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<SEC-DOCUMENT>0000950134-04-016252.txt : 20041103
<SEC-HEADER>0000950134-04-016252.hdr.sgml : 20041103
<ACCEPTANCE-DATETIME>20041103150358
ACCESSION NUMBER:		0000950134-04-016252
CONFORMED SUBMISSION TYPE:	SC 13D/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20041103
DATE AS OF CHANGE:		20041103

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BATES ERNEST A
		CENTRAL INDEX KEY:			0000946042
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A

	BUSINESS ADDRESS:	
		STREET 1:		FOUR EMBARCADERO CENTER 3620
		CITY:			SAN FRANCISO
		STATE:			CA
		ZIP:			94111-4155
		BUSINESS PHONE:		4157885300

	MAIL ADDRESS:	
		STREET 1:		FOUR EMBARCADERO CENTER 3620
		CITY:			SAN FRANCISO
		STATE:			CA
		ZIP:			94111-4155

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN SHARED HOSPITAL SERVICES
		CENTRAL INDEX KEY:			0000744825
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MEDICAL LABORATORIES [8071]
		IRS NUMBER:				942918118
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-36214
		FILM NUMBER:		041116107

	BUSINESS ADDRESS:	
		STREET 1:		FOUR EMBARCADERO CENTER
		STREET 2:		SUITE 3700
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111-4107
		BUSINESS PHONE:		415-788-5300

	MAIL ADDRESS:	
		STREET 1:		FOUR EMBARCADERO CENTER
		STREET 2:		SUITE 3700
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111-4107
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>f02840sc13dza.htm
<DESCRIPTION>AMENDMENT TO SCHEDULE 13D
<TEXT>
<HTML>
<HEAD>
<TITLE>sc13dza</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<TABLE align="right" width="160" border="1" cellspacing="0" cellpadding="1">
<TR><TD align="center" nowrap><FONT size="2">OMB APPROVAL</FONT></TD></TR>
<TR><TD nowrap><FONT size="2">OMB Number: 3235-0145</FONT></TD></TR>
<TR><TD nowrap><FONT size="2">Expires: December 31, 2005</FONT></TD></TR>
<TR><TD nowrap><FONT size="2">Estimated average burden<BR>
hours per response...11</FONT></TD></TR></TABLE>

<BR clear="right">
<BR clear="right">

<P align="center"><FONT size="4">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT size="3">Washington, D.C. 20549</FONT>

<P align="center"><FONT size="5">SCHEDULE 13D</FONT>

<P align="center"><FONT size="2">Under the Securities Exchange Act of 1934<BR>
(Amendment No. 3)*</FONT>

<P align="center"><FONT size="2"><B>AMERICAN SHARED HOSPITAL
SERVICES</B></FONT><BR>
<HR size="1" noshade color="#000000">
<CENTER><FONT size="2">(Name of Issuer)</FONT></CENTER>

<P align="center"><FONT size="2"><B>COMMON SHARES, WITHOUT PAR VALUE</B></FONT><BR>
<HR size="1" noshade color="#000000">
<CENTER><FONT size="2">(Title of Class of Securities)</FONT></CENTER>

<P align="center"><FONT size="2"><B>029595-10-5</B></FONT><BR>
<HR size="1" noshade color="#000000">
<CENTER><FONT size="2">(Cusip Number)</FONT></CENTER>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Ernest A. Bates, M.D.<BR>
American Shared Hospital Services<BR>
Four Embarcadero Center, Suite 3700<BR>
San Francisco, CA 94111-4107<BR>
(415)&nbsp;788-5300</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Daniel G. Kelly, Jr.<BR>
Davis Polk &#038; Wardwell<BR>
1600 El Camino Real<BR>
Menlo Park, CA 94025<BR>
(650)&nbsp;752-2000</B></TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="CENTER"><HR size="1" noshade color="#000000"></DIV>
<DIV align="CENTER"><FONT size="2">(Name, Address and Telephone Number of Person<BR>
Authorized to Receive Notices and Communications)
</FONT>
</DIV>

<P align="center"><FONT size="2"><B>August 17, 2004</B></FONT><BR>
<HR size="1" noshade color="#000000">
<CENTER><FONT size="2">(Date of Event Which Requires Filing of this Statement)</FONT></CENTER>

<P>
<FONT size="2">If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this
Schedule 13D, and is filing this schedule because of &#167;&#167;240.13d-1(e), 240.13d-1(f) or 240.13d-1(g),
check the following box.
</FONT> <FONT face="wingdings">&#111;</FONT>
<P>
<P><FONT size="2">Note: Schedules filed in paper format shall include a signed original and five copies of the schedule,
 including all exhibits. See &#167;240.13d-7 for other parties to whom copies are to be sent.
</FONT>
<P>
<P><FONT size="2"><SUP>*</SUP></FONT><FONT size="2"> The remainder of this cover page shall be filled out for
a reporting person&#146;s initial filing on this form with respect to the subject class of securities, and for any subsequent
amendment containing information which would alter disclosures provided in a prior cover page.
</FONT>
<P>
<P><FONT size="2">The information required on the remainder of this cover page shall not be deemed to be &#147;filed&#148; for the
purpose of Section 18 of the Securities Exchange Act of 1934 (&#147;Act&#148;) or otherwise subject to the liabilities of that section
of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;2. Identity and Background</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;3. Source and Amount of Funds or Other Consideration</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;4. Purpose of Transaction</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Item&nbsp;5. Interest in Securities of the Issuer</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Item&nbsp;6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">Item&nbsp;7. Material to be Filed as Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">SIGNATURE</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>



