total hours spent on the audit of our financial statements for the years ended
December 31, 2000 and 2001, respectively, were spent by GFR, as a member of the BDO alliance network of firms.
Members of the BDO alliance network of firms, including GFR, are not full time, permanent employees of BDO.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements of our subsidiary, Diversified Scientific Services, Inc., included in the Special Meeting
Proxy have been incorporated in reliance on the report of Arthur Andersen LLP, independent certified public accountants.
We have not been able to obtain, after reasonable efforts, the written consent of Arthur Andersen LLP to the inclusion of
its report in this prospectus, and we have not filed that consent in reliance on Rule 437a promulgated under the Act.
Because Arthur Andersen has not consented to the inclusion of its report in this prospectus, your ability to assert claims
against Arthur Andersen may be limited.  In particular, because of this lack of consent, you will not be able to sue Arthur</FONT>
<FONT FACE="CG Times" SIZE="-1">	Andersen under Section 11(a)(4) of the Act for untrue statements of a material fact, if any, contained in the financial
statements audited by Arthur Andersen or omissions to state a material fact, if any required to be stated in those financial
statements.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>WHERE YOU CAN FIND MORE INFORMATION</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and special reports, proxy statements and other information with the SEC. You may
read and copy any document we file at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.,
20549. Please call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room. Our SEC filings are
also available to the public on the SEC's web site at <u>http://www.sec.gov</u>.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to "incorporate by reference" the information we file with it.  This allows us to disclose
important information to you by referring you to those documents instead of having to repeat the information in this
prospectus. The information incorporated by reference is considered to be part of this prospectus, and later information
that we file with the SEC will automatically update and supersede this information. We incorporate by reference the
documents listed below and any future filings made with the SEC under Sections 13(a), 13(c), 14, or 15(d) of the
Exchange Act until the Selling Stockholders sell all the Shares:</FONT></P>

<P><font face="CG Times" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT FACE="Times New Roman" SIZE="-1">Our annual report on Form 10-K for the fiscal year ended December 31, 2001; and</FONT></P>

<P align="center"><font face="Times New Roman" size="-1">-30-</font></P>

<P><font face="CG Times" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT FACE="Times New Roman" SIZE="-1">Our quarterly report on Form 10-Q for the quarter ended March 31, 2002; and</FONT></P>

<FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our definitive proxy statement filed on May 9, 2002, relating to the Special Meeting held on June&nbsp;14,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002; and</FONT><P><font face="CG Times" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT FACE="Times New Roman" SIZE="-1">Our current report on Form 8-K filed on June 19, 2002;</FONT></P>

<FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current report on Form 8-K filed on August 1, 2002;</FONT>
<p><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Times New Roman"><FONT SIZE="-1">&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our quarterly report on Form 10-Q for the quarter ended June 30, 2002;&nbsp;</FONT></font>
<p><b><font size="2" color="#FF0000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
definitive proxy statement filed on October 9, 2002, relating to our 2002 Annual
Meeting of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders;</font><p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
quarterly report on Form 10-Q for the quarter ended September 30, 2002;&nbsp;</font>
<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
current report on Form 8-K filed on November 26, 2002; and</font><p><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description of our common stock contained in our Registration Statement on Form 8-A dated October 30,
1992. </FONT>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can request a copy of these filings, at no cost, by writing or telephoning us at the following address and
telephone number:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER>Perma-Fix Environmental Services, Inc.<br>
Attention:  Richard T. Kelecy<br>
1940 Northwest 67<SUP>th</SUP> Place<br>
Gainesville, Florida 32653<br>
Telephone (352) 373-4200</CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in this prospectus or any supplement and in the documents
incorporated by reference. We have not authorized anyone else to provide you with different information. The Selling
Stockholders will not make an offer of these Shares in any state where the offer is not permitted. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement we filed with the SEC (Registration No. 333-70676). That
registration statement and the exhibits filed along with the registration statement contain more information about the shares
sold by the Selling Stockholders. Because information about contracts referred to in this prospectus is not always complete,
you should read the full contracts which are filed as exhibits to the registration statement. You may read and copy the full
registration statement and its exhibits at the SEC's public reference rooms or their web site.</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P align="center"><font size="2">-31-</font></P>

<P>&nbsp;</P>

<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="CG Times" size="7">Perma</font><b><font face="CG Times" size="7">Fix<br>
</font></b><font size="4">environmental services</font></p>
<p align="center"></p>
&nbsp;
<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>17,931,966 Shares</STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>Perma-Fix Environmental Services, Inc.</STRONG></FONT></P>

<p align="center"><FONT FACE="CG Times"><STRONG>Common Stock</STRONG></FONT>
<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG><br>
<br>
<br>
<br>
________________</STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>Prospectus</STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>________________</STRONG></FONT></P>

