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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001329606-05-000002.txt : 20060926
<SEC-HEADER>0001329606-05-000002.hdr.sgml : 20060926

<ACCEPTANCE-DATETIME>20051014113842

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0001329606-05-000002

CONFORMED SUBMISSION TYPE:	SB-2/A

PUBLIC DOCUMENT COUNT:		11

FILED AS OF DATE:		20051014

DATE AS OF CHANGE:		20060120


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			Probe Manufacturing Inc

		CENTRAL INDEX KEY:			0001329606

		STANDARD INDUSTRIAL CLASSIFICATION:	PRINTED CIRCUIT BOARDS [3672]

		IRS NUMBER:				202675800

		STATE OF INCORPORATION:			NV

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		SB-2/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-125678

		FILM NUMBER:		051138022



	BUSINESS ADDRESS:	

		STREET 1:		3050 PULLMAN STREET

		CITY:			COSTA MESA

		STATE:			CA

		ZIP:			92626

		BUSINESS PHONE:		714-424-2960



	MAIL ADDRESS:	

		STREET 1:		3050 PULLMAN STREET

		CITY:			COSTA MESA

		STATE:			CA

		ZIP:			92626



</SEC-HEADER>

<DOCUMENT>
<TYPE>SB-2/A
<SEQUENCE>1
<FILENAME>amendedsb2101405final.htm
<DESCRIPTION>FORM SB-2
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 23, 2005</TITLE>
<META NAME="author" CONTENT="Jeff &nbsp;Conrad">
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>REGISTRATION NO. 333-125678</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<A NAME="fis_unidentified_table"></A><P style="margin:0pt; font-family:Times New Roman" align=center><B>UNITED STATES</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>WASHINGTON, D.C. 20549</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>FORM SB-2</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Name of small business issuer in its charter)</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=752.267><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Nevada &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3672 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20-2675800</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>------- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---------- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;----------</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(State &nbsp;or &nbsp;jurisdiction &nbsp;&nbsp;&nbsp;(Primary &nbsp;Standard &nbsp;Industrial &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.R.S. &nbsp;Employer</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>of &nbsp;incorporation &nbsp;or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classification &nbsp;Code &nbsp;Number) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identification</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Organization &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
</TD></TR>
<TR><TD width=752.267>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>3050 PULLMAN, COSTA MESA, CA &nbsp;92626</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Telephone: <U>(714) 424-2960</U></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Address and telephone number of principal executive offices)</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>3050 PULLMAN, COSTA MESA, CA &nbsp;92626</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Telephone:<U> (714) 424-2960</U></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Address of principal place of business or intended principal place of business)</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Reza Zarif</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Chief Executive Officer</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>3050 PULLMAN STREET</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>COSTA MESA, CA &nbsp;92626</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Telephone: <U>(714) 424-2960</U></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>COPY TO:</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Catherine Basinger, Esq.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>301 East Ocean Blvd., Suite 640</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Long Beach, CA 90802</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(562)624 -6280</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Name, address and telephone number of agent for service)</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Approximate date of proposed sale to the public: As soon as practicable after this Registration Statement becomes effective. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ] </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">If this Form is a post-effective amendment filed pursuant to Rule 462(d) 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. [ ] </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">If delivery of the prospectus is expected to be made pursuant to Rule 434, check the following box. [ ] </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">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 check the following box. [X] </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=651><P style="margin:0pt; font-family:Times New Roman">CALCULATION OF REGISTRATION FEE</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Title of each &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposed maximum &nbsp;Proposed maximum &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount</P>
<P style="margin:0pt; font-family:Times New Roman">Class of securities &nbsp;&nbsp;Amount to be &nbsp;offering price &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;aggregate offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of registration</P>
<P style="margin:0pt; font-family:Times New Roman">To be registered &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registered &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per unit &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;price &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fee</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Common Stock,</P>
<P style="margin:0pt; font-family:Times New Roman">$.001 Par Value &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,328,125 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.80 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$9,662,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$313.38</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(1) &nbsp;&nbsp;Estimated &nbsp;solely &nbsp;for &nbsp;the &nbsp;purpose &nbsp;of &nbsp;computing &nbsp;the &nbsp;amount &nbsp;of the registration &nbsp;fee and based upon the &nbsp;amount of &nbsp;consideration &nbsp;received &nbsp;by Probe Manufacturing, Inc. pursuant to Rule &nbsp;457(a) &nbsp;under the &nbsp;Securities &nbsp;Act of 1933, as amended. &nbsp;As of the date hereof, there is no established public market for the common stock being registered. &nbsp;Accordingly, and in accordance with Item 505 of Regulation S-B requirements certain factor(s) must be considered and utilized in determining the offering price. &nbsp;The offering price of $0.80 per share was determined arbitrarily by us. &nbsp;The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. &nbsp;Should a market develop or occur for our securities, the market price may be far less than the offering pric
e. &nbsp;If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
</TD></TR>
<TR><TD width=651>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">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 the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is declared effective. This prospectus is not an offer to sell these securities, and we are not soliciting offers to buy these securities, in any state where the offer or sale is not permitted. </P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR>
<BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Page 1 of 106</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PROSPECTUS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">This prospectus relates to the sale of up to 3,328,125 shares of our common stock, which represents 100% of our outstanding securities, by our stockholders.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our common stock is not traded on any public market. &nbsp;Selling stockholders will sell at a fixed price of $0.80 per share until our common shares are quoted on the Over-the-Counter Bulletin Board and thereafter at prevailing market prices, or privately negotiated prices. The offering price of $0.80 per share was determined arbitrarily by us. &nbsp;The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. &nbsp;Should a market develop or occur for our securities, the market price may be far less than the offering price. &nbsp;If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>______________________________________________</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>YOU SHOULD PURCHASE SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SEE &quot;RISK FACTORS&quot; BEGINNING ON PAGE 12.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>_________________________________________________</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">You should rely only on the information provided in this prospectus or any supplement to this prospectus and information incorporated by reference. We have not authorized anyone else to provide you with different information. Neither the delivery of this prospectus nor any distribution of the shares of common stock pursuant to this prospectus shall, under any circumstances, create any implication that there has been no change in our affairs since the date of this prospectus. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. It is a criminal offense to make any representation to the contrary. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>SUBJECT TO COMPLETION, THE DATE OF THIS PROSPECTUS IS OCTOBER 14, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Page 2 of 106</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>TABLE OF CONTENTS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">PROSPECTUS &nbsp;SUMMARY</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">7</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">RISK &nbsp;FACTORS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">12</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">USE &nbsp;OF &nbsp;PROCEEDS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">21</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DETERMINATION &nbsp;OF &nbsp;OFFERING &nbsp;PRICE &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">22</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DILUTION</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">23</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">SELLING &nbsp;SECURITY &nbsp;HOLDERS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">23</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">PLAN &nbsp;OF &nbsp;DISTRIBUTION &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">29</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">LEGAL &nbsp;PROCEEDINGS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">31</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DIRECTORS, &nbsp;EXECUTIVE &nbsp;OFFICERS, &nbsp;PROMOTERS &nbsp;AND &nbsp;CONTROL &nbsp;PERSONS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">32</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">SECURITY &nbsp;OWNERSHIP &nbsp;OF &nbsp;CERTAIN &nbsp;BENEFICIAL &nbsp;OWNERS &nbsp;AND &nbsp;MANAGEMENT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">33</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DESCRIPTION &nbsp;OF &nbsp;SECURITIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">35</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">INTEREST &nbsp;OF &nbsp;NAMED &nbsp;EXPERTS &nbsp;AND &nbsp;COUNSEL &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">36</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DISCLOSURE &nbsp;OF &nbsp;COMMISSION &nbsp;POSITION &nbsp;OF &nbsp;INDEMNIFICATION &nbsp;FOR &nbsp;SECURITIES</P>
<P style="margin:0pt; font-family:Times New Roman">ACT &nbsp;LIABILITIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">36</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">CAUTIONARY &nbsp;STATEMENT &nbsp;CONCERNING &nbsp;FORWARD-LOOKING &nbsp;STATEMENTS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">43</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DESCRIPTION &nbsp;OF &nbsp;BUSINESS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">37</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">MANAGEMENT'S &nbsp;DISCUSSION &nbsp;AND &nbsp;ANALYSIS &nbsp;OF &nbsp;PLAN &nbsp;OF &nbsp;OPERATION &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">43</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">DESCRIPTION &nbsp;OF &nbsp;PROPERTY &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">58</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">CERTAIN &nbsp;RELATIONSHIPS &nbsp;AND &nbsp;RELATED &nbsp;TRANSACTIONS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">58</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">MARKET &nbsp;FOR &nbsp;COMMON &nbsp;EQUITY &nbsp;AND &nbsp;RELATED &nbsp;STOCKHOLDER &nbsp;MATTERS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">61</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">EXECUTIVE &nbsp;COMPENSATION &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">61</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">FINANCIAL &nbsp;STATEMENTS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">F1-F-61</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">62</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">INDEMNIFICATION OF DIRECTORS AND OFFICERS &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">62</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">63</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">RECENT SALES OF UNREGISTERED SECURITIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">63</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">EXHIBITS</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">64</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">UNDERTAKINGS</P>
</TD><TD valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman">65</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PROSPECTUS SUMMARY</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">The Following summary is qualified in its entirety by the more detailed information and financial statements including the notes thereto, appearing elsewhere in this prospectus. &nbsp;Because it is a summary, it does not contain all of the information you should consider before making an investment decision.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We incorporated in the State of California on July 7, 1995 as Probe Manufacturing Industries, Inc. On April 21, 2005 we re-domiciled from California to Nevada whereby we changed our name to Probe Manufacturing, Inc. Our business focuses on manufacturing electronics and providing services to original equipment manufacturers (OEMs) of industrial, automotive, semiconductor, medical, communication, military, and high technology products. The services that we provide are commonly referred to as electronics manufacturing services (EMS). We offer our customers comprehensive and integrated design and manufacturing services, from initial product design to production and direct order fulfillment. </P>
<P style="margin:0pt; font-family:Times New Roman">Our engineering services include product design, printed circuit board layout, prototyping, and test development. Our supply chain management solutions include purchasing, management of materials, and order fulfillment. Our manufacturing services include surface mount, hole assembly, cable assembly, mechanical assembly, and fully integrated box build systems for high complexity electronics.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">For example, Probe builds a Natural Gas Electronic Control Unit for Quantum Technologies which is used in GM&#146;s alternative fuel engines. We have supported this customer from the inception of its product. Our services started with full design review for manufacturability and testability of the product. &nbsp;Once the design review and recommendations were completed we source the materials and procure the components. We then take responsibility for assembling the components on to the boards, assembling the mechanical parts, installing the product inside the enclosure, and finally we perform a full functional test. Then the finished good product is shipped to the customer, who integrates it in to their final fuel delivery system and it&#146;s delivered to GM. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The majority of our revenue is driven from manufacturing a mix of complex Printed Circuit Card assemblies. &nbsp;Some of the examples of our customers finished goods products include automated fluid dispensing equipments, high performance gas and liquid delivery process modules, which are used in semiconductor fabrication equipment, photonics instrumentation to measure fiber optics, electronic control unit for hydrogen, natural gas, and propane engines, electronic control unit for welding equipment, portable ultrasound and electro-simulation therapy equipment, and target scoring systems for military.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>HOW TO CONTACT US</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">The address of our principal executive office is 3050 Pullman Street, Costa Mesa, California &nbsp;92626. Our telephone number is (714) 424-2960. Our website address is www.probemi.com. Information contained on our website does not constitute part of this report and our address should not be used as a hyperlink to our website. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>THE OFFERING</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">This prospectus relates to the sale of up to 3,328,125 shares of our common stock, which represents 100% of our outstanding common stock securities, by our stockholders. &nbsp;We are not selling any securities in this offering and therefore will not receive any proceeds from this offering. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">From June 16, 2004 to April 1, 2005 we sold &nbsp;222,125 common stock units pursuant to a Private Placement Memorandum at $8.00 per unit to 49 &nbsp;individuals generating net proceeds of $1,777,000.</P>
<P style="margin:0pt; font-family:Times New Roman">Each unit consists of &nbsp;ten (10) shares of common stock. &nbsp;In addition, each unit entitles the holder to purchase a total of 10 shares of Probe Common Stock through the exercise of Warrants as follows: Class A Warrants, 5 shares at a price of $2.00 per share for a period of 12 months from November 16, 2004, which shall be November 15, 2005; and, Class B Warrants, 5 shares at a price of $3.00 per share for a period of 18 months from November 16, 2004, which shall be May 15, 2006. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended. &nbsp;We are registering 2,221,250 shares of common stock in this prospectus that were sold in the Private Placement Memorandum. &nbsp;We are not registering the warrants sold to our stock holders in the private placement.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In addition we are registering 250,000 shares held by one of our directors and founders, Kambiz Mahdi &nbsp;and 250,000 shares our chief executive officer, Reza Zarif. &nbsp;The shares were issued to Mr. Mahdi and Mr. Zarif as founders of the company. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We are registering 250,000 shares held by eFund Capital Partners, LLC which were issued pursuant to a stock purchase and strategic relationship agreement executed in April 2004 and 250,000 shares held by Ashford Capital, LLC which were assigned by eFund Capital Partners, LLC as consideration for Ashford&#146;s involvement in probe as a strategic relationship.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We are also registering 6,875 shares of common stock issued to Anthony Reed pursuant to a Consulting Agreement and 100,000 shares of common stock issued to Rusty Miller pursuant to an employee stock grant.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We are registering 3,328,125 shares of common stock by the shareholders listed above which represents 100% of the common stock currently issued and outstanding.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>USE OF PROCEEDS</U></P>
<P style="margin:0pt; font-family:Times New Roman">We are not selling any securities in this offering and therefore will not receive any proceeds from this offering. We will, however, receive proceeds from the possible future exercise of the warrants held by our stockholders</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>RISK FACTORS</U></P>
<P style="margin:0pt; font-family:Times New Roman">The purchase of our common stock involves a high degree of risk. &nbsp;You should carefully review and consider the &#147;Risk Factors&#148;.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>TRADING MARKET</U></P>
<P style="margin:0pt; font-family:Times New Roman">There is currently no public trading market for our securities. Selling stockholders will sell at a fixed price of $.80 per share until our common shares are quoted on the Over-the-Counter Bulletin Board and thereafter at prevailing market prices, or privately negotiated prices.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<A NAME="fis_future_sale"></A><A NAME="fis_unidentified_table_6"></A><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>OUR CAPITAL STRUCTURE AND SHARES ELIGIBLE FOR FUTURE SALE</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<A NAME="fis_risk_factors"></A><P style="margin:0pt; font-family:Times New Roman">The following tables outline our capital stock as of October 14, 2005:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Common Stock outstanding:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">Before the offering:</P>
<P style="margin:0pt; text-indent:360pt; font-family:Times New Roman">3,328,125 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (1) (2)</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">After the Offering:</P>
<P style="margin:0pt; text-indent:360pt; font-family:Times New Roman">3,328,125 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (1)(2) (3) (4)</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(1) Assumes no conversion of Series A Convertible Preferred Stock and Series B Convertible Preferred Stock as of October 14, 2005:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Series A Convertible Preferred Stock</U>: &nbsp;There are currently 440 shares of Series A Convertible Preferred Stock issued and outstanding. Each share is convertible into 0.1% percent of the shares of our common stock outstanding at the date of conversion. The shares shall convert at the earlier of the election of the holder, or March 26, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Series B Convertible Preferred Stock</U>: &nbsp;There are currently 12,500 shares of Series B Convertible Preferred Stock issued and outstanding. Each share of Series B Stock shall be converted into a number of shares of common stock that is equal to each share being divided by the average of the 3 lowest intraday bids in the twenty (20) days prior to conversion or $0.10, which ever is greater, multiplied by 100 (1 divided by x, multiplied by 100), or 125 shares per Series B, whichever is greater. For the purpose of determining the number of shares subject to registration with the Securities and Exchange Commission, we are assuming a stock price or sale price of $0.80 and &nbsp;200% of the shares of that we would issue at $0.80.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(2) Also assumes no exercise of:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">No exercise of outstanding warrants to purchase an aggregate of 1,172,937 shares of our common &nbsp;stock at a fixed exercise price of $2.00 per share.</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">No exercise of outstanding warrants to purchase an aggregate of 1,172,937 shares of our common &nbsp;stock at a fixed exercise price of $3.00 per share.</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SUMMARY FINANCIAL INFORMATION</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>PROBE MANUFACTURING INDUSTRIES</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>SUMMARY OPERATING INFORMATION</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>FISCAL YEAR ENDED DECEMBER 31,</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2004</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2003</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2002</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2001</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">SALES</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$6,204,957</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$6,455,728</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$6,866,068</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$17,993,905</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">NET INCOME (LOSS)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$ (918,590)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,244,761)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$ (1,513,846)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$25,530</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">LOSS PER SHARE (DILUTED POST REVENUE)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(91.86)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(124.48)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$ (151.38)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2.55</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>SUMMARY BALANCE SHEET INFORMATION</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>AT DECEMBER 31,</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2004</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2003</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2002</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2001</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">WORKING CAPITAL</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(564,310)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(2,892,360)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,852,838)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(888,765)</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL ASSETS</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$1,982,940</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,417,516</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,712,420</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,944,636</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL LIABILITIES</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,995,378</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$5,046,352</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$4,110,729</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,966,687</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">STOCKHOLDERS EQUITY (DEFICIT)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,012,438)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(2,628,836)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,398,309)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(22,051)</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,012,438)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(2,628,836)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,398,309)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(22,051)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><B><BR>
<BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>WEIGHTED AVERAGE</B></P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>NUMBER OF SHARES CALCULATION</B></P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>2004 Month</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;New Shares Issued </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Shares Redeemed </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Outstanding Number of Shares </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Number of Months Outstanding</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Weighted Avg </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jan</P>
</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>12</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Feb</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>11</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Mar</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>10</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Apr</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>9</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>May</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,990,000 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,000,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>8</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,993,333 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jun</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125,000 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,125,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>7</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,917 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jul</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;262,500 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,387,500 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>6</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;131,250 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Aug</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,750 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,456,250 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>5</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,646 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Sep</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137,500 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,593,750 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>4</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,833 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Oct</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;568,750 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,162,500 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>3</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;142,188 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Nov</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,500 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,325,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>2</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,083 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Dec</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;288,125 </P>
</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,000,000)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613,125 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>1</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(392,656)</P>
</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=350.733 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Weighted Average Shares as of 12/31/2004</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,058,594 </P>
</TD></TR>
</TABLE>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>RISK FACTORS</B></P>
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<P style="margin:0pt; font-family:Times New Roman"><I>An investment in our common stock involves a high degree of risk. You should carefully consider the following risk factors, other information included in this prospectus and information in our periodic reports filed with the SEC. If any of the following risks actually occur, our business, financial condition or results of operations could be materially and adversely affected, and you may lose some or all of your investment. </I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>RISKS ABOUT OUR BUSINESS</B></P>
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<P style="margin:0pt; font-family:Times New Roman"><B>OUR INDEPENDENT ACCOUNTANTS HAVE ISSUED A GOING CONCERN OPINION AND IF WE CANNOT OBTAIN ADDITIONAL FINANCING AND/OR REDUCE OUR OPERATING COSTS SUFFICENTLY, WE MAY HAVE TO CURTAIL OPERATIONS AND &nbsp;MAY ULTIMATELY &nbsp;CEASE &nbsp;TO &nbsp;EXIST.</B></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Our audited financial statements for the twelve months ended December 31, 2004 reflect a net loss of ($918,590) and negative cash flows from operations of ($1,988,245). For the six months ended June 30, 3005 our un-audited financial statements reflect a net loss of (321,648) and negative cash flows from operations of ($338,281). &nbsp;&nbsp;These conditions require sufficient additional funding or alternative sources of capital to meet our working capital needs. &nbsp;We currently receive capital under six different revolving lines of credit from eFund Capital Partners, LLC, Ashford Capital, LLC, Edward Lassiter, Bill Duncan, Rufina Paniego and the Benner Exemption Trust that allows us to draw up to $725,000 and anticipate we will continue to be able to have access to the money through the revolving lines of credit. As of October 4, 2005, we have drawn on $630,000 of our revolving credit lines and only have $95,000 left upon which to draw. &nbs
p;These conditions raised substantial doubt about our ability to continue as a going concern if we do not acquire sufficient additional funding and/or we cannot reduce our operating costs sufficiently to meet our working capital needs. &nbsp;Unless we obtain additional financing through operations, investment capital or otherwise, there is significant doubt we will be able to meet our obligations as they come due and will be unable to execute our business strategy, therefore, &nbsp;we may be forced to curtail operations or may ultimately cease to exist. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman">&nbsp;The future success of the Company is likely dependent on its ability to attain additional capital to support growth and ultimately, upon its ability to attain future profitable operations. &nbsp;There can be no assurance that the Company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. &nbsp;The successful outcome of these or any future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute their business plans or generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>WE HAVE AN ACCUMULATED DEFICIT AND MAY INCUR ADDITIONAL LOSSES, THEREFORE WE MAY NOT BE ABLE TO OBTAIN THE ADDITIONAL FINANCING NEEDED FOR WORKING CAPITAL, CAPITAL EXPEDITURES AND TO MEET OUR DEBT SERVICE OBLIGATIONS.</B></P>
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<P style="margin:0pt; font-family:Times New Roman">As of December 31, 2004, we had liabilities of ($2,995,378) and for the six months ended June 30, 2005 we had liabilities of ($3,400,767). Our debt service requirements for 2005 consist of ($350,296) in loan payments and &nbsp;($133,845) in capital lease obligations for a total of ($484,141). Our debt could limit our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, or other purposes in the future, as needed; to plan for, or react to, changes in technology and in our business and competition; and to react in the event of an economic downturn. </P>
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<P style="margin:0pt; font-family:Times New Roman">We may not be able to meet our debt service obligations. If we are unable to generate sufficient cash flow or obtain funds for required payments, or if we fail to comply with covenants in our revolving lines of credit, we will be in default. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>WE FACE INTENSE COMPETITION, WHICH MAY REDUCE OUR SALES, OPERATING PROFITS, OR BOTH</B>.</P>
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<P style="margin:0pt; font-family:Times New Roman">The market segments in which we compete are rapidly evolving and intensely competitive.<I> </I>The electronic manufacturing service or &#147;EMS&#148; industry is extremely competitive and includes hundreds of companies, several of which have achieved substantial market share. We compete with numerous domestic and foreign EMS firms, including Benchmark Electronics, Inc.; Celestica Inc; Flextronics International Ltd.; Jabil Circuit, Inc.; Pemstar, Inc.; Plexus Corp.; Sanmina-SCI Corporation; CTS Electronics; Solectron Corporation; SMS Technologies, Inc.; Express Manufacturing, Inc. and others. &nbsp;Current and prospective customers also evaluate our capabilities against the merits of internal production. Some of our competitors may have greater design, manufacturing, financial or other resources than us. Additionally, we face competition from Taiwanese ODM suppliers, who have a substantial share of the global market for information technology hardware produc
tion, primarily related to notebook and desktop computers and personal computer motherboards, as well as provide consumer products and other technology manufacturing services. </P>
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<P style="margin:0pt; font-family:Times New Roman">In recent years, many participants in the industry, including us, have substantially expanded their manufacturing capacity. The overall demand for electronics manufacturing services has decreased, resulting in increased capacity and substantial pricing pressures, which has harmed our operating results. Certain sectors of the EMS industry are currently experiencing increased price competition, and if this increased level of competition should continue, our revenues and gross margin may continue to be adversely affected. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>WE MAY BE ADVERSELY AFFECTED BY SHORTAGES OF REQUIRED ELECTRONIC COMPONENTS. &nbsp;&nbsp;IN ADDITION, WE DEPEND ON A LIMITED NUMBER OF SUPPLIERS TO PROCURE OUR PARTS FOR PRODUCTION WHICH IF AVAILABILITY OF PRODUTS BECOMES COMPROMISED IT COULD ADD TO OUR COST OF GOODS SOLD AND AFFECT OUR REVENUE GROWTH.</B> </P>
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<P style="margin:0pt; font-family:Times New Roman">At various times, there have been shortages of some of the electronic components that we use, as a result of strong demand for those components or problems experienced by suppliers. These unanticipated component shortages have resulted in curtailed production or delays in production, which prevented us from making scheduled shipments to customers in the past and may do so in the future. Our inability to make scheduled shipments could cause us to experience a reduction in our sales and an increase in our costs and could adversely affect our relationship with existing customers as well as prospective customers. Component shortages may also increase our cost of goods sold because we may be required to pay higher prices for components in short supply and redesign or reconfigure products to accommodate substitute components. As a result, component shortages could adversely affect our operating results for a particular period due to the resulting revenue shortfall
 and increased manufacturing or component costs. &nbsp;In addition, we depend upon a number of major suppliers for our products. &nbsp;We do not have long-term agreements with our major suppliers, except for our purchase orders. &nbsp;&nbsp;There is an inherent risk that certain products will be unavailable for prompt delivery or, in some cases, discontinued. &nbsp;We will have only limited control over any third-party manufacturer as to quality controls, timeliness of production and deliveries and various other factors. &nbsp;Lack of long-term agreement with our major suppliers could also impact material availability and could delay shipments. &nbsp;Should the availability of products be compromised, it could also force us to develop alternative products, which could add to the cost of goods sold and compromise delivery commitments. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>OUR PRINCIPAL SHAREHOLDERS, DIRECTORS AND EXECUTIVE OFFICERS WILL, IN THE AGGREGATE, BENEFICIALLY OWN MORE THAN 50% OF OUR OUTSTANDING COMMON STOCK AND THESE SHAREHOLDERS, IF ACTING TOGETHER, WILL BE ABLE TO EXERT SUBSTANTIAL INFLUENCE OVER ALL MATTERS REQUIRING APPROVAL OF OUR SHAREHOLDERS <I>. </I></B></P>
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<P style="margin:0pt; font-family:Times New Roman">Our principal shareholders, directors and executive officers will, in the aggregate, beneficially own more than 50%<B> </B>our outstanding common stock on a fully diluted basis which includes Series A Convertible Preferred Stock, Series B Convertible Preferred Stock and any shares issued to them under various revolving credit facilities. &nbsp;&nbsp;These shareholders, if acting together, will be able to exert substantial influence over all matters requiring approval of our shareholders, including amendments to our Articles of Incorporation, fundamental corporate transactions such as mergers, acquisitions, the sale of the company, and other matters involving the direction of our business and affairs and specifically the ability to determine the members of our board of directors. (See: &#147;Principal Shareholders&#148;) </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>WE CURRENTLY ONLY SERVICE AND ATTEMPT TO OBTAIN CUSTOMERS IN THE LIMITED GEOGRAPHIC OF SOUTHERN CALIFORNIA WHICH IS A SMALL ADDRESSABLE MARKET AND COULD BE SUBJECT TO ECONOMIC HARDSHIP OR SLOWDOWN, AS A RESULT OUR GROWTH COULD BE LIMITED AND ADVERSELY AFFECT OUR PROJECTED SALES AND OPERATING INCOME.</B></P>
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<P style="margin:0pt; font-family:Times New Roman">We currently only service, attempt to solicit new, and direct our marketing efforts to customers in the Southern California region. &nbsp;This is a very small addressable market which ultimately limits the amount of growth we could experience. &nbsp;In addition, this region could experience an economic recession or other market contraction which would cause our current customers and any potential customers to also contract their businesses as well and cease outsourcing any current products that we currently service and would attempt to obtain. Both the size of the market and any potential economic hardship affecting this &nbsp;small regional market could adversely affect our project sales and operating incomer. &nbsp;If we are forced to expand our marketing efforts outside this region we could also incur significant costs in an attempt to penetrate other regional or national markets.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>WE DEPEND ON LOW TO MEDIUM VOLUME HIGH MIX TECHNOLOGY PRODUCTS THAT ARE BUILT DOMESTICALLY. &nbsp;THESE APPLICATIONS INCLUDE INDUSTRIAL INSTRUMENTATION AND SCIENTIFIC COMMUNICATION, SEMICONDUCTOR AND AUTOMOTIVE PRODUCTS, WHICH CONTINUALLY PRODUCE TECHNOLOGICALLY ADVANCED PRODUCTS WITH SHORT LIFE CYCLES; OUR INABILITY TO CONTINUALLY MANUFACTURE SUCH PRODUCTS ON A COST-EFFECTIVE BASIS COULD HARM OUR BUSINESS.</B></P>
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<P style="margin:0pt; font-family:Times New Roman">During the twelve months ended December&nbsp;31, 2004 and for the six months ended June 30, 2005, we derived approximately 30% of our revenues from customers in the industrial product sector, whose products include adhesive dispensing equipment, motion controllers; approximately 40% of our revenues from customers in the semiconductor industry, whose products include mass flow controllers, and evaluation modules for integrated circuit manufactures; approximately 19% of our revenues from providers of communications infrastructure, whose products include equipment for optical networks, cellular base stations, radio frequency devices, telephone exchange and access switches and broadband devices; approximately 3% of our revenues from the automotive industry, whose products are electronic control units for alternative fuel systems. &nbsp;The remaining 8% of our revenues was derived from customers in a variety of other industries, including the medical, consumer an
d military industries. </P>
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<P style="margin:0pt; font-family:Times New Roman">Factors affecting these industries in general could seriously harm our customers and, as a result, us. These factors include: </P>
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<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Rapid changes in technology, which result in short product life cycles, often reduce the volume and market share for our customers and ultimately us. It will lead to the loss of previous design wins and frequent new product introductions and substantial development costs. This could result in loss of revenue and it could adversely affect our operating income.</FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Seasonality of demand for our customers&#146; products would force our customers to manage their inventories for seasonal variations and inventory management and excess build ups. Customers could dramatically increase their request for production quantities, which could cause lead time problems with getting the components or we may not be able to build enough products which could have loss of revenue for our customers. As a result we could lose these customers and it would adversely affect our projected sales. If the projected sales will not materialize, we will have loss of revenue and reduced margins. &nbsp;Any cancellation or delay in production would also have the same adverse effect on our sales projections and profitability.</FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">The inability of our customers to successfully market their products, and the failure of these products to gain widespread commercial acceptance; could effect their long term business plans and sales. &nbsp;Our success depends upon the ability of our customers to successfully market their products and if they fail, it could result in cancellations or rescheduling orders lower sales volume and operating income. </FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Recessionary periods in our customers&#146; markets will affect both our customers and our overall business output. It would require dramatic changes to the overall business model, layoffs and major adjustments to the business overhead. &nbsp;If we fail to adjust to new recessionary environment, our business would be adversely affected and we may not be able to compete successfully against other companies in our industry and achieve profitability</FONT><FONT FACE="Verdana">.</FONT></P>
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<P style="margin:0pt; font-family:Times New Roman"><B>OUR INCREASED ORIGINAL DESIGN MANUFACTURING, OR ODM, ACTIVITY MAY REDUCE OUR PROFITABILITY. </B></P>
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<P style="margin:0pt; font-family:Times New Roman">We have recently begun providing ODM services, where we design and develop products that we then manufacture for OEM customers. We are actively pursuing ODM projects, focusing primarily on consumer related devices, such as cell phones and related products, which requires that we make investments in research and development, technology licensing, test and tooling equipment, patent applications, facility expansion and recruitment. </P>
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<P style="margin:0pt; font-family:Times New Roman">Although we enter into contracts with our ODM customers, we may design and develop products for these customers prior to receiving a purchase order or other firm commitment from them. We are required to make substantial investments in the resources necessary to design and develop these products, and no revenue may be generated from these efforts if our customers do not approve the designs in a timely manner or at all, or if they do not then purchase anticipated levels of products. In addition, ODM activities often require that we purchase inventory for initial production runs before we have a purchase commitment from a customer. Even after we have a contract with a customer with respect to an ODM product, these contracts may allow the customer to delay or cancel deliveries and may not obligate the customer to any volume of purchases. These contracts can generally be terminated by either party on short notice. There is no assurance that we will be able to mai
ntain our current level of ODM activity at all or for an extended period of time. We continue to make investments in our ODM services, which could adversely affect our profitability through fiscal 2005 and beyond. Further, the products we design must satisfy safety and regulatory standards and some products must also receive government certifications. If we fail to timely obtain these approvals or certifications, we would be unable to sell these products, which would harm our sales, profitability and reputation. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>THE SUCCESS OF OUR ODM ACTIVITY DEPENDS ON OUR ABILITY TO PROTECT OUR INTELLECTUAL PROPERTY RIGHTS.</B></P>
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<P style="margin:0pt; font-family:Times New Roman"><I>&nbsp;</I>We retain certain intellectual property rights to our ODM products. As the level of our ODM activity is increasing, the extent to which we rely on rights to intellectual property incorporated into products is increasing. Despite our efforts, we cannot be certain that the measures we have taken to prevent unauthorized use of our technology will be successful. If we are unable to protect our intellectual property rights, this could reduce or eliminate the competitive advantages of our proprietary technology, which would harm our business. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>INTELLECTUAL PROPERTY INFRINGEMENT CLAIMS AGAINST US OR OUR CUSTOMERS COULD HARM OUR ODM BUSINESS.</B> </P>
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<P style="margin:0pt; font-family:Times New Roman">Our ODM products often face competition from the products of OEMs, many of whom may own the intellectual property rights underlying those products. As a result, we could become subject to claims of intellectual property infringement as the number of our competitors increases. In addition, customers for our ODM services typically require that we indemnify them against the risk of intellectual property infringement. If any claims are brought against us or our customers for such infringement, whether or not these have merit, we could be required to expend significant resources in defense of such claims. In the event of such an infringement claim, we may be required to spend a significant amount of money to develop non-infringing alternatives or obtain licenses. We may not be successful in developing such alternatives or obtaining such a license on reasonable terms or at all. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>OUR ODM PRODUCTS CURRENTLY COMPETE WITH CURRENT AND PROSPECTIVE PRODUCTS OF OUR OEM CUSTOMERS WHICH COULD PROVOKE OUR CUSTOMERS TO CEASE ITS BUSINESS RELATIONSHIP WITH US AND WE MAY INCUR SIGNIFICANT LOSES AS A RESULT.</B></P>
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<P style="margin:0pt; font-family:Times New Roman">Flexibility and time to market are now forcing our OEM customers to turn to us for Outside Design Manufacturing (ODM) services. As a result we could begin to compete with our OEMs products. OEMs are aware that they are financing future competition, but they have no choice if they are to compete in today&#146;s existing market. However, some of these customers could terminate their relationship with us and seek an injunction against or future us of their underlying technology in our ODM product, which could result in loss of these customers and loss of revenue for Probe.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">Furthermore, if we continue to produce our ODM products we could also face allegations of patent infringement and trademark infringement by our customers. In the event of an infringement claim against us, we would absorb substantial costs in defending the claim and if we lose we have to pay the amount of any resulting adverse final judgment against us or settlement. This could have an adverse effect on our business both with our profitability and reputation in the market.</P>
<P style="margin:0pt; font-family:Times New Roman"><B>IF OUR ODM PRODUCTS ARE SUBJECT TO NON-COMPLIANCE, OUR BUSINESS MAY BE DAMAGED AND WE MAY INCUR SIGNIFICANT FEES<I>.</I></B></P>
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<P style="margin:0pt; font-family:Times New Roman">In our contracts with our ODM customers, we generally provide them with a warranty against non-compliance in our designs. If an ODM product or component that we design is found to be non-compliant in its design, this may lead to increased warranty claims. Although we have product liability insurance coverage, this is expensive and may not be available on acceptable terms, in sufficient amounts, or at all. A successful product liability claim in excess of our insurance coverage or any material claim for which insurance coverage was denied or limited and for which indemnification was not available could have a material adverse effect on our business, results of operations and financial condition. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>THE MAJORITY OF OUR SALES COME FROM A SMALL NUMBER OF CUSTOMERS WITH WHOM WE DO NOT HAVE LONG TERM CONTRACTS; IF WE LOSE ANY OF THESE CUSTOMERS, OUR SALES COULD DECLINE SIGNIFICANTLY.</B></P>
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<P style="margin:0pt; font-family:Times New Roman">Sales to our five largest customers have represented a significant percentage of our net sales in recent periods. Our five largest customers accounted for approximately 86% and 79% of net sales during the six twelve months ended December 31, 2004 and December 31,2003 respectively. </P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Our principal customers have varied from year to year, and our principal customers may not continue to purchase services from us at current levels, if at all. Significant reductions in sales to any of these customers, or the loss of major customers, would seriously harm our business. If we are not able to timely replace expired, canceled or reduced contracts with new business, our revenues could be harmed. </P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">The part number, quantity, &nbsp;price, workmanship standards, and scheduled delivery dates of the Products to be Manufactured are determined by written purchase orders given by our customers and accepted or confirmed by us in writing or via email. &nbsp;We agree to deliver the Products manufactured pursuant to each purchase order in accordance with the terms and conditions set forth in the purchase order. Probe manufactures hundreds of different types of assemblies on an ongoing basis and each product has a purchase order associated with it. &nbsp;Please see attcahed filing of several samples of these purchase orders. </P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">We do not have any long term agreements with our customers, and our principal customers may not continue to purchase services from us. The duration of a purchase order is usually from 30 to 90 days. These purchase orders could be cancelled or rescheduled at any time. Significant reductions in sales to any of these customers would reduce our projected sales, adversely affect our profits, and seriously harm our business.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">Our top five customers include, Celerity Group, Newport Corporation, Asymtek Corporation, Jetline Engineering, and Apogee.</P>
<P style="margin:0pt; font-family:Times New Roman"><B>WE CURRENTLY DO NOT HAVE LONG TERM CONTRACTS WITH OUR EXECUTIVE OFFICERS AND IF WE LOSE KEY SENIOR MANAGEMENT PERSONNEL OUR BUSINESS COULD BE NEGATVIELY AFFECTED. FURTHER, WE WILL NEED TO RECRUIT AND RETAIN ADDITIONAL SKILLED MANAGEMENT PERSONNEL AND IF WE ARE NOT ABLE TO DO SO, OUR BUSINESS AND OUR ABILITY TO CONTINUE TO GROW COULD BE HARMED.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our success depends to a large extent upon the continued services of our executive officers. Generally our employees are not bound by employment or non-competition agreements, and we cannot assure that we will retain our executive officers and other key employees. We could be seriously harmed by the loss of any of our executive officers. In order to manage our growth, we will need to recruit and retain additional skilled management personnel and if we are not able to do so, our business and our ability to continue to grow could be harmed. In addition, in connection with expanding our ODM activities, we must attract and retain experienced design engineers. Although a number of companies in our industry have implemented workforce reductions, there remains substantial competition for highly skilled employees. Our failure to recruit and retain experienced design engineers could limit the growth of our ODM activities, which could adversely affect our business. </
P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>WE ARE SUBJECT TO ENVIRONMENTAL COMPLIANCE RISKS AND UNEXPECTED COSTS THAT WE MAY INCUR WITH RESPECT TO ENVIRONMENTAL MATTERS MAY RESULT IN ADDITIONAL LOSS CONTINGENCIES, THE QUANTIFICATION OF WHICH CANNOT BE DETERMINED AT THIS TIME.</B></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">We are subject to various federal, state, local and foreign environmental laws and regulations, including those governing the use, storage, discharge and disposal of hazardous substances in the ordinary course of our manufacturing process.<FONT COLOR=#FF0000> </FONT>&nbsp;If more stringent compliance or cleanup standards under environmental laws or regulations are imposed, or the results of future testing and analyses at our current or former operating facilities indicate that we are responsible for the release of hazardous substances, we may be subject to additional remediation liability. Further, additional environmental matters may arise in the future at sites where no problem is currently known or at sites that we may acquire in the future. Currently unexpected costs that we may incur with respect to environmental matters may result in additional loss contingencies, the quantification of which cannot be determined at this time. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>WE ARE EXPOSED TO FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES BECAUSE WE PROCURE PRODUCTS FROM SUPPLIERS IN FOREIGN COUNTRIES AND AS A RESULT OF THE VOLATILITY IN THE EXCHANGE RATES BETWEEN THE FOREIGN CURRENCIES AND THE FUNCTIONAL CURRENCIES OF OUR ENTITIES COULD SERIOUSLY HARM OUR BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION. </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman">We transact business in various foreign countries because we procure products from suppliers in foreign countries. As a result, we are exposed to fluctuations in foreign currencies. We have currency exposure arising from both sales and purchases denominated in currencies other than the functional currencies of our entities. Volatility in the exchange rates between the foreign currencies and the functional currencies of our entities could seriously harm our business, operating results and financial condition. These exposures are primarily, but not limited to, cash, receivables, payables and inter-company balances, in currencies other than the functional currency unit of the operating entity. Foreign exchange forward contracts are treated as cash flow hedges and such contracts generally expire within three months. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>RISKS TO OUR INDUSTRY</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>THE VARIABILITY OF CUSTOMER REQUIREMENTS IN THE ELECTRONICS INDUSTRY COULD ADVERSELY AFFECT OUR REULTS OF OPERATIONS.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As a provider of electronics manufacturing services, we must provide increasingly rapid product turnaround for our customers. We generally do not obtain firm, long-term purchase commitments from our customers, and we often experience reduced lead-times in customer orders. Customers cancel their orders, change production quantities and delay production for a number of reasons. The uncertain economic conditions and geopolitical situation has resulted, and may continue to result, in some of our customers delaying the delivery of some of the products we manufacture for them, and placing purchase orders for lower volumes of products than previously anticipated. Cancellations, reductions or delays by a significant customer or by a group of customers have harmed, and may continue to harm, our results of operations by reducing the volume of products manufactured by us for the customers and delivered in that period, as well as causing a delay in the repayment of our 
expenditures for inventory in preparation for customer orders and lower asset utilization resulting in lower gross margins. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In addition, we make significant decisions, including determining the levels of business that we will seek and accept, production schedules, component procurement commitments, personnel needs and other resource requirements, based on our estimates of customer requirements. The short-term nature of our customers&#146; commitments and the rapid changes in demand for their products reduce our ability to accurately estimate future customer requirements. This makes it difficult to schedule production and maximize utilization of our manufacturing capacity. We often increase staffing, increase capacity and incur other expenses to meet the anticipated demand of our customers, which cause reductions in our gross margins if customer orders are delayed or cancelled. Anticipated orders may not materialize, and delivery schedules may be deferred as a result of changes in demand for our customers&#146; products. On occasion, customers require rapid increases in production
, which may stress our resources and reduce margins. Although we have increased our manufacturing capacity, and plan further increases, we may not have sufficient capacity at any given time to meet our customers&#146; demands. In addition, because many of our costs and operating expenses are relatively fixed, a reduction in customer demand harms our gross profit and operating income. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>WE DEPEND ON THE CONTINUING TREND OF OUTSOURCING BY OEMS, IF THIS TREND CHANGES OR DECLINES OUR BUSINESS COULD BE SIGNIFICANTLY HARMED.</B> </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Future growth in our revenue depends on new outsourcing opportunities in which we assume additional manufacturing and supply chain management responsibilities from OEMs. Although, in today&#146;s economic climate outsourcing is the trend, in the course of business decision OEMs must make a decision whether to build their products in house or outsource it. &nbsp;Lack of capacity by outsourcing companies, or protectionist policies could effect OEMs decision to build in house instead of outsourcing. &nbsp;However, growing complexity of electronics packaging requires additional equipment and expertise. &nbsp;If the OEM decides to build its product in-house, they have to invest in capital equipment and expertise. &nbsp;To the extent that outsourcing opportunities stay in-house and are not available, our future growth would be limited. &nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>RISKS ABOUT OUR STOCK AND THIS OFFERING</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>THERE IS CURRENTLY NO MARKET FOR OUR SECURITIES, AND THERE CAN BE NO ASSURANCES THAT ANY MARKET WILL EVER DEVELOP OR THAT OUR COMMON STOCK WILL BE QUOTED FOR TRADING AND IF QUOTED, IT IS LIKELY TO BE SUBJECT TO SIGNIFICANT PRICE FLUCTUATIONS.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Prior to the date of this prospectus, there has not been any established trading market for our common stock, and there is currently no market whatsoever for our securities. We will seek to have a market maker file an application with the NASD on our behalf to quote the shares of our common stock on the OTC Bulletin Board (&quot;OTCBB&quot;) maintained by the NASD. There can be no assurance as to whether such market maker's application will be accepted or, if accepted, the prices at which our common stock will trade if a trading market develops, of which there can be no assurance. We are not permitted to file such application on our own behalf. If the application is accepted, we cannot predict the extent to which investor interest in Probe Manufacturing, Inc. will lead to the development of an active, liquid trading market. Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders for investors.</P>