<TABLE width="100%" border="0" cellspacing="0" cellpadding="4">
<TR>
<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
<TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
<TD colspan="7"><FONT size="2">CUSIP No. 029595-10-5</FONT> </TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">1.</FONT></TD>
<TD valign=top colspan=3><FONT size="2">Name of Reporting Person:<BR>Ernest A. Bates, M.D.</FONT></TD>
<TD valign=top colspan=2><FONT size="2">I.R.S. Identification Nos. of above persons (entities only):<BR>
</FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">2.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Check the Appropriate Box if a Member of a Group (See Instructions):</FONT></TD>
</TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">(a)</FONT></TD>
<TD valign=top><FONT face="wingdings">&#111;</FONT></TD>
<TD valign=top colspan=3><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">(b)</FONT></TD>
<TD valign=top><FONT face="wingdings">&#111;</FONT></TD>
<TD valign=top colspan=3><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">3.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">SEC Use Only:</FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">4.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Source of Funds (See Instructions):<BR>PF</FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>


<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">5.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): <FONT face="wingdings">&#111;</FONT> </FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">6.</FONT></TD>
<TD valign=top colspan=5><FONT size="2">Citizenship or Place of Organization:<BR>California</FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD colspan="3" rowspan="8" align="center"><FONT size="2">Number of<BR>Shares<BR>Beneficially<BR>Owned by<BR> Each Reporting<BR>Person With</FONT></TD></TR>

<TR><TD valign=top><FONT size="2">7.</FONT></TD>
<TD valign=top colspan=3><FONT size="2">Sole Voting Power:<BR>1,250,378</FONT></TD></TR>

<TR><TD colspan=4><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD valign=top><FONT size="2">8.</FONT></TD><TD valign=top colspan=3> <FONT size="2">Shared Voting Power:<BR></FONT></TD></TR>

<TR><TD colspan=4><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD valign=top><FONT size="2">9.</FONT></TD><TD valign=top colspan=3> <FONT size="2">Sole Dispositive Power:<BR>1,250,378</FONT></TD></TR>

<TR><TD colspan=4><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD valign=top><FONT size="2">10.</FONT></TD><TD valign=top colspan=3><FONT size="2">Shared Dispositive Power:<BR></FONT></TD></TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">11.</FONT></TD><TD valign=top colspan=5><FONT size="2">Aggregate Amount Beneficially Owned by Each Reporting Person: <BR>1,250,378</FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">12.</FONT></TD><TD valign=top colspan=5><FONT size="2">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):<BR> <FONT face="wingdings">&#111;</FONT> </FONT></TD>
</TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">13.</FONT></TD><TD valign=top colspan=5><FONT size="2">Percent of Class Represented by Amount in Row (11):<BR>31.1%</FONT></TD></TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD>
<TD valign=top><FONT size="2">14.</FONT></TD><TD valign=top colspan=5><FONT size="2">Type of Reporting Person (See Instructions):<BR>IN</FONT></TD></TR>

<TR><TD colspan=7><HR size="1" noshade color="#000000"></TD></TR>
</TABLE>

<P align="center"><FONT size="2">Page 2 of 5</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment No.&nbsp;3 (this &#147;Amendment&#148;) on Schedule&nbsp;13D is being filed on
behalf of Ernest A. Bates, M.D. (the &#147;Reporting Person&#148;) with respect to the
Common Shares, without par value (the &#147;Common Shares&#148;) of American Shared
Hospital Services, a California corporation (the &#147;Company&#148;), which has its
principal executive office at Four Embarcadero Center, Suite&nbsp;3700, San
Francisco, California 94111-4107. The Schedule&nbsp;13D to which this Amendment
relates was filed on May&nbsp;26, 1995, Amendment No.&nbsp;1 thereto was filed on
November&nbsp;9, 1995 and Amendment No.&nbsp;2 thereto was filed on May&nbsp;4, 1998.

<!-- link1 "Item&nbsp;2. Identity and Background" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Item&nbsp;2. </I></B>&nbsp;&nbsp;<B><I>Identity and Background.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment is being filed on behalf of Ernest A. Bates, M.D. (&#147;Dr.
Bates&#148;), the Chairman and Chief Executive Officer of the Company. His business
address is c/o American Shared Hospital Services, Four Embarcadero Center,
Suite&nbsp;3700, San Francisco, California 94111-4107. Dr.&nbsp;Bates is a citizen of
the United States.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the last five years, Dr.&nbsp;Bates has neither been convicted in a
criminal proceeding (excluding traffic violations and similar misdemeanors) nor
been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction as a result of which he was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.