<BR WP="BR1">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<p>&nbsp;</p>
<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>_____________, 2002</STRONG></FONT></P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER"><FONT FACE="CG Times">PART II</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times">INFORMATION NOT REQUIRED IN PROSPECTUS</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">Item 14.  <EM>Other Expenses of Issuance and Distribution</EM></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><font FACE="CG Times" SIZE="-1"><u>Nature of Expense</u></font><br WP="BR1">
    <br WP="BR2">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font FACE="CG Times" SIZE="-1">SEC
    Registration Fee&nbsp;&nbsp;. . . . . . . . . . . &nbsp;&nbsp;$&nbsp; 14,539.26<br>
    </font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font FACE="CG Times" SIZE="-1">Legal
    Fees (Including Blue Sky) . .&nbsp;&nbsp; </font><font color="#000000"><font face="CG Times" SIZE="-1">$162,000.00<br>
    </font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font FACE="CG Times" SIZE="-1">Accounting
    Fees and Expenses . .&nbsp;&nbsp; $&nbsp;&nbsp;11,000.00</font></font><font FACE="CG Times" SIZE="-1"><br>
    </font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font FACE="CG Times" SIZE="-1">Printing.
    . . . . . . . . . . . . . . . . . . . . . . .&nbsp; $ &nbsp;&nbsp;&nbsp;2,500.00<br>
    </font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font FACE="CG Times" SIZE="-1">Miscellaneous&nbsp;
    . . . . . . . . . . . . . . . . .&nbsp; $ <u>&nbsp;&nbsp;&nbsp;2,500.00<br>
    <br>
    </u></font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font FACE="CG Times" SIZE="-1">Total&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font><font face="CG Times" color="#000000"><font SIZE="-1">$</font><u><font SIZE="-1">&nbsp;192,539.26</font></u></font></TD></TR></TABLE>
<P><FONT FACE="CG Times" SIZE="-1">The foregoing expenses, except for the registration fee, are estimated pursuant to Item 511 of Regulation S-K.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">Item 15.  <EM>Indemnification of Officers and Directors</EM></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 145 of the Delaware Corporation Law provides that a corporation has the power to indemnify a director,
officer, employee or agent of the corporation and certain other persons serving at the request of the corporation in related
capacities against amounts paid and expenses incurred in connection with an action or proceeding to which he is or is
threatened to be made a party by reason of such position, if such person shall have acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal proceeding, if such
person had no reasonable cause to believe his conduct was unlawful; provided that, no indemnification shall be made with
respect to any matter as to which such person shall have been adjudged to be liable to the corporation unless and only to
the extent that the adjudicating court determines that, despite the adjudication of liability but in view of all the circumstance
of the case, such person is fairly and reasonably entitled to indemnification.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article EIGHTH of our Restated Certificate of Incorporation, as amended, provides as follows with respect to the
indemnification of our officers and directors:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All persons who the Corporation is empowered to indemnify pursuant to the provisions of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 145 of
the General Corporation Law of the State of Delaware (or any similar provision or&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provisions of
applicable law at the time in effect), shall be indemnified by the Corporation to the full&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;extent permitted
thereby.  The foregoing right of indemnification shall not be deemed to be exclusive&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of any other rights
to which those seeking indemnification may be entitled under any bylaw,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agreement, vote of stockholders
or disinterested directors, or otherwise.  No repeal or amendment of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this Article EIGHTH shall adversely
affect any rights of any person pursuant to this Article EIGHTH&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which existed at the time of such repeal
or amendment with respect to acts or omissions occurring&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prior to such repeal or amendment.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Restated Certificate of Incorporation, as amended, provides that no director shall be personally liable to us or
its stockholders for any monetary damages for breaches of fiduciary duty as a director, provided that this provision shall
not eliminate or limit the liability of a director (i) for any breach of the director's duty of loyalty to us or our stockholders;
(ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii)
under Section 174 of the General Corporation Law of the State of Delaware; or (iv) for any transaction from which the
director derived an improper personal benefit.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">II-1</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">Item 16.<EM>  Exhibits</EM>			</FONT></P>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="651">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT><FONT FACE="CG Times Regular" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER" width="551"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT><FONT FACE="CG Times Regular" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">2.1</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Stock Purchase Agreement, dated January 18, 2001, among the Registrant; East Tennessee
Materials and Energy Corporation; Performance Development Corporation; Joe W. Anderson;
Ronald W. Anderson; M. Joy Anderson; Russell R. and Cindy E. Anderson; Charitable
Remainder Unitrust of William Paul Cowell, Kevin Cowell, Trustee; Joe B. and Angela H.
Fincher; Ken-Ten Partners; Michael W. Light; Management Technologies, Incorporated; M&amp;EC
401(k) Plan and Trust; PDC 401(k) Plan and Trust; Robert N. Parker; James C. Powers;
Richard William Schenk, Trustee of the Richard Schenk Trust dated November 5, 1998; Talahi
Partners; Hillis Enterprises, Inc.; Tom Price and Virginia Price; Thomas John Abraham, Jr. and
Donna Ferguson Abraham; and Bill J. Hillis, is incorporated by reference from Exhibit 2.1 to
the Registrant's Current Report on Form 8-K, dated January 31, 2001, and filed on February</FONT>&nbsp;<FONT FACE="CG Times Regular" SIZE="-1">26,
2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">4.3</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Form of Subscription Agreement, as incorporated by reference from Exhibit 4.2 to the
Registrant's Current Report on Form 8-K dated June 15, 2001, and filed on July 5, 2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">    &nbsp;&nbsp;&nbsp;5.1*</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Opinion of Conner &amp; Winters, a Professional Corporation.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">10.1</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99446V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.1 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">10.2</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99447V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.2 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">10.3</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99448V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.3 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">10.4</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Note and Warrant Purchase Agreement, dated July 31, 2001, among the Registrant, </FONT><FONT FACE="CG Times" SIZE="-1">Associated