<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In addition, our common stock is unlikely to be followed by any market analysts, and there may be few institutions acting as market makers for the common stock. Either of these factors could adversely affect the liquidity and trading price of our common stock. Until our common stock is fully distributed and an orderly market develops in our common stock, if ever, the price at which it trades is likely to fluctuate significantly. Prices for our common stock will be determined in the marketplace and may be influenced by many factors, including the depth and liquidity of the market for shares of our common stock, developments affecting our business, including the impact of the factors referred to elsewhere in these risk factors, investor perception of Probe Manufacturing, Inc. and general economic and market conditions. No assurances can be given that an orderly or liquid market will ever develop for the shares of our common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Because of the anticipated low price of the securities, many brokerage firms may not be willing to effect transactions in these securities. See subheading to &quot;Plan of Distribution&quot; entitled &quot;Selling Shareholders and any purchasers of our securities should be aware that any market that develops in our stock will be subject to the penny stock restrictions.&quot;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>ALL 3,328,125 SHARES OF OUR COMMON STOCK CURRENTLY BEING REGISTERED MAY BE SOLD BY SELLING STOCKHOLDERS SUBSEQUENT TO THE EFFECTIVENESS OF THIS REGISTRATION STATEMENT. &nbsp;&nbsp;SIGNIFICANT SALES OF THESE SHARES OVER A SHORT OR CONCENTRATED PERIOD OF TIME IS LIKELY TO DEPRESS THE MARKET FOR AND PRICE OF SHARES IN ANY MARKET THAT MAY DEVELOP.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">All 3,328,125 shares of our common stock being registered in this offering and being held by 57 shareholders may be sold subsequent to effectiveness of this registration statement either at once and/or over a period of time. These sales may take place because the 3,328,125 shares of common stock are being registered hereunder and, accordingly, reliance upon Rule 144 is not necessary. See also &quot;Selling Stockholders&quot; and &quot;Plan of Distribution&quot; hereinafter. The ability to sell these shares of common stock and/or the sale thereof reduces the likelihood of the establishment and/or maintenance of an orderly trading market for our shares at any time in the near future.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>IF A MARKET DEVELOPS FOR OUR SHARES, &nbsp;RULE 144 SALES MAY DEPRESS PRICES IN THAT MARKET.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">All of the outstanding shares of our common stock held by present stockholders are &quot;restricted securities&quot; within the meaning of Rule 144 under the Securities Act of 1933, as amended.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As restricted shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Act and as required under applicable state securities laws. Rule 144 provides in essence that a person who has held restricted securities for a prescribed period may, under certain conditions, sell every three months, in brokerage transactions, a number of shares that does not exceed 1.0% of a company's outstanding common stock. The alternative average weekly trading volume during the four calendar weeks prior to the sale is not available to our shareholders being that the OTCBB (if and when listed thereon) is not an &quot;automated quotation system&quot; and, accordingly, market based volume limitations are not available for securities quoted only over the OTCBB. As a result of revisions to Rule 144 which became effective on or about April 29, 1997, there is no 
limit on the amount of restricted securities that may be sold by a non-affiliate (i.e., a stockholder who is not an officer, director or control person) after the restricted securities have been held by the owner for a period of two years. A sale under Rule 144 or under any other exemption from the Act, if available, or pursuant to registration of shares of common stock of present stockholders, may have a depressive effect upon the price of the common stock in any market that may develop.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>ANY MARKET THAT DEVELOPS IN SHARES OF OUR COMMON STOCK WILL BE SUBJECT TO THE PENNY STOCK RESTRICTIONS WHICH WILL CREATE A LACK OF LIQUIDITY AND MAKE TRADING DIFFICULT OR IMPOSSIBLE</B>.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Until our shares of common stock qualify for inclusion in the NASDAQ system, if ever, the trading of our securities, if any, will be in the over-the-counter markets which are commonly referred to as the OTCBB as maintained by the NASD. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the price of our securities.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in &quot;penny stocks.&quot; Penny stocks (generally) are equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on NASDAQ, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. Prior to a transaction in a penny stock, a broker-dealer is required to: </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Deliver a standardized risk disclosure document prepared by the SEC; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Provide the customer with current bid and offer quotations for the penny stock; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Explain the compensation of the broker-dealer and its salesperson in the transaction; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Provide monthly account statements showing the market value of each penny stock held in the customer's account; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Make a special written determination that the penny stock is a suitable investment for the purchaser; and </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Provide a written agreement to the transaction. </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">These requirements may have the effect of reducing the level of trading activity in the secondary market for our stock. Because our shares are subject to the penny stock rules, you may find it more difficult to sell your shares. &nbsp;The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from recommending transactions in our securities, which could severely limit the liquidity of our securities and consequently adversely affect the market price for our securities.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>IF AND WHEN OUR SECURITIES BECOME QUOTED ON THE OVER-THE-COUNTER BULLETIN BOARD OR OTHER EXCHANGE OUR SECURITIES MAY BE THINLY TRADED WHICH MAY NOT PROVIDE LIQUIDITY FOR OUR INVESTORS. </B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">If our securities become quoted on the Over-the-Counter Bulletin Board or other exchange our securities may be thinly traded which may not provide liquidity for our investors. &nbsp;The Over-the-Counter Bulletin Board is an inter-dealer, over-the-counter market that provides significantly less liquidity than the NASDAQ Stock Market or national or regional exchanges. Securities traded on the Over-the-Counter Bulletin Board are usually thinly traded, highly volatile, have fewer market makers and are not followed by analysts. The Securities and Exchange Commission's order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the Over-the-Counter Bulletin Board. Quotes for stocks included on the Over-the-Counter Bulletin Board are not listed in newspapers. Therefore, prices for securities traded solely on the Over-the-Counter Bulletin Board may be difficult to obtain and holders of our securities may be unable to resell th
eir securities at or near their original acquisition price, or at any price. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Investors must contact a broker-dealer to trade over-the-counter bulletin board securities. As a result, you may not be able to buy or sell our securities at the times that you may wish. &nbsp;Even if our securities become quoted on the Over-the-Counter Bulletin Board, the Over-the-Counter Bulletin Board may not permit our investors to sell securities when and in the manner that they wish. Because there are no automated systems for negotiating trades on the Over-the-Counter Bulletin Board, they are conducted via telephone. In times of heavy market volume, the limitations of this process may result in a significant increase in the time it takes to execute investor orders. Therefore, when investors place market orders to buy or sell a specific number of shares at the current market price it is possible for the price of a stock to go up or down significantly during the lapse of time between placing a market order and its execution. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>WE DO NOT INTEND TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE; THEREFORE, YOU MAY NEVER SEE A RETURN ON YOUR INVESTMENT.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>&nbsp;</B></P>
<P style="margin:0pt; font-family:Times New Roman">We do not anticipate the payment of cash dividends on our common stock in the foreseeable future. We anticipate that any profits from our operations will be devoted to our future operations. Any decision to pay dividends will depend upon our profitability at the time, cash available and other factors. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<A NAME="FIS_FINANCIAL_STATEMENTS"></A><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>USE OF PROCEEDS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">This prospectus relates to shares of common stock that may be offered and sold from time to time by certain selling stockholders. &nbsp;We will not receive any proceeds from the sale of the shares.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DETERMINATION OF OFFERING PRICE</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The offering price of $0.80 per share was determined arbitrarily by us. &nbsp;The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. &nbsp;Should a market develop or occur for our securities, the market price may be far less than the offering price. &nbsp;If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to demand for our common stock and will fluctuate based on the demand for our shares.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DILUTION</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our net tangible book value as of June 30, 2005 was ($0.23) per share of common stock. Net tangible book value is determined by dividing our tangible book value (total tangible assets less total liabilities) by the number of outstanding shares of our common stock. Since this offering is being made solely by the selling stockholders and none of the proceeds will be paid to us, our net tangible book value will be unaffected by this offering. </P>
<A NAME="fis_proceed_use"></A><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SELLING SECURITY HOLDERS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Based upon information available to us as of October 14, 2005 the following table sets forth the name of the selling stockholders, the number of shares owned, the number of shares registered by this prospectus and the number and percent of outstanding shares that the selling stockholders will own after the sale of the registered shares, assuming all of the shares are sold as used in this prospectus. &quot;Selling stockholder&quot; includes donees, pledges, transferees or other successors-in-interest selling shares received from the named selling stockholder as a gift, pledge, distribution or other non-sale related transfer. </P>
<A NAME="fis_unidentified_table_8"></A><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the Commission under the Securities Exchange Act of 1934. Unless otherwise noted, each person or group identified possesses sole voting and investment power with respect to the shares, subject to community property laws where applicable. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Selling Stock Holder Name and Address</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Number of Shares Beneficially Owned Before the Offering </P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Number of Shares that may be Offered Pursuant to this Prospectus</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Number of Shares Beneficially Owned After Offering (1)</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Ashford Capital, LLC</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3419 Via Lido #470</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Newport Beach, CA 92663 (2)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">eFund Capital Partners, LLC</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">301 East Ocean Blvd.</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Suite 640</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Long Beach, CA 90802 (3)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Reza Zarif &nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">18 Marana</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">San Clemente, CA 92673 (4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Kambiz Mahdi &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2933 Catalpa St.</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Newport Beach, CA 92660 &nbsp;(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">The Hicks Family Trust </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">11851 Riverside Drive, #280</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Lakeside, CA 92040 (7) &nbsp;(9) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">The Edward &amp; Mildred Lassiter Restated Family Trust &nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2790 Skypark Drive #240</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Torrance, CA 90505 (7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">The DW and &amp; JS Benner Family Trust &nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">29906 Avenida Magnifica</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Rancho Palos Verdes,CA 90275 (7) (8) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Hirad Emadi &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">26152 Flintlock Lane</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Laguna Hills, CA 92683 (7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Patrick Connelly &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1511 Taraval St.</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">San Francisco, CA 94116 &nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Phillip Kavanaugh &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">200 Charter Oaks Circle</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Los Gatos, CA 95032 &nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Ronnie Novian &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3155 Deep Canyon Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Beverly Hills, CA 90210 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">John White &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">826 S. Sierra Bonita Avenue</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Los Angeles, CA 90036 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Parvin Victory Khalili &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1944 Glendon Avenue</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;#209-1A</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Newport Beach, A 90025 &nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">75,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">75,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Albert Assil</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">11949 Goshen Avenue #304</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Los Angeles, CA 90049 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">37,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">37,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Keith Barrett &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2511 Laurie Lane</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Twin Falls, ID 83301 (7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">37,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">37,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Helene Mandell &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3736 Wonderland Avenue</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Boulder, CO 8304 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Guy Grimsley &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3218 Colorado Avenue</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Santa Monica, CA 9404 &nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Francis F. Smith Descendants Trust Edward F SMIT</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">325 Ventura Club Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Roselle, IL 60172 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) (11) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Edmondson Farms, Inc. Employees 401K Plan &amp; Trust </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1370 NC11</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Oak City, NC 27857 (7) (12) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Ikuo Ito </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3-5-19 Higashi-Gotanda Sinagawa-Ku</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Toyko, Japan 141-0022 &nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Global Capital Management, Inc. Management, Inc.</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">13F Oak Minami-Azabu Bldg. </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Minami-Azabu, Minato-Ku</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Toyko, Japan 106-0047 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">375,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">375,000 </P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Masahiro Irie &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2-8-11-401 Minami-Azabu Minato-Ku</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Toyko, Japan 106-0047 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">James Goodell and/or &nbsp;Lisa Goodell &nbsp;JT TEN WROS</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1178 17<SUP>th</SUP> Avenue </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Mopherson, KS 67460 (7) (13) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">40,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">40,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Peter Grias </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">18110 Levan</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Livoria, MI 48162 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Kamran Gharibian</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1110 Shadow Hill Way</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Beverly Hills, CA 90210 &nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Iraj Gharibian &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1805 Loma Vista Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Beverly Hills, CA 90210 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Billy E. Malcolm &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">8492 Skiles Road</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Ponder, TX 76259 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Robert Kofke and Cathy Kofke JT TEN WROS</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">881 Morrison Farm Road</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Troutman, NC 28166 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) (14) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Phillip Smith</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">16541 780<SUP>th</SUP> Avenue</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Sacred Heart, MN 56285 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Billy &nbsp;A Barr</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">P.O. Box 391</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Crested Butte, CO 81224 (7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Charles Schwab FBO Andrew Kotowicz &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1529 Westerham</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Newport Richey, FL 34655 &nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Todd Jorgensen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">11483 S. Jordan Bend Road</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">South Jordon, UT 84095 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Christopher Reed and Patricia Schone JT WROS</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25265 Malibu Road</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Malibu, CA 90265 &nbsp;(7) (15) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Anthony and Angela Reed Family Trust &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">24668 Overland Drvice</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">West Hills, CA 91304 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) (16) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Cadioty/Werth Living Trust</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3696 Dixie Canyon Avenue</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Sherman Oaks, 91423 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) (17) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Miller Family Trust &nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">5255 Zelzah Avenue, #302</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Encino, CA 91316 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) (18) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Finer Marital Trust &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">16217 Kittridge Street</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Van Nuys, CA 91406 &nbsp;(7) (19) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">James Kimmel &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">16217 Kittridge Street</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Van Nuys, CA 91406 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Adam Carolla &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">16217 Kittridge Street</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Van Nuys, CA 91406 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">George Geldin &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">243 Park View Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Oak Park, CA 91377 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Dennis Gerber &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;3165 Willow Springs Circle</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Venice, FL 34293 &nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Noriaki Sasaki</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3-9-1-201 Koishikawa</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Bunkyo-Ku </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Tokyo, Japan 112-0002 &nbsp;&nbsp;&nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">B Derman &amp; J Derman TTEE Bennett &amp; Janice Derman Family U/A Dated January 16, 1998 &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">41 Camino Lienzo</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">San Clamente, CA 92673 &nbsp;(7) &nbsp;&nbsp;(20) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Abraham Assil</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1000 Westgate Ave.</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Los Angeles, CA 90049 &nbsp;&nbsp;(7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Anthony Reed</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">24668 Overland Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">West Hills, CA 91304 (7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">6,875</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">6,875</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Bach Living Trust Dated June 17, 1996</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">39789 Village Run Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Northville, MI 48167 (7) (21)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Craig Benner</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">209 Gull Street</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Manhattan Beach, CA 90266 (7)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Carolina Trust Dated September 21, 2000</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">13171 Ethelebee Way</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Santa Ana, CA 92705 (7) (22)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">50,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Duncan Revocable Trust</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">276 Via Linda Vista</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Redondo Beach, CA 90277 (7) (23)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Hooman Emadi</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">49 Palatine #230</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Irvine, CA 92612 (7)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Ronald Feldman</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">59 Rambler Road (7)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">12,500</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">George D. Hill &amp; Elieen C. Hill JT WROS</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&amp; Eileen C. Hill JT WROS</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">132 Clifton Rd.</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Kelowna, BC Canada V1G 1G3 (7) (24)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">25,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">The Edward and Mildred Lassiter Restated Family Trust Dated April 14, 2000</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2790 Skypark Drive #204</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Torrance, CA 90505 (25)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">250,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Russell Miller</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1321 Bienvenida </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Pacific Palisades, CA 90272 (7)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">100,000</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">100,000</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">William W. Morse &amp; Jill D. Morse JT WROS</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2466 Alhambra Drive</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Palm Springs, CA 92264 (7) (26)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">31,250</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Research Drive Equities, LLC</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Ralph Vincent Kidd</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">4900 15<SUP>th</SUP> Street</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Murrero, LA 70072 (7)</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">62,500</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
<TR><TD valign=top width=171.933><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL</P>
</TD><TD valign=top width=199.533><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3,328,125</P>
</TD><TD valign=top width=180><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">3,328,125</P>
</TD><TD valign=top width=168><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">0</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(1) Assumes all shares are sold pursuant to this Prospectus.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR>
(2) The Managing Member of Ashford Capital, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Ashford Capital, LLC received the shares pursuant to an assignment agreement with eFund Capital Partners, LLC.. &nbsp;Ashford Capital, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kavanaugh was a director of ours from May 2004 until December 2004. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(3) The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;eFund Capital Partners, LLC the shares common stock pursuant to an investment agreement with us in May of 2004. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2004.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(4) Reza Zarif is our chief executive officer and a director of ours. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He has all the rights pursuant to such ownership. &nbsp;Mr. Zarif acquired 250,000 shares as a founder of Probe. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(5) Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He has all the rights pursuant to such ownership. &nbsp;Mr. Mahdi acquired his shares as a founder of Probe. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(7) The Hicks Family Trust, The Edward &amp; Mildred Lassiter Restated Family Trust, The DW &amp; JS Benner Family Trust, , Hirad Emadi, Patrick Connelly, Phillip Kavanaugh, Ronniw Novian, John White, Parvin Khalili, Albert Assil, Keith Barrett, Helene Mandell, Guy Grimsley, Francis F. Smith Decendants Trust, Edmondson Farms, Inc. Employees 401K Plan &amp; Trust, Ikuo Ito, Global Capital Management, Inc., Masahiro Irie, James and Lisa Goodell, Peter Grias, Kamran Gharibian, Iraj Gharibian, Billy E. Malcolm, Robert Kofke and Cathy Kofke JT TEN WROS, Phillip Smith, Billy Barr, Charles Schwab FBO Andrew Kotowicz, Todd Jorgensen, Chritopher Reed and Patricia Schone JT WROS, Anthony and Angela Reed Family Trust, Cadioty/Werth Living Trust, Miller Family Trust, Finer Marital Trust, James Kimmel, Adam Carolla, George Geldin, Dennis Gerber, Noriaki Sasaki, B Derman &amp; J Derman TTEE Bennett &amp; Janice Derman Family U/A Dated January 16, 1998, Abraham Assil, Jame
s Blake, and Anthony Reed all became shareholders pursuant to our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004. &nbsp;All the above parties have dispositive and voting power over their shares and claim beneficial ownership of them. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(8) Dennis Benner is a director of ours and acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(9) Robert and Mary Hicks acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The Hicks Family Trust&#148; Robert and Mary Hicks have dispositive and voting power over the shares in &#147;The Hicks Family Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(10) Edward and Mildred Lassiter acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The Edward and Mildred Lassiter Restated Trust.&#148; Mr. and Mrs. Lassiter have dispositive and voting power over the shares in &#147;The Edward and Mildred Lassiter Restated Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(11) Edward Smith acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Francis F. Smith Descendants Trust Edward F SMIT.&#148; Mr. &nbsp;Smith has dispositive and voting power over the shares in &#147;Francis F. Smith Descendants Trust Edward F SMIT&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(12) R. Sutton Edmondson acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Edmondson Farms Inc. Employees 401K Plan &amp; Trust.&#148; Mr. &nbsp;Edmondson has dispositive and voting power over the shares in &#147;Edmondson Farms Inc. Employees 401K Plan &amp; Trust&#148; and claims beneficial ownership of them..</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(13) James and Lisa Goodell acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;James Goodell and/or Lisa Goodell &nbsp;JT TEN WROS&#148; Mr. and Mrs. Goodell have dispositive and voting power over the shares in &#147;James Goodell and/or Lisa Goodell JT TEN WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(14) Robert Kofke and Cathy Kofke acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Robert Kofke and Cathy Kofke JT TEN WROS.&#148; Mr. and Mrs. Kofke have dispositive and voting power over the shares in &#147;Robert Kofke and Cathy Kofke JT TEN WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(15) Christopher Reed and Patricia Schone acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Christopher Reed and Patricia Schone JT WROS.&#148; Mr. Reed and Mrs. Schone have dispositive and voting power over the shares in &#147;Christopher Reed and Patricia Schone JT WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(16) Anthony and Angela Reed acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Anthony and Angela Reed Family Trust.&#148; &nbsp;Mr. and Mrs. Reed have dispositive and voting power over the shares in &#147;Anthony and Angela Reed Family Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(17) Linda Cadoity acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Cadioty/Werth Living Trust.&#148; &nbsp;Linda Cadioty has dispositive and voting power over the shares in &#147;Cadioty/Werth Living Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(18) Phillip Miller acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Miller Family Trust.&#148; Mr. Phillip Miller has dispositive and voting power over the shares in &#147;Miller Family Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(19) Veta Finer acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Finer Martial Trust.&#148; Veta Finer has dispositive and voting power over the shares in &#147;Finer Martial Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(20) Bennett and Janice Derman acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Bennett and Janice Family Trust.&#148; Mr. and Mrs. Derman have dispositive and voting power over the shares in &#147;Bennett and Janice Family Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(21) Mark Bach acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Bach Living Trust.&#148; Mark Bach has dispositive and voting power over the shares in &#147;Bach Living Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(22) Veri Tan Riverdi acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Carolina Trust.&#148; Veri Tan Riverdi has dispositive and voting power over the shares in &#147;Carolina Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(23) William Duncan acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Ducan Revocable Trust.&#148; &nbsp;William Duncan has dispositive and voting power over the shares in &#147;Duncan Revocable Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(24) George and Elieen Hill acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;George D. Hill an Elieen C. Hill JT WROS.&#148; &nbsp;Mr. and Mrs. Hill have dispositive and voting power over the shares in &#147;George D. Hill an Elieen C. Hill JT WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(25) Edward Lassiter acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The Edward and Mildred Lassiter Restated Family Trust.&#148; Mr. Lassiter has dispositive and voting power over the shares in &#147;The Edward and Mildred Lassiter Restated Family Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(26) William Morse acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;William W. Morse and Jill D. Morse JT WROS.&#148; Mr. Morse has dispositive and voting power over the shares in &#147;William W. Morse and Jill D. Morse JT WROS&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<A NAME="fis_distribution_plan"></A><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PLAN OF DISTRIBUTION</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Each selling stockholder of our common stock and any of their pledges, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on the trading market , any other stock exchange market or trading facility which the shares are traded if and when such market develops or in private transactions. &nbsp;These sales may be at fixed or negotiated prices. &nbsp;The selling stockholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. The selling stockholders may sell the shares from time to time:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock list on the Over-the-Counter Bulletin Board in transactions on the Over-the-Counter Bulletin Board or on any national securities exchange or U.S. inter-dealer system of a registered national securities association on which our common stock may be listed or quoted at the time of sale and at prices related to such prevailing market prices; or</FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">&nbsp;In private transactions and transactions otherwise than on these exchanges or systems or in the over-the-counter market; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in block trades in which the broker-dealer will attempt to sell shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Purchase by a broker-dealer as principal and resale by the broker-dealer for its account; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">An exchange distribution in accordance with the rules of the applicable exchange; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in settlement of short sales entered into after the date of this prospectus; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in broker-dealer transactions in which broker-dealers may agree with the selling stock holders to sell a specified number of such shares at a stipulated price per share; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Through the writing or settlement of option or other hedging transactions, whether through an options exchange or otherwise; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">In a combination of such methods of sale; or</FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Any other method permitted pursuant to applicable law. </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this prospectus. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser, in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with NASDR Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with NASDR IM-2440.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">In connection with the sale of the common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of the common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus, as supplemented or amended to reflect such tra
nsaction. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We are required to pay certain fees and expenses incurred by us incident to the registration of the shares. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act. &nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Because selling stockholders may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. Each selling stockholder has advised us that they have not entered into any written or oral agreements, understandings or arrangements with any underwriter or broker-dealer regarding the sale of the resale shares. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the selling stockholders.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">We agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the selling stockholders without registration and without regard to any volume limitations by reason of Rule 144(e) under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant to the prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for a period of two business days prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Rule 105 of Regulation M prohibits a short seller from covering short sales with offering securities purchased from an underwriter or broker or dealer participating in the offering, if the short sale occurred during the Rule's restricted period, typically the five-day period prior to pricing.<SUP> </SUP>The reason for the prohibition is that pre-pricing short sales that are covered with offering shares artificially distort the market price for the security, preventing the market from functioning as an independent pricing mechanism and eroding the integrity of the offering price. &nbsp;Prices of &quot;follow-on offerings&quot;<SUP> </SUP>are typically based on a stock's closing price prior to the time of pricing, and thus short sales during the period immediately preceding pricing that reduce the market price can result in a lower offering price. The goal of Rule 105 is to promote offering prices that are based upon open market prices determined by supply and
 demand rather than artificial forces.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>LEGAL PROCEEDINGS</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of October 14, 2005 we have the following legal proceedings and legal settlements:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">1. &nbsp;&nbsp;&nbsp;&nbsp;Cadence has a judgment against us for $98,000 which was entered by the Superior Court Santa Clara County, California in September 2, 2003. &nbsp;The judgment was due to lack of payment by Probe to Cadence after Probe purchased the license to use its Alegro software program. &nbsp;Due to economic conditions after September 11<SUP>th</SUP> the market for the use of this product disappeared and Probe was not able to resale the services. &nbsp;Consequently, Probe was not able to generate any revenues from reselling of the software and could not pay Cadence. &nbsp;On August 9<SUP>th</SUP> 2004 we have entered into a payment agreement with the Cadence in which we pay them $2,500 a month until such time the debt is paid off and the balance currently due to Cadence under the agreement is $80,000. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">2. IFC has a judgment against us for $144,403.00 which was entered by the Superior Court Orange County, California. Judgment filed July 15, 2004. &nbsp;The judgment resulted from our failure to pay IFC under the purchase agreement for a piece of X-Ray equipment. In September 2004 we entered into a settlement agreement whereby we have agreed to pay IFC $15,000 as an initial payment and $5,000 per month until settlement amount of $70,000.00 is paid in full. &nbsp;The balance due as of March 31, 2005 was $35,000.00.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">3. Canon Financial has a judgment against us for $15,000.00which was entered by the Superior Court Burlington County, New Jersey on April 1, 2004 and also entered by the Superior Court , Orange County, California June 24, 2004. &nbsp;The judgment was entered because Probe did not pay the lease payments due on a copy machine which was not properly maintained by Canon and was not functional most of the time. &nbsp;We have agreed to pay Canon $1000.00 per month until fully paid. &nbsp;Our balance as of March 31<SUP>st</SUP> 2004 was $9,000.00.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">4. Pro-Source has filed a civil case against us for $35,000 for breach of contract which was filed in the Superior Court Orange County, California. &nbsp;Judgment was filed against us on March 9, 2005. &nbsp;We have reached a settlement with Pro-Source on September 9, 2004 whereby we agreed to pay $20,000 in three payments. &nbsp;The first payment was made on October 14, 2005 for $10,000 and then we must $5,000 on October 1, 2005 and $5,000 on November 1, 2005. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">5. We currently owe the Internal Revenue Service $140,000.00 for past tax liabilities which we are not currently able to pay in full. &nbsp;We have negotiated a settlement with the IRS and have entered into a payment plan with them in which we pay the IRS $2,500 per month. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">While we are currently able to service any and all payment obligation to the creditors, if we are unable in the future to service any payments, anyone of the creditors may instigate foreclosure proceedings against us. &nbsp;If we are unable to satisfy our obligations, we could be forced into bankruptcy.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We believe that there are no other claims or litigation pending, the outcome of which could have a material adverse effect on our financial condition or operating results. &nbsp;However, if litigation should arise and the company was to receive an unfavorable ruling, there is a possibility that it would have a material adverse impact on our financial condition, results of operations, or liquidity of the period in which the ruling occurs, or future periods</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DIRECTORS, EXECUTIVE OFFICERS, SIGNFICANT EMPLOYEES AND CONTROL PERSONS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The following table sets forth the name, age, positions, and offices or employments for the past five years as of May 31, 2004, of our executive officers and directors. Members of the board are elected and serve for one year terms or until their successors are elected and qualify. All of the officers serve at the pleasure of the board of directors of the company. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">NAME</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">AGE</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman">POSITION</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">Dennis Benner</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">63</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman">Chairman</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">Kambiz Mahdi</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">41</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman">Director</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">Reza Zarif</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">48</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman">Chief Executive Officer, Director</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">Barrett Evans</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">33</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman">Director</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">Jeffrey Conrad</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">32</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman">Director</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>BIOGRAPHIES OF OFFICERS AND DIRECTORS</B></P>
<P style="margin:0pt; font-family:Times New Roman">Set forth below is a brief description of the background of our officers and directors based on information provided by them to us. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><U>DENNIS BENNER</U> has been a director of ours since November of 2004. &nbsp;He has over 35 years of business experience in leadership positions in the information technology industry. &nbsp;His experience includes sales, marketing and general management of information technology services companies. &nbsp;He has had line management responsibility for acquisitions, integrating acquisitions, restructuring organizations, creating and rebuilding management teams, developing and implementing sales and marketing systems, developing and implementing sales compensation systems, creating new products and services, creating and managing strategic alliances and relocating major facilities. &nbsp;He has held leadership positions in large Fortune 500 companies including corporate CIO at Fluor Corporation, Division General Manager at TRW, Division VP of Sales and Marketing at Computer Sciences and Automatic Data Processing, Manager of Federal Government Ma
rketing for Control Data, Marketing Manager in IBM) and a smaller, emerging company (Corporate Development at Autobytel, Inc.). Dennis has a BS in Business from the University of Kansas.</P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>KAMBIZ MAHDI</U> is a co-founder and has been with the company since its inception in 1993. &nbsp;Mr. Mahdi has direct responsibilities for sales and marketing, overseeing financial activities, and developing and guiding the company&#146;s vision and cultural values. &nbsp;Prior to Probe, Mr. Mahdi was the Technical Sales Manager for six years with Future Electronics, a billion dollar electronics distributor. While at Future Electronics, Mr. Mahdi developed technical management leadership and management tools for their highest technology customers and applications. &nbsp;Mr. Mahdi has a BS degree in Electrical Engineering. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>REZA ZARIF</U> is a co-founder and has been with the company as chief executive officer since its inception in 1993.&nbsp; Mr. Zarif is responsible for all operational activities as well as developing and guiding the company's vision and cultural values.&nbsp; Prior to Probe, Mr. Zarif was at Graphtec Incorporated of Japan for 7 years where he was responsible for transferring manufacturing and associated technologies from Japan to the United States.&nbsp; Mr. Zarif has a BA and MA in Cultural Anthropology and earned the status of &quot;Summa Cum Laude&quot; at the University of California, Irvine.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>BARRETT EVANS</U> has been our director since July 15, 2004. Mr. Evans is eFund Capital Partner's Managing Partner. In 1990, Mr. Evans started his career with Cruttenden Roth, a regional emerging growth focused investment bank. At Cruttenden, Mr. Evans developed significant relationships with institutional investors. Additionally, Mr. Evans was engaged in all facets of investment banking from private debt and equity financing to Initial Public Offerings, retail brokerage and institutional trading, Mezzanine financing and bridge capital. Mr. Evans founded BRE Investments &amp; Consulting, LLC. in 1996. BRE Investments &amp; Consulting evolved into what is now eFund Capital Partners in 1999. At eFund Capital Partners, Mr. Evans has utilized his institutional contacts to help fund numerous start-up companies and has advised these companies on a wide range of issues including raising capital, securing management and overall business strategy. Mr. Evans receiv
ed his Bachelor's degree from the University of California, Santa Barbara. He also serves as a director for NeWave, Inc. and Xtreme Companies, Inc. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>JEFFREY CONRAD</U><B> </B>has been our director since July 15, 2004. &nbsp;Mr. Conrad is a Venture Partner with eFund Capital Partners, LLC. Jeff worked as a contract attorney for the law firm of Gibson, Dunn and Crutcher, LLP until December 1999 when he joined eFund Capital Partners. Prior to that time he worked with Diana Perez, Attorney at Law, Kushner-Locke International and Universal Pictures. Jeff's primary focus has been on entertainment and corporate transactions. Jeff has also worked as a junior publicist for the public relations firm Levine Communications where his focus was strategic advertising and marketing. Jeff received his Juris Doctorate from Loyola Law School and is a member of the State Bar of California. Jeff received his Bachelor's degree from the University of California, Los Angeles.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><B>EMPLOYMENT AGREEMENTS </B></P>
<P style="margin:0pt; font-family:Times New Roman">Currently we do not have any of our executives or officers under employments contracts. However, Kambiz Mahdi, our sales manager and Reza Zarif, our chief executive officer, have orally agreed to accept $167,000 per annum as compensation for their services. We anticipate that in fourth quarter of 2005 we will have employment agreements in place with several of our key executives and officers. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>BOARD OF DIRECTORS </B></P>
<P style="margin:0pt; font-family:Times New Roman">We currently have five members of our board of directors, who are elected to annual terms and until their successors are elected and qualified. Executive officers are appointed by the board of directors on an annual basis and serve until their successors have been duly elected and qualified. There are no family relationships among any of our directors, officers or key employees. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>DIRECTOR COMPENSATION</B></P>
<P style="margin:0pt; font-family:Times New Roman">We currently reimburse directors for travel expenses associated with their work for the company and have agreed to establish a compensation plan to be submitted for approval by the shareholders at our annual meeting in 2005. &nbsp;Until a plan is established and approved by the shareholders, directors will not be compensated.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The following table sets forth, to our knowledge, certain information concerning the beneficial ownership of our common stock as of October 14, 2005 by each stockholder known by us to be (i) the beneficial owner of more than 5% of the outstanding shares of common stock, (ii) each current director, (iii) each of the executive officers named in the Summary Compensation Table who were serving as executive officers at the end of the 2004 fiscal year and (iv) all of our directors and current executive officers as a group. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and includes voting or investment power with respect to shares beneficially owned. Shares of common stock subject to options or warrants currently exercisable are deemed outstanding for computing the percentage ownership of the person holding such options or warrants, but are not deemed outstanding for computing percentage ownership of any other person.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Name of Beneficial Owner</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Number of Shares Beneficially Owned</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Percentage of Ownership (1)</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Kambiz Mahdi &nbsp;(2)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">250,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">7.5%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Reza Zarif &nbsp;(3)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">250,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">7.5%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Dennis Benner (4)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">62,500</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">1.9%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Barrett Evans &nbsp;&nbsp;(5)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">250,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">7.5%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Jeffrey Conrad &nbsp;(6)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">250,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">7.5%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">eFund Capital Partners, LLC (7)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">250,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">7.5%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Ashford Capital, LLC (8)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">250,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">7.5%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Edward Lassiter (9)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">312,500</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">9.4%</P>
</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Global Capital Management, Inc. (10)</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">375,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">11.2%</P>
</TD></TR>
<TR><TD valign=top width=196.8>&nbsp;</TD><TD valign=top width=196.8>&nbsp;</TD><TD valign=top width=196.8>&nbsp;</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Total</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">1,750,000</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">52%</P>
</TD></TR>
<TR><TD valign=top width=196.8>&nbsp;</TD><TD valign=top width=196.8>&nbsp;</TD><TD valign=top width=196.8>&nbsp;</TD></TR>
<TR><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">Total of All officers and directors</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">1,062,500</P>
</TD><TD valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman">24%</P>
</TD></TR>
</TABLE>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(1)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">The number of shares of common stock outstanding as of October 14, 2005 is 3,328,125. &nbsp;The percentage of ownership does not reflect other classes of stock held by the individuals, such as Series A Convertible Preferred Stock and Series B Convertible Preferred Stock even though such class may be registered pursuant to this prospectus.</P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(2)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership. &nbsp;Mr. Mahdi acquired his shares as a founder of Probe.</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(3)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Reza Zarif is our chief executive officer and a director of ours. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership. &nbsp;Mr. Zarif acquired his shares as a founder of Probe. </P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(4)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Dennis Benner is a director of ours and acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(5)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Please see number (7) below.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(6)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Please see number (7) below.</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(7)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;eFund Capital Partners, LLC received their shares pursuant to an investment agreement with us in April of 2004. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2004.</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(8)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">The Managing Member of Ashford Capital, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Ashford Capital, LLC received these shares pursuant to an assignment agreement with eFund Capital Partners, LLC. &nbsp;Ashford Capital, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kavanaugh was a director of ours from May 2004 until December 2004.</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(9)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Edward Lassiter is a shareholder of ours and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter purchased the shares through our private placement memorandum dated July 15, 2004. Mr. Lassiter has dispositive and voting power over the shares. &nbsp;</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman">(10)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Global Capital Management, Inc. is a Japanese private equity firm. &nbsp;The company&#146;s president is Ikuo Ito. Mr. Ito has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Ito may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Ito does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;The company bought its shares through our private placement memorandum dated July 15, 2004. &nbsp;Mr. Ito also owns 25,000 shares of common stock personally which were also purchased through our private placement memorandum dated July 15, 2004</P>
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<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DESCRIPTION OF SECURITIES</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>COMMON STOCK </B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our Articles of Incorporation authorize us to issue 200,000,000 shares of common stock, par value $0.001 per share. As of October 14, 2005 there were 3,328,125 shares of common stock issued and outstanding. All outstanding shares of common stock are, and the common stock to be issued in this offering will be, fully paid and non-assessable. &nbsp;Each share of our common stock has identical rights and privileges in every respect. The holders of our common stock are entitled to vote upon all matters submitted to a vote of our shareholders and are entitled to one vote for each share of common stock held. There are no cumulative voting rights.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The holders of our common stock are entitled to share equally in dividends and other distributions that our board of directors may declare from time to time out of funds legally available for that purpose, if any, after the satisfaction of any prior rights and preferences of any outstanding preferred stock. If we liquidate, dissolve or wind up, the holders of shares of common stock will be entitled to share ratably in the distribution of all of our assets remaining available for distribution after satisfaction of all our liabilities and our obligations to holders of our outstanding preferred stock.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>PREFERRED STOCK</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our Articles of Incorporation authorize to issue 10,000,000 shares of preferred stock. &nbsp;We authorized 440 as Series A Convertible Preferred Stock and have authorized 20,000 shares of Series B Convertible Preferred Stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of September 23, 2005, there were 440 shares of Convertible A Preferred Stock outstanding, with a stated value of $1,000. Each share is convertible into 0.1% percent of the shares of our common stock outstanding at the date of conversion. The shares shall convert at the earlier of the election of the holder, or March 26, 2006. The holder of the Convertible A Preferred Stock, has the right to vote, with the holders of common stock, on any matter to which the common stock holders are entitled to vote, the number of shares of common stock into which the Convertible A Preferred Stock is convertible. If we are liquidated, distribute our assets, dissolve or wind-up, the holders of Convertible A Preferred Stock shall receive the greater of (i) $2,500 per share of Convertible A Preferred Stock they hold at the time of such Liquidation, or (ii) their pro rata share of the total value of our assets and funds to be distributed, assuming the Convertible A preferred s
tock is converted to common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of September 23, 2005 there were 12,500 shares of Series B Convertible stock outstanding, with a stated value of $100. Each share of Series B Stock shall be converted into a number of shares of common stock that is equal to each share being divided by the average of the 3 lowest intraday bids in the twenty (20) days prior to conversion multiplied by 100 (1 divided by x, multiplied by 100), or 125 shares per Series B, whichever is greater. The minimum conversion price which Series B shareholders shall be to convert their Series B shares to common stock shall be $0.10. &nbsp;The Series B Stock shall have voting rights and voting will be on an as converted basis, with class votes for the election of directors, any transaction in which control of the company is transferred in which the per share price consideration received by Purchaser is less than three (3) times the Purchase Price, the sale of the company of all or substantially all of its assets, liquidat
ion or winding up of the company and any amendment to the company&#146;s By-Laws or Articles of Incorporation in a manner adverse to Series B Stock. In the event of any voluntary or involuntary liquidation, distribution of assets (other than the payment of dividends), dissolution or winding-up of the company, Series B Stock shall have preferential rights to the company&#146;s common stock (the &#147;Common Stock&#148;) whereby Series B Stock shall get two times (2x) return on its capital. &nbsp;Once Series B Stock has recouped its two times (2x) return on capital then Series B Stock shall participate, on a pro rata basis, based on the number of shares of the company&#146;s common stock (the &#147;Common Stock&#148;) into which the Series B Stock are convertible at the time of the liquidation, distribution of assets, dissolution or winding-up.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our board of directors has the authority to issue additional shares of preferred stock in one or more series, and fix for each series, the designation of, and number of shares to be included in, each such series. Our board of directors is also authorized to set the powers, privileges, preferences, and relative participating, optional or other rights, if any, of the shares of each such series and the qualifications, limitations or restrictions of the shares of each such series.</P>
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<P style="margin:0pt; font-family:Times New Roman">Unless our board of directors provides otherwise, the shares of all series of preferred stock will rank on parity with respect to the payment of dividends and to the distribution of assets upon liquidation. Any issuance by us of shares of our preferred stock may have the effect of delaying, deferring or preventing a change of our control or an unsolicited acquisition proposal. The issuance of preferred stock also could decrease the amount of earnings and assets available for distribution to the holders of common stock or could adversely affect the rights and powers, including voting rights, of the holders of common stock.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>WARRANTS</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Series A Warrants:</P>
<P style="margin:0pt; font-family:Times New Roman">We currently have 465,625 Series A Warrants issued and outstanding that give the warrant holders the right to purchase a total of 5 shares of common stock at $2.00 per share. &nbsp;The Series A Warrants will expire on November 15, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Series B Warrants:</P>