<!-- link1 "Item&nbsp;3. Source and Amount of Funds or Other Consideration" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Item&nbsp;3. </I></B>&nbsp;&nbsp;<B><I>Source and Amount of Funds or Other Consideration.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment does not relate to any acquisition of Common Shares by Dr.
Bates. All of the Common Shares beneficially owned by Dr.&nbsp;Bates, if purchased
were purchased with personal funds.

<!-- link1 "Item&nbsp;4. Purpose of Transaction" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Item&nbsp;4. </I></B>&nbsp;&nbsp;<B><I>Purpose of Transaction.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities to which this statement relates were acquired and are held
for investment purposes, and Dr.&nbsp;Bates has no plans or proposals which relate
to or would result in any transaction, change or event specified in clauses (a)
through (j)&nbsp;of Schedule&nbsp;13D. This Amendment relates to the exercise by Dr.
Bates of 805,000 options and the concurrent sale of 306,822 shares during the
period June&nbsp;22, 2004 through August&nbsp;17, 2004. See Item&nbsp;6 herein. Dr.&nbsp;Bates
reserves the right to dispose of the securities to which this statement relates
or to acquire additional Common Shares.

<!-- link1 "Item&nbsp;5. Interest in Securities of the Issuer" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Item&nbsp;5. </I></B>&nbsp;&nbsp;<B><I>Interest in Securities of the Issuer.</I></B>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dr.&nbsp;Bates beneficially owns 1,250,378 Common
Shares (including 280,000 shares underlying immediately
exercisable options). The total outstanding number of Common
Shares is 4,025,173 as reported on the June&nbsp;30, 2004 Form&nbsp;10Q.
This represents 31.1% of the outstanding Common Shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dr.&nbsp;Bates has the sole power to vote and dispose
of the Common Shares described in Item 5(a) as beneficially
owned by him.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>See attachment for a summary of transactions
since the filing of Amendment No.&nbsp;2 to this Schedule&nbsp;13D,
including all transactions effected in the 60&nbsp;days prior to
the date shown on the cover page hereof.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">Page 3 of 5
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="right">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

</TABLE>

<!-- link1 "Item&nbsp;6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Item&nbsp;6. </I></B>&nbsp;&nbsp;<B><I>Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable

<!-- link1 "Item&nbsp;7. Material to be Filed as Exhibits" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Item&nbsp;7. </I></B>&nbsp;&nbsp;<B><I>Material to be Filed as Exhibits.</I></B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable


<P align="center" style="font-size: 10pt">Page 4 of 5
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURE" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


<P align="left" style="font-size: 10pt; margin-left: 55%">November&nbsp;3, 2004
<DIV align="left" style="font-size: 10pt; margin-left: 55%"><HR size="1" noshade color="#000000"></DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 55%">Date</DIV>


<P align="left" style="font-size: 10pt; margin-left: 55%">/s/ Ernest A. Bates, M.D.
<DIV align="left" style="font-size: 10pt; margin-left: 55%"><HR size="1" noshade color="#000000"></DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 55%">Signature</DIV>


<P align="left" style="font-size: 10pt; margin-left: 55%">Ernest A. Bates, M.D./Chairman and CEO
<DIV align="left" style="font-size: 10pt; margin-left: 55%"><HR size="1" noshade color="#000000"></DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 55%">(Name/Title)</DIV>


<P align="center" style="font-size: 10pt">Page 5 of 5
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">Attachment

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<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common Stock</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Balance May&nbsp;4, 1998</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">839,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,495,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Activity May&nbsp;5, 1998 - June&nbsp;11, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><HR size="1" noshade color="#000000"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Retired &#151; Cashless Exercise</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(42,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock Sold &#151; Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(507,222</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock Sold &#151; Private</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,636</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock Donated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(224,012</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">410,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(410,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left"><HR size="1" noshade color="#000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Balance June&nbsp;17, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,085,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>Sale</B></TD>
</TR>

<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px">By date activity for the period June&nbsp;18, 2004 - August&nbsp;17, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>Price</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD><HR size="1" noshade color="#000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><HR size="1" noshade color="#000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><HR size="1" noshade color="#000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">06/22/04 &nbsp;&nbsp;Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(75,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">06/24/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(400</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.61</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">06/24/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">06/29/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">07/21/04 &nbsp;&nbsp;Common Stock Sold- Private</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,222</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/06/04 &nbsp;&nbsp;Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(160,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/06/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(170,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/09/04 &nbsp;&nbsp;Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">440,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(440,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/09/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(69,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/09/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/09/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(30,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/10/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(19,200</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/10/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/10/04 &nbsp;&nbsp;Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/11/04 &nbsp;&nbsp;Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/11/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/11/04 &nbsp;&nbsp;Common Stock Sold- Open Market</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(500</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">08/17/04 &nbsp;&nbsp;Options Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(75,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left"><HR size="1" noshade color="#000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="16">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Balance August&nbsp;17, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">970,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">280,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left"><HR size="4" noshade color="#000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


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