Mezzanine Investors-PESI (I), L.P. </FONT><FONT FACE="CG Times Regular" SIZE="-1">and </FONT><FONT FACE="CG Times" SIZE="-1">Bridge East Capital L.P.</FONT><FONT FACE="CG Times Regular" SIZE="-1">, as incorporated by reference
from Exhibit 99.1 to the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed
on August 7, 2001.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.5</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Form of 13.50% Senior Subordinated Note Due 2006</FONT><FONT FACE="CG Times" SIZE="-1">, as incorporated by reference from Exhibit
99.2 to the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed on August&nbsp;7,
2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.6</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Option Agreement, dated July 31, 2001, among the Registrant, </FONT><FONT FACE="CG Times" SIZE="-1">Associated Mezzanine Investors-PESI (I), L.P. </FONT><FONT FACE="CG Times Regular" SIZE="-1">and </FONT><FONT FACE="CG Times" SIZE="-1">Bridge East Capital L.P., as incorporated by reference from Exhibit 99.8 to
the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed on August 7, 2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">  10.7*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Financial Advisory and Consulting Agreement, dated December 5, 2000, between the Registrant
and National Securities Corporation.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.8</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Debt-For-Stock Exchange Agreement,  dated effective July 9, 2001, between the Registrant and
Capital Bank-Grawe Gruppe AG, as incorporated by reference from Exhibit 10.1 to the
Registrant's Current Report on Form 8-K dated July 9, 2001, and filed on July 20, 2001.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"></TD>
<TD width="551"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" colspan="2" width="643">&nbsp;
    <p><font size="2">II-2</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="551"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.9</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated January 31, 2001, granted by the Registrant to BHC Interim Funding, L.P. for
the right to purchase up to 817,142 shares of the Registrant's common stock at an exercise price
of $1.4578, as</FONT><FONT FACE="CG Times" SIZE="-1"> incorporated by reference from Exhibit 99.6 to the Registrant's Current Report
on Form 8-K, dated January 31, 2001, and filed on February 26, 2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.10</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated August 29, 2000, granted by the Registrant to Capital
Bank-Grawe Gruppe AG (f/k/a RBB Bank Aktiengesellschaft) for the right to purchase up to
150,000 shares of the Registrant's common stock at an exercise price of $1.50 per share, as
incorporated by reference from Exhibit 4.3 to the Registrant's Current Report on Form 8-K,
dated August&nbsp;31, 2000, and filed on September 5, 2000.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.11</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated November 29, 2000, granted by the Registrant to Capital Bank (f/k/a RBB Bank
Aktiengesellschaft) for the right to purchase up to  300,000 shares of the Registrant's common
stock at an exercise price of $1.8750, as incorporated by reference from Exhibit 99.5 to the
Registrant's Current Report on Form 8-K, dated December 22, 2000, and filed on January 17,
2001.  Substantially similar warrants for the purchase of an aggregate 570,000 shares were issued
to Capital Bank as follows: (a) a warrant, dated October 30, 2000, for the right to purchase up
to 150,000 shares at an exercise price of $1.625; (b) a warrant, dated December&nbsp;29, 2000, for
the right to purchase up to 105,000 shares at an exercise price of $1.4219, (c) a warrant, dated
January 31, 2001, for the right to purchase up to 105,000 shares at an exercise price of $1.9688,
(d) a warrant, dated February 28, 2001, for the right to purchase up to 105,000 shares at an
exercise price of $1.9375, and (e) a warrant, dated March&nbsp;30, 2001, for the right to purchase up
to 105,000 shares at an exercise price of $1.8125.  Copies of these Warrants will be provided
to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1"> 10.12*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 9, 2001, granted by the Registrant to Capital
Bank-Grawe Gruppe AG for the right to purchase up to 1,839,405 shares of the Registrant's
common stock at an exercise price of $1.75 per share.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.13*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 9, 2001, granted by the Registrant to Herbert
Strauss for the right to purchase up to 625,000 shares of the Registrant's common stock at an
exercise price of $1.75 per share.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.14*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated June 1, 2001, granted by the Registrant to National
Securities Corporation for the right to purchase of up to 250,000 shares of the Registrant's
common stock at an exercise price of $1.50 per share.  A substantially similar warrant, dated
June 1, 2001, was granted by the Registrant to National Securities Corporation for the purchase
of up to 360,000 shares of the Registrant's common stock at an exercise price of $1.75 per share.
A copy of this Warrant will be provided to the Commission upon request.</FONT><FONT FACE="CG Times Regular" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">10.15*</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Common Stock Purchase Warrant, dated April 1, 1999, granted by the Registrant to Strategic
Growth International, Inc. for the right to purchase up to 240,000 shares of the Registrant's
common stock at an exercise price of $1.20 per share.  Substantially similar warrants for the
purchase of an aggregate 566,908 shares were issued to Strategic Growth International, Inc. as
follows: (a) a warrant, dated April 1, 1999 for the right to purchase up to 240,000 shares at an
exercise price of $1.40, (b) a warrant, dated December 22, 2000, for the right to purchase up
to 213,888 shares at an exercise price of $1.44, (c) a warrant, dated February 1, 2001, for the
right to purchase up to 34,028 shares at an exercise price of $1.44, (d) a warrant, dated March&nbsp;9,
2001, for the right to purchase up to 24,305 shares at an exercise price of $1.44, and (e) a
warrant, dated July 31, 2001, for the right to purchase up to 54,687 shares at an exercise price
of $1.44.  Copies will be provided to the Commission upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"></TD>
<TD width="551"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="637" colspan="2">&nbsp;
    <p><font size="2">II-3</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="551"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1">10.16*</FONT></TD>
<TD width="551"><FONT FACE="CG Times Regular" SIZE="-1">Warrant Agreement, dated January 25, 2000, granted by the Registrant to Ryan, Beck &amp;
  Co. ("Ryan Beck") for the purchase of up to 33,750 shares of the Registrant's common stock
at an exercise price of $1.44 per share.  Substantially similar Warrant Agreements, dated
January&nbsp;25, 2000, for the right to purchase up to an aggregate 116,250 shares of the Registrant's
common stock at an exercise price of $1.44 per share were granted by the Registrant to Randy
Rock (20,625 shares), Michael Kollender (20,625 shares), Robert Goodwin (20,000 shares),