<P style="margin:0pt; font-family:Times New Roman">We currently have 465,625 Series B Warrants issued and outstanding that give the warrant holders the right to purchase a total of 5 shares of common stock at $3.00 per share. &nbsp;The Series B Warrants will expire on May 15, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>INTEREST OF NAMED EXPERTS AND COUNSEL</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">No expert or counsel within the meaning of those terms under Item 504 of Regulation S-B will receive a direct or indirect interest in the small business issuer or was a promoter, underwriter, voting trustee, director, officer, or employee of Probe Manufacturing, Inc. Nor does any such expert have any contingent based agreement with us or any other interest in or connection to us. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The legality of our shares of common stock being offered hereby is being passed upon by Catherine Basinger, Esq. &nbsp;Ms. Basinger will not receive a direct or indirect interest in the small business issuer and has never been a promoter, underwriter, voting trustee, director, officer or employee of our company. &nbsp;Nor does Ms. Basinger have any contingent based agreement with us or any other interest in or connection to us.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The financial statements for the fiscal year ended December 31, 2004 included in this prospectus have been audited by our independent auditors Jaspers &amp; Hall, P.C., and have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. &nbsp;Jaspers &amp; Hall, P.C. has no direct or indirect interest in us, nor were they a promoter or underwriter.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The financial statements for the fiscal year ended December 31, 2003 included in this prospectus have been audited by our independent auditors Michael Johnson &amp; Company, LLC and have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. Michael Johnson &amp; Company, LLC had no direct or indirect interest in us, nor were they a promoter or underwriter.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>LIABILITIES</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>Indemnification of Directors and Officers</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">ARTICLE VI of our Bylaws states that to the extent and in the manner &nbsp;permitted &nbsp;by the &nbsp;laws of the State of Nevada, and &nbsp;specifically &nbsp;&nbsp;as &nbsp;is &nbsp;permitted &nbsp;under &nbsp;the &nbsp;Nevada Revised Statutes pertaining to Corporations, the &nbsp;corporation &nbsp;shall &nbsp;indemnify &nbsp;any person who was or is a party &nbsp;or is &nbsp;threatened &nbsp;to be &nbsp;made a &nbsp;party &nbsp;to any &nbsp;threatened, &nbsp;pending &nbsp;or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, &nbsp;other than an action by or in the right of the &nbsp;corporation, &nbsp;by reason of the fact that such person is or was a director, &nbsp;officer, &nbsp;employee or agent of the corporation, or is or was serving at the request of the corporation as a director, &nbsp;officer, employee or agent of another corporation, &nbsp;partnership, joint venture, trust or other enterprise agains
t expenses, &nbsp;including attorneys' fees, judgments, fines and amounts paid in settlement.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We have been advised that in the opinion of the Securities and Exchange Commission, insofar as indemnification for liabilities arising under the Securities Act of 1933 (the &quot;Act&quot;) may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, such indemnification is against public policy as expressed in the Act and is therefore unenforceable. In the event a claim for indemnification against such liabilities (other than our payment of expenses incurred or paid by our director, officer or controlling person 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, we 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 of 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. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
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<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DESCRIPTION OF BUSINESS</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We incorporated in the State of California on July 7, 1995 as Probe Manufacturing Industries, Inc. On April 21, 2005 we re-domiciled from California to Nevada whereby we changed our name to Probe Manufacturing, Inc. Our business focuses on manufacturing electronics and providing services to original equipment manufacturers (OEMs) of industrial, automotive, semiconductor, medical, communication, military, and high technology products. The services that we provide are commonly referred to as electronics manufacturing services (EMS). We offer our customers comprehensive and integrated design and manufacturing services, from initial product design to production and direct order fulfillment. </P>
<P style="margin:0pt; font-family:Times New Roman">Our engineering services include product design, printed circuit board layout, prototyping, and test development. Our supply chain management solutions include purchasing, management of materials, and order fulfillment. Our manufacturing services include surface mount and through hole assembly, cable assembly, mechanical assembly, and fully integrated box build systems for high complexity electronics.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">For example, Probe builds a Natural Gas Electronic Control Unit for Quantum Technologies which is used in GM&#146;s alternative fuel engines. We have supported this customer from the inception of its product. Our services started with full design review for manufacturability and testability of the product. &nbsp;Once the design review and recommendations were completed we source the materials and procure the components. Then we take responsibility for assembling the components on to the boards, assembling the mechanical parts, installing the product inside the enclosure, and finally we perform a full functional test. Then the finished good product is shipped to the customer, who integrates it in to their final fuel delivery system and it&#146;s delivered to GM. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The majority of our revenue is driven from manufacturing a mix of complex Printed Circuit Card assemblies. &nbsp;Some of the examples of our customers finished goods products include automated fluid dispensing equipments, high performance gas and liquid delivery process modules, which are used in semiconductor fabrication equipment, photonics instrumentation to measure fiber optics, electronic control unit for hydrogen, natural gas, and propane engines, electronic control unit for welding equipment, portable ultrasound and electro-simulation therapy equipment, and target scoring systems for military.</P>
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<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><B>INDUSTRY BACKGROUND</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">EMS companies are the principal beneficiaries of the increased use of outsourced manufacturing services by the electronics and other industries. Outsourced manufacturing refers to OEMs&#146; use of EMS companies, rather than internal manufacturing capabilities, to manufacture their products. Historically, EMS companies only manufactured components or sub assemblies. As the EMS industry has evolved, OEMs have increased their reliance on EMS companies for additional, more complex manufacturing services, including collaborative product design services, supply chain management and full box manufacturing. An article by Banc of America Securities stated &#147;that the EMS &amp; electronic supply chain segment is poised to benefit from the increased outsourcing by OEMs. The analysts mention that the EMS segment is likely to grow faster than the broader technical sector in the long run due to the increasing trend among OEM&#146;s to outsource work.&#148;<BR>
</P>
<P style="margin:0pt; font-family:Times New Roman">EMS companies now often participate in designing, manufacturing and testing of complete systems and manage the entire supply chains of their OEM customers. Industry leading EMS companies offer end-to-end services, including product design and engineering, volume manufacturing, final system assembly and testing, direct order fulfillment, after-sale product service and support and global supply chain management.&nbsp; Increased outsourced manufacturing by OEMs is expected to continue because it allows OEMs to:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>&#149; Reduce Operating Costs and Capital Investment</U><I>. </I>In the current economic environment, OEMs are under significant pressure to reduce manufacturing costs and capital expenditures. EMS companies can provide OEMs with flexible, cost-efficient manufacturing services. In addition, as OEM products have become more technologically advanced, the manufacturing and system test processes have become increasingly automated and complex, requiring significant capital investments. EMS companies enable OEMs to access technologically advanced manufacturing and test equipment and facilities, without additional capital expenditures. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>&#149; Focus on Core Competencies</U><I>. </I>The electronics industry is highly competitive and subject to rapid technological change. As a result, OEMs increasingly are focusing their resources on activities and technologies in which they expect to add the greatest value. By offering comprehensive manufacturing services and supply chain management, EMS companies enable OEMs to focus on their core competencies, including next generation product design and development as well as marketing and sales. </P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>&#149; Access Leading Design and Engineering Capabilities.</U><I> </I>The design and engineering of electronics products has become more complex and sophisticated and in an effort to become more competitive, OEMs are increasingly relying on EMS companies to provide product design and engineering support services. EMS companies&#146; design and engineering services can provide OEMs with improvements in the performance, cost and time required to bring products to market. EMS companies are providing more sophisticated design and engineering services to OEMs, including the design and engineering of complete products following an OEM&#146;s development of a product concept. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>&#149; Improve Supply Chain Management and Purchasing Power</U><I>. </I>OEMs face challenges in planning, procuring and managing their inventories efficiently due to fluctuations in customer demand, product design changes, short product life cycles and component price fluctuations. EMS companies employ sophisticated production management systems to manage their procurement and manufacturing processes in an efficient and cost-effective manner so that, where possible, components arrive on a just-in-time, as-and-when needed basis. EMS companies are significant purchasers of electronic components and other raw materials, and can capitalize on the economies of scale associated with their relationships with suppliers to negotiate price discounts, obtain components and other raw materials that are in short supply, and return excess components. EMS companies&#146; expertise in supply chain management and their relationships with suppliers across the supply chain 
enable them to help OEMs reduce their cost of goods sold and inventory exposure. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>&#149; Access Global Manufacturing Services</U><I>. </I>OEMs seek to reduce their manufacturing costs by having EMS companies manufacture their products in the lowest cost locations that are appropriate for their products and end customers. OEMs also are increasingly requiring particular products to be manufactured simultaneously in multiple locations, often near end users, to bring products to market more quickly, reduce shipping and logistics costs and meet local product content requirements. Global EMS companies are able to satisfy these requirements by capitalizing on their geographically dispersed manufacturing facilities, including those in lower cost regions. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>&#149; Accelerate Time to Market</U><B><U>.</U></B><I> </I>OEMs face increasingly short product life cycles due to increased competition and rapid technological changes. As a result, OEMs need to reduce the time required to bring their products to market. OEMs can bring a product to market faster by using EMS companies&#146; expertise in new product introduction, including manufacturing design, engineering support and prototype production. OEMs can more quickly achieve volume production of their products by capitalizing on EMS companies&#146; manufacturing expertise and global presence and infrastructure. </P>
<P style="margin:0pt; font-family:Times New Roman"><B>&nbsp;</B></P>
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<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>OUR PRODUCTS AND SERVICES </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Services We Provide </U></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Engineering</U><I>.</I>&nbsp; Our approach is to coordinate and integrate our design, prototype and other engineering capabilities. Through this approach, we provide a broad range of engineering services and, in some cases, dedicated production lines for prototypes. These services strengthen our relationships with manufacturing customers and attract new customers requiring specialized engineering services. </P>
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<P style="margin:0pt; font-family:Times New Roman">To assist customers with initial design, we offer computer assisted engineering, computer assisted design, engineering for manufacturability, circuit board layout and test development. We also coordinate industrial design and tooling for product manufacturing. After product design, we offer quick-turn prototyping, which means a rapid process of prototyping. During this process, we assist with the transition to production. By participating in product design and prototype development, we can reduce manufacturing costs and accelerate the cycle from product introduction to production. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Supply Chain Management</U><I>.</I>&nbsp; Supply chain management consists of the planning, purchasing, expediting and warehousing of components and materials. Our inventory management and volume procurement capabilities contribute to cost reductions and reduce total cycle time. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Assembly and Manufacturing</U><I>.</I>&nbsp; Our manufacturing operations include printed circuit board assembly, subsystem assembly, box build and systems integration, the process of integrating sub-systems and downloading software before producing a fully configured product. We purchase the printed circuit boards used in our assembly operations from third parties. We employ various inventory management techniques, such as just-in-time, ship-to-stock and auto-replenish, which are programs designed to ensure timely, convenient and efficient delivery of assembled products to our customers. As OEMs&nbsp;seek to provide greater functionality in smaller products, they increasingly require more sophisticated manufacturing technologies and processes. Our investment in advanced manufacturing equipment and our experience in innovative packaging and interconnect technologies enable us to offer a variety of advanced manufacturing solutions. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Testing.</U> &nbsp;We offer computer-aided, in-circuit testing of assembled printed circuit boards, which contributes significantly to our ability to deliver high-quality products on a consistent basis. We work with our customers to develop product-specific test strategies. Our test capabilities include manufacturing defect analysis, in-circuit tests to test the circuitry of the board and functional tests to confirm that the board or assembly operates in accordance with its final design and manufacturing specifications. We either custom design test equipment and software ourselves or use test equipment and software provided by our customers. In addition, we provide environmental stress tests of assemblies of boards or systems. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Final System Assembly and Test</U><I>.</I>&nbsp;&nbsp;We provide final system assembly and test assemblies and modules in which they are combined to form complete, finished products. We integrate printed circuit board assemblies manufactured by us with enclosures, electronic and mechanical sub-assemblies, cables and memory modules. We assemble systems to a specific customer order and we also build to standard configurations. The complex, finished products that we produce typically require extensive test protocols. Our test services include in-circuit testing, functional and environmental tests. We also test products for <A NAME="page_de1091_1_5"></A>conformity to applicable industry, product integrity and regulatory standards. Our test engineering expertise enables us to design functional test processes that assess critical performance elements, including hardware, software and reliability. By incorporating rigorous test processes into the manufacturing p
rocess, we can help to assure customers that their products will function as designed. We provide direct order fulfillment services shipping completed systems directly to the end consumer. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Distribution.</U>&nbsp;&nbsp;We offer our customers flexible, just-in-time delivery programs allowing product shipments to be closely coordinated with customers' inventory requirements. We have the ability to ship products directly into customers' distribution channels or directly to the end-user. We believe that this service can provide our customers with a more comprehensive solution and enable them to be more responsive to market demands. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Direct Order Fulfillment</U><I>.</I>&nbsp;&nbsp;We provide direct order fulfillment for certain of our OEM customers. Direct order fulfillment involves receiving customer orders, configuring products to quickly fill the orders and delivering the products either to the OEM, a distribution channel or directly to the end customer. We manage our direct order fulfillment processes using a core set of common systems and processes that receive order information from the customer and provide comprehensive supply chain management, including procurement and production planning. These systems and processes enable us to process orders for multiple system configurations, and varying production quantities, including single units. Our direct order fulfillment services include build-to-order (BTO) and configure-to-order (CTO) capabilities. BTO involves building a system having the particular configuration ordered by the OEM customer. CTO involves configuring systems to a
n end customer's order. The end customer typically places this order by choosing from a variety of possible system configurations and options. We are capable of meeting a 48 to 72&nbsp;hour turn-around-time for BTO and CTO by using advanced manufacturing processes. We support our direct order fulfillment services with logistics that include delivery of parts and assemblies to the final assembly site, distribution and shipment of finished systems, and processing of customer returns.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>STRATEGIC RELATIONSHIPS AND ALLIANCES </B></P>
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<P style="margin:0pt; font-family:Times New Roman"><B><I>Customers </I></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our current list of customers by their industry and what we help them produce is a follows:</P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=1>&nbsp;</TD><TD valign=top width=103.2><P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Name/ Industry</P>
</TD><TD valign=top width=216 colspan=2><P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Services &amp; Products offered by our customers</P>
</TD><TD valign=top width=276><P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Services or products we provide to our customers</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Apogee/</P>
<P style="margin:0pt; font-family:Arial">Consumer</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures digital audio conversion systems for studio professionals and home recording enthusiasts.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit card assembly, test, and full box build assembly</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Asymtek/</P>
<P style="margin:0pt; font-family:Arial">Industrial</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Provides automated fluid dispensing systems.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly and Test</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">BD Bioscience/</P>
<P style="margin:0pt; font-family:Arial">Medical</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures of Blood Analyzers and agents.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit assembly and test.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Meggitt/</P>
<P style="margin:0pt; font-family:Arial">Military</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures target scoring systems for the military.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Printed Circuit card assembly</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Celerity Group/</P>
<P style="margin:0pt; font-family:Arial">Semiconductor</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufacturer of gas and liquid delivery process modules that are used in semiconductor fabrication equipment.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit card Assembly, and Test.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Jetline Engineering/</P>
<P style="margin:0pt; font-family:Arial">Industrial</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures a full range of mechanized welding equipment for all arc and other high energy processes.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Assembly, Test, Mechanical and Full Box Build Assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Trigtek/</P>
<P style="margin:0pt; font-family:Arial">Military</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures laboratory test, simulation and training applications.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, Test, and Box Build Assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Mettler Electronics/</P>
<P style="margin:0pt; font-family:Arial">Medical</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Provides portable ultrasound and electro-stimulation therapy equipment.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, Test, Mechanical, and Box Build Assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Motia/</P>
<P style="margin:0pt; font-family:Arial">Semiconductor</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures 802.11 wireless communication IC&#146;s.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Manufacture printed Circuit card assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Newport/</P>
<P style="margin:0pt; font-family:Arial">Industrial &amp;</P>
<P style="margin:0pt; font-family:Arial">Instrumentation</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures lasers and precision photonics instrumentation, motion control, wafer handling and&nbsp;assembly automation.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials procurement, printed Circuit Card Assembly, Test, Mechanical, and Box Build Assembly. </P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Omniprint/</P>
<P style="margin:0pt; font-family:Arial">Computers</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Full Range of printer solutions for Point of Sales applications.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, and test.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Quantum/</P>
<P style="margin:0pt; font-family:Arial">Automotive</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures Electronics Control Units for Hydrogen, Natural Gas &amp; Propane engines.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, test, mechanical assembly and full box build.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Staco Switch/</P>
<P style="margin:0pt; font-family:Arial">Industrial</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures Lighted pushbutton switches and ruggedized keyboards and keypads for both military and commercial applications.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Printed Circuit Card Assembly.</P>
</TD></TR>
</TABLE>
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<P style="margin:0pt; font-family:Times New Roman">We do not have any long term agreements with our customers, and our principal customers may not continue to purchase services from us. The duration of a purchase order is usually from 30 to 90 days. These purchase orders could be cancelled or rescheduled at any time. The part number, quantity, &nbsp;price, workmanship standards, and scheduled delivery dates of the Products to be Manufactured are determined by written purchase orders given by our customers and accepted or confirmed by us in writing or via email. &nbsp;We agree to deliver the Products manufactured pursuant to each purchase order in accordance with the terms and conditions set forth in the purchase order. Probe manufactures hundreds of different types of assemblies on an ongoing basis and each product has a purchase order associated with it. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman">We currently only focus on attracting and servicng customers in Southern California.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>SALES AND MARKETING </B></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Organization</U></P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman">Sales and marketing efforts are divided into segments as follows:</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Industrial products</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Military products</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Automotive products</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Communication products</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Medical products</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Semiconductor products</FONT></P>
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<P style="margin:0pt; font-family:Times New Roman">Our divisional and executive management teams are an integral part of our sales and marketing teams. We generally enter into supply arrangements with our customers. These arrangements, similar to purchase orders, generally govern the conduct of business between our customer and the company relating to, among other things, the manufacture of products which in many cases were previously produced by the customer itself. Such arrangements generally identify the specific products to be manufactured, quality and production requirements, product pricing and materials management. There can be no assurance that at any time these arrangements will remain in effect or be renewed. </P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Our key customer accounts are managed by a dedicated customer focused team, including a program manager directly responsible for account management. The program manager coordinates activities across divisions to effectively satisfy customer requirements and have direct access to our executive management to quickly address customer concerns. In addition, our executive management, including our chief executive officer, are heavily involved in customer relations and devote significant attention to broadening existing, and developing new, customer relationships. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Sales Approach</U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our selling strategy is to convince potential customers to engage Probe as an engineering and supply chain partner, rather than to simply change EMS suppliers. &nbsp;To do this, we perform a full process audit on prospective customer&#146;s operations and make recommendations for technology, quality, delivery and cost improvements. &nbsp;This process has been extremely effective way to demonstrate the ways we can improve the targeted customer&#146;s performance. </P>
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<P style="margin:0pt; font-family:Times New Roman">In each business segment, there is a dedicated program manager responsible for the maintenance of existing accounts and for development of new accounts. &nbsp;The use of engineers for both sales and technical support tasks allows us to keep a technical advantage over its competition and to spot opportunities for improvement in the field. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>SUPPLIERS </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">We currently procure our materials from a limited number of distributors, thus if a shortage of various components were to occur we would be forced to seek other distributors and our cost of goods could impact our revenues. &nbsp;Our main suppliers of materials include:</P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Arrow Electronics, Inc</U>. is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry, with 2004 sales of $10.7 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 175,000 original equipment manufacturers, contract manufacturers, and value-added resellers through more than 200 sales facilities and 23 distribution centers in 40 countries and territories. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Future Electronics</U> is the world&#146;s largest distributor specializing in passive, interconnect, and electromechanical components used in commercial and military applications, and they hold the top market share for most of our product lines. &nbsp;Headquartered in Fort Worth, Texas, TTI has 47 locations around the globe: 33 in North America, 11 in Europe and, most recently, 3 in Asia. From these facilities, they provide local service to customers around the world.</P>
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<P style="margin:0pt; font-family:Times New Roman">We currently do not have long-term agreements with our major suppliers, however, we enter into purchase order agreements. &nbsp;Purchase orders are placed with suppliers based on our Material Requirement Planning (MRP). &nbsp;When we have an order in our operating system Manex, it generates a list of materials for procurement to satisfy that order. &nbsp;We then issue purchase orders to our suppliers with scheduled deliveries which acts as the only contractual agreements between us and our suppliers.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>COMPETITION </B></P>
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<P style="margin:0pt; font-family:Times New Roman">The electronic manufacturing services industry is large, competitive and diverse, and is serviced by many companies, including several that have achieved significant market share We compete with numerous domestic and foreign EMS firms, including Benchmark Electronics, Inc.; Celestica Inc; Flextronics International Ltd.; Jabil Circuit, Inc.; Pemstar, Inc.; Plexus Corp.; Sanmina-SCI Corporation; CTS Electronics; Solectron Corporation; SMS Technologies, Inc.; Express Manufacturing, Inc., and others. &nbsp;Because of our market&#146;s size and diversity, we do not typically compete for contracts with a discreet group of competitors. &nbsp;We compete with different companies depending on the type of service or geographic area. &nbsp;Certain of our competitors may have greater manufacturing, financial, research and development and marketing resources. &nbsp;We also face competition from current and prospective customers that evaluate our capabilities against the m
erits of manufacturing products internally. </P>
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<P style="margin:0pt; font-family:Times New Roman"><B>COMPETITIVE POSITIONING</B></P>
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<P style="margin:0pt; font-family:Times New Roman">We believe our primary competitive advantages are our design, manufacturing, testing and supply chain management capabilities. We offer our customers flexible manufacturing solutions through out the life cycle of their products. These solutions provide accelerated time-to-market, time-to-volume production, and reduced production costs. As a result of working closely with our customers and responding promptly to their needs, we have become an integral part of their operations. In addition, our workforce is led by a management team that founded the company and has an average of 22&nbsp;years of industry experience.</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>PERSONNEL AND OPERATIONS SUMMARY</B></P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Facilities</U></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Probe currently has one manufacturing facility that is located in Costa Mesa, California. &nbsp;The facility is 35,000 square feet and approximately 28,000 square feet are dedicated to the manufacturing operations and approximately 6,000 square feet are dedicated to the sales and marketing and manufacturing support, and administration operations.<B> &nbsp;</B>We lease our 35,000 sq/ft facility for $19,790.40 from Kambiz Mahdi, Reza Zarif and Pacific Sail Bay Trust. &nbsp;&nbsp;We believe the rental rate to be at or below market rate for similar properties in our area. Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Reza Zarif is our chief executive officer and a director of ours. &nbsp;&nbsp;Pacific Sail Bay Trust is managed by Frank Kavanaugh. &nbsp;Frank Kavanaugh is also the managing member of Ashford Capital, LLC, and Apt Leadership, LLC and the managing partner of Ashford Transition Fund, L.P. &nbsp;Furthermore, Mr. Kavanaugh was a dir
ector of ours from July 2004 to December 2004.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Personnel</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman">We presently employ approximately 75 employees, including production team, program management team, material management team, engineering, sales team and quality staff and administrative and management personnel. &nbsp;We have never experienced work stoppages, and are not a party to any collective bargaining agreement. &nbsp;See Management</P>
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<P style="margin:0pt; font-family:Times New Roman"><B>REGULATORY RESTRICTIONS ON OUR BUSINESS </B></P>
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<P style="margin:0pt; font-family:Times New Roman">Our operations, and the operations of businesses that we may acquire, are subject to certain foreign, federal, state and local regulatory requirements relating to environmental, waste management, and health and safety matters. We believe we operate in substantial compliance with all applicable requirements. However, material costs and liabilities may arise from these requirements or from new, modified or more stringent requirements. Material cost may rise due to additional manufacturing cost of raw or made parts with the application of new regulations. &nbsp;Our liabilities may also increase due to additional regulations imposed by foreign, federal, state and local regulatory requirements relating to environmental, waste management, and health and safety matters. &nbsp;In addition, our past, current and future operations, and those of businesses we acquire, may give rise to claims of exposure by employees or the public or to other claims or liabilities relat
ing to environmental, waste management or health and safety concerns.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION</B></P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Cautionary Statement Concerning Forward-Looking Statements </U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">This Prospectus contains forward-looking statements, including, without limitation, statements concerning possible or assumed future results of operations and those preceded by, followed by or that include the words &quot;believes,&quot; &quot;could,&quot; &quot;expects,&quot; &quot;intends&quot; &quot;anticipates,&quot; or similar expressions. Our actual results could differ materially from these anticipated in the forward-looking statements for many reasons including the risks described in the Risk Factor section and elsewhere in this report. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman">statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Overview </U></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>For the 6 months period ended June 30, 2005 we incurred a net loss of &nbsp;(321,684) and for the year ended December&nbsp;31, 2004, we incurred a net loss of ( $918,590) Thousand compared to net losses of ($1,244,761) in 2003 and ($1,513,846 ) in 2002. From 2001 to 2002, we experienced a severe contraction in our business where annual net sales declined from $17.9&nbsp;million in 2001 to $6.8&nbsp;million in &nbsp;2002. &nbsp;Our net sales stabilized and stayed flat from 2002 through 2004 and continues to remain flat through June 30, 2005. &nbsp;However, we responded to the economic downturn by streamlining our processes and down sizing our operations from 225 employees in 2001 to 65 employees in 2004. The down sizing combined with other restructuring and cost containment initiatives resulted in a lower cost structure from 2002 through 2004. In the 4<SUP>th</SUP> quarter 2004 we realized one time inventory revaluation adjustment of ($155,000),
 this was an accrual made for excess or obsolete inventory adjustments and or write-offs completed in 2005. &nbsp;We also realized a one time warranty cost adjustment of ($50,000). &nbsp;&nbsp;In 2005 we realized a net gain from the restructuring of debt in the amount of &nbsp;($89,000).</P>
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<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman" align=justify>In 2004, we experienced a strong net sale in 1<SUP>st</SUP> quarter due to increased sales from a major customer, one of our customers. &nbsp;In the 1<SUP>st</SUP> quarter 2004, the major customer accounted for 60% of our net sales at $1,400,000 . &nbsp;In the second quarter, net sales from a major customer dropped by about $800,000 &nbsp;which explains the decreased net sales for 2<SUP>nd</SUP> quarter 2004. &nbsp;In the 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter 2004 net sales to the major customer dropped by another $500,000 &nbsp;which explains the additional reduction in our net sales for the third and the 4<SUP>th</SUP> quarter of 2004. &nbsp;Since 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter 2004 we started a sales campaign to add new customers. &nbsp;Consequently, we have added some new customers and our net sales have grown by 33% in 1<SUP>st</SUP> quarter and compared to 4<SUP>th</SUP> quarter of 2004 and sales g
rew by 15% from the 1st qtr to the 2<SUP>nd</SUP> qtr of 2005. We &nbsp;anticipated additional sales growth in the, 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter of 2005, &nbsp;however anticipated demand from a key customer failed to materialize, due to a down turn in the semiconductor &#150; Chip industry, will result in missed sales opportunities of $500,000 for each of the 3<SUP>rd</SUP> and 4<SUP>th</SUP> qtr, therefore sales will remain flat for the remainder of 2005. &nbsp;&nbsp;While we are constantly adjusting our operations to new sales forecast, we are anticipating profitability as our net sales grow and expenses are cut to match current revenue levels.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Plan of Operation</U></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. &nbsp;The company incurred a net loss of $321,684 for the six months ended June 30, 2005 and stockholder deficit of ($762,122) and as of &nbsp;June 30, 2005 and has a working capital deficit of approximately $348,364. The ability of the company to operate as a going concern is dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) cut operating costs such that the company can operate until such time that it resumes generating positive cash flow from operations.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Management is taking the following steps to address this situation: (a) reducing operating costs by: (i) re-negotiating direct material cost with all of our suppliers, (ii) reducing direct and indirect labor cost by streamlining production lines and other operations to create more efficiency and (iii) we are also evaluating the possibility of moving into a more feasible facility with lower rent and overhead, thus reducing the break even revenue level; (b) we are negotiating to replace our lines of credit with an agreement(s) that have more attractive terms and expand borrowing capacity; (c) increasing our revenue by making sure we bill for everything of value we do; acquiring new customers, and growing our existing customers. </P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;The future success of the company is likely dependent on its ability to attain additional capital to support growth and ultimately, upon its ability to attain future profitable operations. &nbsp;There can be no assurance that the company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. &nbsp;The successful outcome of these or any future activities cannot be determined at this time and there is no assurance that if achieved, the company will have sufficient funds to execute their business </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>plans or generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the company be unable to continue as a going concern.</P>
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<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><B>Liquidity and Capital Requirements</B></P>
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<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">&nbsp;Cash and cash equivalents increased to approximately $76 thousand at June 30, 2005 from 40 thousand &nbsp;at December &nbsp;31, 2004. The table below, for the six months ended June 30, 2005, &nbsp;provides the summary information regarding cash flows and cash position. </P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial" align=center><B>Six Months ended June 30, 2005</B></P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Operating Activities:</B></P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Net Income / (Loss)</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;$ &nbsp;&nbsp;(321,684)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Adjustments to reconcile net loss to net cash</P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;used in operating activities:</P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,190 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(200,290)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in inventory</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(489,662)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,855)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in deposits</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accounts payable</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(104,251)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Other (Decrease) increase in accrued expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,735 </P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Net Cash Used In Operating Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(971,817)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Investing Activities</B></P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Purchase of property and equipment</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,551)</P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Cash Flows Used In Investing Activities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,551)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Financing Activities</B></P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Bank overdraft</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58,008 </P>
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<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Borrowings under line of credit, net</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;560,051 </P>
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<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Principal payments on capital lease obligations</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(119,060)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Issuance of stock</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;572,000 </P>
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<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Proceeds / Payments of notes payable</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61,094)</P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Cash Flows Provided By Financing Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;1,009,905 </P>
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<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Net (Decrease) Increase in Cash and Cash Equivalents</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,537 </P>
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<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Cash and Cash Equivalents at December 31, 2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash and Cash Equivalents at June 30, 2005</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76,939 </P>
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<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">&nbsp;Net cash used by operating activities was $971&nbsp;thousand during the six months ended June 39, 2005. This was mainly due to an operating loss of &nbsp;$321 thousand, an increase inventories of &nbsp;$490 thousand, an increase in accounts receivable and a decrease in accounts payable. &nbsp;The increase in inventory was a result of an anticipated ramp up in sales for the 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarters. &nbsp;The increase in receivables was caused by an increase in sales in the month of June. &nbsp;The cash used in operating activities was funded by and increase in the borrowings under lines of credit of $560 thousand and the issuance of stock (under the Private Placement Memorandum) &nbsp;of &nbsp;$572 thousand. &nbsp;</P>
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<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">With the added reporting expense resulting from the filing on the SB2 the company has operating expense by $35 thousand per month effective October 1, 2005. &nbsp;The cash flows from operations will be relatively flat in the 3<SUP>rd</SUP> qtr., and slightly positive in the 4<SUP>th</SUP> qtr. &nbsp;&nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;Our working capital as of June 30, 2005 was ($338,281), compared to ($564,310) as of December 31, 2004 and ($2,892,000) as of December&nbsp;31, 2003. This increase in working capital is attributable to a decrease in current liabilities of $2,000,000, &nbsp;This was accomplished through the infusion of capital. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>We currently receive capital under six different revolving lines of credit from eFund Capital Partners, LLC, Ashford Capital, LLC, Edward Lassiter, Bill Duncan, Rufina Paniego and the Benner Exemption Trust that allows us to draw up $725,000 and anticipate we will continue to be able to have access to the money </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>through the revolving lines of credit. &nbsp;As of June 30, 2005 we have an outstanding balance of $580,000 &nbsp;and &nbsp;$185,000 available to draw upon.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>The company had a revolving line of credit (the &#147;Line&#148;) with a financial institution, Camel Financial, Inc., which allowed them to borrow a maximum of $1,100,000 based on 80% of eligible accounts receivable, as defined. &nbsp;Borrowings under the Line, bore interest at prime (4.25% plus 10.5% per annum) were secured by substantially all of the company&#146;s assets and are personally guaranteed by the stockholders. &nbsp;In March 2004 the Line was restructured into a term loan in the amount of $500,000. Terms of the Note were: (1) monthly installment payments of $5,000, (2) interest at the rate of 4% plus the prime rate by the agent (3) secured by accounts receivable (4) with a discount provision of $200,000 after timely payments of the first $300,000. &nbsp;In December 2004, the note was restructured into a new line of credit and discounted by $200,000. This new line of credit allows the company to borrow a maximum of $125,000 based 
on 80% of eligible accounts receivables, payable in monthly installments of $5,000 plus interest at the rate of 4% plus the prime-lending rate. &nbsp;As of June 30, 2005, the company had borrowed $120,114. &nbsp;The company has an additional unsecured line of credit in the amount of $775,000. &nbsp;Borrowings under the Line of credit bear interest at the rate of 15% (10% paid in cash and 5% paid in common stock in the company) per annum. &nbsp;&nbsp;As of June 30, 2005 the company had an outstanding balance against this line of credit in the amount of $580,000. The company has not been successful at replacing the existing line of credit. &nbsp;The company has secured additional lines of credit, for a total of $725,000, as follows, with restructured terms as follows:</P>
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<P style="margin:0pt; font-family:Times New Roman">Efund Capital Partners - &nbsp;&nbsp;$150,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Rufina V. Paniego - &nbsp;&nbsp;$75,000 @ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Ashford Capital - $150,000 @ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Benner Exemption Trust &nbsp;- $200,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Edward Lassiter &nbsp;- &nbsp;$100,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">William Duncan &nbsp;- $50,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">The holders of the notes do not have discretion in deciding whether to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Capital Stock Transactions</U></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>During the year ended December 31, 2004, the company&#146;s board of directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman" align=justify>1. An amendment to the Articles of Incorporation of the company increasing the number of authorized common shares to 100,000,000 and designating $.001 par value per share.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman" align=justify>2. An amendment to the Articles of Incorporation of the company authorizing 440 shares of Preferred A stock and designating a stated value of &nbsp;$1,000 per share.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman" align=justify>3. An amendment to the Articles of Incorporation of the company authorizing 20,000 share of Preferred B stock and designating a stated value of $100 per share.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman" align=justify>4. Return and cancellation of 5,000,000 shares of common stock held by Mr. Mahdi (1,750,000 shares returned), Mr. Zarif (1,750,000 shares returned), eFund Capital Partners, LLC (750,000shares returned) and Ashford Capital, LLC(750,000 shares returned) in order to reduce the number of shares outstanding.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>In May of 2004 we issued 2,000,000 each to our two founders, Kambiz Mahdi and Reza Zarif, for no cash consideration when converted the corporation from an S to a C corporation in order for the two founders to maintain ownership in the corporation going forward.</P>
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<P style="margin:0pt; font-family:Times New Roman">From June 16, 2004 to April 1, 2005 the company sold 222,125 common stock units pursuant to a Private Placement Memorandum at $8.00 per unit to 49 without individuals generating net proceeds of $1,777,000. </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman">Each Unit entitled the holder to purchase ten (10) shares of common stock. &nbsp;In addition, each unit entitled the holder to purchase a total of 10 shares of Probe Common Stock through the exercise of Warrants as follows: Class A Warrants, 5 shares at a price of $2.00 per share for a period of 12 months from November 16, 2004, which shall be November 15, 2005; and, Class B Warrants, 5 shares at a price of $3.00 per share for a period of 18 months from November 16, 2004, which shall be May 15, 2006</P>
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<P style="margin:0pt; font-family:Times New Roman">The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended (&quot;Act&quot;), by the fact that:</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us which included helping the management team to restructure its business by, streamlining its business operations, introduction to partners, helping find other sources of capital and improving corporate governance. &nbsp;In exchange, we gave eFund Capital partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad d
o not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2004.</P>
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<P style="margin:0pt; font-family:Times New Roman">In September of 2004 we issued the Ashford Transition Fund, L.P 40 shares of our Series A Convertible Preferred Stock as consideration for a loan they gave the company in the amount of $456,000. Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $350,000 as consideration. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2
004.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Kambiz Mahdi 450,000 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman">as consideration. &nbsp;&nbsp;Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Reza Zarif 450,000 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;Reza Zarif is our chief executive officer and a director of ours. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Anthony Reed 6,875 shares of common stock pursuant to a Consulting Agreement.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Russell Miller 100,000 shares of common stock pursuant to an employee stock grant.</P>
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<P style="margin:0pt; font-family:Times New Roman">In April 21,2005 we re-domiciled in the State of Nevada whereby our authorized capital structure is as follows:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Times New Roman">1.</P>
<P style="margin:0pt; padding-left:54pt; font-family:Times New Roman">200,000,000 shares of Common Stock par value $ .001</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Times New Roman">2.</P>
<P style="margin:0pt; padding-left:54pt; font-family:Times New Roman">440 shares of Series A Convertible Preferred Stock, with a stated value of $1,000 per share.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Times New Roman">3.</P>
<P style="margin:0pt; padding-left:54pt; font-family:Times New Roman">20,000 shares of Series B Convertible Preferred Stock, with a stated value of $100 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Results of Operations </U></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Our results of operations are affected by several factors, primarily the level and timing of customer orders (especially orders from our major customers). The level and timing of orders placed by a customer vary due to the customer&#146;s attempts to balance its inventory, changes in the customer&#146;s manufacturing strategy, and variation in demand for its products due to, among other things, product life cycles, competitive conditions, and general economic conditions. In the past, changes in orders from customers have had a significant effect on our quarterly and annual results of operations. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Net Sales.</B> Net sales decreased from $6,400,000 &nbsp;for the year ended 2003 to $6,200,000 &nbsp;for the year ended December 31, 2004. The decrease in 2004 net sales was primarily attributable to a decrease in sales for customers in the telecommunications industry which was $2,000,000 in 2003 and $562,000 2004. &nbsp;&nbsp;Although we experienced &nbsp;this significant decrease in net sales from our telecommunication customers we experienced in net from the semiconductor and industrial sectors which increased from 3,300,000 in 2003 to 5,175,000 in 2004. &nbsp;Sales decrease from $3,906,000 to $2,906,000 for the 6 months ended June 30, 2004 and 2005 respectively. &nbsp;This decrease was due to a large decrease from the 1<SUP>st</SUP> qtr to the 2<SUP>nd</SUP> qtr in 2004 and the decrease in business from Celerity in the 1<SUP>st</SUP> and 2<SUP>nd</SUP> qtr of &nbsp;2005. </P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Gross Profit (Loss).</B> Our gross profit decreased by $154,000 &nbsp;from 1,370,000 &nbsp;&nbsp;for 2003 to 1,220,000 for 2004. Similarly, gross profit as a percentage of net sales decreased from 21.2% for 2003 19.7% for 2004. The decrease in gross profit for 2004 is primarily attributable to the decrease in net sales while fixed manufacturing costs remained relatively unchanged. &nbsp;Our Gross profit as a percent of sales has decreased from 19.7% &nbsp;in 2004 to 18.3% for the 6 months ended June 30, 2005, mainly as a result of pricing pressures from Newport corporation and Celerity.</P>
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<P style="margin:0pt; font-family:Times New Roman">In 2004, the company incurred a net loss of ($918,000) an improvement of $322,000 over the 2003 loss of ($1,240,000). &nbsp;This was primarily due to a gain on restructuring of certain notes payable and capital leases, totaling 275,000. &nbsp;&nbsp;As of April 5, 2004 the company had a line of credit in the amount of $1,078676, with Camel financial, Inc. &nbsp;On April 6, 2004 the loan was paid down by $618,676 and the company entered into a new loan agreement in the amount of $460,000, &nbsp;the provisions had a discount of $200,000 if paid in full by February 2006. &nbsp;In December of &nbsp;the company paid an additional $75,000 and Camel agreed to discount the note by the $200,000 at that time, which was recognized as a gain on settlement of debt. &nbsp;The company entered into a new amortizing line of &nbsp;credit in the amount of $140,000.</P>
<P style="margin:0pt; font-family:Times New Roman">The company had negotiated various other settlements, with vendors that resulted in a net gain of $75,000, recognized as a gain on settlement of debt for the year ended 2004.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Also certain pieces of manufacturing equipment are nearing the end there useful lives, resulting in a decrease in depreciation expense of $58,000 from 2003 of $299,000 to 2004 of </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>$241,000. &nbsp;The company Incurred &nbsp;a net loss of $321,684 and $543,211 for the 6 months ended June 30, 2005 and 2004 respectively. &nbsp;The improvement is due to decreased operating costs, mainly derived from lowered interest cost a result of the restructuring of the lines of credit.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Selling, General, and Administrative Expenses</B>. Selling, general, and administrative expenses (&#147;SG &amp; A&#148;) decreased $112,000 &nbsp;or 5.4%, from $2,078,000 &nbsp;for 2003 to $1,965,000 for 2004. The decrease was a direct result of a decrease in net sales. &nbsp;&nbsp;SG &amp; A decreased from $955,307 to $856,924 from the 6 months ended June 30, 2004 to 2005 respectively.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Interest Expense.</B> Interest expense decreased by approximately $270,000 from the 6 months ended June 30, 2004 to 2005 respectively. &nbsp;Due to the restructuring of the lines of credit and the pay pay-down of outstanding debt. </P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Contractual Obligations</B>. The following table summarizes our contractual obligations as of &nbsp;June 30, 2005</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>1. &nbsp;&nbsp;&nbsp;&nbsp;Cadence has a judgment against us for $98,000. &nbsp;The judgment was due to lack of payment by Probe to Cadence after Probe purchased the license to use its Alegro software program. &nbsp;Due to economic conditions after September 11<SUP>th</SUP> the market for the use of this product disappeared and Probe was not able to resell the services. &nbsp;Consequently, Probe was not able to generate any revenues from reselling of the software and could not pay Cadence. &nbsp;On August 9<SUP>th</SUP> 2004 we entered into a payment agreement with Cadence in which we pay them $2,500 a month until such time the debt is paid off. &nbsp;The balance currently due to Cadence under the agreement is $53,553 as of &nbsp;August 30, 2005.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>2. IFC had a judgment against us for $144,403.00. &nbsp;The judgment resulted from our failure to pay IFC under the purchase agreement for a piece of X-Ray equipment. In September 2004 we entered into a settlement agreement whereby we agreed to pay IFC $15,000 as an initial payment and $5,000 per month until settlement amount of $70,000.00 is paid in full. &nbsp;The balance due as of August 30, 2005 is $5,000.00.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>3. Canon Financial has a judgment against us for $15,000.00. &nbsp;The judgment was entered because Probe did not pay the lease payments due on a copy machine which was not properly maintained by Canon and was not functional most of the time. &nbsp;We have agreed to pay Canon $1000.00 per month until fully paid. &nbsp;Our balance as of August 30, 2005 is $6,000.00.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>4. Pro-Source has filed a civil case against us for $35,000 for breach of contract which was filed in the Superior court Orange county, California. Judgment filed March 9, 2005. &nbsp;We have reached a settlement with Pro-Source on September 9, 2004 whereby we agreed to pay $20,000 in three payments. &nbsp;The first payment was made on October 4, 2005 for $10,000, and then &nbsp;$5,000 on October 1, 2005 and $5,000 on November 1, 2005. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>5. As of August 30, 2005 we owed the Internal Revenue Service $130,692, &nbsp;for past tax liabilities which we are not currently able to pay in full. &nbsp;We have negotiated a settlement with IRS and have entered into a payment plan with them in which we pay the IRS $2,500 per month. &nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>6. The company had a revolving line of credit (the &#147;Line&#148;) with a financial institution, which allowed them to borrow a maximum of $1,100,000 based on 80% of eligible accounts receivable, as defined. &nbsp;Borrowings under the Line, bared interest at prime (4.25% plus 10.5% per annum) are secured by substantially all of the company&#146;s assets and are personally guaranteed by the two founders Kambiz Mahdi and Reza Zarif. &nbsp;In March 2004 the Line was restructured into a term loan in the amount of $500,000. Terms of the Note were 1) Monthly payments of $5,000 interest at the rate of 4% plus the prime rate by the agent, 2) Secured by Accounts Receivable, and 3)with a discount of $200,000 for timely payment of the first $300,000. &nbsp;In December 2004 the note was restructured and discounted by $200,000. An amortizing Line of Credit which allows them to borrow a maximum of $140,000 based on 80% of Accounts Receivables, with monthly
 payments of &nbsp;$5,000 &nbsp;&nbsp;plus interest at the rate of 4% plus the prime lending rate. &nbsp;As of June 30, 2005, the outstanding balance was $120,114. &nbsp;<B>&nbsp;</B></P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>7. On January 1, 2005 we entered into a credit line agreement with eFund Capital Partners, LLC for $150,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelate
d third party because the company &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 15% or less interest. &nbsp;As of &nbsp;June 30, 2005 the outstanding balance was $75,000. and we have issued 2,772 shares of common stock. The holders of the notes do not have discretion in deciding whether to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>8. On January 1, 2005 &nbsp;we entered into a credit line agreement with Ashford Capital, LLC for $150,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the c
ompany &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. &nbsp;&nbsp;As of June 30, 2005 the outstanding balance was $100,000 and has been issued 4,320. The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>9. On March 8, 2005 we entered into a credit line agreement with Benner Exemption Trust for $200,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accursed and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the compan
y &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. As of &nbsp;June 30, 2005 the outstanding balance was &nbsp;$140,000. Dennis Benner is a director of ours and controls the Benner Exemption Trust. &nbsp;Mr. Benner has also been issued 3,192 shares of common stock. The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>10. On March 22, 2005 &nbsp;we entered into a credit line agreement with Edward Lassiter for $100,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the compan
y &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. As of &nbsp;June 30, 2005 the outstanding balance was $140,000. &nbsp;</P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>Edward Lassiter is a shareholder of ours and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter currently holds 312,500 shares of our common stock which is 9% of the outstanding shares of common stock. &nbsp;Mr. Lassiter has received 2,102 shares of common stock. &nbsp;The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>11. On January 1, 2005 we entered into a credit line agreement with Rufina V. Paniego for $75,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 3007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the company &n
bsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. T As of &nbsp;June 30, 2005 the outstanding balance was &nbsp;$75,000. &nbsp;Rufina Paniego is the wife of Reza Zarif who is our founder, COO and director. &nbsp;Mrs. Paniego has received 3,041 shares of common stock. The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>12. We lease our 35,000 sq/ft facility for $19,790.40 per month from Kambiz Mahdi, Reza Zarif and Pacific Sail Bay Trust. &nbsp;&nbsp;Our lease obligation is until 2022. &nbsp;We believe the rental rate to be at or below market rate for similar properties in our area. Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Reza Zarif is our chief executive officer and a director of ours. &nbsp;&nbsp;Pacific Sail Bay Trust is managed by Frank Kavanaugh. &nbsp;Frank Kavanaugh is also the managing member of Ashford Capital, LLC, and Apt Leadership, LLC and the managing partner of Ashford Transition Fund, L.P. &nbsp;Furthermore, Mr. Kavanaugh was a director of ours from July 2004 to December 2004.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>13. &nbsp;On September 29, 2004 we entered into a forbearance agreement for a capital lease for $1,014,528 &nbsp;CIT Financial, Inc. with monthly obligations of $5,000 &nbsp;for the first five months an $7,500 Thereafter . </P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>14. &nbsp;On March 22, 2005 &nbsp;we entered into a credit line agreement with William Duncan for $50,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the co