Robert C. Mayer, Jr. (23,000 shares), Paul Cronson (23,000 shares), Meera Murdeshwar (6,000
shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd Goodwin Trust (1,500
shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.17</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated December 22, 2000, issued by the Registrant to Ryan, Beck &amp;
  Co. for the
purchase of 213,889 shares of the Registrant's common stock, as incorporated by reference from
Exhibit 99.6 to the Registrant's Current Report on Form 8-K dated January 31, 2001, and filed
on February 26, 2001.  Substantially similar Warrants, dated December 22, 2000, for the right
to purchase up to an aggregate 855,555 shares of the Registrant's common stock at an exercise
price of $1.44 per share were granted by the Registrant to Ryan Beck (26,737 shares), Michael
Kollender (147,048 shares), Randy Rock (147,048 shares), Robert Goodwin (166,907 shares),
Robert C. Mayer, Jr. (169,908 shares), Paul Cronson (169,907 shares), Meera Murdeshwar
(25,000 shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd Goodwin
Trust (1,500 shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.18*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated January 31, 2001, granted by the Registrant to Ryan, Beck &amp;
  Co. for the right to purchase up to 34,028 shares of the Registrant's common stock at an
exercise price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated January 31, 2001, for
the right to purchase up to an aggregate 136,110 shares of the Registrant's common stock at an
exercise price of $1.44 per share were granted by the Registrant to Ryan Beck (4,253 shares),
Michael Kollender (23,394 shares), Randy Rock (23,394 shares), Robert Goodwin (26,690
shares), Robert C. Mayer, Jr. (26,689 shares), Paul Cronson (26,690 shares), and Meera
Murdeshwar (5,000 shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.19*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated March 9, 2001, granted by the Registrant to Ryan, Beck &amp;
  Co.
for the right to purchase up to 24,306 shares of the Registrant's common stock at an exercise
price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated March 9, 2001, for the right to
purchase up to an aggregate 97,222 shares of the Registrant's common stock at an exercise price
of $1.44 per share were granted by the Registrant to Ryan Beck (3,038 shares), Michael
Kollender (16,710 shares), Randy Rock (16,710 shares), Robert Goodwin (19,255 shares),
Robert C. Mayer, Jr. (19,255 shares), Paul Cronson (19,254 shares), and Meera Murdeshwar
(3,000 shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">10.20*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated July 31, 2001, granted by the Registrant to Ryan Beck &amp;
  Co.
for the right to purchase up to 54,688 shares of the Registrant's common stock at an exercise
price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated July 31, 2001, for the right to
purchase up to an aggregate 218,752 shares of the Registrant's common stock at an exercise price
of $1.44 per share were granted by the Registrant to Ryan Beck (6,836 shares), Paul Cronson
(43,295), Michael Kollender (37,598 shares), Randy Rock (37,598 shares), Robert Goodwin
(43,294 shares), Robert C. Mayer, Jr. (43,294 shares), and Meera Murdeshwar (6,837 shares).
Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"></TD>
<TD width="551"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="637" colspan="2">&nbsp;
    <p><font size="2">II-4</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="86"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="551"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">    10.21*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Warrant to Purchase Common Stock, dated July 30, 2001, granted by the Registrant to David
Avital for the purchase of up to 143,000 shares of the Registrant's common stock at an exercise
price of $1.75 per share.  Substantially similar warrants for the purchase of an aggregate
4,254,566 were issued to Capital Bank (842,995 shares), CICI 1999 Qualified Annuity Trust
(85,715 shares), Gerald D. Cramer (85,715 shares), CRM 1999 Enterprise Fund 3 (200,000
shares), Craig S. Eckenthal (57,143 shares), Danny Ellis Living Trust (250,000 shares), Europa
International, Inc. (571,428 shares), Harvey Gelfenbein (28,571 shares), A. C. Israel Enterprises
(285,715 shares), Kuekenhof Partners, L.P. (40,000), Kuekenhof Equity Fund, L.P. (60,000
shares), Jack Lahav (571,429 shares), Joseph LaMotta (28,571 shares), Jay B. Langner (28,571</FONT><FONT FACE="CG Times Regular" SIZE="-1">
shares</FONT><FONT FACE="CG Times" SIZE="-1">), The F. M. Grandchildren Trust (42,857 shares), Mathers Associates (228,571 shares),
Peter Melhado (115,000 shares), Pamela Equities Corp. (42,857 shares), Josef Paradis (143,000
shares), Readington Associates (57,143 shares), Dr. Ralph Richart (225,000 shares), Edward J.
Rosenthal Profit Sharing Plan (28,571 shares), Yariv Sapir IRA (85,714 shares), and Bruce
Wrobel (150,000 shares), respectively.  Copies will be provided to the Commission upon
request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">      10.22*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 30, 2001, granted by the Registrant to Ryan, Beck
&amp; Co. for the purchase of 20,000 shares of the Registrant's common stock at an exercise
price of $1.75 per share.  Substantially similar warrants, dated July 30, 2001, for the purchase
of an aggregate 74,000 shares of the Registrant's common stock at an exercise price of $1.75 per
share were issued to Ryan, Beck &amp; Co., L.L.C. (14,000 shares), Larkspur Capital Corporation
(34,000 shares) and National Securities Corporation (40,000 shares).  Copies will be provided
to the Commission upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">     10.23*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 31, 2001, granted by the Registrant to Associated
Mezzanine Investors-PESI (I), L.P. for the purchase of up to 712,073 shares of the Registrant's
common stock at an exercise price of $1.50 per share.  A substantially similar warrant was
issued to Bridge East Capital L.P. for the right to purchase of up to 569,658 shares of the
Registrant's common stock, and a copy will be provided to the Commission upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">       10.24* </FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Subcontract Change Notice between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. BA-99446/7 and 8F, dated July 2, 2002.  Exhibits to this
Contract as listed therein are omitted, but a copy of each will be provided to the Commission
upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">      23.1*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Consent of BDO Seidman, LLP. </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">      23.2*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Consent of Gallogly Fernandez &amp; Riley, LLP.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">      23.3*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Consent of Conner &amp; Winters, as contained in Exhibit 5.1 hereto and incorporated herein by
reference.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">    24.1*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Powers of Attorney for Messrs. Zwecker, Colin, and Sullivan, as contained in the Power of
Attorney of the signature page included in this Registration Statement.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="86"><FONT FACE="CG Times" SIZE="-1">    24.2*</FONT></TD>
<TD width="551"><FONT FACE="CG Times" SIZE="-1">Power of Attorney for Messrs. Jack Lahav and Alfred C. Warrington, IV.</FONT></TD></TR></TABLE>
</CENTER>

<P><FONT FACE="CG Times" SIZE="-1">	  *Previously filed</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">II-5</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">Item 17.  <EM>Undertakings</EM></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby undertakes:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"> 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To file, during any period in which offers or sales are being made, a post-effective amendment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the
Registration Statement:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">			&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To include any prospectus required by Section 10(a)(3) of the Act;</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">			&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;To reflect in the prospectus any facts or events arising after the effective date&nbsp;<br>
&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;&nbsp;of this
Registration Statement (or the most recent post-effective amendment thereof) which,&nbsp;<br>
&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;&nbsp;individually or in
the aggregate, represent a fundamental change in the information set forth&nbsp;<br>
&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;&nbsp;in the Registration Statement;</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">			&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;To include any material information with respect to the plan of distribution not&nbsp;<br>
&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;&nbsp;previously
disclosed in the Registration Statement or any material change to such information&nbsp;<br>
&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;&nbsp;in the Registration
Statement;</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the information required to be included&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in a
post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the
Commission by the Company pursuant to Section 13 or 15(d) of the Securities Exchange Act of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1934, as amended
(the "Exchange Act"), that are incorporated by reference in this Registration Statement.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for the purpose of determining any liability under the Act, each post-effective amendment shall&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be
deemed to be a new registration statement relating to the securities offered therein, and the offering of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
securities at the time shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To remove from registration by means of a post-effective amendment any of the securities being&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registered which remain unsold at the termination of the offering.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby undertakes that, for purposes of determining any liability under the Act, each filing of the
Company's annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in
the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and
the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Act may be permitted to directors, officers and
controlling persons of the Company pursuant to the indemnification provisions described herein, or otherwise, the
Company has been advised that in the opinion of the Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities (other than
the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in
the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">II-6</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER>SIGNATURES FOR FORM S-3</CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Act of 1933, the Registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of Gainesville, State of Florida, on the
27th day of November, 2002.</FONT></P>