mpany &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. As of June 30, 2005 the outstanding balance was $140,000. &nbsp;&nbsp;Mr. Duncan has received 603 shares of common stock. &nbsp;The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Critical Accounting Policies</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">Management is required to make judgments, assumptions and estimates that affect the amounts reported when we prepare financial statements and related disclosures in conformity with generally accepted accounting principles. &nbsp;Estimates are used for, but not limited to, our accounting for contingencies, allowance for doubtful accounts, inventory valuation, &nbsp;and income taxes. Actual results could differ from these estimates. The following critical accounting policies are impacted significantly by judgments, assumptions and estimates used in the preparation of our consolidated financial statements. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Inventory</U></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">The companies&#146; inventories are stated at the lower of weighted average cost or market. This industry, is characterized by rapid change in technology. &nbsp;Customer commitments are generally short term in nature and their demands can fluctuate and change very rapidly. &nbsp;We make provisions for estimated excess and obsolete inventories based on these factors as well as cost and market value fluctuations in pricing as well as regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Our provisions for excess and obsolete inventory are also impacted by our contractual arrangements with our customers including our ability or inability to re-sell such inventory to them. If actual market conditions or our customers&#146; product demands are less favorable than those projected or if our customers are unwilling or unable to comply with any contractual a
rrangements related to excess and obsolete inventory, additional provisions may be required.</P>
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<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><U>Allowance for doubtful accounts</U></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">The company grants credit to customers within the United States of America and does not require collateral. The company&#146;s ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by the company.</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">Reserves for un-collectable amounts are provided, based on past experience and a specific analysis of the accounts, which management believes are sufficient. Although the company expects to collect amounts due, actual collections may differ from the estimated amounts. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Goodwill</U></P>
<P style="margin:0pt; font-family:Times New Roman">In accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;142, &#147;Goodwill and Other Intangible Assets&#148;. &nbsp;&nbsp;&nbsp;At this time we have no amounts recorded under goodwill or intangible assets.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Loss per Share</U></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We utilize SFAS No. 128, &quot;Earnings per Share.&quot; Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding.</P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><U>Revenue and Expense recognition.</U></P>
<P style="margin:0pt; font-family:Times New Roman">Net sales are recognized when title is transferred to our customers, which generally occurs upon shipment from our facilities. Net sales from design, engineering and other services are generally recognized as the services are performed. Our sales are recorded net of customer discounts and credits taken or expected to be.</P>
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<P style="margin:0pt; font-family:Times New Roman">Cost of goods sold includes materials, labor, and overhead expenses incurred in the manufacture of our products and are recognized and matched to the period when the revenue is recognized. Cost of goods sold also includes charges and credits related to manufacturing operations for lease exit costs, impairment of long-lived assets, and obsolete and slow moving inventories. Many factors affect our gross profit, including capacity utilization, product mix, and production volume. </P>
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<P style="margin:0pt; font-family:Times New Roman">Selling, general, and administrative expenses primarily include the salaries for executive, finance, accounting, IT personnel, program management and human resources personnel; salaries and commissions paid to our internal sales force and external sales representatives and marketing costs; insurance expenses; depreciation expense related to assets not used in manufacturing activities; bad debt charges and recoveries; professional fees for auditing and legal assistance; and general corporate expenses. &nbsp;These expenses are accrued and recognized in the period that they are incurred.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Impairment of long-lived assets reflects charges related to property, equipment and intangible assets not used in manufacturing activities; impairment of manufacturing assets is included in cost of goods sold. </P>
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<P style="margin:0pt; font-family:Times New Roman">Interest expense relates to our credit facilities and other debt obligations. Interest expense also includes the amortization of debt issuance costs. &nbsp;These are accrued and recognized at the time they are incurred.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Estimates</U></P>
<P style="margin:0pt; font-family:Times New Roman">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates may be materially different from actual financial results. Significant estimates include the recoverability of long-lived assets and the collectability of accounts receivable.</P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Federal Income Taxes</U></P>
<P style="margin:0pt; font-family:Times New Roman">The company accounts for income taxes under SFAS No. 109, which requires the asset and liability approach to accounting for income taxes. &nbsp;Under this method, deferred tax assets and liabilities are measured based on differences between financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. &nbsp;During the year ended December 31, 2004, the company changed from a &#147;S&#148; corporation to a &#147;C&#148; corporation.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Segment Information</U></P>
<P style="margin:0pt; font-family:Times New Roman">The Corporation operates primarily in a single operating segment, providing printed circuit board assemblies.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Stock Based Compensation</U></P>
<P style="margin:0pt; font-family:Times New Roman">SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (&#147;SFAS No. 123&#146;) allows an entity to elect to continue to measure compensation cost under Accounting Principles Board Opinion No. 25, &#147;Accounting for Stock Issued to Employees&#148; (&#147;APB No. 25&#148;), but requires pro forma disclosures of net loss and loss per share as if the fair-valued-based method of accounting had been applied. &nbsp;In accordance with SFAS 123, the company elected to continue to measure compensation cost under APB No. 25, and comply with the pro forma disclosure requirements.</P>
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<P style="margin:0pt; font-family:Times New Roman">The company has adopted for footnote disclosure purposes SFAS No. 123, which requires that companies disclose the cost of stock-based employee compensation at the grant date based on the value of the award (the fair value method) and disclose this cost over the service period. &nbsp;The value of the stock-based award is determined using a pricing model whereby compensation cost is the excess of the fair value of the award as determined by the model at grant date or other measurement date over the amount an employee must pay to acquire the stock.</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">Transactions in which goods or services are received from non-employees for the issuance of equity securities or stock-based awards are accounted for based on the fair value of the consideration received. &nbsp;Stock amounts of $5,500 were valued for services during the year ended December 31, 2004.</P>
<P style="margin:0pt; text-indent:51006.435pt; font-family:Times New Roman">&nbsp;</P>
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<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Inflation </U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman">We do not believe that inflation has had or is likely to have any significant impact on our revenues. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Subsidiaries </U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman">None.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>The company &nbsp;leases its 35,000 sq/ft facility for $20,000 per month from Kambiz Mahdi, Reza Zarif and Pacific Sail Bay Trust. &nbsp;&nbsp;Kambiz Mahdi is a co-founder and a director of the company. &nbsp;Reza Zarif is the chief executive officer and a director of the company. &nbsp;&nbsp;Pacific Sail Bay Trust is managed by Frank Kavanaugh. &nbsp;Frank Kavanaugh is also the managing member of Ashford Capital, LLC, and Apt Leadership, LLC and the managing partner of Ashford Transition Fund, L.P. &nbsp;Furthermore, Mr. Kavanaugh was a director of the company from July 2004 to December 2004. Total payments made during the 6 months ended June 30, 2005 were $110,422, with an unpaid balance of $12,851 at June 30, 2005</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Jeffrey Conrad provides legal services for the company and receives a monthly retainer of $2,500 and is one of the company directors. &nbsp;Jeffrey Conrad is also a managing member of eFund Capital Partners, LLC. &nbsp;Mr. Conrad jointly has authority regarding the portfolio management decisions with respect to the shares of common stock owned by eFund Capital Partners, LLC. Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Conrad does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;eFund Capital Partners, LLC received their shares pursuant to an investment agreement with us in April of 2004. Total payments made during the 6 months ended June 30, 2005 were $110,422, with an unpaid balance
 of $12,500 at June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we issued 2,000,000 each to our two founders, Kambiz Mahdi and Reza Zarif, for no cash consideration when converted the corporation from an S to a C corporation in order for the two founders to maintain ownership in the corporation going forward.</P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us. &nbsp;In exchange, we gave eFund Capital Partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Ev
ans and Mr. Conrad have both been directors of ours since May 2004.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 100 shares of Series A Preferred Stock to Kambiz Mahdi pursuant to a Series A Convertible Preferred Stock Agreement.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 100 shares of Series A Preferred Stock to Reza Zarif pursuant to a Series A Convertible Preferred Stock Agreement.</P>
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<P style="margin:0pt; font-family:Times New Roman">In July 2004 eFund Capital Partners, LLC assigned 1,000,000, shares of common stock and 33 shares of Series A Convertible Preferred Stock to Ashford Capital, LLC. The Managing Member of Ashford Capital, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Ashford Capital, LLC received there shares pursuant to an assignment agreement with eFund Capital Partners, LLC. &nbsp;Ashford Capital, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kav
anaugh was a director of ours from May 2004 until December 2004. &nbsp;eFund assigned its shares to Ashford as a result of eFund realizing they needed more assistance with restructuring the company&#146;s business operations and they want Ashford to also be involved in assisting them with the Probe&#146;s restructure.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 we entered into a credit line agreement with Rufina V. Paniego for $75,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditors wil
ling to provide a loan for 20% or less interest. There is currently an outstanding balance of $75,000 as of June 30, 2005. &nbsp;Rufina Paniego is the wife of Reza Zarif who is the company&#146;s founder, COO and director. Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $3,345 of interest , with accrued interest payable of &nbsp;$3,287 at June 30, 2005.</P>
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<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In July of 2004 eFund Capital Partners, LLC assigned 67 shares of Series A Convertible Preferred Stock to Apt Leadership, LLC as consideration for Apt Leadership, LLC&#146;s assistance in helping restructuring our company. The Managing Member of Apt Leadership, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Apt Leadership, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kavanaugh was a director of ours from May 2004 until December 20
04.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>In September of 2004 we issued the Ashford Transition Fund, L.P 40 shares of the company&#146;s &nbsp;Series A Convertible Preferred Stock as consideration for a loan they gave the company in the amount of $456,000. &nbsp;Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $60,060 of interest , with accrued interest of $20,020 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In September of 2004 eFund Capital Partners, LLC assigned 30 shares of Series A Convertible Preferred Stock to Dennis Benner. &nbsp;Dennis Benner is a director of ours and acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &nbsp;&#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them. &nbsp;Mr. Benner and eFund Capital Partners, LLC have no affiliation.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005, we entered into a credit line agreement with eFund Capital Partners, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other c
reditors willing to provide a loan for 20% or less interest. &nbsp;There is currently an outstanding balance of $75,000 as of June 30, 2005. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $3,890 of interest , with accrued interest payable of &nbsp;$4,029 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $350,000 as consideration. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2
004.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Kambiz Mahdi 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;&nbsp;Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Reza Zarif 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;Reza Zarif is our chief executive officer and a director of ours. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He has all the rights pursuant to such ownership.</P>
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<P style="margin:0pt; font-family:Times New Roman">On December 31, 2004, Ashford Capital, LLC, eFund Capital Parnters, LLC each returned 750,000 shares of common stock to the company for cancellation and Kambiz Mahdi and Reza Zarif each returned 1,750,000 shares to the company for cancellation. &nbsp;This transaction took place because our board of directors and our large inside shareholders thought it was in the best interest of the company to reduce the number of outstanding shares of common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 we entered into a credit line agreement with Ashford Capital, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditors
 willing to provide a loan for 20% or less interest. &nbsp;There is currently an outstanding balance of $100,000 as of &nbsp;June 30, 2005. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $5,104 of interest , with accrued interest payable of &nbsp;$4,882 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">On January 1, 2005 we entered into a credit line agreement with Rufina V. Paniego for $75,000.00. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 3007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the company &nbsp;was &nbsp;no
t &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $75,000. &nbsp;Rufina Paniego is the wife of Reza Zarif who is our founder, COO and director.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 8, 2005 we entered into a credit line agreement with Benner Exemption Trust for $200,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accursed and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditor
s willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $140,000 as of June 30, 2005. Dennis Benner is a director of the company and controls the Benner Exemption Trust. Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $2,738 of interest , with accrued interest payable of &nbsp;$3,780 at June 30, 2005.</P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 22, 2005 we entered into a credit line agreement with Edward Lassiter for $100,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditors willi
ng to provide a loan for 20% or less interest. There is currently an outstanding balance of $140,000 as of June 30 2005. &nbsp;Edward Lassiter is a shareholder of the company and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter currently holds 312,500 shares of the company&#146;s common stock, which is 9% of the outstanding shares of common stock. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $493 of interest , with accrued interest payable of &nbsp;$3,304 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">There is currently no public market for our common stock, and a public market may never develop. &nbsp;While we will seed to obtain a market maker to apply for the inclusion of our common stock on the Over-the-Counter- Bulletin Board we may not be successful in our efforts, and owners of our common stock may not have a market in which to sell the shares. &nbsp;Even if the common stock were quoted in a market, there may never be substantial activity in such market and if there is substantial activity, such activity may not be maintained, and no prediction can be made as to what prices may prevail in market.</P>
<B><P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:12pt"><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SHAREHOLDERS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of October 14, 2005, there were approximately 57 holders of record of our common stock. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>DIVIDEND POLICY</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We have never declared a cash dividend on our common stock and our board of directors does not anticipate that we will pay cash dividends in the foreseeable future. Any future determination to pay cash dividends will be at the discretion of our board of directors and will depend upon our financial condition, operating results, capital requirements, restrictions contained in our agreements and other factors which our board of directors deems relevant. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>EXECUTIVE COMPENSATION</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=759.733><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual Compensation &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long Term Compensation</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--------------------------------------- &nbsp;----------------------------------------------------------</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards &n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payouts</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;------------------------------ &nbsp;&nbsp;&nbsp;&n
bsp;-----------------------</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;&nbsp;&nbsp;&nbsp;Securities</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underlying &nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LTIP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All &nbsp;&nbsp;Other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name and Principal Position &nbsp;&nbsp;Year (1) &nbsp;Salary &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($)Bonus &nbsp;&nbsp;($) &nbsp;&nbsp;&nbsp;Comp ($) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options/SARs &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payout ($) &nbsp;Comp. ($)</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________________________________________________________________________________</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kambiz Mahdi, Chief &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002 &nbsp;&nbsp;&nbsp;&nbsp;$230,513.79 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003 &nbsp;&nbsp;&nbsp;&nbsp;$174,632.59 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officer and Director &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004 &nbsp;&nbsp;&nbsp;&nbsp;$167,000.00 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reza Zarif, Chief &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002 &nbsp;&nbsp;&nbsp;&nbsp;$230,513.79 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Officer &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003 &nbsp;&nbsp;&nbsp;&nbsp;$174,632.59 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;0 </P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004 &nbsp;&nbsp;&nbsp;&nbsp;$167,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
</TD></TR>
<TR><TD width=759.733>&nbsp;</TD></TR>
<TR><TD width=759.733>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman">Currently we do not have any of our executives or officers under employments contracts. However, Kambiz Mahdi, our former chief executive officer and Reza Zarif, our former chief operations officer, and current chief executive officer have orally agreed to accept $167,000 per annum as compensation for his services. We anticipate that in fourth quarter of 2005 we will have employment agreements in place with several of our key executives and officers. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">On September 15, 2005 our board of directors replaced our chief executive officer, Kambiz Mahdi, with Reza Zarif, our former chief operations officer. &nbsp;Mr. Mahdi will stay with Probe and will shift his focus on sales and current customer accounts.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>ADDITIONAL INFORMATION</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">We filed with the Securities and Exchange Commission a registration statement on Form SB-2 under the Securities Act of 1933 for the shares of common stock in the offering, &nbsp;of &nbsp;which this prospectus is a part. This prospectus does not contain all of the information &nbsp;in &nbsp;the &nbsp;registration &nbsp;statement and the exhibits and schedules &nbsp;that &nbsp;were &nbsp;filed &nbsp;with &nbsp;the &nbsp;registration &nbsp;statement. &nbsp;For &nbsp;further information &nbsp;we &nbsp;refer &nbsp;you &nbsp;to &nbsp;the registration statement and the exhibits and schedules that were filed with the registration statement.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Statements &nbsp;contained &nbsp;in &nbsp;this prospectus about the contents of any contract or any other document that is filed as an exhibit to the registration statement are not &nbsp;necessarily &nbsp;complete, and we refer you to the full text of the contract or other &nbsp;document filed as an exhibit to the registration statement. A copy of the registration &nbsp;statement &nbsp;and the exhibits and schedules that were filed with the registration &nbsp;statement &nbsp;may be inspected without charge at the Public Reference Room &nbsp;maintained &nbsp;by the Securities and Exchange Commission at 100 F Street, N.E., &nbsp;Washington, D.C. 20549, and copies of all or any part of the registration statement &nbsp;may &nbsp;be &nbsp;obtained &nbsp;from &nbsp;the &nbsp;Securities and Exchange Commission upon payment of the prescribed fee. Information regarding the operation of the Public Reference Room may be obtained by calling the Securities and Exchange C
ommission at 1-800-SEC-0330.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The &nbsp;Securities &nbsp;and &nbsp;Exchange &nbsp;Commission &nbsp;maintains &nbsp;a &nbsp;web site that contains reports, &nbsp;proxy &nbsp;and &nbsp;information &nbsp;statements, &nbsp;and &nbsp;other information regarding registrants &nbsp;that &nbsp;file &nbsp;electronically with the SEC. The address of the site is www.sec.gov.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR>
<BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Page 15 of 106</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>FINANCIAL STATEMENTS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Report of Independent Registered Public Accounting Firm</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Board of Directors</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Probe Manufacturing, Inc.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Costa Mesa, California</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We have audited the accompanying balance sheet of Probe Manufacturing, Inc. as of December 31, 2004, and the related statements of operations, stockholders&#146; deficit and cash flows for the year then ended. &nbsp;These financial statements are the responsibility of the Company&#146;s management. &nbsp;Our responsibility is to express an opinion on these financial statements based on our audit.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (Unites States) in accordance with auditing standard No. 1 of the PCAOB. &nbsp;Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. &nbsp;An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. &nbsp;An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. &nbsp;We believe that our audit provides a reasonable basis for our opinion.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Probe Manufacturing, Inc., as of December 31, 2004, and the results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The financial statements for the year ended December 31, 2003, were audited by other accountants, whose report dated September 30, 2004 on those statements included an explanatory paragraph describing conditions that raised substantial doubt about the Company&#146;s ability to continue as a going concern.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. &nbsp;As discussed in Note 1 to the financial statements, the Company&#146;s recurring losses from operations and its difficulties in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. &nbsp;Management&#146;s plans concerning these matters are also described in Note 1. &nbsp;The financial statements do not include any adjustments that might result from the outcome of this uncertainty. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>/s/ Jaspers + Hall, PC</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Jaspers + Hall, PC</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Denver, Colorado</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>May 25, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Report of Independent Registered Public Accounting Firm</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Board of Directors</P>
<P style="margin:0pt; font-family:Times New Roman">Probe Manufacturing Industries, Inc.</P>
<P style="margin:0pt; font-family:Times New Roman">Costa Mesa, California</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We have audited the accompanying balance sheet of Probe Manufacturing Industries, Inc. as of December 31, 2003, and the related statements of operations, stockholders&#146; deficit and cash flows for the year then ended. &nbsp;These financial statements are the responsibility of the Company&#146;s management. &nbsp;Our responsibility is to express an opinion on these financial statements based on our audit.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">We conducted our audit in accordance with auditing standards generally accepted in the United States of America. &nbsp;Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. &nbsp;An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. &nbsp;An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. &nbsp;We believe that our audit provides a reasonable basis for our opinion.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Probe Manufacturing Industries, Inc., as of December 31, 2003, and the results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. &nbsp;As discussed in Note 1 to the financial statements, the Company&#146;s recurring losses from operations and its difficulties in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. &nbsp;Management&#146;s plans concerning these matters are also described in Note 1. &nbsp;The financial statements do not include any adjustments that might result from the outcome of this uncertainty. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>/s/ Michael Johnson &amp; Co., LLC</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Michael Johnson &amp; Co., LLC</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Denver, Colorado</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>September 30, 2004</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">1</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>BALANCE SHEETS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>December 31</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>ASSETS</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=center><B>2004</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=center><B>2003</B></P>
</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Current Assets:</B></P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Cash</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Accounts receivable - trade - net</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;501,433 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,133,554 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Inventory</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;692,815 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;363,594 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Prepaid expenses</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,060 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Total Current Assets</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,294,710 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,497,148 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933>&nbsp;</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Property and equipment - net</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;678,230 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;905,371 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933>&nbsp;</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Deposits</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,997 </P>
</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>TOTAL ASSETS</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;1,982,940 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ 2,417,516 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933>&nbsp;</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933>&nbsp;</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>LIABILITIES AND STOCKHOLDERS' DEFICIT</B></P>
</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Current Liabilities:</B></P>
</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Bank overdraft</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100,567 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;151,802 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Accounts payable - trade</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;682,564 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,673,468 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Accrued expenses</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;270,981 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;924,155 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Line of credit borrowings</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;140,063 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,169,052 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Notes payable</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;531,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Current portion of capital lease obligations</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133,845 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;471,031 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Total Current Liabilities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,859,020 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;4,389,508 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933>&nbsp;</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Long-Term Debt:</B></P>
</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Other long-term debt</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221,900 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Capital lease obligations - net of current portion</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;914,458 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;656,844 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Total Long-Term Debt</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,136,358 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;656,844 </P>
</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>TOTAL LIABILITIES</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,995,378 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;5,046,352 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933>&nbsp;</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Stockholders' Deficit:</B></P>
</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Preferred A stock, stated value $1,000 per share; 440 shares</P>
</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; 440 shares issued and outstanding</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Preferred B stock, stated value $100 per share; 20,000 shares</P>
</TD><TD valign=bottom width=96.4>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; 12,500 shares issued and outstanding</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,250,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Common stock, $.001 par value; 200,000,000 shares</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; text-indent:2.4pt; font-family:Times New Roman">&nbsp;authorized; 2,613,125 and 10,000 shares issued and outstanding, as of December 31, 2004 and 2003 respectively</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Additional paid-in capital</P>
</TD><TD valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,329,673)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,192,596 </P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Accumulated deficit</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;(3,821,442)</P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=380.933><P style="margin:0pt; font-family:Times New Roman">Total Stockholders' Deficit</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,012,438)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;(2,628,836)</P>
</TD></TR>
<TR><TD valign=bottom width=396.667 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=96.4><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;1,982,940 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=92.2><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ 2,417,516 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The accompanying notes are an integral part of these financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Statements of Operations</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>For the Years Ended December 31</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=397>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=center>2004</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=center>2003</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>SALES</P>
</TD><TD valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$6,204,957 </P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ 6,455,728 </P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>COST OF GOODS SOLD</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;4,988,538 </P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;5,085,672 </P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>GROSS PROFIT </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,216,419 </P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,370,056 </P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;</P>
</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>GENERAL AND ADMINISTRATIVE </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;1,964,325 </P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,078,109 </P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>NET LOSS FROM OPERATIONS</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(747,906)</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(708,053)</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>OTHER INCOME/(EXPENSES):</P>
</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;Other income</P>
</TD><TD valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;275,228 </P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;Interest expense</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(445,112)</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(535,908)</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>NET LOSS BEFORE INCOME TAXES</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(917,790)</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;(1,243,961)</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>INCOME TAXES</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(800)</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(800)</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>NET LOSS</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;(918,590)</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$(1,244,761)</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>Per Share Information:</P>
</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>Weighted average number</P>
</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>of common shares outstanding</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;4,152,149 </P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=397><P style="margin:0pt; font-family:Times New Roman" align=justify>Net Loss per common share</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=109.133><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.22)</P>
</TD><TD valign=bottom width=28>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=90.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;(124.48)</P>
</TD></TR>
<TR><TD valign=bottom width=397>&nbsp;</TD><TD valign=bottom width=109.133>&nbsp;</TD><TD valign=bottom width=28>&nbsp;</TD><TD valign=bottom width=90.067>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The accompanying notes are an integral part of these financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR>
<BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">2</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>STATEMENTS OF STOCKHOLDERS&#146; DEFICIT </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=157.133>&nbsp;</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=157.133>&nbsp;</TD><TD style="border:0.5pt solid #000000" valign=bottom width=126.333 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Preferred Stock A $1,000 Stated Value</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=116.533 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Preferred Stock B &nbsp;&nbsp;&nbsp;$100 Stated Value</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Common Stock &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.001 Par</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72 rowspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Additional Paid in Capital</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72 rowspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Advances to Related Parties</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=84 rowspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Accumulated Deficit</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96 rowspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><B>Stockholders' Deficit Totals</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman" align=center><B>&nbsp;Amount </B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman" align=center><B>Amount</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman" align=center><B>Amount</B></P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Balance, December 31, 2002</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman" align=center><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </B></P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,308,528 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(130,166)</P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,576,681)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,398,309)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Advances to related parties</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,166 </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,166 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Distributions</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115,932)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115,932)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Net loss</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,244,761)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,244,761)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Balance, December 31, 2003</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,192,596 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,821,442)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,628,836)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133>&nbsp;</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Stock Issued to founders</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=right>200</P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000 </P>
</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,990,000 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,990 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(203,990)</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Stock Cancelled</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;(3,500,000)</P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,500)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,500 </P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Stock issued for cash</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman" align=right>200</P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000 </P>
</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000,000 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48,000 </P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Stock Cancelled</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;(1,500,000)</P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,500)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 </P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Stock Issued in lieu of debt</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;12,500 </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,250,000 </P>
</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(255,512)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;994,488 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Stock issued in consideration for note to Company</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,000 </P>
</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40,000)</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Shares issued for cash</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,506,250 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,506 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,203,494 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,205,000 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Shares issued for services</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;106,875 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;107 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,393 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,500 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Net loss through end of s-corp life</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(543,212)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(543,212)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Transfer of equity at end of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s-corp life</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,364,654)</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,364,654 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Net loss subsequent to s-corp life</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; font-family:Times New Roman">Balance, December 31, 2004</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=67.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440,000 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=54.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;12,500 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=61.867><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;1,250,000 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613,125 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;(2,329,673)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,012,438)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The accompanying notes are an integral part of these financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">3</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>STATEMENTS OF CASH FLOWS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>For the years ended December 31</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=center><B>2004</B></P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=center><B>2003</B></P>
</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash Flows from Operating Activities:</B></P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Net Loss</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(918,590)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$(1,244,761)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Adjustments to reconcile net loss to net cash</P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;used in operating activities:</P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;241,086 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;299,691 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;Net bad debt recoveries</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;182,690 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;Debt forgiveness</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(275,228)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;Stock issued for services</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,500 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;Changes in assets and liabilities:</P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;632,121 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,455 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in inventory</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(329,221)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(118,386)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60,060)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in deposits</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,997 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,722 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accounts payable</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(990,904)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(78,931)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Other (Decrease) increase in accrued expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(624,022)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;602,323 </P>
</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Net Cash Used In Operating Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,234,321)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(306,197)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash Flows from Investing Activities</B></P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Purchase of property and equipment</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,945)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(63,637)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash Flows Used In Investing Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,945)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(63,637)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash Flows from Financing Activities</B></P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Bank overdraft</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,235)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;151,802 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Borrowings / (Payments) on line of credit, net</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(810,719)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;169,083 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Advances from related parties</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,166 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Distributions</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115,932)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Proceeds from long term debt</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221,900 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Stock issued for debt</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;994,488 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Principal payments on capital lease obligations</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,766)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(91,344)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Proceeds from sale of stock</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,455,000 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Proceeds from notes payable</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;531,000 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash Flows Provided By Financing Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,288,668 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243,775 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Net (Decrease) Increase in Cash and Cash Equivalents</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(126,059)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash and Cash Equivalents at Beginning of Period</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126,059 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash and Cash Equivalents at End of Period</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Supplemental Information:</B></P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Interest Paid</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120,975 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;276,256 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Income Taxes Paid</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;800 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;800 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933>&nbsp;</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Times New Roman">Non-cash investing and financing activities</P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Times New Roman">Issuance of 12,500 shares of preferred B stock in exchange for cancellation of indebtedness of $994,488</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;994,488 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The accompanying notes are an integral part of these financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Notes 1- <U>GENERAL</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>The Company</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Probe Manufacturing Industries, Inc. was incorporated on July 7, 1995<B>. </B>On April 21, 2005, the Company was redomiciled from California to Nevada whereby, it changed its name to Probe Manufacturing, Inc. &nbsp;Probe Manufacturing, Inc. (the &#147;Company&#148; or &#147;Probe&#148;) is a leading provider of advanced electronics manufacturing services, or EMS, to original equipment manufacturers, or OEMs, primarily in the industrial and instrumentation, communication, semiconductor, automotive, medical, and military segments. This would include globally integrated end to end manufacturing solutions ranging from engineering printed circuit card assembly, cable assembly, enclosures, complete system integration and test, as well as global order fulfillment.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Going Concern</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. &nbsp;The Company incurred a net loss of &nbsp;$918,590 for the year ended December 31, 2004 and has a working capital deficit of approximately $564,310 at December 31, 2004. The ability of the Company to operate on a going concern is dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) cut operating costs such that the Company can operate until such time that it resumes generating positive cash flow from operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Management is taking following steps to address this situation: (a) reducing operating costs, thus reducing the break even revenue level; (b) negotiating to replace the line of credits with an agreement more attractive terms and expand borrowing capacity. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;The future success of the Company is likely dependent on its ability to attain additional capital to support growth and ultimately, upon its ability to attain future profitable operations. &nbsp;There can be no assurance that the Company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. &nbsp;The successful outcome of these or any future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute their business plans or generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Cash and Cash Equivalents</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company maintains the majority of its cash accounts at a commercial bank. The total cash balance is insured by the Federal Deposit Insurance Corporation (&#147;FDIC&#148;) up to $100,000 per commercial bank. As of December 31, 2004, the Company had zero amounts in excess of the FDIC insured limits. For purposes of the statement of cash flows, the Company considers all cash and highly liquid investments with initial maturities of three months or less to be cash equivalents.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR>
<BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">4</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)</U></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; text-indent:-36pt; font-family:Times New Roman" align=justify><B>Estimates</B></P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates may be materially different from actual financial results. Significant estimates include the recoverability of long-lived assets and the collectibility of accounts receivable.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Accounts Receivable</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company grants credit to customers within the United States of America and does not require collateral. The Company&#146;s ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by the Company.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Reserves for un-collectable amounts are provided, based on past experience and a specific analysis of the accounts, which management believes are sufficient. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts. As of December 31, 2004, the Company has a reserve of $97,569.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Six (6) customers accounted for approximately 88% of accounts receivable at December 31, 2004 and 92% of the net sales for the year ended December 31, 2004. The Company&#146;s trade accounts primarily represent unsecured receivables. &nbsp;Historically, the Company&#146;s bad debt write-offs related to these trade accounts have been insignificant.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Inventory</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="background-color:#FFFFFF; margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Inventories are valued at the lower of weighted average cost or market value. &nbsp;&nbsp;Our Industry experiences changes in technology, changes in market value and availability of the raw materials, as well as changing customer demand. &nbsp;The company makes provisions for estimated excess and obsolete inventories based on regular reviews and cycle counts of our on-hand inventory levels and forecasted customer demands and at times additional provisions are made. &nbsp;As of December 31, 2004 the company has a reserve of $347,294.</P>
<P style="background-color:#FFFFFF; margin:0pt; padding-left:45pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Property and Equipment </B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Property and equipment, including renewals and betterments, are stated at cost. Assets held under capital leases are recorded at lease inception at the lower of the present value of the minimum lease payments or the fair market value of the related assets. &nbsp;The Company follows the practice of capitalizing property and equipment purchased over $1,250. &nbsp;The cost of ordinary maintenance and repairs is charged to operations while renewals and replacements are capitalized. &nbsp;Depreciation and amortization are computed on the straight-line method over the following estimated useful lives of the related assets, which range from three to twenty years, and are as follows:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Furniture and fixtures</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>3 to 7 years</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Equipment</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>7 to 10 years</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Vehicles</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>5 years</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Leasehold improvements</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>20 years (estimated life of the lease)</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Year Ended December 31, 2004</I></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Long &#150;Lived Assets</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company&#146;s management assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long lived assets over their remaining lives can be recovered through projected undiscounted future cash flows. The amount of long lived asset impairment, if any, is measured based on fair value and is charged to operations in the period in which long lived assets impairment is determined by management. At December 31, 2004, the Company&#146;s management believes there is no impairment of its long-lived assets. There can be no assurance however, that market conditions will not change or demand for the Company&#146;s services will continue, which could result in impairment of long-lived assets in the future.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Revenue Recognition</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Revenue from product and services are recognized at the time goods are shipped or services are provided to the customer, with an appropriate provision for returns and allowances. &nbsp;Terms are generally FOB destination with right of inspection and acceptance. &nbsp;The company has not experienced a material amount of rejected or damaged product.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>Fair Value of Financial Instruments</I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The carrying amount of accounts payable and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of these financial instruments. </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Other Comprehensive Income</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company has no material components of other comprehensive income (loss) and accordingly, net loss is equal to comprehensive loss in all periods.</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Federal Income Taxes</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>As of January 1, 2004, the company was considered an S Corporation For Federal and State income tax purposes, consequently there was no provision for income taxes as any income or loss was taxed to the shareholders. In May 2004, the Company issued a second class of stock, which caused a termination of the S Corporation election by operation of law. Losses incurred in 2004 subsequent to the date of the termination will be carried forward to offset future taxable income, if any. &nbsp;&nbsp;In connection with the termination of the S-Corp election, the accumulated deficit through that point in time ($4,364,654) was transferred to additional paid in capital.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Segment Information</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Corporation operates primarily in a single operating segment, providing printed circuit boards and electronic assemblies.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Year Ended December 31, 2004</I></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman"><B><I>Stock Based Compensation</I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (&#147;SFAS No. 123&#146;) allows an entity to elect to continue to measure compensation cost under Accounting Principles Board Opinion No. 25, &#147;Accounting for Stock Issued to Employees&#148; (&#147;APB No. 25&#148;), but requires pro forma disclosures of net loss and loss per share as if the fair-valued-based method of accounting had been applied. &nbsp;In accordance with SFAS 123, the Company elected to continue to measure compensation cost under APB No. 25, and comply with the pro forma disclosure requirements.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company has adopted for footnote disclosure purposes SFAS No. 123, which requires that companies disclose the cost of stock-based employee compensation at the grant date based on the value of the award (the fair value method) and disclose this cost over the service period. &nbsp;The value of the stock-based award is determined using a pricing model whereby compensation cost is the excess of the fair value of the award as determined by the model at grant date or other measurement date over the amount an employee must pay to acquire the stock.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Transactions in which goods or services are received from non-employees for the issuance of equity securities or stock-based awards are accounted for based on the fair value of the consideration received. &nbsp;Stock amounts of $85,500 were valued for services during the year ended December 31, 2004. </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman"><B>Net Loss Per Common Share</B></P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman" align=justify>Basic loss per share is computed on the basis of the weighted average number of common shares outstanding. For the period ended December 31, 2004, all of the Company's common stock equivalents were excluded from the calculation of diluted loss per common share because they were anti-dilutive, due to the Company's net loss in that year. At December 31, 2004 there were warrants outstanding to purchase 9,000,000 common shares which may dilute future earnings per share. At December 31, 2004 there were 440 shares of Preferred A outstanding which would convert to 1,149,775 common shares which may dilute future earnings per share. At December 31, 2004 there were 440 shares of Preferred B outstanding which would convert to 12,500,000 (based on the maximum conversion rate) common shares which may dilute future earnings per share.</P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 3 - <U>INVENTORY</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Inventories at December 31, 2004 by major classification, were comprised of the following:</P>
<P style="background-color:#FFFFFF; margin:0pt; padding-left:45pt; text-indent:27pt; font-family:Times New Roman" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=312><P style="margin:0pt; font-family:Times New Roman">Raw Material</P>
</TD><TD valign=bottom width=109><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$885,368 </P>
</TD></TR>
<TR><TD valign=bottom width=312><P style="margin:0pt; font-family:Times New Roman">Work in Process</P>
</TD><TD valign=bottom width=109><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,661 </P>
</TD></TR>
<TR><TD valign=bottom width=312><P style="margin:0pt; font-family:Times New Roman">Finished Goods</P>
</TD><TD valign=bottom width=109><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,079 </P>
</TD></TR>
<TR><TD valign=bottom width=312><P style="margin:0pt; font-family:Times New Roman">Inventory Reserve for excess or obsolete</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109><P style="margin:0pt; padding-left:13.35pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(347,294)</P>
</TD></TR>