<P><FONT FACE="CG Times">							&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERMA-FIX ENVIRONMENTAL<br>
</FONT>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times">SERVICES, INC.</FONT></P>

<BR WP="BR2">
&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
Louis Centofanti&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
</FONT>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Dr. Louis F. Centofanti<br>
</FONT>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Chairman, President and Chief Executive Officer</FONT>
<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Act, this Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.</FONT></P>

<TABLE WIDTH="651">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="245"><STRONG><U><FONT FACE="CG Times" size="2">Signature</FONT></U></STRONG></TD>
<TD ALIGN="CENTER" width="193"><STRONG><U><FONT FACE="CG Times" size="2">Title</FONT></U></STRONG></TD>
<TD ALIGN="CENTER" width="193"><STRONG><U><FONT FACE="CG Times" size="2">Date</FONT></U></STRONG></TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2">
<BR WP="BR1"><BR WP="BR2"></font><u><font size="2">&nbsp;&nbsp;/s/ Louis
    Centofanti&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><FONT FACE="CG Times" size="2"><br>
    Dr. Louis F. Centofanti</FONT>
</TD>
<TD width="193">
<font size="2">
<BR WP="BR1"><BR WP="BR2">Chairman of the Board of&nbsp;<br>
Directors, President, and&nbsp;<br>
Chief Executive Officer<br>
</font><FONT FACE="CG Times" size="2">(Principal Executive Officer)</FONT></TD>
<TD width="193">
  <p align="center"><FONT FACE="CG Times" size="2">
<BR WP="BR1"><BR WP="BR2">
November 27, 2002
  </FONT>
  </TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2">
<BR WP="BR1"><BR WP="BR2"></font><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;/s/
    Richard T. Kelecy&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><FONT FACE="CG Times" size="2"><br>
    Richard T. Kelecy      </FONT>
</TD>
<TD width="193">
<font size="2">
<BR WP="BR1"><BR WP="BR2">Chief Financial Officer<br>
</font><FONT FACE="CG Times" size="2">(Principal Financial and&nbsp;<br>
Accounting Officer)</FONT></TD>
<TD ALIGN="CENTER" width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">November 27, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2">
<BR WP="BR1"><BR WP="BR2"><u><font face="CG Times">&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </font></u></font><FONT FACE="CG Times" size="2">Mark A. Zwecker</FONT></TD>
<TD width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD ALIGN="CENTER" width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">November 27, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2">
<BR WP="BR1"><BR WP="BR2"><font face="CG Times"><u>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </u>Jon Colin</font></font></TD>
<TD width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD ALIGN="CENTER" width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">November 27, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2">
<BR WP="BR1"><BR WP="BR2"><font face="CG Times"><u>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </u>Thomas P. Sullivan</font></font></TD>
<TD width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD ALIGN="CENTER" width="193"><font size="2">
<BR WP="BR1"><br>
November 27, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2"><FONT FACE="CG Times">
<BR WP="BR1"><BR WP="BR2"></FONT>                       </font><FONT FACE="CG Times" size="2"><u>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
    Jack Lahav</FONT></TD>
<TD width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD ALIGN="CENTER" width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">November 27, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="245"><font size="2"><FONT FACE="CG Times">
<BR WP="BR1"><br>
    <u>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
    </FONT>                       </font><FONT FACE="CG Times" size="2">Alfred C. Warrington, IV</FONT></TD>
<TD width="193"><FONT FACE="CG Times" size="2"><br>
  <br>
  Director</FONT></TD>
<TD ALIGN="CENTER" width="193"><font size="2">
<BR WP="BR1"><BR WP="BR2">November 27, 2002</font></TD></TR></TABLE>

<P><FONT FACE="CG Times" SIZE="-1">	</FONT></P>

<P><font size="2"><FONT FACE="CG Times">* By<u>&nbsp;&nbsp;&nbsp;/s/ Louis
Centofanti&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;&nbsp;&nbsp;&nbsp;&nbsp;</u>&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;November
27, 2002<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times">Dr. Louis F. Centofanti</FONT></font><FONT FACE="CG Times" SIZE="-1"><br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Attorney In Fact</FONT></font></P>

<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><u><b>EXHIBIT INDEX</b></u></p>
<TABLE ALIGN="CENTER" WIDTH="651">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U><br>
    Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="924"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U><br>
  Description</U></STRONG></FONT></TD>
<TD ALIGN="CENTER" width="155"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
  Page No.</u></strong></font></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">2.1</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Stock Purchase Agreement, dated January 18, 2001, among the Registrant; East Tennessee
Materials and Energy Corporation; Performance Development Corporation; Joe W. Anderson;
Ronald W. Anderson; M. Joy Anderson; Russell R. and Cindy E. Anderson; Charitable
Remainder Unitrust of William Paul Cowell, Kevin Cowell, Trustee; Joe B. and Angela H.
Fincher; Ken-Ten Partners; Michael W. Light; Management Technologies, Incorporated; M&amp;EC
401(k) Plan and Trust; PDC 401(k) Plan and Trust; Robert N. Parker; James C. Powers;
Richard William Schenk, Trustee of the Richard Schenk Trust dated November 5, 1998; Talahi
Partners; Hillis Enterprises, Inc.; Tom Price and Virginia Price; Thomas John Abraham, Jr. and
Donna Ferguson Abraham; and Bill J. Hillis, is incorporated by reference from Exhibit 2.1 to
the Registrant's Current Report on Form 8-K, dated January 31, 2001, and filed on February 26,
2001.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">4.3</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Form of Subscription Agreement, as incorporated by reference from Exhibit 4.2 to the
Registrant's Current Report on Form 8-K dated June 15, 2001, and filed on July 5, 2001.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">    &nbsp;&nbsp;&nbsp;5.1*</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Opinion of Conner &amp; Winters, a Professional Corporation.</FONT></TD>
<TD width="155">
  <p align="center"><font size="2">45</font></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">10.1</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99446V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.1 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">10.2</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99447V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.2 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">10.3</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99448V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.3 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">10.4</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Note and Warrant Purchase Agreement, dated July 31, 2001, among the Registrant, </FONT><FONT FACE="CG Times" SIZE="-1">Associated
Mezzanine Investors-PESI (I), L.P. </FONT><FONT FACE="CG Times Regular" SIZE="-1">and </FONT><FONT FACE="CG Times" SIZE="-1">Bridge East Capital L.P.</FONT><FONT FACE="CG Times Regular" SIZE="-1">, as incorporated by reference
from Exhibit 99.1 to the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed
on August 7, 2001.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.5</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Form of 13.50% Senior Subordinated Note Due 2006</FONT><FONT FACE="CG Times" SIZE="-1">, as incorporated by reference from Exhibit
99.2 to the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed on August&nbsp;7,
2001.</FONT></TD>
<TD width="155"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="109"></TD>
<TD width="924"></TD>
<TD width="155"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" colspan="2" width="1039">&nbsp;
    <p><font size="2">1</font></p>
    <p>&nbsp;</TD>
  <TD ALIGN="CENTER" width="247"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="924"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
<TD ALIGN="CENTER" width="155"></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.6</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Option Agreement, dated July 31, 2001, among the Registrant, </FONT><FONT FACE="CG Times" SIZE="-1">Associated Mezzanine Investors-PESI (I), L.P. </FONT><FONT FACE="CG Times Regular" SIZE="-1">and </FONT><FONT FACE="CG Times" SIZE="-1">Bridge East Capital L.P., as incorporated by reference from Exhibit 99.8 to
the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed on August 7, 2001.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">  10.7*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Financial Advisory and Consulting Agreement, dated December 5, 2000, between the Registrant
and National Securities Corporation.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.8</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Debt-For-Stock Exchange Agreement,  dated effective July 9, 2001, between the Registrant and
Capital Bank-Grawe Gruppe AG, as incorporated by reference from Exhibit 10.1 to the
Registrant's Current Report on Form 8-K dated July 9, 2001, and filed on July 20, 2001.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.9</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated January 31, 2001, granted by the Registrant to BHC Interim Funding, L.P. for
the right to purchase up to 817,142 shares of the Registrant's common stock at an exercise price
of $1.4578, as</FONT><FONT FACE="CG Times" SIZE="-1"> incorporated by reference from Exhibit 99.6 to the Registrant's Current Report
on Form 8-K, dated January 31, 2001, and filed on February 26, 2001.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.10</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated August 29, 2000, granted by the Registrant to Capital
Bank-Grawe Gruppe AG (f/k/a RBB Bank Aktiengesellschaft) for the right to purchase up to
150,000 shares of the Registrant's common stock at an exercise price of $1.50 per share, as
incorporated by reference from Exhibit 4.3 to the Registrant's Current Report on Form 8-K,
dated August&nbsp;31, 2000, and filed on September 5, 2000.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.11</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated November 29, 2000, granted by the Registrant to Capital Bank (f/k/a RBB Bank
Aktiengesellschaft) for the right to purchase up to  300,000 shares of the Registrant's common
stock at an exercise price of $1.8750, as incorporated by reference from Exhibit 99.5 to the
Registrant's Current Report on Form 8-K, dated December 22, 2000, and filed on January 17,
2001.  Substantially similar warrants for the purchase of an aggregate 570,000 shares were issued
to Capital Bank as follows: (a) a warrant, dated October 30, 2000, for the right to purchase up
to 150,000 shares at an exercise price of $1.625; (b) a warrant, dated December&nbsp;29, 2000, for
the right to purchase up to 105,000 shares at an exercise price of $1.4219, (c) a warrant, dated
January 31, 2001, for the right to purchase up to 105,000 shares at an exercise price of $1.9688,
(d) a warrant, dated February 28, 2001, for the right to purchase up to 105,000 shares at an
exercise price of $1.9375, and (e) a warrant, dated March&nbsp;30, 2001, for the right to purchase up
to 105,000 shares at an exercise price of $1.8125.  Copies of these Warrants will be provided
to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1"> 10.12*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 9, 2001, granted by the Registrant to Capital
Bank-Grawe Gruppe AG for the right to purchase up to 1,839,405 shares of the Registrant's
common stock at an exercise price of $1.75 per share.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.13*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 9, 2001, granted by the Registrant to Herbert
Strauss for the right to purchase up to 625,000 shares of the Registrant's common stock at an
exercise price of $1.75 per share.</FONT></TD>
<TD width="155"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="109"></TD>
<TD width="924"></TD>
<TD width="155"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="1033" colspan="2">&nbsp;
    <p>&nbsp;</p>
    <p><font size="2">2</font></p>
    <p>&nbsp;
    <p>&nbsp;</TD>
  <TD ALIGN="CENTER" width="241"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="924"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
<TD ALIGN="CENTER" width="155"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
  Page No.</u></strong></font></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.14*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated June 1, 2001, granted by the Registrant to National
Securities Corporation for the right to purchase of up to 250,000 shares of the Registrant's
common stock at an exercise price of $1.50 per share.  A substantially similar warrant, dated
June 1, 2001, was granted by the Registrant to National Securities Corporation for the purchase
of up to 360,000 shares of the Registrant's common stock at an exercise price of $1.75 per share.
A copy of this Warrant will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">10.15*</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Common Stock Purchase Warrant, dated April 1, 1999, granted by the Registrant to Strategic
Growth International, Inc. for the right to purchase up to 240,000 shares of the Registrant's
common stock at an exercise price of $1.20 per share.  Substantially similar warrants for the
purchase of an aggregate 566,908 shares were issued to Strategic Growth International, Inc. as
follows: (a) a warrant, dated April 1, 1999 for the right to purchase up to 240,000 shares at an