<TR><TD valign=bottom width=312><P style="margin:0pt; font-family:Times New Roman">Total Inventory</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=109><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$692,815 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; padding-left:-9pt; padding-right:-72pt; text-indent:297pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 4 &#150; <U>PROPERTY AND EQUIPMENT</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Property and equipment were comprised of the following at December 31, 2004:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Furniture and fixtures</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;$ 253,512</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:369pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:405pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Equipment</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:189pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,944,742 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Vehicles</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44,708 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Leasehold improvements</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;163,154</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,406,116 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Less accumulated depreciation and amortization &nbsp;&nbsp;&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>(2,727,886</U>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>$ &nbsp;&nbsp;678,230</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Year Ended December 31, 2004</I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 5 &#150; <U>LINE OF CREDIT</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company had a revolving line of credit (the &#147;Line&#148;) with a financial institution, which allowed them to borrow a maximum of $1,100,000 based on 80% of eligible accounts receivable, as defined. &nbsp;Borrowings under the Line, bore interest at prime (4.25% plus 10.5% per annum) were secured by substantially all of the Company&#146;s assets and are personally guaranteed by the stockholders. &nbsp;In March 2004 the Line was restructured into a term loan in the amount of $500,000. Terms of the Note were: (1) monthly installment payments of $5,000, (2) interest at the rate of 4% plus the prime rate by the agent &nbsp;(3) secured by accounts receivable (4) with a discount provision of $200,000 after timely payments of the first $300,000. &nbsp;In December 2004, the note was restructured into a new line of credit and discounted by $200,000. This new line of credit allows the Company to borrow a maximum of $140,000 base
d on 80% of eligible accounts receivables, payable in monthly installments of &nbsp;$5,000 plus interest at the rate of 4% plus the prime-lending rate. &nbsp;As of December 31, 2004, the Company had borrowed $140,063. &nbsp;<B>&nbsp;</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>NOTE 6 - <U>CAPITAL LEASE OBLIGATIONS</U></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company is a lessee of certain equipment under capital leases that expire on various dates through April 2008. &nbsp;Terms of the lease call for monthly payments ranging from $314 to $9,163, at implicit rates of interest ranging from 8.6% to 25.0% per annum (the incremental borrowing rate). &nbsp;The assets and liabilities under capital leases are recorded at lease inception at the lower of the present value of the minimum lease payments or the fair market value of the related assets. &nbsp;The assets are depreciated over their estimated useful lives.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Minimum future lease payments under current lease agreements at December 31, 2004 are as follows:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;$ 133,845</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006 </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,962</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2007 </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;870,859</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2008 &nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:252pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;5,500</U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total minimum lease payments</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;1,132,166</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less amount representing interest &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(83,863)</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Present value of net minimum lease payments &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;1,048,303</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:117pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Less current portion &nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;(133,845</U>)</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:333pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:81pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term portion</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>$ 914,458</U></P>
<P style="margin:0pt; padding-left:-9pt; text-indent:369pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I>The following is an analysis of the equipment under capital leases as of December 31, 2004, </I></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">which is included in property and equipment:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">Equipment</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman">$ 1,797,958</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">Less accumulated depreciation</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman"><U>&nbsp;&nbsp;(1,448,230</U>)</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">Net</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman"><U>$ &nbsp;&nbsp;&nbsp;349,728</U></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Year Ended December 31, 2004</I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>NOTE 7 &#150;<U> NOTES PAYABLE</U></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Notes Payable consist of the following at December 31, 2004:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Note payable, secured by deed of trust, 14% interest, due in</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;January 2005 to wife of shareholder of the Company</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman">$ 50,000</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Note payable, 12% interest, due in &nbsp;January 2005 to </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Efund Capital, a related party</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:153pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;25,000</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Note payable, secured by deed of trust, 12% interest, due on </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">September 2005 to Ashford Capital Transition Fund I, LP, a </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">related party</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman">&nbsp;&nbsp;<U>456,000</U></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Total notes payable</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman"><U>$531,000</U></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Accrued interest on related party notes payable, included in </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">accrued expenses as of December 31, 2004, was $5,000.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Other Long-Term Debt</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Other long-term debt consist of settlements reached with (6) various vendors ranging from $1,400 to $120,000 with payment terms from two to five years in the total amount of $221,990. &nbsp;&nbsp;Monthly installment payments to these vendors range from $70 to $2,500. </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>NOTE 8 &#150;<U> COMMITMENTS AND CONTIGENCIES</U></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>Operating Rental Leases</I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I><BR></I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I>The Company leases its office and warehouse facilities in Costa Mesa, California from stockholders under an operating lease that requires minimum monthly payments of $19,790. &nbsp;The lease requires the Company to pay property taxes and maintenance, and expires in May 2022. &nbsp;For the year ended December 31, 2004, building rent expense was $242,244.</I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I><BR></I></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Future minimum rental payments under the non-cancelable related party operating lease are as follows:<BR>
<BR>
2005</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:51015.435pt; font-family:Times New Roman">$ &nbsp;237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">2006 </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:189pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:331.5pt; text-indent:-259.5pt; font-family:Times New Roman">2007</P>
<P style="margin:0pt; padding-left:331.5pt; text-indent:-70.5pt; font-family:Times New Roman">237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:331.5pt; text-indent:-259.5pt; font-family:Times New Roman">2008</P>
<P style="margin:0pt; padding-left:331.5pt; text-indent:-70.5pt; font-family:Times New Roman">237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:331.5pt; text-indent:-259.5pt; font-family:Times New Roman">2009</P>
<P style="margin:0pt; padding-left:331.5pt; text-indent:-70.5pt; font-family:Times New Roman">237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Remaining</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;<U>2,948,769</U></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman"><U>$4,136,194</U></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:7.2pt; text-indent:-18pt; font-family:Times New Roman"><B>NOTE 8 &#150;<U> COMMITMENTS AND CONTIGENCIES - &nbsp;(Continued)</U></B></P>
<P style="margin:0pt; padding-left:7.2pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:7.2pt; font-family:Times New Roman" align=center><B>Litigation</B></P>
<P style="margin:0pt; padding-left:7.2pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:7.2pt; font-family:Times New Roman" align=justify>The Company may be involved from time to time in various claims, lawsuits, and disputes with third parties, action involving allegations or discrimination or breach of contract actions incidental in the normal operations of the business. &nbsp;The Company is currently not involved in any such litigation which management believes could have a material adverse effect on its financial position</P>
<P style="margin:0pt; padding-left:7.2pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:7.2pt; text-indent:-18pt; font-family:Times New Roman" align=justify><B>NOTE 9 &#150;<U> CAPITAL STOCK TRANSACTIONS</U></B></P>
<P style="margin:0pt; padding-left:7.2pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On May 20th, 2004, the Company&#146;s Board of Directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; text-indent:-36pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(1)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>an amendment to the Articles of Incorporation of the Company, increasing the number of authorized shares to 110,000,000, 100,000,000 shares of which will be common stock &nbsp;and 10,000,000 &nbsp;shares of which shall be preferred stock.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(2)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>an amendment to the Articles of Incorporation of the Company authorizing a new series of Preferred stock, which shall be designated as Series A, and shall consist of 440 shares.</P>
<P style="margin:0pt; text-indent:-36pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On December 31, 2004, the Company&#146;s Board of Directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; padding-left:38.25pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(3)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>an amendment to the Articles of Incorporation of the Company authorizing a new series of Preferred stock, which shall be designated as Series B, and shall consist of 20,000 shares.</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On April 21, 2005, the Company&#146;s Board of Directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(4)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>The Company re-domiciled in the state of Nevada, where by increasing the number of authorized common shares to 200,000,000 and designating a par value of $.001 per share.</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">All share and per share amounts in the accompanying financial statements of the Company and notes thereto have been retroactively adjusted to give effect to the stock splits.</P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;<B>COMMON STOCK </B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our Articles of Incorporation authorize us to issue 200,000,000 shares of common stock, par value $0.001 per share. As of December 31, 2004 there were 2,613,125 shares of common stock issued and outstanding. All outstanding shares of common stock are, and the common stock to be issued in this offering will be, fully paid and non-assessable. &nbsp;Each share of our common stock has identical rights and privileges in every respect. The holders of our common stock are entitled to vote upon all matters submitted to a vote of our shareholders and are entitled to one vote for each share of common stock held. There are no cumulative voting rights.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The holders of our common stock are entitled to share equally in dividends and other distributions that our board of directors may declare from time to time out of funds legally available for that purpose, if any, after the satisfaction of any prior rights and preferences of any outstanding preferred stock. If we liquidate, dissolve or wind up, the holders of shares of common stock will be entitled to share ratably in the distribution of all of our assets remaining available for distribution after satisfaction of all our liabilities and our obligations to holders of our outstanding preferred stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>PREFERRED STOCK</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our Articles of Incorporation authorize to issue 10,000,000 shares of preferred stock. &nbsp;We authorized 440 as Series A Convertible Preferred Stock and have authorized 20,000 shares of Series B Convertible Preferred Stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of December 31, 2004, there were 440 shares of Convertible A Preferred Stock outstanding, with a stated value of $1,000. Each share is convertible into 0.1% percent of the shares of our common stock outstanding at the date of conversion. The shares shall convert at the earlier of the election of the holder, or March 26, 2006. The holder of the Convertible A Preferred Stock, has the right to vote, with the holders of common stock, on any matter to which the common stock holders are entitled to vote, the number of shares of common stock into which the Convertible A Preferred Stock is convertible. If we are liquidated, distribute our assets, dissolve or wind-up, the holders of Convertible A Preferred Stock shall receive the greater of (i) $2,500 per share of Convertible A Preferred Stock they hold at the time of such Liquidation, or (ii) their pro rata share of the total value of our assets and funds to be distributed, assuming the Convertible A preferred st
ock is converted to common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of December 31, 2004 there were 12,500 shares of Series B Convertible stock outstanding, with a stated value of $100. Each share of Series B Stock shall be converted into a number of shares of common stock that is equal to each share being divided by the average of the 3 lowest intraday bids in the twenty (20) days prior to conversion multiplied by 100 (1 divided by x, multiplied by 100), or 125 shares per Series B, whichever is greater. The minimum conversion price which Series B shareholders shall be to convert their Series B shares to common stock shall be $0.10. &nbsp;The Series B Stock shall have voting rights and voting will be on an as converted basis, with class votes for the election of directors, any transaction in which control of the Company is transferred in which the per share price consideration received by Purchaser is less than three (3) times the Purchase Price, the sale of the Company of all or substantially all of its assets, liquidati
on or winding up of the Company and any amendment to the Company&#146;s By-Laws or Articles of Incorporation in a manner adverse to Series B Stock. In the event of any voluntary or involuntary liquidation, distribution of assets (other than the payment of dividends), dissolution or winding-up of the Company, Series B Stock shall have preferential rights to the Company&#146;s common stock (the &#147;Common Stock&#148;) whereby Series B Stock shall get two times (2x) return on its capital. &nbsp;Once Series B Stock has recouped its two times (2x) return on capital then Series B Stock shall participate, on a pro rata basis, based on the number of shares of the Company&#146;s common stock (the &#147;Common Stock&#148;) into which the Series B Stock are convertible at the time of the liquidation, distribution of assets, dissolution or winding-up.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our board of directors has the authority to issue additional shares of preferred stock in one or more series, and fix for each series, the designation of, and number of shares to be included in, each such series. Our board of directors is also authorized to set the powers, privileges, preferences, and relative participating, optional or other rights, if any, of the shares of each such series and the qualifications, limitations or restrictions of the shares of each such series.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Unless our board of directors provides otherwise, the shares of all series of preferred stock will rank on parity with respect to the payment of dividends and to the distribution of assets upon liquidation. Any issuance by us of shares of our preferred stock may have the effect of delaying, deferring or preventing a change of our control or an unsolicited acquisition proposal. The issuance of preferred stock also could decrease the amount of earnings and assets available for distribution to the holders of common stock or could adversely affect the rights and powers, including voting rights, of the holders of common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>WARRANTS</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Series A Warrants:</P>
<P style="margin:0pt; font-family:Times New Roman">We currently have 900,000 Series A Warrants issued and outstanding that give the warrant holders the right to purchase a total of 5 shares of common stock at $2.00 per share. &nbsp;The Series A Warrants will expire on November 15, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Series B Warrants:</P>
<P style="margin:0pt; font-family:Times New Roman">We currently have 900,000 Series B Warrants issued and outstanding that give the warrant holders the right to purchase a total of 5 shares of common stock at $3.00 per share. &nbsp;The Series B Warrants will expire on May 15, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants Activity for the Period and Summary of Outstanding Warrants </B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">From June 16, 2004 to April 1, 2005 the Company sold &nbsp;222,125 common stock units pursuant to a Private Placement Memorandum at $8.00 per unit to 49 &nbsp;individuals generating net proceeds of $1,777,000. &nbsp;Each Unit consists of &nbsp;ten (10) shares of common stock. &nbsp;In addition, each unit entitles the holder to purchase a total of 10 shares of Probe Common Stock through the exercise of Warrants as follows: Class A Warrants, 5 shares at a price of $2.00 per share for a period of 12 months from November 16, 2004, which shall be November 15, 2005; and, Class B Warrants, 5 shares at a price of $3.00 per share for a period of 18 months from November 16, 2004, which shall be May 15, 2006. &nbsp;As of December 31, 2004, no warrants were exercised.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">A summary of warrant activity for 2004 is as follows:</P>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=159.6>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=78.4><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Number of</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrants</I></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=89.933><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercisable</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD></TR>
<TR><TD valign=top width=159.6><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">Outstanding, December 31, 2003 </P>
</TD><TD valign=top width=78.4><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>0 </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>0 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>0 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>$0.00</P>
</TD></TR>
<TR><TD valign=top width=159.6><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Granted</P>
</TD><TD valign=top width=78.4><P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933><P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2>&nbsp;</TD></TR>
<TR><TD valign=top width=159.6><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Exercised</P>
</TD><TD valign=top width=78.4><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right>0</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2>&nbsp;</TD></TR>
<TR><TD valign=top width=159.6><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">Outstanding, December 31, 2004 </P>
</TD><TD valign=top width=78.4><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><U>1,800,000</U></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><U>1,800,000</U></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">At December 31, 2004, the range of warrant prices for shares under warrants and the weighted-average remaining contractual life is as follows: </P>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=161.667>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=292.867 colspan=5><P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants Outstanding</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=186.2 colspan=3><P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants Exercisable</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=161.667><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Range of</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrant</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise Price</I></P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Number of</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrants</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=83.067><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=98.8><P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Remaining</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Contractual</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Life</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Number</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Of</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrants</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD></TR>
<TR><TD valign=top width=161.667><P style="margin:0pt; font-family:Times New Roman">$2.00 </P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=right>900,000 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=83.067><P style="margin:0pt; font-family:Times New Roman" align=right>$ 2.00 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=98.8><P style="margin:0pt; font-family:Times New Roman" align=right>.91 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=right>900,000 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right>$ 2.00</P>
</TD></TR>
<TR><TD valign=top width=161.667><P style="margin:0pt; font-family:Times New Roman">3.00 </P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=right>900,000 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=83.067><P style="margin:0pt; font-family:Times New Roman" align=right>3.00 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=98.8><P style="margin:0pt; font-family:Times New Roman" align=right>1.46 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=right>900,000 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right>3.00</P>
</TD></TR>
<TR><TD valign=top width=161.667>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=83.067>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=98.8>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I>NOTE 10 &#150;<U> RETIREMENT PLAN</U></I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">The Company has a 401(k) profit sharing plan (the &#147;Plan&#148;) in which all eligible employees, as defined, can elect to participate. &nbsp;Employees can contribute up to 15 percent of their earning, up to allowable IRS limits, each year. &nbsp;Employer contributions to the Plan are at the discretion of the Company and vest over a six-year period. &nbsp;During the year ended December 31, 2004, the Company did not make any contributions to the Plan.</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 11 &#150; <U>RELATED PARTY TRANSACTIONS</U> </B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company &nbsp;leases its 35,000 sq/ft facility for $20,000 per month from Kambiz Mahdi, Reza Zarif and Pacific Sail Bay Trust. &nbsp;&nbsp;Kambiz Mahdi is our Chief Executive Officer and a Director of ours. &nbsp;Reza Zarif is our Chief Operating Officer and a Director of ours. &nbsp;&nbsp;Pacific Sail Bay Trust is managed by Frank Kavanaugh. &nbsp;Frank Kavanaugh is also the managing member of Ashford Capital, LLC, and Apt Leadership, LLC and the managing partner of Ashford Transition Fund, L.P. &nbsp;Furthermore, Mr. Kavanaugh was a director of ours from July 2004 to December 2004. &nbsp;Total payments made in &nbsp;2004 were $236,727, with balance due of &nbsp;$3,273 at December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Jeffrey Conrad provides legal services for us and receives a monthly retainer of $2,500 and is one of our directors. &nbsp;Jeffrey Conrad is also a managing member of eFund Capital Partners, LLC. &nbsp;Mr. Conrad jointly has authority regarding the portfolio management decisions with respect to the shares of common stock owned by eFund Capital Partners, LLC. Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Conrad does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;eFund Capital Partners, LLC received their shares pursuant to an investment agreement with us in April of 2004. &nbsp;No payments were made under this agreement in 2004, leaving a balance due of $20,000 at December 31, 2004.</
P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us. &nbsp;In exchange, we gave eFund Capital Partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock
. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2004. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In July 2004 eFund Capital Partners, LLC assigned 1,000,000, shares of common stock and 33 shares of Series A Convertible Preferred Stock to Ashford Capital, LLC. The Managing Member of Ashford Capital, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Ashford Capital, LLC received three shares pursuant to an assignment agreement with eFund Capital Partners, LLC. &nbsp;Ashford Capital, LLC and eFund Capital Partners, LLC have no affiliation.
 &nbsp;Mr. Kavanaugh was a director of ours from May 2004 until December 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On July 1, 2004, we entered into a promissory note with Rufina V. Paniego for $50,000. &nbsp;This is an interest only note. &nbsp;There are no scheduled principal payments due other than on January 8, 2005, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 14% per annum. &nbsp;The note is secured by deed of trust. Rufina Paniego is the wife of Reza Zarif who is our founder, COO and director. &nbsp;Total payments made in 2004 consisted of $0 in principal and $3,476 in interest.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 11 <U>&#150; RELATED PARTY TRANSACTIONS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">In July of 2004 eFund Capital Partners, LLC assigned 67 shares of Series A Convertible Preferred Stock to Apt Leadership, LLC as consideration for Apt Leadership, LLC&#146;s assistance in helping restructuring our company. The Managing Member of Apt Leadership, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Apt Leadership, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kavanaugh was a director of ours from May
 2004 until December 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In September of 2004 we issued the Ashford Transition Fund, L.P 40 shares of our Series A Convertible Preferred Stock as consideration for a loan they gave the Company in the amount of $456,000. &nbsp;Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P. &nbsp;Total payments made in 2004 consisted of $0 in principal and $30,030 in interest. &nbsp;Accrued interest expense as of 12/31/04 &nbsp;was $5,000.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In September of 2004 eFund Capital Partners, LLC assigned 30 shares of Series A Convertible Preferred Stock to Dennis Benner. &nbsp;Dennis Benner is a Director of ours and acquired shares in our private placement memorandum dated June 9, 2004 as restated and amended on November 16, 2004 through &nbsp;&#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them. &nbsp;Mr. Benner and eFund Capital Partners, LLC have no affiliation.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On October 12, 2004, we entered into a promissory note with eFund Capital Partners, LLC for $25,000. &nbsp;This is an interest only note. &nbsp;There are no scheduled principal payments due other than on January 8, 2005, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 12% per annum. &nbsp;Total payments made in 2004 consisted of $0 in principal and $634 in interest.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December of 2004 we issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $350,000 as consideration. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ou
rs since May 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December of 2004 we issued Kambiz Mahdi 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;&nbsp;Kambiz Mahdi is our Chief Executive Officer and a Director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 11 <U>&#150; RELATED PARTY TRANSACTIONS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December of 2004 we issued Reza Zarif 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;Reza Zarif is our Chief Operating Officer and a Director of ours. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On December 31, 2004, Ashford Capital, LLC, eFund Capital Partners, LLC each returned 750,000 shares of common stock to the company for cancellation and Kambiz Mahdi and Reza Zarif each returned 1,750,000 shares to the company for cancellation. &nbsp;This was done to reduce the number of outstanding shares to be in line with the valuation of $.80/per share. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><I>NOTE 12 &#150; NEW ACCOUNTING PRONOUNCEMENTS</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">In February 2003, the Financial Accounting Standards Board (&#147;FASB&#148;) issued SFAS No. 150, &#147;Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity&#148; (SFAS No. 150&#148;). &nbsp;The provisions of SFAS No. 150 are effective for financial instruments entered into or modified after May 31, 2003, and otherwise are effective at the beginning of the first interim period beginning after June 15, 2003, except for mandatorily redeemable financial instruments of nonpublic entities. &nbsp;The Company has not issued any financial instruments with such characteristics.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December 2003, the FASB issued FASB Interpretation No. 46 (revised December 2003), &#147;Consolidation of Variable Interest Entities&#148; (FIN No. 46R&#148;), which addresses how a business enterprise should evaluate whether it has a controlling financial interest in an entity through means other than voting rights and accordingly should consolidate the entity. &nbsp;FIN No. 46R replaces FASB Interpretation No. 46, &#147;<I>Consolidation of Variable</I> <I>Interest Entities</I>&#148;, which was issued in January 2003. &nbsp;Companies are required to apply FIN No. 46R to variable interests in variable interest entities (&#147;VIEs&#148;) created after December 31, 2003. &nbsp;For variable interest in VIEs created before January 1, 2004, the Interpretation is applied beginning January 1, 2005. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>For any Vies that must be consolidated under FIN No. 46R that were created before January 1, 2004, the assets, liabilities and non-controlling interests of the VIE initially are measured at their carrying amounts with any difference between the net amount added to the balance sheet and any previously recognized interest being recognized as the cumulative effect of an accounting change. &nbsp;If determining the carrying amounts is not practicable, fair value at the date FIN No. 46R first applies may be used to measure the assets, liabilities and non-controlling interest of the VIE. &nbsp;The Company does not have any interest in any VIE.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December 2004, the FASB issued SFAS No 123(R)(revised 2004), Share-Based Payment&#148; which amends FASB Statement No. 123 and will be effective for public companies for interim or annual periods after June 15, 2005. &nbsp;The new standard will require entities to expense employee stock options and other share-based payments. &nbsp;The new standard may be adopted in one of three ways &#150; the modified prospective transition method, a variation of the modified prospective transition method or the modified retrospective transition method. &nbsp;The Company is evaluation how it will adopt the standard and evaluating the effect that the adoption of SFAS 123(R) will have on our financial position and results of operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 12 &#150; <U>NEW ACCOUNTING PRONOUNCEMENTS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In November 2004, the FASB issued SFAS No 151, <I>Inventory Costs, an amendment of ARB No. 43, Chapter</I>. &nbsp;This statement amends the guidance in ARB No. 43, Chapter 4, <I>Inventory Pricing</I>, to clarify the accounting for abnormal amounts of idle facility expense, freight, handling cost, and wasted material (spoilage). &nbsp;Paragraph 5 of ARB No. 43, Chapter 4, previously stated that &#147;. under some circumstances, items such as idle facility expense, excessive spoilage, double freight, and re-handling costs may be so abnormal as to require treatment as current period charges.&#148; &nbsp;SFAS No. 151 requires that those items be recognized as current-period charges regardless of whether they meet the criterion of &#147;so abnormal.&#148; &nbsp;In addition, this statement requires that allocation of </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>fixed production overheads to the costs of conversion be based on the prospectively and are effective for inventory costs incurred during fiscal years beginning after June 15, 2005, with earlier application permitted for inventory costs incurred during fiscal years beginning after the date this Statement was issued. &nbsp;The adoption of SFGAS No. 151 is not expected to have a material impact on the Company&#146;s financial position and results of operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December 2004, the FASB issued SFAS No.153, <I>Exchanges of Non-monetary Assets, an amendment of APB Opinion No. 29.</I> &nbsp;The guidance in APB Opinion No. 29, <I>Accounting for Non-monetary Transactions</I>, is based on the principle that exchanges of non-monetary assets should be measured based on the fair value of assets exchanged. &nbsp;The guidance in that Opinion, however, included certain exceptions to that principle. &nbsp;This Statement amends Opinion 29 to eliminate the exception for non-monetary exchanges of similar productive assets that do not have commercial substance. &nbsp;A non-monetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. &nbsp;SFAS No. 153 is effective for non-monetary exchanges occurring in fiscal periods beginning after June 15, 2005. &nbsp;The adoption of SFAS No. 153 is not expected to have a material impact on the 
Company&#146;s financial position and results of operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><U><BR></U></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><U>NOTE 13 &#150; SUBSEQUENT EVENTS</U></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>Proposed Sale of Securities</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company has proposed to file a Form SB-2 relating to the sale of certain of its securities in 2005. The terms of the prospectus relate to the sale of up to 3,328,125 shares of common stock, which represents 100% of the outstanding securities, by current shareholders. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The company had previously agreed to register the common stock shares that could be issued upon conversion of the Series B Convertible Preferred Stock by Series B stockholders but has removed the securities from the registration prospectus.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Furthermore, the company had previously agreed to register 5,625,000 of BTF, LLC who would have become a stockholder pursuant to a &quot;&#147;put right&#148;&quot; under an Investment Agreement, also referred to as an Equity Line of Credit, that the company entered into with BTF, LLC.&nbsp; However, the Investment Agreement with BTF, LLC has been terminated.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><U>NOTE 13 &#150; SUBSEQUENT EVENTS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B><I>Redomicile Of Corporation</I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In April 2005, the Corporation was redomiciled to the State of Nevada from the State of California. This process required that a new Nevada Corporation be incorporated, the assets of the old corporation were merged into the new corporation, and the old corporation was terminated.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I>Related Party Debt</I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005, the Company entered into a credit line agreement with eFund Capital Partners, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of an
y other creditors willing to provide a loan for 20% or less interest. &nbsp;There is currently an outstanding balance of $75,000 as of May 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 the Company entered into a credit line agreement with Ashford Capital, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other 
creditors willing to provide a loan for 20% or less interest. &nbsp;There is currently an outstanding balance of $100,000 as of May 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 the Company entered into a credit line agreement with Rufina V. Paniego for $75,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 3007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other cred
itors willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $75,000 as of May 2005. &nbsp;Rufina Paniego is the wife of Reza Zarif who is the Company&#146;s founder, COO and director.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Year Ended December 31, 2004</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><U>NOTE 13 &#150; SUBSEQUENT EVENTS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On March 8, 2005 the Company entered into a credit line agreement with Benner Exemption Trust for $200,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accursed and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of 
any other creditors willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $100,000 as of May 2005. Dennis Benner is a Director of the Company and controls the Benner Exemption Trust.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 22, 2005 the Company entered into a credit line agreement with Edward Lassiter for $100,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other creditors willi
ng to provide a loan for 20% or less interest. There is currently an outstanding balance of $100,000 as of May 2005. &nbsp;Edward Lassiter is a shareholder of the Company and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter currently holds 312,500 shares of the Company&#146;s common stock, which is 9% of the outstanding shares of common stock.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>FINANCIAL STATEMENTS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Report of Independent Registered Public Accounting Firm</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Board of Directors</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Probe Manufacturing, Inc.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Costa Mesa, California</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We have reviewed the accompanying balance sheet of Probe Manufacturing, Inc. as of June 30, 2005 and the related statements of operations for the three-month and six-month periods ended June 30, 2005 and the statements of cash flows for the six-month period ended June 30, 2005. &nbsp;These financial statements are the responsibility of the Company&#146;s management.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We conducted our reviews in accordance with standards established by the Public Company Accounting Oversight Board (United States). &nbsp;A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. &nbsp;It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. &nbsp;Accordingly, we do not express such an opinion.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with accounting principles generally accepted in the United States.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. &nbsp;As discussed in Note 1, conditions exist which raise substantial doubt about the Company&#146;s ability to continue as a going concern unless it is able to generate sufficient cash flows to meet its obligations and sustain its operations. &nbsp;The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the balance sheet as of December 31, 2004, and the related statements of operations, stockholders' deficit and cash flows for the year then ended (not presented herein). &nbsp;In our report dated May 25, 2005, we expressed an unqualified opinion on those financial statements. &nbsp;In our opinion, the information set forth in the accompanying balance sheet as of June 30, 2005 is fairly stated in all material respects in relation to the balance sheet from which it has been derived.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>/s/ &nbsp;Jaspers + Hall, &nbsp;PC</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Jaspers + Hall, PC</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Denver, Colorado</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>June 28, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">5</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=center>PROBE MANUFACTURING, INC.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>BALANCE SHEETS</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman" align=center>Un-Audited</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman" align=center><B>June 30,</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman"><B>December 31,</B></P>
</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>ASSETS</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman" align=center><B>2005</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=center><B>2004</B></P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Current Assets:</B></P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Cash</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76,939 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Accounts receivable - trade - net</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;701,723 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;501,433 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Inventory</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,182,477 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;692,815 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Prepaid expenses</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,060 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,060 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Total Current Assets</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,021,199 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,294,710 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Property and equipment - net</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;601,591 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;678,230 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Deposits</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,855 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>TOTAL ASSETS</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;2,638,645 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;1,982,940 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>LIABILITIES AND STOCKHOLDERS' DEFICIT</B></P>
</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Current Liabilities:</B></P>
</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Bank overdraft</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158,575 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100,567 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Accounts payable - trade</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;578,313 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;682,564 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Accrued expenses</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;342,716 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;270,981 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Line of credit borrowings</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;700,114 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;140,063 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Note payable</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;456,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;531,000 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Current portion of capital lease obligations</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133,845 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133,845 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Total Current Liabilities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,369,563 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,859,020 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Long-Term Debt:</B></P>
</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Other long-term debt</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;235,806 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221,900 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Capital lease obligations - net of current portion</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;795,398 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;914,458 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Total Long-Term Debt</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,031,204 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,136,358 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Stockholders' Deficit:</B></P>
</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Preferred A stock, stated value $1,000 per share; 440 shares</P>
</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; 440 shares issued and outstanding</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440,000 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Preferred B stock, stated value $100 per share; 20,000 shares</P>
</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; 12,500 shares issued and outstanding</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,250,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,250,000 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Common stock, $.001 par value; 200,000,000 shares</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">authorized; 3,328,125 and 2,613,125 shares issued and outstanding, respectively.</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,328 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613 </P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Additional paid-in capital</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,758,388)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,329,673)</P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Accumulated deficit</P>
</TD><TD valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(697,062)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667><P style="margin:0pt; font-family:Times New Roman">Total Stockholders' Deficit</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(762,122)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,012,438)</P>
</TD></TR>
<TR><TD valign=bottom width=21.333>&nbsp;</TD><TD valign=bottom width=369.667>&nbsp;</TD><TD valign=bottom width=102>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=391 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=102><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;2,638,645 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;1,982,940 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">See accountants review report<B> </B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of Operations</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=219.733 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>Un-audited</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=220.533 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>Un-audited</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=219.733 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>Three-month period ended</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=220.533 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>Six-month period ended</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=219.733 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>June 30,</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=220.533 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=center>2005</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center>2004</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=center>2005</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=center>2004</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">SALES</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;1,520,670 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;1,574,662 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;2,906,399 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;3,906,485 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">COST OF GOODS SOLD</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,280,869 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,303,069 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,374,234 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,150,045 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">GROSS PROFIT </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;239,801 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;271,593 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;532,165 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;756,440 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">GENERAL AND ADMINISTRATIVE EXPENSES</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424,640 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;551,003.00 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;856,924 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;955,307 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">NET INCOME / (LOSS) FROM OPERATIONS</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(184,839)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(279,410)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(324,759)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(198,867)</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">OTHER INCOME/(EXPENSES):</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">&nbsp;Other income</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86,564 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,613 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">&nbsp;Other expenses</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,341 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,366 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">&nbsp;Interest expense</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,551 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,899 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75,172 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;345,761 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">NET LOSS BEFORE INCOME TAXES</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(146,167)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(351,309)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(321,684)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(544,628)</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">INCOME TAXES</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,417 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,417 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">NET LOSS</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(146,167)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;(349,892)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(321,684)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;(543,211)</P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">Per Share Information:</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">Weighted average number</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">of common shares outstanding</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,328,125 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,090,833 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD></TR>
<TR><TD valign=bottom width=205>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=104.267>&nbsp;</TD></TR>
<TR><TD valign=bottom width=205><P style="margin:0pt; font-family:Times New Roman">Net Gain (Loss) per common share</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=96><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.04)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34.99)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.533><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.10)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=104.267><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(54.32)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">See accountants review report<B> </B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Statements of Cash Flows</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:288pt; font-family:Times New Roman" align=justify>Un-Audited</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:360pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;Un-Audited</P>
<P style="margin:0pt; text-indent:432pt; font-family:Times New Roman" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=216.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>Six-month period ended</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=216.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center>June 30,</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman" align=center><B>2005</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman" align=center><B>2004</B></P>
</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash Flows from Operating Activities:</B></P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Net Income / (Loss)</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;(321,684)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;(543,211)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Adjustments to reconcile net loss to net cash</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;used in operating activities:</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,190 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94,692 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(200,290)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;526,630 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in inventory</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(489,662)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(214,113)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,855)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in deposits</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,386)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accounts payable</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(104,251)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(242,978)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=334.467 colspan=2><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Other (Decrease) increase in accrued expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,735 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260,991 </P>
</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman">Net Cash Used In Operating Activities</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(971,817)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(123,375)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash Flows from Investing Activities</B></P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Purchase of property and equipment</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,551)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,674 </P>
</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash Flows Used In Investing Activities</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,551)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,674 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash Flows from Financing Activities</B></P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Bank overdraft</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58,008 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(89,893)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Borrowings under line of credit, net</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;560,051 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(324,033)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Principal payments on capital lease obligations</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(119,060)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,992)</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Issuance of stock</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;572,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;222,795 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Proceeds / Payments of notes payable</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61,094)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;300,000 </P>
</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash Flows Provided By Financing Activities</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;1,009,905 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,877 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman">Net (Decrease) Increase in Cash and Cash Equivalents</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,537 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash and Cash Equivalents at Beginning of Period</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Cash and Cash Equivalents at End of Period</B></P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76,939 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133>&nbsp;</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=329.6 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Supplemental Information:</B></P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Interest Paid</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75,172 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;345,761 </P>
</TD></TR>
<TR><TD valign=bottom width=36.467>&nbsp;</TD><TD valign=bottom width=293.133><P style="margin:0pt; font-family:Times New Roman">Income Taxes Paid</P>
</TD><TD valign=bottom width=41.333>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=100.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">See accountants review report<B> </B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Notes 1- <U>GENERAL</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>The Company</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Probe Manufacturing Industries, Inc. was incorporated on July 7, 1995<B>. </B>On April 21, 2005, the Company was redomiciled from California to Nevada whereby, it changed its name to Probe Manufacturing, Inc. &nbsp;Probe Manufacturing, Inc. (the &#147;Company&#148; or &#147;Probe&#148;) is a leading provider of advanced electronics manufacturing services, or EMS, to original equipment manufacturers, or OEMs, primarily in the industrial and instrumentation, communication, semiconductor, automotive, medical, and military segments. This would include globally integrated end to end manufacturing solutions ranging from engineering printed circuit card assembly, cable assembly, enclosures, complete system integration and test, as well as global order fulfillment.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Going Concern</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. &nbsp;The Company incurred a net loss of &nbsp;$321,684 for the six months ended &nbsp;June 30, 2005 and an accumulated deficit of $762,122 as of &nbsp;June 30, 2005. The ability of the Company to operate as a going concern is dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) cut operating costs such that the Company can operate until such time that it resumes generating positive cash flow from operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Management is taking following steps to address this situation: (a) reducing operating costs, thus reducing the break even revenue level; (b) negotiating to replace the line of credits with an agreement more attractive terms and expand borrowing capacity: (c) increasing its sales volume. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;The future success of the Company is likely dependent on its ability to attain additional capital to support growth and ultimately, upon its ability to attain future profitable operations. &nbsp;There can be no assurance that the Company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. &nbsp;The successful outcome of these or any future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute their business plans or generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Cash and Cash Equivalents</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company maintains the majority of its cash accounts at a commercial bank. The total cash balance is insured by the Federal Deposit Insurance Corporation (&#147;FDIC&#148;) up to $100,000 per commercial bank. For purposes of the statement of cash flows, the Company considers all cash and highly liquid investments with initial maturities of Six Months or less to be cash equivalents.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR>
<BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">6</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)</U></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Estimates</B></P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates may be materially different from actual financial results. Significant estimates include the recoverability of long-lived assets and the collectibility of accounts receivable.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Accounts Receivable</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company grants credit to customers within the United States of America and does not require collateral. The Company&#146;s ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by the Company.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Reserves for un-collectable amounts are provided, based on past experience and a specific analysis of the accounts, which management believes are sufficient. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts. As of June 30, 2005, the Company has a reserve of $42,632.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Six (6) customers accounted for approximately 81% of accounts receivable at June 30, 2005. &nbsp;The Company&#146;s trade accounts primarily represent unsecured receivables. &nbsp;Historically, the Company&#146;s bad debt write-offs related to these trade accounts have been insignificant.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Inventory</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="background-color:#FFFFFF; margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Inventories are valued at the lower of weighted average cost or market value. &nbsp;&nbsp;Our Industry experiences changes in technology, changes in market value and availability of the raw materials, as well as changing customer demand. &nbsp;The Company makes provisions for estimated excess and obsolete inventories based on regular reviews and cycle counts of our on-hand inventory levels and forecasted customer demands and at times additional provisions are made. &nbsp;As of &nbsp;June 30, 2005, the Company had a reserve of &nbsp;$285,785</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Property and Equipment </B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Property and equipment, including renewals and betterments, are stated at cost. Assets held under capital leases are recorded at lease inception at the lower of the present value of the minimum lease payments or the fair market value of the related assets. &nbsp;The Company follows the practice of capitalizing property and equipment purchased over $1,250. &nbsp;The cost of ordinary maintenance and repairs is charged to operations while renewals and replacements are capitalized. &nbsp;Depreciation and amortization are computed on the straight-line method over the following estimated useful lives of the related assets, which range from three to twenty years, and are as follows:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Furniture and fixtures</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>3 to 7 years</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Equipment</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>7 to 10 years</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Vehicles</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>5 years</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Leasehold improvements</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>20 years (estimated life of the lease)</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Six Months ended June 30, 2005</I></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Long &#150;Lived Assets</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company&#146;s management assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long lived assets over their remaining lives can be recovered through projected undiscounted future cash flows. The amount of long lived asset impairment, if any, is measured based on fair value and is charged to operations in the period in which long lived assets impairment is determined by management. At June 30, 2005, the Company&#146;s management believes there is no impairment of its long-lived assets. There can be no assurance however, that market conditions will not change or demand for the Company&#146;s services will continue, which could result in impairment of long-lived assets in the future.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Revenue Recognition</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Revenue from product and services are recognized at the time goods are shipped or services are provided to the customer, with an appropriate provision for returns and allowances. Terms are generally FOB destination with the right of inspection and acceptance. The company has not experienced a material amount of rejected or damaged product.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>Fair Value of Financial Instruments</I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The carrying amount of accounts payable and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of these financial instruments. </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Other Comprehensive Income</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company has no material components of other comprehensive income (loss) and accordingly, net loss is equal to comprehensive loss in all periods.</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman"><B>Net Loss Per Common Share</B></P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman" align=justify>Basic loss per share is computed on the basis of the weighted average number of common shares outstanding. For the period ended June 30, 2005, all of the Company's common stock equivalents were excluded from the calculation of diluted loss per common share because they were anti-dilutive, due to the Company's net loss in that year. At June 30, 2005 there were warrants outstanding to purchase 12,575,000 common shares which may dilute future earnings per share. At June 30, 2005 there were 440 shares of Preferred A outstanding which would convert to 1,464,375 common shares which may dilute future earnings per share. At June 30, 2005there were 440 shares of Preferred B outstanding which would convert to 12,500,000 (based on the maximum conversion rate) common shares which may dilute future earnings per share.</P>
<P style="margin:0pt; padding-left:-7.2pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Segment Information</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Corporation operates primarily in a single operating segment, providing printed circuit boards and electronic assemblies.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Six Months ended June 30, 2005</I></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 2 &#150; <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman"><B><I>Stock Based Compensation</I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (&#147;SFAS No. 123&#146;) allows an entity to elect to continue to measure compensation cost under Accounting Principles Board Opinion No. 25, &#147;Accounting for Stock Issued to Employees&#148; (&#147;APB No. 25&#148;), but requires pro forma disclosures of net loss and loss per share as if the fair-valued-based method of accounting had been applied. &nbsp;In accordance with SFAS 123, the Company elected to continue to measure compensation cost under APB No. 25, and comply with the pro forma disclosure requirements.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company has adopted for footnote disclosure purposes SFAS No. 123, which requires that companies disclose the cost of stock-based employee compensation at the grant date based on the value of the award (the fair value method) and disclose this cost over the service period. &nbsp;The value of the stock-based award is determined using a pricing model whereby compensation cost is the excess of the fair value of the award as determined by the model at grant date or other measurement date over the amount an employee must pay to acquire the stock.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Transactions in which goods or services are received from non-employees for the issuance of equity securities or stock-based awards are accounted for based on the fair value of the consideration received. &nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 3 - <U>INVENTORY</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Inventories at June 30, 2005 by major classification were comprised of the following:</P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-72pt; text-indent:333pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-72pt; font-family:Times New Roman" align=justify>Parts</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-72pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1,085,814 </P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-72pt; text-indent:369pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-72pt; font-family:Times New Roman" align=justify>Work in progress</P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-72pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;333,027 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-72pt; font-family:Times New Roman" align=justify>Finished goods</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-72pt; text-indent:297pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49,421</U> </P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-72pt; text-indent:369pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-72pt; font-family:Times New Roman" align=justify>Total</P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-72pt; text-indent:297pt; font-family:Times New Roman" align=justify>1,468,262</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Less reserve for potentially excess or obsolete inventories</P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-9pt; text-indent:333pt; font-family:Times New Roman" align=justify><U>(285,785)</U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Inventory - net</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; padding-right:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;$1,182,477</U></P>
<P style="margin:0pt; padding-left:-9pt; padding-right:-9pt; text-indent:405pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 4 &#150; <U>PROPERTY AND EQUIPMENT</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Property and equipment were comprised of the following at June 30, 2005:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Furniture and fixtures</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ &nbsp;&nbsp;242,283</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:369pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Equipment</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,977,069 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Vehicles</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44,708 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Leasehold improvements</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;163,154</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Total</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,427,214 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Less accumulated depreciation and amortization &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>(2,825,623</U>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>Net Fixed Assets</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>$ &nbsp;&nbsp;601,591</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Six Months ended June 30, 2005</I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>NOTE 5 &#150; <U>LINE OF CREDIT</U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company had a revolving line of credit (the &#147;Line&#148;) with a financial institution, which allowed them to borrow a maximum of $1,100,000 based on 80% of eligible accounts receivable, as defined. &nbsp;Borrowings under the Line, bore interest at prime (4.25% plus 10.5% per annum) were secured by substantially all of the Company&#146;s assets and are personally guaranteed by the stockholders. &nbsp;In March 2004 the Line was restructured into a term loan in the amount of $500,000. Terms of the Note were: (1) monthly installment payments of $5,000, (2) interest at the rate of 4% plus the prime rate by the agent &nbsp;(3) secured by accounts receivable (4) with a discount provision of $200,000 after timely payments of the first $300,000. &nbsp;In December 2004, the note was restructured into a new line of credit and discounted by $200,000. This new line of credit allows the Company to borrow a maximum of $125,000 base
d on 80% of eligible accounts receivables, payable in monthly installments of &nbsp;$5,000 plus interest at the rate of 4% plus the prime-lending rate. &nbsp;As of June 30, 2005, the Company had borrowed $120,114. &nbsp;The Company has an additional unsecured line of credit in the amount of &nbsp;$775,000. &nbsp;Borrowings under the Line of credit bear interest at the rate of 15% (10% paid in cash and 5% paid in common stock in the company) per annum.<B> &nbsp;&nbsp;</B>As of June 30, 2005 the Company had an outstanding balance against this line of credit in the amount of $580,000. &nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>NOTE 6 - <U>CAPITAL LEASE OBLIGATIONS</U></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>The Company is a lessee of certain equipment under capital leases that expire on various dates through April 2008. &nbsp;Terms of the lease call for monthly payments ranging from $314 to $9,163, at implicit rates of interest ranging from 8.6% to 25.0% per annum (the incremental borrowing rate). &nbsp;The assets and liabilities under capital leases are recorded at lease inception at the lower of the present value of the minimum lease payments or the fair market value of the related assets. &nbsp;The assets are depreciated over their estimated useful lives.</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Minimum future lease payments under current lease agreements at June 30, 2005 are as follows:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">2005</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">$ &nbsp;&nbsp;63,324</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">2006 </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:189pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;121,962</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">2007 </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:189pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;820,859</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:261.75pt; text-indent:-189.75pt; font-family:Times New Roman"><U>2008</U></P>
<P style="margin:0pt; padding-left:261.75pt; font-family:Times New Roman"><U>&nbsp;&nbsp;&nbsp;5,500</U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total minimum lease payments</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">1,011,645</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less amount representing interest &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;(79,623)</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Present value of net minimum lease payments &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;932,022</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:117pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Less current portion &nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman"><U>&nbsp;(133,845</U>)</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:333pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:81pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term portion</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman" align=justify>&nbsp;<U>$ 798,177</U></P>
<P style="margin:0pt; padding-left:-9pt; text-indent:369pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I>The following is an analysis of the equipment under capital leases as of June 30, 2005, </I></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">which is included in property and equipment:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">Equipment</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman">$ 1,797,958</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">Less accumulated depreciation</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman"><U>&nbsp;&nbsp;(1,518,230</U>)</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:45pt; font-family:Times New Roman">Net</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman"><U>$ &nbsp;&nbsp;&nbsp;279,728</U></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">7</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=center><I>Six Months ended June 30, 2005</I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>NOTE 7 &#150;<U> NOTE PAYABLE</U></I></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">Note payable, secured by deed of trust, 12% interest, due on </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman">September 2005 to Ashford Capital Transition Fund I, LP </P>
<P style="margin:0pt; padding-left:-9pt; text-indent:333pt; font-family:Times New Roman"><U>&nbsp;$456,000</U></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Total Note Payable</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:297pt; font-family:Times New Roman">&nbsp;<U>$456,000</U></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B>Other Long-Term Debt</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Other long-term debt consist of settlements reached with (6) various vendors ranging from $1,400 to $120,000 with payment terms from two to five years in the total amount of $161,607. &nbsp;&nbsp;Monthly installment payments to these vendors range from $70 to $2,500. </P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>NOTE 8 &#150;<U> COMMITMENTS AND CONTIGENCIES</U></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I>Operating Rental Leases</I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I><BR></I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><I>The Company leases its office and warehouse facilities in Costa Mesa, California from stockholders under an operating lease that requires minimum monthly payments of $19,790. &nbsp;The lease requires the Company to pay property taxes and maintenance, and expires in May 2022. &nbsp;</I></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Future minimum rental payments under the non-cancelable related party operating lease are as follows:<BR>
<BR>
2005</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:51015.435pt; font-family:Times New Roman">$ &nbsp;237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">2006 </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; text-indent:189pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:331.5pt; text-indent:-259.5pt; font-family:Times New Roman">2007</P>
<P style="margin:0pt; padding-left:331.5pt; text-indent:-70.5pt; font-family:Times New Roman">237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:331.5pt; text-indent:-259.5pt; font-family:Times New Roman">2008</P>
<P style="margin:0pt; padding-left:331.5pt; text-indent:-70.5pt; font-family:Times New Roman">237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:331.5pt; text-indent:-259.5pt; font-family:Times New Roman">2009</P>
<P style="margin:0pt; padding-left:331.5pt; text-indent:-70.5pt; font-family:Times New Roman">237,485</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-9pt; font-family:Times New Roman">Remaining</P>
<P style="margin:0pt; padding-left:-9pt; text-indent:225pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>2,948,769</U></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; padding-left:-9pt; text-indent:261pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>$4,136,194</U></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR>
<BR></I></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">8</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:-18pt; font-family:Times New Roman"><B>NOTE 8 &#150;<U> COMMITMENTS AND CONTIGENCIES - &nbsp;(Continued)</U></B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Litigation</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-18pt; font-family:Times New Roman" align=justify>The Company may be involved from time to time in various claims, lawsuits, and disputes with third parties, action involving allegations or discrimination or breach of contract actions incidental in the normal operations of the business. &nbsp;The Company is currently not involved in any such litigation which management believes could have a material adverse effect on its financial position</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin:0pt; text-indent:-18pt; font-family:Times New Roman" align=justify><B>NOTE 9 &#150;<U> CAPITAL STOCK TRANSACTIONS</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On May 20th, 2004, the Company&#146;s Board of Directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; text-indent:-36pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(1)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>an amendment to the Articles of Incorporation of the Company, increasing the number of authorized shares to 110,000,000, 100,000,000 shares of which will be common stock &nbsp;and 10,000,000 &nbsp;shares of which shall be preferred stock.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(2)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>an amendment to the Articles of Incorporation of the Company authorizing a new series of Preferred stock, which shall be designated as Series A, and shall consist of 440 shares.</P>
<P style="margin:0pt; text-indent:-36pt; font-family:Times New Roman" align=justify><B><U><BR></U></B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On December 31, 2004, the Company&#146;s Board of Directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; padding-left:38.25pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(3)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>an amendment to the Articles of Incorporation of the Company authorizing a new series of Preferred stock, which shall be designated as Series B, and shall consist of 20,000 shares.</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On April 21, 2005, the Company&#146;s Board of Directors and shareholders approved the following capital stock transactions:</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:56.25pt; text-indent:-18pt; font-family:Times New Roman" align=justify>(4)</P>
<P style="margin:0pt; padding-left:56.25pt; font-family:Times New Roman" align=justify>The Company re-domiciled in the state of Nevada, where by increasing the number of authorized common shares to 200,000,000 and designating a par value of $.001 per share.</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:56.25pt; text-indent:-36pt; font-family:Times New Roman" align=justify>(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company issued 727,500 shares of common stock for $582,000.</P>
<P style="margin:0pt; padding-left:56.25pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; padding-left:56.25pt; text-indent:-36pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">All share and per share amounts in the accompanying financial statements of the Company and notes thereto have been retroactively adjusted to give effect to the stock splits.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>COMMON STOCK </B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our Articles of Incorporation authorize us to issue 200,000,000 shares of common stock, par value $0.001 per share. As of &nbsp;June 30, 2005 there were 3,328,125 shares of common stock issued and outstanding. All outstanding shares of common stock are, and the common stock to be issued in this offering will be, fully paid and non-assessable. &nbsp;Each share of our common stock has identical rights and privileges in every respect. The holders of our common stock are entitled to vote upon all matters submitted to a vote of our shareholders and are entitled to one vote for each share of common stock held. There are no cumulative voting rights.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The holders of our common stock are entitled to share equally in dividends and other distributions that our board of directors may declare from time to time out of funds legally available for that purpose, if any, after the satisfaction of any prior rights and preferences of any outstanding preferred stock. If we liquidate, dissolve or wind up, the holders of shares of common stock will be entitled to share ratably in the distribution of all of our assets remaining available for distribution after satisfaction of all our liabilities and our obligations to holders of our outstanding preferred stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>PREFERRED STOCK</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our Articles of Incorporation authorize to issue 10,000,000 shares of preferred stock. &nbsp;We authorized 440 as Series A Convertible Preferred Stock and have authorized 20,000 shares of Series B Convertible Preferred Stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of &nbsp;June 30, 2005, there were 440 shares of Convertible A Preferred Stock outstanding, with a stated value of $1,000. Each share is convertible into 0.1% percent of the shares of our common stock outstanding at the date of conversion. The shares shall convert at the earlier of the election of the holder, or March 26, 2006. The holder of the Convertible A Preferred Stock, has the right to vote, with the holders of common stock, on any matter to which the common stock holders are entitled to vote, the number of shares of common stock into which the Convertible A Preferred Stock is convertible. If we are liquidated, distribute our assets, dissolve or wind-up, the holders of Convertible A Preferred Stock shall receive the greater of (i) $2,500 per share of Convertible A Preferred Stock they hold at the time of such Liquidation, or (ii) their pro rata share of the total value of our assets and funds to be distributed, assuming the Convertible A preferred 
stock is converted to common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of June 30, 2005 there were 12,500 shares of Series B Convertible stock outstanding, with a stated value of $100. Each share of Series B Stock shall be converted into a number of shares of common stock that is equal to each share being divided by the average of the 3 lowest intraday bids in the twenty (20) days prior to conversion multiplied by 100 (1 divided by x, multiplied by 100), or 125 shares per Series B, whichever is greater. The minimum conversion price which Series B shareholders shall be to convert their Series B shares to common stock shall be $0.10. &nbsp;The Series B Stock shall have voting rights and voting will be on an as converted basis, with class votes for the election of directors, any transaction in which control of the Company is transferred in which the per share price consideration received by Purchaser is less than three (3) times the Purchase Price, the sale of the Company of all or substantially all of its assets, liquidation o
r winding up of the Company and any amendment to the Company&#146;s By-Laws or Articles of Incorporation in a manner adverse to Series B Stock. In the event of any voluntary or involuntary liquidation, distribution of assets (other than the payment of dividends), dissolution or winding-up of the Company, Series B Stock shall have preferential rights to the Company&#146;s common stock (the &#147;Common Stock&#148;) whereby Series B Stock shall get two times (2x) return on its capital. &nbsp;Once Series B Stock has recouped its two times (2x) return on capital then Series B Stock shall participate, on a pro rata basis, based on the number of shares of the Company&#146;s common stock (the &#147;Common Stock&#148;) into which the Series B Stock are convertible at the time of the liquidation, distribution of assets, dissolution or winding-up.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our board of directors has the authority to issue additional shares of preferred stock in one or more series, and fix for each series, the designation of, and number of shares to be included in, each such series. Our board of directors is also authorized to set the powers, privileges, preferences, and relative participating, optional or other rights, if any, of the shares of each such series and the qualifications, limitations or restrictions of the shares of each such series.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Unless our board of directors provides otherwise, the shares of all series of preferred stock will rank on parity with respect to the payment of dividends and to the distribution of assets upon liquidation. Any issuance by us of shares of our preferred stock may have the effect of delaying, deferring or preventing a change of our control or an unsolicited acquisition proposal. The issuance of preferred stock also could decrease the amount of earnings and assets available for distribution to the holders of common stock or could adversely affect the rights and powers, including voting rights, of the holders of common stock.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">WARRANTS</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Series A Warrants:</P>
<P style="margin:0pt; font-family:Times New Roman">We currently have 1,258,500 Series A Warrants issued and outstanding that give the warrant holders the right to purchase a total of 5 shares of common stock at $2.00 per share. &nbsp;The Series A Warrants will expire on November 15, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Series B Warrants:</P>
<P style="margin:0pt; font-family:Times New Roman">We currently have 1,258,500 Series B Warrants issued and outstanding that give the warrant holders the right to purchase a total of 5 shares of common stock at $3.00 per share. &nbsp;The Series B Warrants will expire on May 15, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants Activity for the Period and Summary of Outstanding Warrants </B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">From June 16, 2004 to April 1, 2005 the Company sold &nbsp;222,125 common stock units pursuant to a Private Placement Memorandum at $8.00 per unit to 49 &nbsp;individuals generating net proceeds of $1,777,000. &nbsp;Each Unit consists of &nbsp;ten (10) shares of common stock. &nbsp;In addition, each unit entitles the holder to purchase a total of 10 shares of Probe Common Stock through the exercise of Warrants as follows: Class A Warrants, 5 shares at a price of $2.00 per share for a period of 12 months from November 16, 2004, which shall be November 15, 2005; and, Class B Warrants, 5 shares at a price of $3.00 per share for a period of 18 months from November 16, 2004, which shall be May 15, 2006. &nbsp;As of June 30, 2005, no warrants were exercised.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">A summary of warrant activity for the quarter ended June 30, 2005 is as follows:</P>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=159.6 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=78.4 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Number of</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrants</I></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercisable</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.2 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">Outstanding, December 31, 2003 </P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>0 </P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>0 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>0 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>$0.00</P>
</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Granted</P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Exercised</P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>0</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">Outstanding, December 31, 2004 </P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>1,800,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Granted</P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right>652,500</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>652,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Exercised</P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>0</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">Outstanding, </P>
<P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2005 </P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2,452,500</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2,452,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Granted</P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right>62,500</P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>62,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Exercised</P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right>0</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</U></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=top width=110.2><P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">Outstanding, </P>
<P style="margin:0pt; padding-left:11.4pt; text-indent:-11.4pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;June 30, 2005 </P>
</TD><TD valign=top width=78.4 colspan=2><P style="margin:0pt; font-family:Times New Roman" align=right><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><U>2,515,000</U></P>
</TD><TD valign=top width=15.8>&nbsp;</TD><TD valign=top width=80.2 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=89.933 colspan=3><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><U>2,515,000</U></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=129.6 colspan=4><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2.50</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">At June 30, 2005, the range of warrant prices for shares under warrants and the weighted-average</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">&nbsp;remaining contractual life is as follows: </P>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=161.667>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=307.533 colspan=5><P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants Outstanding</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=186.2 colspan=3><P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Warrants Exercisable</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=161.667><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>Range of</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrant</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise Price</I></P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Number of</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrants</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=83.067><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=113.467><P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Remaining</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Contractual</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Life</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Number</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Of</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Warrants</I></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=center><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Weighted-</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Average</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Exercise</I></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><I>Price</I></P>
</TD></TR>
<TR><TD valign=top width=161.667><P style="margin:0pt; font-family:Times New Roman">$2.00 </P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=right>1,258,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=83.067><P style="margin:0pt; font-family:Times New Roman" align=right>$ 2.00 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=113.467><P style="margin:0pt; font-family:Times New Roman" align=right>.41 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=right>1,258,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right>$ 2.00</P>
</TD></TR>
<TR><TD valign=top width=161.667><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;3.00 </P>
</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=right>1,258,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=83.067><P style="margin:0pt; font-family:Times New Roman" align=right>3.00 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=113.467><P style="margin:0pt; font-family:Times New Roman" align=right>.96 </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=right>1,258,500</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2><P style="margin:0pt; font-family:Times New Roman" align=right>3.00</P>
</TD></TR>
<TR><TD valign=top width=161.667>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=79.533><P style="margin:0pt; font-family:Times New Roman" align=right>2,515,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=83.067>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=113.467>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=90.267><P style="margin:0pt; font-family:Times New Roman" align=right>2,515,000</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=80.2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 10 &#150; <U>RELATED PARTY TRANSACTIONS</U> </B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company leases its 35,000 sq/ft facility for $20,000 per month from Kambiz Mahdi, Reza Zarif and Pacific Sail Bay Trust. &nbsp;&nbsp;Kambiz Mahdi is the Chief Executive Officer and a Director of the company. &nbsp;Reza Zarif is the Chief Operating Officer and a Director of the company. &nbsp;&nbsp;Pacific Sail Bay Trust is managed by Frank Kavanaugh. &nbsp;Frank Kavanaugh is also the managing member of Ashford Capital, LLC, and Apt Leadership, LLC and the managing partner of Ashford Transition Fund, L.P. &nbsp;Furthermore, Mr. Kavanaugh was a director of the company from July 2004 to December 2004. Total payments made during the 6 months ended June 30, 2005 were $110,422, with an unpaid balance of $12,851 at June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Jeffrey Conrad provides legal services for the company and receives a monthly retainer of $2,500 and is one of the company directors. &nbsp;Jeffrey Conrad is also a managing member of eFund Capital Partners, LLC. &nbsp;Mr. Conrad jointly has authority regarding the portfolio management decisions with respect to the shares of common stock owned by eFund Capital Partners, LLC. Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Conrad does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;eFund Capital Partners, LLC received their shares pursuant to an investment agreement with us in April of 2004. Total payments made during the 6 months ended June 30, 2005 were $110,422, with an unpaid balance
 of $12,500 at June 30, 2005. &nbsp;&nbsp;Total payments during the 2nd qtr of 2005 were $20,000, with an unpaid balance of $12,500 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In May of 2004 the company entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to the company. &nbsp;In exchange, the company gave eFund Capital Partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and &nbsp;disclaim any beneficial ownership of
 such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of the company since May 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In July 2004 eFund Capital Partners, LLC assigned 1,000,000, shares of common stock and 33 shares of Series A Convertible Preferred Stock to Ashford Capital, LLC. The Managing Member of Ashford Capital, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Ashford Capital, LLC received three shares pursuant to an assignment agreement with eFund Capital Partners, LLC. &nbsp;Ashford Capital, LLC and eFund Capital Partners, LLC have no affiliation.
 &nbsp;Mr. Kavanaugh was a director of the company from May 2004 until December 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 10 <U>&#150; RELATED PARTY TRANSACTIONS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">In July of 2004 eFund Capital Partners, LLC assigned 67 shares of Series A Convertible Preferred Stock to Apt Leadership, LLC as consideration for Apt Leadership, LLC&#146;s assistance in helping restructuring our company. The Managing Member of Apt Leadership, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Apt Leadership, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kavanaugh was a director of the company &
nbsp;from May 2004 until December 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In September of 2004 the company issued the Ashford Transition Fund, L.P 40 shares of the company &nbsp;Series A Convertible Preferred Stock as consideration for a loan they gave the Company in the amount of $456,000. &nbsp;Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $60,060 of interest , with accrued interest of $20,020 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In September of 2004 eFund Capital Partners, LLC assigned 30 shares of Series A Convertible Preferred Stock to Dennis Benner. &nbsp;Dennis Benner is a Director of the company &nbsp;and acquired shares in the company &nbsp;private placement memorandum dated June 9, 2004 as restated and amended on November 16, 2004 through &nbsp;&#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them. &nbsp;Mr. Benner and eFund Capital Partners, LLC have no affiliation.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December of 2004 the company issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $350,000 as consideration. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been direct
ors of the company &nbsp;since May 2004.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December of 2004 the company issued Kambiz Mahdi 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;&nbsp;Kambiz Mahdi is the Chief Executive Officer and a Director of the company . &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 10 <U>&#150; RELATED PARTY TRANSACTIONS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>In December of 2004 the company issued Reza Zarif 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;Reza Zarif is the Chief Operating Officer and a Director of the company . &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman">On December 31, 2004, Ashford Capital, LLC, eFund Capital Partners, LLC each returned 750,000 shares of common stock to the company for cancellation and Kambiz Mahdi and Reza Zarif each returned 1,750,000 shares to the company for cancellation. &nbsp;This was done to reduce the number of outstanding shares to be in line with the valuation of $.80/per share. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I><BR></I></B></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B><I>Related Party Debt</I></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005, the Company entered into a credit line agreement with eFund Capital Partners, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of an
y other creditors willing to provide a loan for 20% or less interest. &nbsp;There is currently an outstanding balance of $75,000 as of June 30, 2005. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $3,890 of interest , with accrued interest payable of &nbsp;$4,029 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 the Company entered into a credit line agreement with Ashford Capital, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other 
creditors willing to provide a loan for 20% or less interest. &nbsp;There is currently an outstanding balance of $100,000 as of &nbsp;June 30, 2005. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $5,104 of interest , with accrued interest payable of &nbsp;$4,882 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><B>NOTE 10 <U>&#150; RELATED PARTY TRANSACTIONS - Continued</U></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 the Company entered into a credit line agreement with Rufina V. Paniego for $75,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 3007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other cred
itors willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $75,000 as of June 30, 2005. &nbsp;Rufina Paniego is the wife of Reza Zarif who is the Company&#146;s founder, COO and director. Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $3,345 of interest , with accrued interest payable of &nbsp;$3,287 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 8, 2005 the Company entered into a credit line agreement with Benner Exemption Trust for $200,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accursed and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the Company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other
 creditors willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $140,000 as of June 30, 2005. Dennis Benner is a Director of the Company and controls the Benner Exemption Trust. Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $2,738 of interest , with accrued interest payable of &nbsp;$3,780 at June 30, 2005.</P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 22, 2005 the Company entered into a credit line agreement with Edward Lassiter for $100,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the Company was not aware of any other credit
ors willing to provide a loan for 20% or less interest. There is currently an outstanding balance of $140,000 as of June 30 2005. &nbsp;Edward Lassiter is a shareholder of the Company and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter currently holds 312,500 shares of the Company&#146;s common stock, which is 9% of the outstanding shares of common stock. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $493 of interest , with accrued interest payable of &nbsp;$3,304 at June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Notes to Financial Statements</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Six Months ended June 30, 2005</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><U>NOTE 11 &#150; SUBSEQUENT EVENTS</U></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>Proposed Sale of Securities</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The Company has proposed to file a Form SB-2 relating to the sale of certain of its securities in 2005. The terms of the prospectus relate to the sale of up to 3,328,125 shares of common stock, which represents 100% of the outstanding securities, by current shareholders. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The company had previously agreed to register the common stock shares that could be issued upon conversion of the Series B Convertible Preferred Stock by Series B stockholders but has removed the securities from the registration prospectus.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Furthermore, the company had previously agreed to register 5,625,000 of BTF, LLC who would have become a stockholder pursuant to a &quot;&#147;put right&#148;&quot; under an Investment Agreement, also referred to as an Equity Line of Credit, that the company entered into with BTF, LLC.&nbsp; However, the Investment Agreement with BTF, LLC has been terminated.<A NAME="FIS_STOCKHOLDERS_EQUITY"></A></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">9</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>ITEM 23. &nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In July of 2004 we engaged Michael Johnson &amp; Co., LLC to audit its financial statements for the year ended December 31, 2003 and to review its quarterly financial statements for the period ended September 30, 2004. Jaspers + Hall, P.C. acquired the client list of Michael Johnson &amp; Co., LLC pursuant to an agreement dated September 22, 2004. The Board decided to accept Jaspers as auditor and engaged them pursuant to a March 24, 2005 engagement letter.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">From July 26, 2004 through March 24, 2005, there were no disagreements with Michael Johnson &amp; Co., LLC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which if not resolved to Michael Johnson &amp; Co., LLC&#146;s satisfaction, would have caused them to make reference to the subject matter of such disagreements in connection with their report on our financial statement for such year.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We provided Michael Johnson &amp; Co., LLC with a copy of the foregoing disclosures. &nbsp;On October 14, 2005 we received the letter filed as 16.1.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>PART II- INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>ITEM 24. INDEMNIFICATION OF DIRECTORS AND OFFICERS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">ARTICLE VI of our Bylaws states that to the extent and in the manner &nbsp;permitted &nbsp;by the &nbsp;laws of the State of Nevada, and &nbsp;specifically &nbsp;&nbsp;as &nbsp;is &nbsp;permitted &nbsp;under &nbsp;the &nbsp;Nevada Revised Statutes pertaining to Corporations, the &nbsp;corporation &nbsp;shall &nbsp;indemnify &nbsp;any person who was or is a party &nbsp;or is &nbsp;threatened &nbsp;to be &nbsp;made a &nbsp;party &nbsp;to any &nbsp;threatened, &nbsp;pending &nbsp;or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, &nbsp;other than an action by or in the right of the &nbsp;corporation, &nbsp;by reason of the fact that such person is or was a director, &nbsp;officer, &nbsp;employee or agent of the corporation, or is or was serving at the request of the corporation as a director, &nbsp;officer, employee or agent of another corporation, &nbsp;partnership, joint venture, trust or other enterprise agains
t expenses, &nbsp;including attorneys' fees, judgments, fines and amounts paid in settlement.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We have been advised that in the opinion of the Securities and Exchange Commission, insofar as indemnification for liabilities arising under the Securities Act of 1933 (the &quot;Act&quot;) may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, such indemnification is against public policy as expressed in the Act and is therefore unenforceable. In the event a claim for indemnification against such liabilities (other than our payment of expenses incurred or paid by our director, officer or controlling person 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, we 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 of 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. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>ITEM 25. EXPENSES OF ISSUANCE AND DISTRIBUTION</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The following table sets forth our expenses in connection with this registration statement. All of these expenses are estimates, other than the fees and expenses of legal counsel and filing fees payable to the Securities and Exchange Commission. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman"><B>Expense or Fee </B></P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman"><B>Amount to Be Paid</B></P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman">SEC Registration Fee</P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman">$1,137.28</P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman">Printing and Edgarizing Expenses</P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman">$4,000</P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman">Legal Fees and Expenses</P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman">$10,000</P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman">Accounting Fees and Expenses</P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman">$8,000</P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman">Transfer Agent</P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman">$500</P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman">Miscellaneous</P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman">$1,362.72</P>
</TD></TR>
<TR><TD valign=top width=295.533><P style="margin:0pt; font-family:Times New Roman"><B>TOTAL</B></P>
</TD><TD valign=top width=294.867><P style="margin:0pt; font-family:Times New Roman"><B>$25,000</B></P>
</TD></TR>
</TABLE>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>ITEM 26. &nbsp;RECENT SALES OF UNREGISTERED SECURITIES</B></P>
<B><P style="margin:0pt; text-indent:324pt; font-family:Times New Roman"><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we issued 2,000,000 each to our two founders, Kambiz Mahdi and Reza Zarif, for no cash consideration when converted the corporation from an S to a C corporation in order for the two founders to maintain ownership in the corporation going forward.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">From June 16, 2004 to March 31, 2005 the company sold 234,587 common stock units pursuant to a Private Placement Memorandum at $8.00 per unit to 53 individuals generating net proceeds of $1,876,700.00. &nbsp;Each Unit entitled the holder to purchase ten (10) shares of common stock. &nbsp;In addition, each unit entitled the holder to purchase a total of 10 shares of Probe common stock through the exercise of warrants as follows: Class A Warrants, 5 shares at a price of $2.00 per share for a period of 12 months from November 16, 2004, which shall be November 15, 2005; and, Class B Warrants, 5 shares at a price of $3.00 per share for a period of 18 months from November 16, 2004, which shall be May 15, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended (&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us. &nbsp;In exchange, we gave eFund Capital partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Ev
ans and Mr. Conrad have both been directors of ours since May 2004. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 200 shares of Series A Preferred Stock to Kambiz Mahdi pursuant to a Series A Convertible Preferred Stock Agreement. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 200 shares of Series A Preferred Stock to Reza Zarif pursuant to a Series A Convertible Preferred Stock Agreement. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In September of 2004 we issued the Ashford Transition Fund, L.P 40 shares of our Series A Convertible Preferred Stock as consideration for a loan they gave the company in the amount of $456,000.00. Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;eFund converted $350,000 worth of debt into the Series B stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of 
ours since May 2004. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Kambiz Mahdi 450,000 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;Mr. Mahdi converted $450,000 worth of debt into Series B stock. &nbsp;&nbsp;Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Reza Zarif 450,000 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;Mr. Zarif converted $450,000 worth of debt into Series B stock. &nbsp;Reza Zarif is our chief executive officer and a director of the company. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the sales were made to sophisticated or accredited investors, as defined in Rule 502;</FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><FONT FACE="Times New Roman">the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Anthony Reed 6,875 shares of common stock pursuant to a Consulting Agreement.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Russell Miller 100,000 shares of common stock pursuant to an employee stock grant.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>ITEM 27. &nbsp;&nbsp;EXHIBITS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(a) <B>EXHIBITS.</B> </P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B><U>EXHIBIT NUMBER </U></B></P>
<P style="margin:0pt; text-indent:108pt; font-family:Times New Roman"><B><U>DESCRIPTION <BR>
</U></B></P>
<P style="margin:0pt; font-family:Times New Roman">3.1 Articles of Incorporation (filed herewith). </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">3.2 Bylaws (filed herewith). </P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">4.1 &nbsp;Certificate of Designation for Series A Convertible Preferred Stock, dated May 20, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">4.2 Certificate of Designation for Series B Convertible Preferred Stock dated December 31, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">5.1 Opinion of Counsel. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.1 &nbsp;Lease &nbsp;Agreement between Probe Manufacturing, Inc. (F.K.A. Probe Manufacturing Industries, Inc. and Reza Zarif and Kambiz Mahdi, dated May 2, 1997 (filed herewith). &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.2 Consulting &nbsp;Agreement &nbsp;between &nbsp;Probe Manufacturing Industries and Anthony Reed dated December 31, 2004 (filed herewith). </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.3 &nbsp;Legal retainer agreement between Probe Manufacturing, Inc. and Jeffrey Conrad dated (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.4 Line of Credit agreement between Probe Manufacturing, Inc. and eFund Capital Partners, LLC dated January 1, 2005 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10. 5 Line of Credit agreement between Probe Manufacturing, Inc. and Ashford Capital, LLC dated January 1, 2005 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.6 Line of Credit agreement between Probe Manufacturing, Inc. and Benner Exemption Trust dated March 8, 2005 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.7 Line of Credit agreement between Probe Manufacturing, Inc. and Edward Lassiter dated March 22, 2005 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.8 Line of Credit agreement between Probe Manufacturing, Inc. and Rufina V. Paniego dated January 1, 2004 &nbsp;(filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.9 Promissory Note between Probe Manufacturing, Inc and Ashford Transitional Fund, L.P. dated September 20, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.10 Engagement Letter between Probe Manufacturing, Inc. and eFund Capital Partners, LLC dated May 20, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.11 Series A Convertible Preferred Stock Purchase Agreement with eFund Capital Partners, LLC dated May 20, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.12 Series A Convertible Preferred Stock Purchase Agreement with Reza Zarif dated May 20, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.13 Series A Convertible Preferred Stock Purchase Agreement with Kambiz Mahdi dated May 20, 2004. (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.14 Series B Convertible Preferred Stock Purchase Agreement with eFund Capital Partners, LLC dated December 31, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10. 15 Series B Convertible Preferred Stock Purchase Agreement with Reza Zarif dated December 31, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.16 Series B Convertible Preferred Stock Purchase Agreement with Kambiz Mahdi dated December 31, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.17 Agreement to Cancel and Return shares of common stock between Probe and eFund Capital Partners, LLC, Ashford Capital, LLC, Reza Zarif, Kambiz Mahdi, dated December 31, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.18 Promissory note with eFund Capital Partners, LLC dated October 12, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.19 Promissory note with Rufina V. Paniego dated July 1, 2004 (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.18 Warrant agreement for Series A and Series B Warrants (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.19 Sample purchase order agreement with Celerity, Inc. (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.20 Sample purchase order agreement with Newport Corporation (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.21 Sample purchase order agreement with Asymteck Corporation (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.22 Sample purchase order agreement with Jetline Engineering Corporation (filed herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.23 Sample purchase order agreement with our supplier Future Active, Inc. (file herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">10.24 Sample purchase order agreement with our supplier Arrow Electronics, Inc. (file herewith).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">16.1 Letter from Michael Johnson &amp; Company, LLC dated October 14, 2005 (filed herewith).</P>
<P style="margin:0pt; text-indent:396pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">21.1 List of Subsidiaries (filed herewith). </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">23.1 Consent of Independent Auditors, Jaspers &amp; Hall, P.C.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">23.2 Consent of Independent Auditors, Michael Johnson &amp; Co., LLC.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">23.2 Consent of Counsel (contained in Exhibit 5.1). </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>ITEM 28. UNDERTAKINGS</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The &nbsp;Registrant &nbsp;hereby &nbsp;undertakes &nbsp;that &nbsp;it &nbsp;will:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(1) &nbsp;File, &nbsp;during &nbsp;any &nbsp;period &nbsp;in &nbsp;which &nbsp;it &nbsp;offers &nbsp;or &nbsp;sells &nbsp;securities, a</P>
<P style="margin:0pt; font-family:Times New Roman">post-effective &nbsp;amendment &nbsp;to &nbsp;this &nbsp;registration &nbsp;statement &nbsp;to:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(i) &nbsp;Include &nbsp;any prospectus required by Section 10(a)(3) of the Securities Act;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(ii) &nbsp;Reflect &nbsp;in &nbsp;the &nbsp;prospectus &nbsp;any &nbsp;facts &nbsp;or events which, individually or together, &nbsp;represent a fundamental change in the information in the registration statement. &nbsp;Notwithstanding the foregoing, any increase or decrease in volume of</P>
<P style="margin:0pt; font-family:Times New Roman">securities &nbsp;offered &nbsp;(if &nbsp;the total dollar value of securities offered would not exceed &nbsp;that which was registered) and any deviation from the low or high end of the &nbsp;estimated maximum offering range may be reflected in the form of prospectus</P>
<P style="margin:0pt; font-family:Times New Roman">filed &nbsp;with &nbsp;the &nbsp;Commission &nbsp;pursuant &nbsp;to Rule 424(b) if, in the aggregate, the changes &nbsp;in &nbsp;volume and price represent no more than a 20% change in the maximum offering &nbsp;price &nbsp;set forth in the &quot;Calculation of Registration Fee&quot; table in the</P>
<P style="margin:0pt; font-family:Times New Roman">effective &nbsp;registration &nbsp;statement; &nbsp;and</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(iii) &nbsp;Include &nbsp;any &nbsp;additional &nbsp;or &nbsp;changed material information on the plan of distribution.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(2) &nbsp;For &nbsp;determining &nbsp;any &nbsp;liability &nbsp;under &nbsp;the &nbsp;Securities &nbsp;Act, &nbsp;treat &nbsp;each post-effective &nbsp;amendment &nbsp;as &nbsp;a &nbsp;new &nbsp;registration &nbsp;statement of the securities offered, &nbsp;and the offering of the securities at that time to be the initial bona</P>
<P style="margin:0pt; font-family:Times New Roman">fide &nbsp;offering.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(3) &nbsp;File &nbsp;a &nbsp;post-effective &nbsp;amendment &nbsp;to &nbsp;remove from registration any of the securities &nbsp;that &nbsp;remain &nbsp;unsold &nbsp;at &nbsp;the &nbsp;end &nbsp;of &nbsp;the &nbsp;offering.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Insofar &nbsp;as &nbsp;indemnification for liabilities arising under the Securities Act of 1933 &nbsp;(the &nbsp;&quot;Act&quot;) &nbsp;may &nbsp;be &nbsp;permitted &nbsp;to &nbsp;directors, officers, and controlling persons &nbsp;of &nbsp;the &nbsp;small business issuer pursuant to the foregoing provisions, or</P>
<P style="margin:0pt; font-family:Times New Roman">otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as &nbsp;expressed &nbsp;in &nbsp;the &nbsp;Act &nbsp;and &nbsp;is, &nbsp;therefore, &nbsp;unenforceable.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In &nbsp;the &nbsp;event &nbsp;that a claim for indemnification against such liabilities (other than &nbsp;the payment by the small business issuer of expenses incurred or paid by a director, &nbsp;officer &nbsp;or &nbsp;controlling &nbsp;person &nbsp;of the small business issuer in the successful &nbsp;defense &nbsp;of &nbsp;any &nbsp;action, &nbsp;suit &nbsp;or &nbsp;proceeding) is asserted by such director, &nbsp;officer or controlling person in connection with the securities being registered, the small business issuer will, unless in the opinion of its counsel the &nbsp;matter &nbsp;has &nbsp;been &nbsp;settled &nbsp;by &nbsp;controlling precedent, submit to a court of appropriate &nbsp;jurisdiction &nbsp;the &nbsp;question &nbsp;whether &nbsp;such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the &nbsp;final adjudication &nbsp;of &nbsp;such &nbsp;issue.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(1) &nbsp;For &nbsp;determining &nbsp;any &nbsp;liability &nbsp;under &nbsp;the &nbsp;Securities &nbsp;Act, &nbsp;treat &nbsp;the information &nbsp;omitted &nbsp;from &nbsp;the &nbsp;form &nbsp;of &nbsp;prospectus &nbsp;filed &nbsp;as &nbsp;part &nbsp;of &nbsp;this registration &nbsp;statement &nbsp;in &nbsp;reliance &nbsp;upon Rule 424(b)(1), or (4) or 497(h) under the &nbsp;Securities &nbsp;Act &nbsp;as &nbsp;part of this registration statement as of the time the Commission &nbsp;declared &nbsp;it &nbsp;effective.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(2) &nbsp;For &nbsp;determining &nbsp;any &nbsp;liability &nbsp;under &nbsp;the &nbsp;Securities &nbsp;Act, &nbsp;treat &nbsp;each post-effective &nbsp;amendment &nbsp;that &nbsp;contains &nbsp;a &nbsp;form &nbsp;of &nbsp;prospectus &nbsp;as &nbsp;a &nbsp;new registration statement for the securities offered in the registration statement, and &nbsp;that &nbsp;offering &nbsp;of &nbsp;the &nbsp;securities &nbsp;at &nbsp;that time as the initial bona fide offering &nbsp;of &nbsp;those &nbsp;securities.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt; font-family:Times New Roman">In accordance with the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements of filing on Form SB-2 and authorized this Registration Statement to be signed on its behalf by the undersigned, in the City of Long Beach, in the State of California, on October 14, 2005. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>PROBE MANUFACTURING, INCORPORATED</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">By: /s/ Reza Zarif</P>
<P style="margin:0pt; font-family:Times New Roman">________________________________________</P>
<P style="margin:0pt; font-family:Times New Roman">Reza Zarif, Chief Executive Officer, and Director</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">By: /s/ Barrett Evans</P>
<P style="margin:0pt; font-family:Times New Roman">____________________________________________</P>
<P style="margin:0pt; font-family:Times New Roman">Barrett Evans, Interim Chief Financial Officer, and Director</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and in the dates stated:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><U>Signature</U></P>
<U><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:180pt; font-family:Times New Roman">Title</U></P>
<U><P style="margin:0pt; text-indent:396pt; font-family:Times New Roman">Date</U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">/s/ Reza Zarif</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:108pt; font-family:Times New Roman">Chief Executive Officer and Director</P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">October 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman">_______________________</P>
<P style="margin:0pt; font-family:Times New Roman">Reza Zarif</P>
<P style="margin:0pt; font-family:Times New Roman">/s/ Barrett Evans</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">_______________________Interim Chief Financial Officer, and Director </P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">October 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman">Barrett Evans</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">/s/ Dennis Benner</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">Director and Chairman</P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">October 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman">_______________________</P>
<P style="margin:0pt; font-family:Times New Roman">Dennis Benner</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">/s/ Kambiz Mahdi</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">Director</P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">October 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman">_______________________</P>
<P style="margin:0pt; font-family:Times New Roman">Kambiz Mahdi</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">/s/ Jeffrey Conrad</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">Director</P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">October 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman">_______________________</P>
<P style="margin:0pt; font-family:Times New Roman">Jeffrey Conrad</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">/s/ John Bennett</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:144pt; font-family:Times New Roman">Controller</P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">October 14, 2005</P>
<P style="margin:0pt; font-family:Times New Roman">_______________________</P>
<P style="margin:0pt; font-family:Times New Roman">John Bennett</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Page 58 of 67</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>exhibit51.htm
<DESCRIPTION>CONSENT AND OPINION OF COUNSEL
<TEXT>
<!DOCTYPE html PUBLIC "-//IETF//DTD HTML//EN">
<html><head><title>CATHERINE BASINGER, ESQ</title>