exercise price of $1.40, (b) a warrant, dated December 22, 2000, for the right to purchase up
to 213,888 shares at an exercise price of $1.44, (c) a warrant, dated February 1, 2001, for the
right to purchase up to 34,028 shares at an exercise price of $1.44, (d) a warrant, dated March&nbsp;9,
2001, for the right to purchase up to 24,305 shares at an exercise price of $1.44, and (e) a
warrant, dated July 31, 2001, for the right to purchase up to 54,687 shares at an exercise price
of $1.44.  Copies will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1">10.16*</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Warrant Agreement, dated January 25, 2000, granted by the Registrant to Ryan, Beck &amp; Co.,
L.L.C. ("Ryan Beck") for the purchase of up to 33,750 shares of the Registrant's common stock
at an exercise price of $1.44 per share.  Substantially similar Warrant Agreements, dated
January&nbsp;25, 2000, for the right to purchase up to an aggregate 116,250 shares of the Registrant's
common stock at an exercise price of $1.44 per share were granted by the Registrant to Randy
Rock (20,625 shares), Michael Kollender (20,625 shares), Robert Goodwin (20,000 shares),
Robert C. Mayer, Jr. (23,000 shares), Paul Cronson (23,000 shares), Meera Murdeshwar (6,000
shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd Goodwin Trust (1,500
shares).  Copies will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.17</FONT></TD>
<TD width="924"><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated December 22, 2000, issued by the Registrant to Ryan, Beck &amp; Co., LLC for the
purchase of 213,889 shares of the Registrant's common stock, as incorporated by reference from
Exhibit 99.6 to the Registrant's Current Report on Form 8-K dated January 31, 2001, and filed
on February 26, 2001.  Substantially similar Warrants, dated December 22, 2000, for the right
to purchase up to an aggregate 855,555 shares of the Registrant's common stock at an exercise
price of $1.44 per share were granted by the Registrant to Ryan Beck (26,737 shares), Michael
Kollender (147,048 shares), Randy Rock (147,048 shares), Robert Goodwin (166,907 shares),
Robert C. Mayer, Jr. (169,908 shares), Paul Cronson (169,907 shares), Meera Murdeshwar
(25,000 shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd Goodwin
Trust (1,500 shares).  Copies will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="109"></TD>
<TD width="924"></TD>
<TD width="155"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="1033" colspan="2">&nbsp;
    <p><font size="2">3</font></p>
    <p>&nbsp;</TD>
  <TD ALIGN="CENTER" width="241"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="924"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
<TD ALIGN="CENTER" width="155"></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.18*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated January 31, 2001, granted by the Registrant to Ryan, Beck &amp; Co.,
LLC for the right to purchase up to 34,028 shares of the Registrant's common stock at an
exercise price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated January 31, 2001, for
the right to purchase up to an aggregate 136,110 shares of the Registrant's common stock at an
exercise price of $1.44 per share were granted by the Registrant to Ryan Beck (4,253 shares),
Michael Kollender (23,394 shares), Randy Rock (23,394 shares), Robert Goodwin (26,690
shares), Robert C. Mayer, Jr. (26,689 shares), Paul Cronson (26,690 shares), and Meera
Murdeshwar (5,000 shares).  Copies will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.19*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated March 9, 2001, granted by the Registrant to Ryan, Beck &amp; Co., LLC
for the right to purchase up to 24,306 shares of the Registrant's common stock at an exercise
price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated March 9, 2001, for the right to
purchase up to an aggregate 97,222 shares of the Registrant's common stock at an exercise price
of $1.44 per share were granted by the Registrant to Ryan Beck (3,038 shares), Michael
Kollender (16,710 shares), Randy Rock (16,710 shares), Robert Goodwin (19,255 shares),
Robert C. Mayer, Jr. (19,255 shares), Paul Cronson (19,254 shares), and Meera Murdeshwar
(3,000 shares).  Copies will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">10.20*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated July 31, 2001, granted by the Registrant to Ryan Beck &amp; Co., LLC
for the right to purchase up to 54,688 shares of the Registrant's common stock at an exercise
price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated July 31, 2001, for the right to
purchase up to an aggregate 218,752 shares of the Registrant's common stock at an exercise price
of $1.44 per share were granted by the Registrant to Ryan Beck (6,836 shares), Paul Cronson
(43,295), Michael Kollender (37,598 shares), Randy Rock (37,598 shares), Robert Goodwin
(43,294 shares), Robert C. Mayer, Jr. (43,294 shares), and Meera Murdeshwar (6,837 shares).
Copies will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">    10.21*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Warrant to Purchase Common Stock, dated July 30, 2001, granted by the Registrant to David
Avital for the purchase of up to 143,000 shares of the Registrant's common stock at an exercise
price of $1.75 per share.  Substantially similar warrants for the purchase of an aggregate
4,254,566 were issued to Capital Bank (842,995 shares), CICI 1999 Qualified Annuity Trust
(85,715 shares), Gerald D. Cramer (85,715 shares), CRM 1999 Enterprise Fund 3 (200,000
shares), Craig S. Eckenthal (57,143 shares), Danny Ellis Living Trust (250,000 shares), Europa
International, Inc. (571,428 shares), Harvey Gelfenbein (28,571 shares), A. C. Israel Enterprises
(285,715 shares), Kuekenhof Partners, L.P. (40,000), Kuekenhof Equity Fund, L.P. (60,000
shares), Jack Lahav (571,429 shares), Joseph LaMotta (28,571 shares), Jay B. Langner (28,571</FONT><FONT FACE="CG Times Regular" SIZE="-1">
shares</FONT><FONT FACE="CG Times" SIZE="-1">), The F. M. Grandchildren Trust (42,857 shares), Mathers Associates (228,571 shares),
Peter Melhado (115,000 shares), Pamela Equities Corp. (42,857 shares), Josef Paradis (143,000
shares), Readington Associates (57,143 shares), Dr. Ralph Richart (225,000 shares), Edward J.
Rosenthal Profit Sharing Plan (28,571 shares), Yariv Sapir IRA (85,714 shares), and Bruce
Wrobel (150,000 shares), respectively.  Copies will be provided to the Commission upon
request.</FONT></TD>
<TD width="155"></TD></TR>
<tr>
  <TD ALIGN="CENTER" width="109"></TD>
<TD width="924"></TD>
<TD width="155"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="1033" colspan="2">&nbsp;
    <p><font size="2">4</font></p>
    <p>&nbsp;</TD>
  <TD ALIGN="CENTER" width="241"></TD>
</tr>
<tr>
  <TD ALIGN="CENTER" width="109"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="924"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
<TD ALIGN="CENTER" width="155"></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">      10.22*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 30, 2001, granted by the Registrant to Ryan, Beck
&amp; Co. for the purchase of 20,000 shares of the Registrant's common stock at an exercise
price of $1.75 per share.  Substantially similar warrants, dated July 30, 2001, for the purchase
of an aggregate 74,000 shares of the Registrant's common stock at an exercise price of $1.75 per
share were issued to Ryan, Beck &amp; Co. (14,000 shares), Larkspur Capital Corporation
(34,000 shares) and National Securities Corporation (40,000 shares).  Copies will be provided
to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">     10.23*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 31, 2001, granted by the Registrant to Associated
Mezzanine Investors-PESI (I), L.P. for the purchase of up to 712,073 shares of the Registrant's
common stock at an exercise price of $1.50 per share.  A substantially similar warrant was
issued to Bridge East Capital L.P. for the right to purchase of up to 569,658 shares of the
Registrant's common stock, and a copy will be provided to the Commission upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">       10.24* </FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Subcontract Change Notice between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. BA-99446/7 and 8F, dated July 2, 2002.  Exhibits to this
Contract as listed therein are omitted, but a copy of each will be provided to the Commission
upon request.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">      23.1*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Consent of BDO Seidman, LLP. </FONT></TD>
<TD width="155" align="center"><font size="2">61</font></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">      23.2*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Consent of Gallogly Fernandez &amp; Riley, LLP.</FONT></TD>
<TD width="155" align="center"><font size="2">62</font></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">      23.3*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Consent of Conner &amp; Winters, as contained in Exhibit 5.1 hereto and incorporated herein by
reference.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">    24.1*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Powers of Attorney for Messrs. Zwecker, Colin, and Sullivan, as contained in the Power of
Attorney of the signature page included in this Registration Statement.</FONT></TD>
<TD width="155"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="109"><FONT FACE="CG Times" SIZE="-1">    24.2*</FONT></TD>
<TD width="924"><FONT FACE="CG Times" SIZE="-1">Power of Attorney for Messrs. Jack Lahav and Alfred C. Warrington, IV.</FONT></TD>
<TD width="155"></TD></TR></TABLE>
<p><font size="2">* Previously filed.</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="2">5</font></p>

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