<meta name="author" content="Jeff &nbsp;Conrad">
<meta name="date" content="10/13/2005"></head>

<body style="line-height: 12pt; font-size: 10pt; color: rgb(0, 0, 0);">
<p style="margin: 0pt; font-family: Times New Roman;" align="center"><b>CATHERINE BASINGER, ESQ.</b></p>
<p style="margin: 0pt; font-family: Times New Roman;" align="center">144 W. San Antonio Drive</p>
<p style="margin: 0pt; font-family: Times New Roman;" align="center">Long Beach, CA 90807</p>
<p style="margin: 0pt; font-family: Times New Roman;" align="center">(562)547-0364</p>
<p style="margin: 0pt; font-family: Times New Roman;" align="center"><br></p>
<p style="margin: 0pt; font-family: Times New Roman;" align="center">October 13, 2005</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">Probe Manufacturing, Inc.<br>
3050 Pullman Street<br>
Costa Mesa, CA 92626</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">Gentlemen: </p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">I
have acted as counsel to Probe Manufacturing, Inc., a Nevada
corporation (the "Company"), in connection with the preparation and
filing with the Securities and Exchange Commission (the "Commission")
of a Registration Statement on Form SB-2, (the "Registration
Statement"), as amended, pursuant to which the Company is registering
under the Securities Act of 1933, as amended (the "Securities Act"), up
to 12,078,125 shares of its common stock, $0.001 par value per share
(the "Shares") which may be issued from time to time on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act. This
opinion is being rendered in connection with the filing of the
Registration Statement. All capitalized terms used herein and not
otherwise defined shall have the respective meanings given to them in
the Registration Statement. </p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">In
connection with this opinion, I have examined the Company's Articles of
Incorporation and By-laws; and such other records of the corporate
proceedings of the Company and certificates of the Company's officers
as I deemed relevant; and the Registration Statement and the exhibits
filed with the Commission. </p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">In
my examination, I have assumed the genuineness of all signatures, the
legal capacity of natural persons, the authenticity of all documents
submitted to me as originals, the conformity to original documents of
all documents submitted to me as certified or photostatic copies and
the authenticity of the originals of such copies. </p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">Based
upon the foregoing, and subject to the limitations set forth below, I
am of the opinion that, once (i) the Registration Statement, as
amended, has become effective under the Securities Act, (ii) the Shares
have been issued as contemplated in the Registration Statement, and
(iii) the Company has received the consideration in the manner
described in the Registration Statement, the Shares will be duly and
validly issued, fully paid and non-assessable shares of the Common
Stock. </p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">My
opinion is based on the General Corporation Law of the State of Nevada
and U.S. federal securities law. No opinion is expressed herein with
respect to the qualification of the Shares under the securities or blue
sky laws of any state or any foreign jurisdiction. It is understood
that this opinion is to be used only in connection with the offer and
sale of the Shares while the Registration Statement is in effect. This
opinion is based upon currently existing statutes, rules, regulations
and judicial decisions, and even though the Securities may be issued
from time to time on a delayed or continuous basis, I disclaim any
obligation to advise you of any change in any of these sources of law
or subsequent legal or factual developments which might affect any
matters or opinions set forth herein. </p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;">I understand that you wish to file this opinion as an exhibit to the Registration Statement, and I hereby consent thereto.</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;" align="center">Sincerely,</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;" align="center">/s/ Catherine Basinger, Esq.</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;" align="center">_______________________</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;" align="center">Catherine Basinger</p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;"><br></p>
<p style="margin-top: 4.15pt; margin-bottom: 4.15pt; font-family: Times New Roman;"><br></p>
<p style="margin: 0pt; font-family: Times New Roman;"><br></p>
<p style="margin: 0pt; font-family: Times New Roman;"><br>
<br></p>
</body></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.19
<SEQUENCE>4
<FILENAME>exhibit1019.htm
<DESCRIPTION>SAMPLE PURCHASE ORDER WITH CELERITY
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>CELERITY &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURCHASE ORDER</TITLE>
<META NAME="date" CONTENT="10/04/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">2005/AUG/22/MON 09:48 AM &nbsp;CELERITY INC. &nbsp;&nbsp;FAX No. 714 921 0987 &nbsp;&nbsp;P. 002</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">CELERITY &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PURCHASE ORDER</B></P>
<P style="margin:0pt; font-family:Times New Roman">Celerity Group, Inc. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURCHASE ORDER NO: S82558</P>
<P style="margin:0pt; font-family:Times New Roman">22600 Savi Ranch Parkway Yorba Lind, California 92887</P>
<P style="margin:0pt; font-family:Times New Roman">Telephone 714.279.3500 Facsimile 714.921.0987</P>
<P style="margin:0pt; font-family:Times New Roman"><FONT COLOR=#0000FF><U>www.celerity.net</U></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;PURCHASE ORDER DATE: 08-19-05</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">CAL-RESALE TAX ID: 97091769</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">VENDOR &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHIP TO</P>
<P style="margin:0pt; font-family:Times New Roman">8607 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yorba Linda Mfg.</P>
<P style="margin:0pt; font-family:Times New Roman">PROBE MANUFACTURING IND. INC &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unit Instruments, Inc.</P>
<P style="margin:0pt; font-family:Times New Roman">3050 PULLMAN STREET &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22600 Savi Ranch Parkway</P>
<P style="margin:0pt; font-family:Times New Roman">COSTA MESA, CA 92626 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yorba Linda, CA 92887</P>
<P style="margin:0pt; font-family:Times New Roman">USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;USA</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Phone: (714) 424-2960 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fax: (714) 424-2972</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">CONF</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">CONTACT</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">SHIP VIA</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">F.D.B</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">RESALE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">TERMS</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">CONF</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Edward Cummings</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">Vendor Truck</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; font-family:Times New Roman">DEST</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2% 10 1% 30 NE</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">DESCRIPTION</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">***Special Instructions:</P>
<P style="margin:0pt; font-family:Times New Roman">All ESD sensitive components and assemblies shall be handled in compliance with ANSI/ESD $20.20 or Celerity approved equivalent program from the receipt to shipping. &nbsp;Anti-static or non-conductive packaging material must be utilized for all ESD sensitive materials. &nbsp;The supplier shall not change materials, methods of manufacturing, or processing that will affect form, fit, or function of Celeritys product. &nbsp;The supplier shall not deviate from print requirements. &nbsp;Any changes must be approved by Celerity prior to change implementation. &nbsp;Supplier must include a copy of their first article inspection report with initial shipments for all parts which are produced for the first time, delivered to a new revision level, or where there has been a process change.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Form MAT-001-001S. Rev C (Refer to MAT-100-0002</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL PURCHASE ORDER AMOUNT: $20,800.00</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BY: (signed by buyer)</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BY: (singed by manager.director)</P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><U>INSTRUCTIONS:</U></P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1.</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">NOTIFY BUYER IMMEDIATELY. &nbsp;IF YOU ARE UNABLE TO MEET ON DOCK DATE(S).</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2.</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">THE P.O. NUMBER MUST BE SPECIFIED ON ALL PACKAGES. &nbsp;BILLS OF LANDING INVOICES, PACKING SLIPS AND CORRESPONDENCE.</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">3.</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">REFER TO EE COMPLIANCE STATEMENT ON REVERSE</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">4.</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">IF APPLICABLE, MSDS REQUIRED WITH EACH SHIPMENT</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman; font-size:9pt"><BR>
<BR></P>
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<DOCUMENT>
<TYPE>EX-10.20
<SEQUENCE>5
<FILENAME>exhibit1020.htm
<DESCRIPTION>SAMPLE PURCHASE ORDER WITH NEWPORT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>CONFIRMING- DO NOT DUPLICATE &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAGE 1</TITLE>
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">CONFIRMING- DO NOT DUPLICATE &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAGE 1</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B>Purchase Order &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>&nbsp;&nbsp;&nbsp;<B>NEWPORT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SMALL>Newport Corporation</SMALL></B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1791 Deere Avenue, Irvine, CA 92606 USA</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tel: 949/863-3144 Fax: 949/253-1240</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">PURCHASE ORDER NO. P350947-00</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>VENDOR &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHIP TO</B></P>
<P style="margin:0pt; font-family:Times New Roman">PROBE MANUFACTURING INC &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEWPORT CORPORATION</P>
<P style="margin:0pt; font-family:Times New Roman">3050 PULLMAN STREET &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1791 DEERE AVE.</P>
<P style="margin:0pt; font-family:Times New Roman">COSTA MESA, CA 92626 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRVINE CA 92606</P>
<P style="margin:0pt; font-family:Times New Roman">USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;USA</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>ORDER PLACED WITH &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BILL TO</B></P>
<P style="margin:0pt; font-family:Times New Roman">Ed Cummings &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEWPORT CORPORATION</P>
<P style="margin:0pt; text-indent:252pt; font-family:Times New Roman">P.O. Box 19607</P>
<P style="margin:0pt; text-indent:252pt; font-family:Times New Roman">IRVINE CA 92623-9607</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; text-indent:252pt; font-family:Times New Roman">USA</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Phone 714.424.2960 x &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX 714.424.2972 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN US DOLLARS</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">RESALE PERMIT NUMBER CA SR BA 20-043121 FEDERAL ID NUMBER CA 94-0849175, CA KNS 94-254880 MA 94-3596820</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">PO DATE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">VENDOR</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">SHIP PREPAID VIA</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">F.O.B.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TERMS</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">DELIVERY DATE</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">7/01/05</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">P1431</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">U.P.S.</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">SHIPPING POINT</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1% 10 DAYS NET 30</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=98.4><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">SEE BODY</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman">BUYER: Jeff Scofield &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14PRO</P>
<P style="margin:0pt; font-family:Times New Roman">PHONE: 949.224.0506</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">QUANTITY</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">U/M</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">UNIT PRICE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133><P style="margin:0pt; font-family:Times New Roman">AMOUNT</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1 ITEM 9102930010</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">ENG DWG 9102930010</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">PCB, ASSY, 1930/2930 KEY/DISP BD</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">*BLANKET</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">50.000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">EA</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">46.46</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL BLANKET ORDER QTY. 88 SEE BELOW</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">#0001 DELIVER BY 9/26/06</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">25.000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">EA</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">46.46</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133><P style="margin:0pt; font-family:Times New Roman">1161.50</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">#0002 DELIVER BY 11/17/05</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">25.000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">EA</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">46.46</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133><P style="margin:0pt; font-family:Times New Roman">1161.50</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL OUTSTANDING</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067><P style="margin:0pt; font-family:Times New Roman">50.000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=118.133><P style="margin:0pt; font-family:Times New Roman">2323.00</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:288pt; font-family:Times New Roman">TOTAL</P>
<P style="margin:0pt; text-indent:360pt; font-family:Times New Roman">2323.00</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:288pt; font-family:Times New Roman">BY </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>PURCHASING</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR>
<BR></P>
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>6
<FILENAME>exhibit1021.htm
<DESCRIPTION>SAMPLE PURCHASE ORDER WITH ASYMTECK
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>08/16/2005 &nbsp;&nbsp;10:58 &nbsp;&nbsp;FAX</TITLE>
<META NAME="author" CONTENT="Barrett">
<META NAME="date" CONTENT="10/04/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>08/16/2005 &nbsp;&nbsp;10:58 &nbsp;&nbsp;FAX 17604311504 &nbsp;ASYMTEK &nbsp;&nbsp;PURCHASING &nbsp;&nbsp;&nbsp;&nbsp;&#8594; &nbsp;PROBE &nbsp;005/005</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=67.2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">NUMBER</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">99853</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=67.2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">DATE</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">08-16-05</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=67.2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">CHG ORDER</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=67.2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">PAGE</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">1</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:-32pt; padding-left:-45pt; padding-right:-36pt; line-height:32pt; font-family:Times New Roman; font-size:30pt">Asymtek<SMALL><SMALL><SMALL>&#174;</SMALL></SMALL></SMALL></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; text-indent:189pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><BIG><BIG>PURCHASE ORDER &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</BIG></BIG></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:14pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><SMALL>A NORDSON COMPANY</SMALL></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">2762 Loker Avenue West</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Carlsbad, California 92010-6603</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Tel. (760) 431-1919 Fax (760) 431-1504</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Accounts Payable Direct Fax (760) 930-7430</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:-45pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt"><B>VENDOR:</B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; text-indent:81pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7447 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><SMALL>SHIPPING ADDRESS</SMALL></B></P>
<B><P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; text-indent:81pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>PROBE MANUFACTURING INDUSTRIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASYMTEK</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; text-indent:81pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3050 PULLMAN ST &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2762 LOKER AVE WEST</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; text-indent:81pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COSTA MESA, &nbsp;CA 92626 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CARLSBAD, &nbsp;CA 92010-6603</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=96 colspan=2><P style="margin:0pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt">ATTENTION <BIG>&nbsp;</BIG></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">PHONE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">FAX</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=108 colspan=3><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">OUR CONTACT</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">PHONE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">FAX</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=156 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">EMAIL</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">PETER SALMI</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">714-424-2960x118</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">714-424-2972</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=108 colspan=3><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">CAROL TILLINGHAST</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">760-930-3353</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">760-431-1504</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=156 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">ctillinghast@asymtek.com</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">SHIP VIA</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">TERMS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=132 colspan=3><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">F.O.B.</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=60><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">ACK REQ&#146;D</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">CONFIRMING PO?</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=108 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">REQUESTOR</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">TAXABLE</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">UPS GROUND</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">1.00%/10/30</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=132 colspan=3><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">VENDOR</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=60><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">YES</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">NO</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=108 colspan=2><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">CAROL</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">NO</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=36><P style="margin-top:0pt; margin-bottom:-9pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">LI# &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-right:-5.4pt; text-indent:36pt; font-family:Times New Roman; font-size:14pt"><B><BR></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">QTY</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">UDM</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=58.267><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">DUE DATE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=68.4><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">OUR PART #</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=41.333><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">REV</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">DESCRIPTION</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">VENDOR PART #</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">UNIT PRICE</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; padding-right:-5.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">EXTENSION</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; text-indent:-33pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">1</P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">33 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10-17-05 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7200422 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PWA, MAIN &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;479.580 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,826.14</P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">30 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11-21-05</P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; text-indent:106.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">(SAME) </P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; text-indent:142.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D</P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; text-indent:322.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;479.580 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,387.40</P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">30 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EA</P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; text-indent:34.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12-19-05 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SAME) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D</P>
<P style="margin-top:0pt; margin-bottom:-9pt; padding-left:1.5pt; padding-right:-36pt; text-indent:322.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;479.580</P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; text-indent:394.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,387.40</P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; text-indent:394.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_ _ _ _ _ _ _ _ _ _ _</P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; text-indent:322.5pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; text-indent:322.5pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">TOTAL PURCHASE &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44, 600.94</P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:1.5pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman">(Handwritten)</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><I>S/O 4459</I></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><I><BR></I></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><I>W/O &nbsp;8300</I></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8301</I></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8302</I></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman"><I><BR></I></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Please confirm price &amp;</B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Delivery of this NEW order</B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:-356.4pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">AUTHORIZED SIGNATURE</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________________________________________________________________________________________________ </P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; padding-left:-54pt; padding-right:-36pt; line-height:9pt; font-family:Times New Roman; font-size:7pt">(MPO-13) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>VENDOR COPY</B></P>
<P style="margin:0pt; padding-left:-54pt; padding-right:-36pt; font-family:Times New Roman; font-size:7pt"><BR>
<BR>
<BR></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.22
<SEQUENCE>7
<FILENAME>exhibit1022.htm
<DESCRIPTION>SAMPLE PURCHASE ORDER WITHJETLINE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>Purchase Order from ITW JETLINE ENGINEERING &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page 1 of 1</TITLE>
<META NAME="date" CONTENT="10/04/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Purchase Order from ITW JETLINE ENGINEERING &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page 1 of 1</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:20pt; font-family:Times New Roman; font-size:18pt" align=center>Purchase Order from ITW JETLINE ENGINEERING for Vendor PROBE MANUFACTURING</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:18pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>PO#</B></P>
<B><P style="margin:0pt; text-indent:72pt; font-family:Times New Roman"></B>0070172 00</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>PO Date:</B></P>
<P style="margin:0pt; text-indent:72pt; font-family:Times New Roman">08/17/05</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Buyer:</B></P>
<P style="margin:0pt; text-indent:72pt; font-family:Times New Roman">KIRK HAYWARD</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Ship Via:</B></P>
<P style="margin:0pt; text-indent:72pt; font-family:Times New Roman">VENDOR TRUCK</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>F. O. B.:</B></P>
<B><P style="margin:0pt; text-indent:72pt; font-family:Times New Roman"></B>ORIGIN</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Terms:</B></P>
<B><P style="margin:0pt; text-indent:72pt; font-family:Times New Roman"></B>NET 30</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Vendor:</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">PROBE MANUFACTURING</P>
<P style="margin:0pt; text-indent:180pt; font-family:Times New Roman"><B>Ship to:</B> ITW JETLINE ENGINEERING</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">3050 PULLMAN ST.</P>
<P style="margin:0pt; text-indent:216pt; font-family:Times New Roman">15 GOODYEAR STREET</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">COSTA MESA CA 92626</P>
<P style="margin:0pt; text-indent:216pt; font-family:Times New Roman">IRVINE CA 92618</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=48><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">Line #</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=50.933><P style="margin:0pt; font-family:Times New Roman">Part</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.667><P style="margin:0pt; font-family:Times New Roman">Rev</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.333><P style="margin:0pt; font-family:Times New Roman">Loc</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.667><P style="margin:0pt; font-family:Times New Roman">UM</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=90.733><P style="margin:0pt; font-family:Times New Roman">Part Description</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=64.4><P style="margin:0pt; font-family:Times New Roman">Qty Ordered</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.067><P style="margin:0pt; font-family:Times New Roman">Unit Price($)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=67.733><P style="margin:0pt; font-family:Times New Roman">Extended Price ($)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.867><P style="margin:0pt; font-family:Times New Roman">Due Date</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48><P style="margin:0pt; font-family:Times New Roman">001</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=50.933><P style="margin:0pt; font-family:Times New Roman">9690</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.333>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.667><P style="margin:0pt; font-family:Times New Roman">EA</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=90.733><P style="margin:0pt; font-family:Times New Roman">u-PROCESSOR ALC CONTROL</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=64.4><P style="margin:0pt; font-family:Times New Roman">16.00000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.067><P style="margin:0pt; font-family:Times New Roman">1,787.43</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=67.733><P style="margin:0pt; font-family:Times New Roman">28,598.88</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.867><P style="margin:0pt; font-family:Times New Roman">10/15/05</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48><P style="margin:0pt; font-family:Times New Roman">002</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=50.933><P style="margin:0pt; font-family:Times New Roman">9690</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.333>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=48.667><P style="margin:0pt; font-family:Times New Roman">EA</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=90.733><P style="margin:0pt; font-family:Times New Roman">u-PROCESSOR ALC CONTROL</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=64.4><P style="margin:0pt; font-family:Times New Roman">16.00000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.067><P style="margin:0pt; font-family:Times New Roman">1,787.43</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=67.733><P style="margin:0pt; font-family:Times New Roman">28,598.88</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=61.867><P style="margin:0pt; font-family:Times New Roman">12/15/05</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">TOTAL</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">($)</P>
<P style="margin:0pt; text-indent:324pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,197.76</P>
<P style="margin:0pt; font-family:Times New Roman"><BR>
<BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>8
<FILENAME>exhibit1023.htm
<DESCRIPTION>SAMPLE PURCHASE ORDER SUPPLY AGREEMENT WITH FUTURE ACTIVE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<TITLE>Bill To:</TITLE>
<META NAME="date" CONTENT="10/13/2005">
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<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; font-family:Times New Roman"><B>Bill To:</B></P>
<P style="margin:0pt; font-family:Times New Roman">Probe Manufacturing Industries, Inc &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPEN PURCHASE ORDER</P>
<P style="margin:0pt; font-family:Times New Roman">3050 Pullman Street &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Order No.: 0000017332</P>
<P style="margin:0pt; font-family:Times New Roman">Costa Mesa, CA 92626 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change Order: 2</P>
<P style="margin:0pt; font-family:Times New Roman">USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page:1</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Order Date: October 10 2005</P>
<P style="margin:0pt; font-family:Times New Roman"><B>Ship To: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Confirm To: Joy</P>
<P style="margin:0pt; font-family:Times New Roman">Probe Manufacturing Industries, Inc &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">3050 Pullman Street &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Costa Mesa, CA 92626</P>
<P style="margin:0pt; font-family:Times New Roman">USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>Supplier:</B></P>
<P style="margin:0pt; font-family:Times New Roman">FUTURE ACTIVE</P>
<P style="margin:0pt; font-family:Times New Roman">25B TECHNOLOGY DRIVE</P>
<P style="margin:0pt; font-family:Times New Roman">SUITE 200</P>
<P style="margin:0pt; font-family:Times New Roman">IRVINE, CA 92618 USA</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Fax: 909-612-0667 Ph. 909-612-0167</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">TERMS</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">F.O.B.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">SHIP VIA</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">FREIGHT ACCOUNT NO.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">NET 40</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">DESTINATION</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">UPS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=44.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Item</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=117.933><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Part number/descrip.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=59.8><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">MFGR</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=69.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">PAKAG</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=70.4><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Quantity</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=52.133><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">UOM</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=47.933><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Unit Price</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=41.6><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Ext.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=40.333><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Tax</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=46.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Qual Spec</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;8-BIT MICROCONTROLLER, 400MHz MICROCHI &nbsp;REEL &nbsp;95.00 &nbsp;&nbsp;EACH &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;859.75</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">MICROP &nbsp;&nbsp;&nbsp;&nbsp;PIC18C658-E/L</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">303-0004822 Rev.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/24/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95.00</P>
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<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IC SM &nbsp;X24C16, ERASAVBLE PROM &nbsp;&nbsp;MICROCHI &nbsp;STICK &nbsp;600.00 &nbsp;EACH &nbsp;&nbsp;&nbsp;&nbsp;0.32000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;192.00</P>
<P style="margin:0pt; padding-left:17.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;&nbsp;&nbsp;24LC16B-I/SN</P>
<P style="margin:0pt; padding-left:17.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;336-0004070 Rev.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; padding-left:17.25pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/31/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;600.00</P>
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<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">006 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONN TH 2 PIN, FRICTION LOCK &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MOLX &nbsp;&nbsp;STICK &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400.00 &nbsp;EACH &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.05600 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.40</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HDR &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22-23-2021</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;646-0000857 &nbsp;Rev.</P>
<P style="margin:0pt; padding-left:15.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; padding-left:15.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11/21/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; font-family:Times New Roman">008 &nbsp;&nbsp;&nbsp;&nbsp;IC TH &nbsp;&nbsp;ULN2003A, HI-CURRENT &nbsp;&nbsp;&nbsp;SGS &nbsp;&nbsp;&nbsp;STICK &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125.00 &nbsp;&nbsp;EACH &nbsp;&nbsp;&nbsp;0.20000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.00</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER &nbsp;&nbsp;&nbsp;&nbsp;ULN2003A</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:88.5pt; text-indent:-61.5pt; font-family:Times New Roman">1-4379</P>
<P style="margin:0pt; padding-left:88.5pt; font-family:Times New Roman">Rev.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/31/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1125.00</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total PO Amount (no shipping charge): 1099.15</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Total (no shipping): 1099.15</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Total: 1099.15</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">BUYER: Thuy Nguyen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;APPROVAL: THN</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; font-family:Times New Roman">All Electronic devices shall be packaged in compliance with EIQ-625. &nbsp;All SMD&#146;s shall comply to EIA 481-1,2,3. &nbsp;All device date codes shall not exceed the following: SMD Passives &amp; Actives- 36 Mo., Axial &amp; Radial, Connectors-24 Mo. (Gold) -36 Mo., PCB&#146;s-4 Mo. 1<SUP>st</SUP> Article report is req. on all Fab items. &nbsp;**Supplier shall notify Probe in writing prior to providing product that conforms to PoHS/Lead Free requirements.**</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total PO Amount (no shipping charge): 1099.15</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Total (no shipping): 1099.15</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Total: 1099.15</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">BUYER: Thuy Nguyen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;APPROVAL: THN</P>
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<DOCUMENT>
<TYPE>EX-10.24
<SEQUENCE>9
<FILENAME>exhibit1024.htm
<DESCRIPTION>SAMPLE PURCHASE ORDER SUPPLY AGREEMENT WITH ARROW ELECTRONICS
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Bill To:</TITLE>
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; font-family:Times New Roman"><B>Bill To:</B></P>
<P style="margin:0pt; font-family:Times New Roman">Probe Manufacturing Industries, Inc &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPEN PURCHASE ORDER</P>
<P style="margin:0pt; font-family:Times New Roman">3050 Pullman Street &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Order No.: 0000017379</P>
<P style="margin:0pt; font-family:Times New Roman">Costa Mesa, CA 92626 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change Order: 1</P>
<P style="margin:0pt; font-family:Times New Roman">USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page:1</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Order Date: October 13, 2005</P>
<P style="margin:0pt; font-family:Times New Roman"><B>Ship To: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Confirm To: Chris</P>
<P style="margin:0pt; font-family:Times New Roman">Probe Manufacturing Industries, Inc &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">3050 Pullman Street &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Costa Mesa, CA 92626</P>
<P style="margin:0pt; font-family:Times New Roman">USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>Supplier:</B></P>
<P style="margin:0pt; font-family:Times New Roman">ARROW ELECTRONICS</P>
<P style="margin:0pt; font-family:Times New Roman">PO BOX 79329</P>
<P style="margin:0pt; font-family:Times New Roman">CITY OF INDUSTRY, CA 91716 USA</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Fax: 949-454-4292 Ph: 949-454-4295</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">TERMS</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">F.O.B.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">SHIP VIA</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">FREIGHT ACCOUNT NO.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">NET 30</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">DESTINATION</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6><P style="margin:0pt; font-family:Times New Roman">UPS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=147.6>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=44.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Item</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=117.933><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Part number/descrip.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=59.8><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">MFGR</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=69.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">PAKAG</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=70.4><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Quantity</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=52.133><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">UOM</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=47.933><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Unit Price</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=41.6><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Ext.</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=40.333><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Tax</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=46.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Qual Spec</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; font-family:Times New Roman">001 IC SM Dual OP AMP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stick &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350.00 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH &nbsp;&nbsp;&nbsp;&nbsp;0.14000 &nbsp;&nbsp;&nbsp;49.00</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPAMP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TL082ID</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:81pt; text-indent:-63.75pt; font-family:Times New Roman">1-7663</P>
<P style="margin:0pt; padding-left:81pt; font-family:Times New Roman">Rev.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/17/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; font-family:Times New Roman">002 IC SM &nbsp;&nbsp;Inst Amplifier &nbsp;&nbsp;&nbsp;&nbsp;T1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stick &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200.00 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18000 &nbsp;&nbsp;&nbsp;1036.00</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PGA103U</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:81pt; text-indent:-63.75pt; font-family:Times New Roman">0-7920</P>
<P style="margin:0pt; padding-left:81pt; font-family:Times New Roman">Rev.</P>
<P style="margin:0pt; padding-left:17.25pt; font-family:Times New Roman">Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; padding-left:17.25pt; font-family:Times New Roman">10/17/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">003 &nbsp;TNSTR SM &nbsp;JFET, N-CHAN, 4393, SOT23 ON/ MOT TAPE&amp;R 3000.00 &nbsp;&nbsp;&nbsp;&nbsp;EACH &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.07690 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;230.70</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FET &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MMBF4393LT1</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:70.5pt; text-indent:-54.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">0-6637</P>
<P style="margin:0pt; padding-left:70.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Rev.</P>
<P style="margin:0pt; padding-left:15.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Due Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance</P>
<P style="margin:0pt; padding-left:15.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">10/17/2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; font-family:Times New Roman">All Electronic devices shall be packaged in compliance with EIQ-625. &nbsp;All SMD&#146;s shall comply to EIA 481-1,2,3. &nbsp;All device date codes shall not exceed the following: SMD Passives &amp; Actives- 36 Mo., Axial &amp; Radial, Connectors-24 Mo. (Gold) -36 Mo., PCB&#146;s-4 Mo. 1<SUP>st</SUP> Article report is req. on all Fab items. &nbsp;**Supplier shall notify Probe in writing prior to providing product that conforms to PoHS/Lead Free requirements.**</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total PO Amount (no shipping charge): 1315.70</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Total (no shipping): 1315.70</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Total: 1315.70</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=590.4 colspan=10><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">BUYER: Jime Kim &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;APPROVAL: JK</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>10
<FILENAME>exhibit231.htm
<DESCRIPTION>CONSENT OF INDEPENDENT AUDITORS, JASPERS & HALL, P.C.
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>September 29, 2005</TITLE>
<META NAME="author" CONTENT="Tom">
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin-top:10pt; margin-bottom:0pt; line-height:14.4pt; font-family:Courier New">Exhibit 23.1</P>
<P style="margin-top:10pt; margin-bottom:0pt; line-height:14.4pt; font-family:Courier New">October 12,&nbsp;2005</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">U.S.&nbsp; Securities&nbsp;and&nbsp;Exchange&nbsp;Commission&nbsp;Division&nbsp;of&nbsp;Corporate&nbsp;Finance</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">450&nbsp;Fifth&nbsp;Street,&nbsp;N.W.</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">Washington,&nbsp;D.C.&nbsp; 20549</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONSENT OF INDEPENDENT AUDITOR</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New" align=justify>We&nbsp;hereby&nbsp;consent&nbsp;to&nbsp;the&nbsp;incorporation&nbsp;by&nbsp;reference on Form SB-2 of Probe Manufacturing, Inc. of our audit report dated May 25, 2005&nbsp;for&nbsp;the&nbsp;year ended December 31, 2004, and to our review reports for the three-month period ended March 31, 2005 dated June 28, 2005 and for the six-month period ended June 30, 2005 dated June 28, 2005 and to all references to our&nbsp;firm&nbsp;included&nbsp;in&nbsp;this&nbsp;Registration&nbsp;Statement.</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">&nbsp;</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">/s/Jaspers + Hall, PC</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">--------------------------------</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">Jaspers + Hall, PC</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">Denver,&nbsp;Colorado</P>
<P style="margin:0pt; line-height:14.4pt; font-family:Courier New">October 12,&nbsp;2005</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>11
<FILENAME>exhibit232.htm
<DESCRIPTION>CONSENT OF INDEPENDENT AUDITORS, MICHAEL JOHNSON & CO., LLC
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>October 13, 2005</TITLE>
<META NAME="author" CONTENT="Michael B. Johnson">
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">October 13, 2005</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">U.S. Securities and Exchange Commission</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Division of Corporation Finance</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">450 Fifth Street, N.W.</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Washington, DC 20549</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">RE: PROBE Manufacturing Industries, Inc. &#150; SB-2</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Dear Sir/Madame:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We hereby consent to the incorporation by reference in this Registration Statement on Form </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">SB-2 of our report dated September 30, 2004 on our audit of the financial statements of PROBE Manufacturing Industries, Inc. for the year ended December 31, 2003, and to all references to our firm included in this Registration Statement.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Sincerely,</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">/s/Michael Johnson &amp; Co., LLC</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Denver, CO </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>12
<FILENAME>filename12.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>CATHERINE BASINGER, ESQ</TITLE>
<META NAME="author" CONTENT="Jeff &nbsp;Conrad">
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CATHERINE BASINGER, ESQ.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>144 W. San Antonio Drive</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Long Beach, CA 90807</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>(562)547-0364</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>October 13, 2005</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Mr. Ted Yu</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Securities and Exchange Commission</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">100 F. Street, NE</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Washington, D.C. 20549</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Dear Mr. Yu: </P>
<P style="margin-top:5pt; margin-bottom:5pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Pursuant to your letter dated August 17, 2005 we are hereby submitting for your review our amended registration statement on Form SB-2. &nbsp;Below please find our responses to your comments. &nbsp;Enclosed you will also find three copies of our amended registration statement on From SB-2. </P>
<P style="margin-top:5pt; margin-bottom:5pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Please note that we have terminated our investment agreement with BTF, LLC and the common stock shares that were to be registered pursuant to the investment agreement have been removed from our registration statement. &nbsp;Furthermore, the shares underlying the conversion of our Series B Convertible Preferred Stock have also been removed from the registration statement.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 1</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that under the terms of the Investment Agreement with BTF, LLC, the company will issue common shares to BTF, and BTF will be required to purchase these shares, only if the common stock is quoted on the OTC Bulletin Board. &nbsp;We further note that the purchase price for the shares will be 93% of the average of the two lowest bid prices of the stock during the five-day period following the notice of exercise of the put. </I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>As stated in our March 31, 2001 Update to the Current Issues ad Rule-Making Projects Outline, the registration of the resale of the shares issuable under an equity line of credit is permissible only if the private placement portion of the equity line (i.e., the issuance of the shares to the equity line investor) is completed prior to the filing of the resale registration statement. &nbsp;Given that the equity line&#146;s purchase price is based on the trading price of common stock in an non-existent public market, it does not appear the terms for the purchase price have actually been set. Accordingly, the private placement portion of the equity line does not appear to be complete.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please remove from the registration statement the common shares issuable pursuant to the Investment Agreement. &nbsp;Please ensure to update all sections of the amended registration statement to reflect the removal of the shares issuable under the Investment Agreement (e.g., the risk factors on page 18 and &#147;Dilution&#148; section on page 22).</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Alternatively, if you wish, you may withdraw the registration statement, complete the private placement of common stock to BTF, LLC, and file a new registration statement for the resale of the common stock by BTF, LLC.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">No longer relevant because subject matter has been removed from the registration statement.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I><U>Comment 2</U></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Similarly, we believe that the private placement of the shares of Series B Convertible Preferred Stock, which have a conversion rate tied to the market price, cannot be completed until the terms of the transaction are fixed. &nbsp;In this regard, we believe that the absence of an existing public market for the common shares means that there has been no meeting of the minds as to the conversion price. Accordingly, please remove from the registration statement the shares issuable upon conversion of the preferred stock.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">No longer relevant because subject matter has been removed from the registration statement.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 3</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please update the financial statements and MD&amp;A section to include the interim period of June 30, 2005, as required by Item 310(g) of Regulation S-B.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We updated the financial statements and the MD &amp;A section in the body of the registration statement. &nbsp;The MD&amp; A section begins on page 43 and the financial statements begin on page F-1.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 4</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Include currently dated and signed consents of the independent accountants in each amendment to the Form SB-2. &nbsp;Refer to Item 302 for Regulation S-T.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have included currently dated and signed consents of the independent accountants in this amendment to our SB-2 registration statement as submitted with this letter.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 5</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise the prospectus to eliminate all redundant disclosure. &nbsp;We note, for example, that the legal proceeding discussion is repeated at least three times in the prospectus. &nbsp;The names of the selling shareholders are also repeated numerous times in the prospectus. &nbsp;Your &#147;Description of Property&#148; section repeats the information already provided on page 42.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have attempted to eliminate all redundant information throughout the registration statement document and we have specifically removed the redundancy as it applies to selling shareholders, the legal proceedings and &#147;Description of Property.&#148;</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 6</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please avoid capitalizing commonly-understood terms such as &#147;Directors&#148;, Executive&#148;, Officers&#148;, &#147;Company&#148;, and &#147;Common Stock&#148;.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have avoided using capitalized terms such as Directors, Executives, Officers, Company and Common stock and have attempted to change all references to the above terms to lower case.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 7</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please include on the cover page only the information required by Item 501 of Regulation S-B or that is otherwise material. &nbsp;All other information should be removed from the cover page. &nbsp;For example, please delete from the cover page the names of the warranty holders and the holders of common stock. &nbsp;Given that much of the information provided on the cover page is repeated in the prospectus summary, please revise both the cover page and the summary to eliminate redundant information. &nbsp;Also note the Item 501 of Regulation S-B required that you limit the cover page to one page only.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have modified the cover page to only include only the information required by Item 501 of Regulation S-B or that is otherwise material and have removed redundant information. &nbsp;Further, we have limited the cover page to only one page.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>The Previous Text</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> PROSPECTUS
</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B> PROBE MANUFACTURING, INC.
</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> This prospectus relates to the sale of up to 12,078,125 shares of our common stock, which represents 100% of our outstanding securities, by our current shareholders, the common stock shares we could issue upon conversion of the Series B Convertible Preferred Stock by our Series B stockholders and BTF, LLC who will become a stockholder pursuant to a &quot;&#147;put right&#148;&quot; under an Investment Agreement, also referred to as an Equity Line of Credit, that we have entered into with BTF, LLC. &nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"><U> Use of Proceeds
</U></P>
<P style="margin:0pt; font-family:Times New Roman"> We are not selling any securities in this offering and therefore will not receive any proceeds from this offering. We will, however, receive proceeds from the sale of securities pursuant to our exercise of the &#147;&#147;put right&#148;&#148; and possible future exercise of the warrants held by The Hicks Family Trust, The Edward &amp; Mildred Lassiter Restated Family Trust, The DW &amp; JS Benner Family Trust, , Hirad Emadi, Patrick Connelly, Phillip Kavanaugh, Ronnie Novian, John White, Parvin Khalili, Albert Assil, Keith Barrett, Helene Mandell, Guy Grimsley, Francis F. Smith Descendants Trust, Edmondson Farms, Inc. Employees 401K Plan &amp; Trust, Ikuo Ito, Global Capital Management, Inc., Masahiro Irie, James and Lisa Goodell, Peter Grias, Kamran Gharibian, Iraj Gharibian, Billy E. Malcolm, Robert Kofke and Cathy Kofke JT TEN WROS, Phillip Smith, Billy Barr, Charles Schwab FBO Andrew Kotowicz, Todd Jorgensen, Chritopher Reed and Patricia Schone JT WROS
, Anthony and Angela Reed Family Trust, Cadioty/Werth Living Trust, Miller Family Trust, Finer Marital Trust, James Kimmel, Adam Carolla, George Geldin, Dennis Gerber, Noriaki Sasaki, B Derman &amp; J Derman TTEE Bennett &amp; Janice Derman Family U/A Dated January 16, 1998, Abraham Assil, James Blake, Anthony Reed, Bach Living Trust, Craig Benner, Carolina Trust, Duncan Revocable Trust, Hooman Emadi, Ronald Feldman, George D. Hill &amp; Elieen C. Hill JT WROS, The Edward and Mildred Lassiter Restated Family Trust Dated April 14, 2000, Russell Miller, William W. Morse &amp; Jill D. Morse JT WROS, and Research Drive Equities, LLC. &nbsp;All costs associated with this registration will be borne by us.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"><U> Investment Agreement
</U></P>
<P style="margin:0pt; font-family:Times New Roman"> BTF, LLC &nbsp;will become a stockholder pursuant to a &quot;&#147;put right&#148;&quot; under an Investment Agreement, also referred to as an Equity Line of Credit, that we have entered into with BTF, LLC. a &#147;put right&#148; permits us to require BTF, LLC to buy shares pursuant to the terms of the Investment Agreement. That Investment Agreement permits us to &quot;put&quot; up to $4.5 million in shares of our common stock to BTF, LLC if and when we are successful in our attempt to have our common stock listed on the Over-the-Counter Bulletin Board.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> BTF, LLC is an &quot;underwriter&quot; within the meaning of the Securities Act of 1933, as amended, in connection with the resale of our common stock under the Investment Agreement. BTF, LLC will pay us 93% of the average of the two lowest posted bid prices of the common stock during the five consecutive trading day period immediately following the date of our notice to them of our election to put shares pursuant to the Equity Line of Credit.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> We are registering 5,625,000 shares of common stock pursuant to the Investment Agreement which assumes that price of our stock will be $0.80 at the time of the put notice.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Please read more information about the Investment Agreement in the &#147;Investment Agreement&#148; Section below.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"><U> Common Stock Shares
</U></P>
<P style="margin:0pt; font-family:Times New Roman"> The common stock shares held by The Hicks Family Trust, The Edward &amp; Mildred Lassiter Restated Family Trust, The DW &amp; JS Benner Family Trust, , Hirad Emadi, Patrick Connelly, Phillip Kavanaugh, Ronnie Novian, John White, Parvin Khalili, Albert Assil, Keith Barrett, Helene Mandell, Guy Grimsley, Francis F. Smith Descendants Trust, Edmondson Farms, Inc. Employees 401K Plan &amp; Trust, Ikuo Ito, Global Capital Management, Inc., Masahiro Irie, James and Lisa Goodell, Peter Grias, Kamran Gharibian, Iraj Gharibian, Billy E. Malcolm, Robert Kofke and Cathy Kofke JT TEN WROS, Phillip Smith, Billy Barr, Charles Schwab
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> FBO Andrew Kotowicz, Todd Jorgensen, Chritopher Reed and Patricia Schone JT WROS, Anthony and Angela Reed Family Trust, Cadioty/Werth Living Trust, Miller Family Trust, Finer Marital Trust, James Kimmel, Adam Carolla, George Geldin, Dennis Gerber, Noriaki Sasaki, B Derman &amp; J Derman TTEE Bennett &amp; Janice Derman Family U/A Dated January 16, 1998, Abraham Assil, James Blake, Anthony Reed, Bach Living Trust, Craig Benner, Carolina Trust, Duncan Revocable Trust, Hooman Emadi, Ronald Feldman, George D. Hill &amp; Elieen C. Hill JT WROS, The Edward and Mildred Lassiter Restated Family Trust Dated April 14, 2000, Russell Miller, William W. Morse &amp; Jill D. Morse JT WROS, and Research Drive Equities, LLC were issued by us pursuant to our Private Placement Memorandum, as amended. The shares held by Reza Zarif and Kambiz Mahdi &nbsp;were Founders Shares. The shares held by eFund Capital Partners, LLC were issued pursuant to a stoc
k purchase and strategic relationship agreement executed on May 20, 2004. &nbsp;The shares held by Ashford Capital, LLC were assigned by eFund Capital Partners, LLC.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> We are registering 3,328,125 shares of common stock by the shareholders listed above which represents 100% of the common stock currently issued and outstanding.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"><U> Series B Convertible Preferred Stock
</U></P>
<P style="margin:0pt; font-family:Times New Roman"> The 12,500 shares of Series B Convertible Preferred Stock held by Reza Zarif, Kambiz Mahdi and eFund Capital Partners, LLC were issued by us as consideration for an investment agreement totaling $1,250,000 dated December 31, 2004. As of July 18, 2005 there were 12,500 shares of Series B Convertible stock outstanding. Each share of Series B Stock shall be converted into a number of shares of Common Stock that is equal to each share of Series B being divided by the average of the 3 lowest intraday bids in the twenty (20) days prior to conversion


<STRIKE>, or $0.10, which ever is greater,</STRIKE>

 multiplied by 100 (1 divided by x, multiplied by 100), or 125 shares per Series B, whichever is greater.
 &nbsp;The minimum conversion price

which Series B shareholders shall be to convert their Series B shares to common stock shall be $0.10.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> We are, therefore, registering 3,125,000 shares of common stock to cover 200% common stock shares we could issue upon conversion of the Series B Convertible Preferred stock assuming that the conversion price will be $0.80.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Our common stock is not traded on any public market. &nbsp;Selling stockholders will sell at a fixed price of $0.80 per share until our common shares are quoted on the Over-the-Counter Bulletin Board and thereafter at prevailing market prices, or privately negotiated prices. The offering price of $0.80 per share was determined arbitrarily by us. &nbsp;The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. &nbsp;Should a market develop or occur for our securities, the market price may be far less than the offering price. &nbsp;If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares.
</P>
<P style="margin:0pt; font-family:Times New Roman" align=center> ______________________________________________
</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B> <BR>
</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.
</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> YOU SHOULD PURCHASE SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS.
</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> SEE &quot;RISK FACTORS&quot; BEGINNING ON PAGE 12.
</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B> _________________________________________________
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> You should rely only on the information provided in this prospectus or any supplement to this prospectus and information incorporated by reference. We have not authorized anyone else to provide you with different information. Neither the delivery of this prospectus nor any distribution of the shares of common stock pursuant to this prospectus shall, under any circumstances, create any implication that there has been no change in our affairs since the date of this prospectus.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. It is a criminal offense to make any representation to the contrary.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"> SUBJECT TO COMPLETION, THE DATE OF THIS PROSPECTUS IS JULY 18, 2005
</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text Beginning on Page 3.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PROSPECTUS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B>PROBE MANUFACTURING, INC.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">This prospectus relates to the sale of up to 3,328,125 shares of our common stock, which represents 100% of our outstanding securities, by our stockholders.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Our common stock is not traded on any public market. &nbsp;Selling stockholders will sell at a fixed price of $0.80 per share until our common shares are quoted on the Over-the-Counter Bulletin Board and thereafter at prevailing market prices, or privately negotiated prices. The offering price of $0.80 per share was determined arbitrarily by us. &nbsp;The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. &nbsp;Should a market develop or occur for our securities, the market price may be far less than the offering price. &nbsp;If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>______________________________________________</P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>YOU SHOULD PURCHASE SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SEE &quot;RISK FACTORS&quot; BEGINNING ON PAGE 12.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>_________________________________________________</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">You should rely only on the information provided in this prospectus or any supplement to this prospectus and information incorporated by reference. We have not authorized anyone else to provide you with different information. Neither the delivery of this prospectus nor any distribution of the shares of common stock pursuant to this prospectus shall, under any circumstances, create any implication that there has been no change in our affairs since the date of this prospectus. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. It is a criminal offense to make any representation to the contrary. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>SUBJECT TO COMPLETION, THE DATE OF THIS PROSPECTUS IS OCTOBER 3, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 8</U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please clarify if the common shares underlying the warrants are being registered for resale. &nbsp;Your introductory paragraph states that the 12,078,125 shares currently registered are outstanding common stock, common stock underlying Series B Convertible Preferred Stock, and stock issuable pursuant to the put right held by BTF, LLC. &nbsp;Based on this language, it does not appear that any shares underlying the warrants are being registered. &nbsp;In addition, in the appropriate section, please provide a description of the terms of the warrants and file the warrant agreements as exhibits. &nbsp;In particular, please tell us whether or not the warrants have a fixed exercise price. &nbsp;We note that there are two classes of warrants.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We are not registering the warrants sold to our stock holders in our private placement memorandum dated June 16, 2004 and as restated and amended on November 26, 2004.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 9</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please provide a clearer and more concrete description of your business, particularly the services your company provides. &nbsp;To that end, avoid using vague statements or phrases, such as &#147;we take responsibility for new product introduction and implementation,&#148; &#147;logistic management,&#148; &#147;we can assume supply chain responsibility,&#148; and &#147;end-to-end services.&#148; &nbsp;Instead, provide clear descriptions of your services and the duties you perform for your customers. &nbsp;Your revised discussion should give readers a better understanding of your customer base, such as the size of your typical customer and the finished products they sell. &nbsp;Corresponding revisions should be made to the &#147;Description of Business&#148; section on page 36.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We modified our business description as set forth below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text.</B></P>
<P style="margin:0pt; font-family:Times New Roman"> We incorporated in the State of California on July,7, 1995 as Probe Manufacturing Industries, Inc. On April 21, 2005 we reincorporated from California to Nevada whereby we changed our name to Probe Manufacturing, Inc. From our formation until present we have been a provider of advanced electronics manufacturing services, or EMS, to original equipment manufacturers, or OEMs, primarily in the industrial, automotive, semiconductor, medical, communication and military industries. &nbsp;&nbsp;Our strategy is to provide customers with a collaborative end-to-end service that involves engineering, supply chain management, and manufacturing services. &nbsp;Furthermore, we take responsibility for new product introduction and implementation, and logistics management, with the goal of delivering a complete packaged product. Once a complete packaged product is delivered, we also provide after-sale services such as repair and warranty services.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> &nbsp;Substantially all of our manufacturing services are provided on a turnkey basis, whereby we purchase customer-specified components from our suppliers, assemble the components on printed circuit boards and perform post-production testing upon request by our customers. However, we can assume supply chain responsibility at any time during the product life cycle. &nbsp;&nbsp;We offer our customers flexible, &quot;just-in-time&quot; delivery programs allowing product shipments to be closely coordinated with our customers' inventory requirements. Additionally, we complete the assembly of our customers' products at our facilities by integrating printed circuit board assemblies into other elements of our customers' products upon request by our customers.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Our marketing strategy is to convince potential customers to engage us as an engineering and supply chain partner, rather than to simply change EMS suppliers whereby we collaborate with the customer through the entire process. &nbsp;To do this, we perform a full process audit on prospective customer&#146;s operations to ensure our objectives are aligned and make recommendations for integration of our processes to their technology, quality, and delivery process to achieve the highest positive outcome and lowest total cost. &nbsp;This process has been an extremely effective way to demonstrate the ways we can improve the targeted customer&#146;s business performance.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text On Page 5 and 37 .</B></P>
<P style="margin:0pt; font-family:Times New Roman">We incorporated in the State of California on July 7, 1995 as Probe Manufacturing Industries, Inc. On April 21, 2005 we re-domiciled from California to Nevada whereby we changed our name to Probe Manufacturing, Inc. Our business focuses on manufacturing electronics and providing services to original equipment manufacturers (OEMs) of industrial, automotive, semiconductor, medical, communication, military, and high technology products. The services that we provide are commonly referred to as electronics manufacturing services (EMS). We offer our customers comprehensive and integrated design and manufacturing services, from initial product design to production and direct order fulfillment. </P>
<P style="margin:0pt; font-family:Times New Roman">Our engineering services include product design, printed circuit board layout, prototyping, and test development. Our supply chain management solutions include purchasing, management of materials, and order fulfillment. Our manufacturing services include surface mount, hole assembly, cable assembly, mechanical assembly, and fully integrated box build systems for high complexity electronics.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">For example, Probe builds a Natural Gas Electronic Control Unit for Quantum Technologies which is used in GM&#146;s alternative fuel engines. We have supported this customer from the inception of its product. Our services started with full design review for manufacturability and testability of the product. &nbsp;Once the design review and recommendations were completed we source the materials and procure the components. We then take responsibility for assembling the components on to the boards, assembling the mechanical parts, installing the product inside the enclosure, and finally we perform a full functional test. Then the finished good product is shipped to the customer, who integrates it in to their final fuel delivery system and it&#146;s delivered to GM. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The majority of our revenue is driven from manufacturing a mix of complex Printed Circuit Card assemblies. &nbsp;Some of the examples of our customers finished goods products include automated fluid dispensing equipments, high performance gas and liquid delivery process modules, which are used in semiconductor fabrication equipment, photonics instrumentation to measure fiber optics, electronic control unit for hydrogen, natural gas, and propane engines, electronic control unit for welding equipment, portable ultrasound and electro-simulation therapy equipment, and target scoring systems for military.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 10</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Indicate whether you commenced business operations or generated revenues from your operations. &nbsp;The fact that your business has traditionally suffered net losses should also be disclosed.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Discussion of financial matters was removed from our business description, therefore, this comment is no longer relevant in this section. &nbsp;Our financial condition in discussed in great detail in the financial section beginning on F-1 and in our MD&amp;A section starting on page 43.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 11</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Item 501(a)(8) of Regulation S-B requires that you include the price range or the formula or method to be used to calculate the offering price. &nbsp;While you may state that selling shareholders will sell at prevailing market prices or privately-negotiated prices once the shares are quoted on the OTC Bulletin Board, they may not sell at privately negotiated prices other than $0.80 per share before the shares begin trading on a market. &nbsp;Revise the disclosure under &#147;Trading Market&#148; on page 8 accordingly.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Our &#147;Trading Market&#148; disclosure was modified as set forth below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Previous Text.</P>
<P style="margin:0pt; font-family:Times New Roman"><U> TRADING MARKET
</U></P>
<P style="margin:0pt; font-family:Times New Roman"> There is currently no public trading market for our securities. Selling stockholders will sell at a fixed price of $.80 per share or privately negotiated prices until our common shares are quoted on the Over-the-Counter Bulletin Board and thereafter at prevailing market prices, or privately negotiated prices.
</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 6. </B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>TRADING MARKET</U></P>
<P style="margin:0pt; font-family:Times New Roman">There is currently no public trading market for our securities. Selling stockholders will sell at a fixed price of $.80 per share until our common shares are quoted on the Over-the-Counter Bulletin Board and thereafter at prevailing market prices, or privately negotiated prices.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 12</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>In your response letter, please list all classes of the company&#146;s securities held by BTF, LLC, such as warrants, notes, or preferred securities. &nbsp;Describe in detail any conversion or exercise feature of these securities. &nbsp;We note, for example, that there are 440 shares of Series A Convertible Preferred Stock; indicate whether BTF, LLC owns any of these shares. &nbsp;Finally, please tell us if there are any relationships between BTF, LLC and the other selling shareholders.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">BTF, LLC does not own any classes of our securities. &nbsp;Furthermore, we have terminated our investment agreement and the common stock shares that were to be registered pursuant to the investment agreement with BTF, LLC have been removed from our registration statement. &nbsp;There are no relationships between BTF, LLC and our other selling shareholders.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 13</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>The net loss, net loss per share and weighted average number of common stock outstanding presented on page 10 for fiscal year 2004 does not agree with the information presented in the financial statements on pages F-2 and F-3. &nbsp;Please revise as necessary</I>.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Our Summary Financials have been modified as set forth below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Summary</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> SUMMARY FINANCIAL INFORMATION
</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B> <BR>
</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> PROBE MANUFACTURING INDUSTRIES
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> SUMMARY OPERATING INFORMATION
</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> FISCAL YEAR ENDED DECEMBER 31,
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 2004
</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> 2003
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 2002
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 2001
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> SALES
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $6,204,957
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $6,455,728
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $6,866,068
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $17,993,905
</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> NET INCOME (LOSS)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $ (918,590)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $(1,244,761)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $ (1,513,846)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $25,530
</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> LOSS PER SHARE (DILUTED POST REVENUE)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(91.86)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $(124.48)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $ (151.38)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $2.55
</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> WEIGHTED AVERAGE NUMBER OF COMMON
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> SHARES OUTSTANDING (POST REVENUE)
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 10,000
</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> 10,000
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 10,000
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 10,000
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman" align=center><B> <BR>
<BR>
</B></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=center><B> <BR>
<BR>
<BR>
</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> SUMMARY BALANCE SHEET INFORMATION
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> AT DECEMBER 31,
</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 2004
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> 2003
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 2002
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> 2001
</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> WORKING CAPITAL
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(564,310)
</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $(2,892,360)
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(1,852,838)
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(888,765)
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> TOTAL ASSETS
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $1,982,940
</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $2,417,516
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $2,712,420
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $2,944,636
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> TOTAL LIABILITIES
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $2,995,378
</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $5,046,352
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $4,110,729
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $2,966,687
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=156>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; font-family:Times New Roman"> STOCKHOLDERS EQUITY (DEFICIT)
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(1,012,438)
</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $(2,628,836)
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(1,398,309)
</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(22,051)
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=175.2>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(1,012,438)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=156><P style="margin:0pt; font-family:Times New Roman" align=center> $(2,628,836)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(1,398,309)
</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; font-family:Times New Roman" align=center> $(22,051)
</P>
</TD></TR>
</TABLE>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Summary on Pages 7 and 8</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SUMMARY FINANCIAL INFORMATION</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>PROBE MANUFACTURING INDUSTRIES</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>SUMMARY OPERATING INFORMATION</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>FISCAL YEAR ENDED DECEMBER 31,</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2004</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2003</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2002</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2001</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">SALES</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$6,204,957</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$6,455,728</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$6,866,068</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$17,993,905</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">NET INCOME (LOSS)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$ (918,590)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,244,761)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$ (1,513,846)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$25,530</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">LOSS PER SHARE (DILUTED POST REVENUE)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(91.86)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(124.48)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$ (151.38)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2.55</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>SUMMARY BALANCE SHEET INFORMATION</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>AT DECEMBER 31,</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2004</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2003</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2002</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>2001</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">WORKING CAPITAL</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(564,310)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(2,892,360)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,852,838)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(888,765)</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL ASSETS</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$1,982,940</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,417,516</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,712,420</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,944,636</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">TOTAL LIABILITIES</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,995,378</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$5,046,352</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$4,110,729</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$2,966,687</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=175.2><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">STOCKHOLDERS EQUITY (DEFICIT)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,012,438)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(2,628,836)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,398,309)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(22,051)</P>
</TD></TR>
<TR><TD valign=bottom width=175.2>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,012,438)</P>
</TD><TD valign=bottom width=156><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(2,628,836)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(1,398,309)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>$(22,051)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><B><BR>
<BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>WEIGHTED AVERAGE</B></P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>NUMBER OF SHARES CALCULATION</B></P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>2004 Month</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;New Shares Issued </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Shares Redeemed </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Outstanding Number of Shares </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Number of Months Outstanding</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Weighted Avg </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jan</P>
</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>12</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Feb</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>11</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Mar</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>10</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Apr</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>9</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>May</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,990,000 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,000,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>8</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,993,333 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jun</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125,000 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,125,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>7</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,917 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jul</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;262,500 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,387,500 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>6</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;131,250 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Aug</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,750 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,456,250 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>5</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,646 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Sep</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137,500 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,593,750 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>4</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,833 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Oct</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;568,750 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,162,500 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>3</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;142,188 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Nov</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,500 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,325,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>2</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,083 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Dec</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;288,125 </P>
</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,000,000)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613,125 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>1</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(392,656)</P>
</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=350.733 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Weighted Average Shares as of 12/31/2004</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,058,594 </P>
</TD></TR>
</TABLE>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 14</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise your subheadings so that they better summarize the risks discussed. &nbsp;Currently, many of your subheadings do not summarize the actual or all risks discussed. &nbsp;Examples include, &#147;We have an accumulated deficit&#133;&#148; and &#147;If we lose key senior management personnel&#133;&#148;</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have attempted to modify all our subheadings so that they better summarize the risks discussed. &nbsp;The risk section can be found on pages 8-18 in the amended registration statement. &nbsp;Per your comment we specifically changed the two of the risk subheadings as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> WE HAVE AN ACCUMULATED DEFICIT AND MAY INCUR ADDITIONAL LOSSES, THEREFORE WE MAY NOT BE ABLE TO MEET OUR DEBT SERVICE OBLIGATIONS.
 </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"> IF WE LOSE KEY SENIOR MANAGEMENT PERSONNEL OUR BUSINESS COULD BE NEGATVIELY AFFECTED.
</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 9 and 14 respectively.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE HAVE AN ACCUMULATED DEFICIT AND MAY INCUR ADDITIONAL LOSSES, THEREFORE WE MAY NOT BE ABLE TO OBTAIN THE ADDITIONAL FINANCING NEEDED FOR WORKING CAPITAL, CAPITAL EXPEDITURES AND TO MEET OUR DEBT SERVICE OBLIGATIONS.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">WE CURRENTLY DO NOT HAVE LONG TERM CONTRACTS WITH OUR EXECUTIVE OFFICERS AND IF WE LOSE KEY SENIOR MANAGEMENT PERSONNEL OUR BUSINESS COULD BE NEGATVIELY AFFECTED. FURTHER, WE WILL NEED TO RECRUIT AND RETAIN ADDITIONAL SKILLED MANAGEMENT PERSONNEL AND IF WE ARE NOT ABLE TO DO SO, OUR BUSINESS AND OUR ABILITY TO CONTINUE TO GROW COULD BE HARMED.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 15&amp; 16</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B><I>Comment #15</I></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>The second paragraph largely repeats the information provided in the first paragraph. &nbsp;Please revise to eliminate any redundancy.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B><I>Comment #16</I></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><I><BR></I></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>The MD&amp;A section indicates that the auditor concluded your ability to continue as a going concern is conditioned on the receipt of additional funding &#147;and/or&#148; the reduction of operating costs. &nbsp;Your risk factor mentions only the receipt of additional funding. &nbsp;Please revise to reconcile this inconsistency.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have modified the risk section pertaining to our independent accounts having issued a going concern opinion&#133;.as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> OUR INDEPENDENT ACCOUNTANTS HAVE ISSUED A GOING CONCERN OPINION AND IF WE CANNOT OBTAIN &nbsp;ADDITIONAL FINANCING, WE MAY HAVE TO CURTAIL OPERATIONS AND &nbsp;MAY ULTIMATELY &nbsp;CEASE &nbsp;TO &nbsp;EXIST.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Our audited financial statements for the twelve months ended December 31, 2004 reflect a net loss of ($918,590) and negative cash flows from operations of ($1,210,016). &nbsp;These conditions require sufficient additional funding or alternative sources of capital to meet our working capital needs. &nbsp;We currently receive capital under six different revolving lines of credit from eFund Capital Partners, LLC, Ashford Capital, LLC, Edward Lassiter, Bill Duncan, Rufina Paniego and the Benner Exemption Trust that allows us to draw up to $725,000 and anticipate we will continue to be able to have access to the money through the revolving lines of credit. As of July 18, 2005, we have drawn on $500,000 of our revolving credit lines and only have $225,000 left upon which to draw. &nbsp;These conditions raised substantial doubt about our ability to continue as a going concern if we do not acquire sufficient additional funding or alternative sources of capital to m
eet our working capital needs. &nbsp;Unless we obtain additional financing through operations, investment capital or otherwise, there is significant doubt we will be able to meet our obligations as they come due and will be unable to execute our business strategy. &nbsp;However, if we are not able to draw down on or use the funds available in the revolving lines of credit and cannot raise funds on acceptable terms, or achieve positive cash flow, we may be forced to curtail operations or may ultimately cease to exist.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> As of December 31, 2004 our monthly operating costs and interest expenses averaged $616,497.91 per month. &nbsp;As income from operations is not sufficient to meet these expenses, we must depend on other sources of capital to fund our operations. &nbsp;We currently receive capital under six different revolving lines of credit from eFund Capital Partners, LLC, Ashford Capital, LLC, Edward Lassiter, Bill Duncan, Rufina Paniego and the Benner Exemption Trust that allows us to draw up $725,000 and anticipate we will continue to be able to have access to the money through the revolving lines of credit. &nbsp;As of March 25,2 005 we have drawn on $500,000 of our revolving credit lines and only have $225,000 left upon which to draw. &nbsp;Therefore, the funds
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> available may not be sufficient to sustain our operations if we experience a slow down of customer orders, if one of our customers decides to terminate our agreement or other adverse economic effect. &nbsp;There can be no assurance that we will be successful in obtaining additional capital. &nbsp;If we issue additional shares in connection with debt or equity financing, this will serve to dilute the value of our common stock and existing shareholders&#146; positions. &nbsp;If we are unsuccessful in obtaining additional funding to finance our operations, there is a serious doubt that we will be able to continue as a going concern and we may be forced to seek the protection of bankruptcy laws.
</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 8 and 9.</B></P>
<P style="margin:0pt; font-family:Times New Roman">OUR INDEPENDENT ACCOUNTANTS HAVE ISSUED A GOING CONCERN OPINION AND IF WE CANNOT OBTAIN ADDITIONAL FINANCING AND/OR REDUCE OUR OPERATING COSTS SUFFICENTLY, WE MAY HAVE TO CURTAIL OPERATIONS AND &nbsp;MAY ULTIMATELY &nbsp;CEASE &nbsp;TO &nbsp;EXIST.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Our audited financial statements for the twelve months ended December 31, 2004 reflect a net loss of ($918,590) and negative cash flows from operations of ($1,988,245). For the six months ended June 30, 3005 our un-audited financial statements reflect a net loss of (321,648) and negative cash flows from operations of ($338,281). &nbsp;&nbsp;These conditions require sufficient additional funding or alternative sources of capital to meet our working capital needs. &nbsp;We currently receive capital under six different revolving lines of credit from eFund Capital Partners, LLC, Ashford Capital, LLC, Edward Lassiter, Bill Duncan, Rufina Paniego and the Benner Exemption Trust that allows us to draw up to $725,000 and anticipate we will continue to be able to have access to the money through the revolving lines of credit. As of October 3, 2005, we have drawn on $630,000 of our revolving credit lines and only have $95,000 left upon which to draw. &nbs
p;These conditions raised substantial doubt about our ability to continue as a going concern if we do not acquire sufficient additional funding and/or we cannot reduce our operating costs sufficiently to meet our working capital needs. &nbsp;Unless we obtain additional financing through operations, investment capital or otherwise, there is significant doubt we will be able to meet our obligations as they come due and will be unable to execute our business strategy, therefore, &nbsp;we may be forced to curtail operations or may ultimately cease to exist. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">October 3, 2005</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 17</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please quantify your debt service requirements and the cash needed to meet those requirements.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have addressed the comment as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text.</B></P>
<P style="margin:0pt; font-family:Times New Roman"> WE HAVE AN ACCUMULATED DEFICIT AND MAY INCUR ADDITIONAL LOSSES, THEREFORE WE MAY NOT BE ABLE TO MEET OUR DEBT SERVICE OBLIGATIONS.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> As of December 31, 2004, we had liabilities of ($2,995,378). Our debt could limit our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, or other purposes in the future, as needed; to plan for, or react to, changes in technology and in our business and competition; and to react in the event of an economic downturn.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> We may not be able to meet our debt service obligations. If we are unable to generate sufficient cash flow or obtain funds for required payments, or if we fail to comply with covenants in our revolving lines of credit, we will be in default.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 9.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE HAVE AN ACCUMULATED DEFICIT AND MAY INCUR ADDITIONAL LOSSES, THEREFORE WE MAY NOT BE ABLE TO OBTAIN THE ADDITIONAL FINANCING NEEDED FOR WORKING CAPITAL, CAPITAL EXPEDITURES AND TO MEET OUR DEBT SERVICE OBLIGATIONS.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of December 31, 2004, we had liabilities of ($2,995,378) and for the six months ended June 30, 2005 we had liabilities of ($3,400,767). Our debt service requirements for 2005 consist of ($350,296) in loan payments and &nbsp;($133,845) in capital lease obligations for a total of ($484,141). Our debt could limit our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, or other purposes in the future, as needed; to plan for, or react to, changes in technology and in our business and competition; and to react in the event of an economic downturn. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We may not be able to meet our debt service obligations. If we are unable to generate sufficient cash flow or obtain funds for required payments, or if we fail to comply with covenants in our revolving lines of credit, we will be in default. </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 18</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>If you do not have any long-term supply agreements with your suppliers, pelase disclose that fact in the risk factor discussion.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have addressed the comment as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> WE DEPEND ON A LIMITED NUMBER OF SUPPLIERS TO PROCURE OUR PARTS FOR PRODUCTION WHICH IF AVAILABILITY OF PRODUTS BECOMES COMPROMISED IT COULD ADD TO OUR COST OF GOODS SOLD AND AFFECT OUR REVENUE GROWTH.
</P>
<P style="margin:0pt; font-family:Times New Roman"><I> <BR>
</I></P>
<P style="margin:0pt; font-family:Times New Roman"> We depend upon a number of suppliers for our products. There is an inherent risk that certain products will be unavailable for prompt delivery or, in some cases, discontinued. &nbsp;We will have only limited control over any third-party manufacturer as to quality controls, timeliness of production and deliveries and various other factors. &nbsp;Should the availability of products be compromised, it could force us to develop alternative products, which could add to the cost of goods sold and compromise delivery commitments.
 &nbsp;</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 10.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE MAY BE ADVERSELY AFFECTED BY SHORTAGES OF REQUIRED ELECTRONIC COMPONENTS. &nbsp;&nbsp;IN ADDITION, WE DEPEND ON A LIMITED NUMBER OF SUPPLIERS TO PROCURE OUR PARTS FOR PRODUCTION WHICH IF AVAILABILITY OF PRODUTS BECOMES COMPROMISED IT COULD ADD TO OUR COST OF GOODS SOLD AND AFFECT OUR REVENUE GROWTH. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">At various times, there have been shortages of some of the electronic components that we use, as a result of strong demand for those components or problems experienced by suppliers. These unanticipated component shortages have resulted in curtailed production or delays in production, which prevented us from making scheduled shipments to customers in the past and may do so in the future. Our inability to make scheduled shipments could cause us to experience a reduction in our sales and an increase in our costs and could adversely affect our relationship with existing customers as well as prospective customers. Component shortages may also increase our cost of goods sold because we may be required to pay higher prices for components in short supply and redesign or reconfigure products to accommodate substitute components. As a result, component shortages could adversely affect our operating results for a particular period due to the resulting revenue shortfall
 and increased manufacturing or component costs. &nbsp;In addition, we depend upon a number of major suppliers for our products. &nbsp;<U>We do not have long-term agreements with our major suppliers, except for our purchase orders.</U> &nbsp;&nbsp;There is an inherent risk that certain products will be unavailable for prompt delivery or, in some cases, discontinued. &nbsp;We will have only limited control over any third-party manufacturer as to quality controls, timeliness of production and deliveries and various other factors. &nbsp;Lack of long-term agreement with our major suppliers could also impact material availability and could delay shipments. &nbsp;Should the availability of products be compromised, it could also force us to develop alternative products, which could add to the cost of goods sold and compromise delivery commitments. &nbsp;</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 19</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note the reference to &#147;any shares issued to [your principal shareholders, directors, and executive officers] under various revolving credit facilities.&#148; &nbsp;In your response letter, please describe the nature and terms of these revolving credit facilities, particularly with respect to the possible issuance of &#147;shares.&#148;</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The company has secured lines of credit from our shareholder, directors and executive officers that total $725,000, with the following terms:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">eFund Capital Partners, LLC - &nbsp;&nbsp;$150,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share. &nbsp;There is currently an outstanding balance of $125,000 and we have issued 2,772 shares of common stock as interest as of as September 20, 2004.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Rufina V. Paniego - &nbsp;&nbsp;$75,000 @ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share. There is currently an outstanding balance of $75,000 and we have issued3,041 shares of common stock as interest as of September 20, 2004.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Ashford Capital - $150,000 @ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share. There is currently an outstanding balance of $100,000 and we have issued 4,320 shares of common stock as interest as of September 20, 2004.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Benner Exemption Trust &nbsp;- $200,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share. . There is currently an outstanding balance of $100,000 and we have issued 3,192 shares of common stock as interest as of September 20, 2004. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Edward Lassiter &nbsp;- &nbsp;$100,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share. There is currently an outstanding balance of $100,000 and we have issued 2,102 shares of common stock as interest as of September 20, 2004. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">William Duncan &nbsp;- $50,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share. &nbsp;There is currently an outstanding balance of $50,000 and we have issued 868 shares as interest as of September 20, 2004.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock issued as interest pursuant to the lines of credit is being registered under this prospectus or being offered for resale.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 20</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please discuss with more specificity how the listed factors could harm your customers and, in turn, your business. &nbsp;The current discussion is generic and could apply to any company in any industry.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have addressed the comment as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> WE DEPEND ON LOW TO MEDIUM VOLUME HIGH MIX TECHNOLOGY PRODUCTS THAT ARE BUILT DOMESTICALLY. &nbsp;THESE APPLICATIONS INCLUDE INDUSTRIAL INSTRUMENTATION AND SCIENTIFIC COMMUNICATION, SEMICONDUCTOR AND AUTOMOTIVE PRODUCTS, WHICH CONTINUALLY PRODUCE TECHNOLOGICALLY ADVANCED PRODUCTS WITH SHORT LIFE CYCLES; OUR INABILITY TO CONTINUALLY MANUFACTURE SUCH PRODUCTS ON A COST-EFFECTIVE BASIS COULD HARM OUR BUSINESS.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> During the twelve months ended December&nbsp;31, 2004, we derived approximately 30% of our revenues from customers in the industrial product sector, whose products include adhesive dispensing equipment, motion controllers; approximately 40% of our revenues from customers in the semiconductor industry, whose products include mass flow controllers, and evaluation modules for integrated circuit manufactures; approximately 19% of our revenues from providers of communications infrastructure, whose products include equipment for optical networks, cellular base stations, radio frequency devices, telephone exchange and access switches and broadband devices; approximately 3% of our revenues from the automotive industry, whose products are electronic control units for alternative fuel systems. &nbsp;The remaining 8% of our revenues was derived from customers in a variety of other industries, including the medical, consumer and military industries.
</P>
<P style="margin:0pt; font-family:Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> Factors affecting these industries in general could seriously harm our customers and, as a result, us. These factors include:
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> rapid changes in technology, which result in short product life cycles;
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> seasonality of demand for our customers&#146; products;
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> the inability of our customers to successfully market their products, and the failure of these products to gain widespread commercial acceptance; and
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> recessionary periods in our customers&#146; markets
</FONT></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 11.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE DEPEND ON LOW TO MEDIUM VOLUME HIGH MIX TECHNOLOGY PRODUCTS THAT ARE BUILT DOMESTICALLY. &nbsp;THESE APPLICATIONS INCLUDE INDUSTRIAL INSTRUMENTATION AND SCIENTIFIC COMMUNICATION, SEMICONDUCTOR AND AUTOMOTIVE PRODUCTS, WHICH CONTINUALLY PRODUCE TECHNOLOGICALLY ADVANCED PRODUCTS WITH SHORT LIFE CYCLES; OUR INABILITY TO CONTINUALLY MANUFACTURE SUCH PRODUCTS ON A COST-EFFECTIVE BASIS COULD HARM OUR BUSINESS.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">During the twelve months ended December&nbsp;31, 2004 and for the six months ended June 30, 2005, we derived approximately 30% of our revenues from customers in the industrial product sector, whose products include adhesive dispensing equipment, motion controllers; approximately 40% of our revenues from customers in the semiconductor industry, whose products include mass flow controllers, and evaluation modules for integrated circuit manufactures; approximately 19% of our revenues from providers of communications infrastructure, whose products include equipment for optical networks, cellular base stations, radio frequency devices, telephone exchange and access switches and broadband devices; approximately 3% of our revenues from the automotive industry, whose products are electronic control units for alternative fuel systems. &nbsp;The remaining 8% of our revenues was derived from customers in a variety of other industries, including the medical, consumer an
d military industries. </P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Factors affecting these industries in general could seriously harm our customers and, as a result, us. These factors include: </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Rapid changes in technology, which result in short product life cycles, often reduce the volume and market share for our customers and ultimately us. It will lead to the loss of previous design wins and frequent new product introductions and substantial development costs. This could result in loss of revenue and it could adversely affect our operating income.</FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Seasonality of demand for our customers&#146; products would force our customers to manage their inventories for seasonal variations and inventory management and excess build ups. Customers could dramatically increase their request for production quantities, which could cause lead time problems with getting the components or we may not be able to build enough products which could have loss of revenue for our customers. As a result we could lose these customers and it would adversely affect our projected sales. If the projected sales will not materialize, we will have loss of revenue and reduced margins. &nbsp;Any cancellation or delay in production would also have the same adverse effect on our sales projections and profitability.</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">The inability of our customers to successfully market their products, and the failure of these products to gain widespread commercial acceptance; could effect their long term business plans and sales. &nbsp;Our success depends upon the ability of our customers to successfully market their products and if they fail, it could result in cancellations or rescheduling orders lower sales volume and operating income. </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">Recessionary periods in our customers&#146; markets will affect both our customers and our overall business output. It would require dramatic changes to the overall business model, layoffs and major adjustments to the business overhead. &nbsp;If we fail to adjust to new recessionary environment, our business would be adversely affected and we may not be able to compete successfully against other companies in our industry and achieve profitability.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 21</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that your ODM products may compete with the products of OEMs. &nbsp;Given that your business provides advanced electronics manufacturing services to OEMs, as noted in the summary, consider including a separate risk factor discussing the risks created by the fact that your ODM products may compete with the products of you OEM customers. &nbsp;We note, for example, disclosure on page 42 that you already compete with current and prospective customers.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have added the following risk disclosure.</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 13.</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">OUR ODM PRODUCTS CURRENTLY COMPETE WITH CURRENT AND PROSPECTIVE PRODUCTS OF OUR OEM CUSTOMERS WHICH COULD PROVOKE OUR CUSTOMERS TO CEASE ITS BUSINESS RELATIONSHIP WITH US AND WE MAY INCUR SIGNIFICANT LOSES AS A RESULT.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Flexibility and time to market are now forcing our OEM customers to turn to us for Outside Design Manufacturing (ODM) services. As a result we could begin to compete with our OEMs products. OEMs are aware that they are financing future competition, but they have no choice if they are to compete in today&#146;s existing market. However, some of these customers could terminate their relationship with us and seek an injunction against or future us of their underlying technology in our ODM product, which could result in loss of these customers and loss of revenue for Probe.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">Furthermore, if we continue to produce our ODM products we could also face allegations of patent infringement and trademark infringement by our customers. In the event of an infringement claim against us, we would absorb substantial costs in defending the claim and if we lose we have to pay the amount of any resulting adverse final judgment against us or settlement. This could have an adverse effect on our business both with our profitability and reputation in the market.</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 22</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Because your business appears to depend substantially on sales to your five largest customers, please file all material agreements with these customers as exhibits to the registration statement and disclose the material terms of the agreements later in your document, including the identities of the customers. &nbsp;See Item 601(b)(10)(i)(B) of Regulation S-B.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We do not have long term contracts with any of our customers. &nbsp;However, we have attached the sample purchase order agreements as exhibits with our submission. &nbsp;Please see exhibits 10.19 thru 10.22.</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 23</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>In the appropriate section, please disclose the termination and renewal provisions in any contracts with you principal customers. &nbsp;If these contracts are expected to terminate in the near future, please disclose the expected termination dates. &nbsp;If you do not have any long-term agreements with your principal customers, please disclose this fact in the risk factor discussion.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have addressed the comment as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> THE MAJORITY OF OUR SALES COME FROM A SMALL NUMBER OF CUSTOMERS; IF WE LOSE ANY OF THESE CUSTOMERS, OUR SALES COULD DECLINE SIGNIFICANTLY.
</P>
<P style="margin:0pt; font-family:Times New Roman"><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> Sales to our five largest customers have represented a significant percentage of our net sales in recent periods. Our five largest customers accounted for approximately 86% and 79% of net sales during the twelve months ended December 31, 2004 and December 31, 2003 respectively.
</P>
<P style="margin:0pt; font-family:Times New Roman"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> Our principal customers have varied from year to year, and our principal customers may not continue to purchase services from us at current levels, if at all. Significant reductions in sales to any of these customers, or the loss of major customers, would seriously harm our business. If we are not able to timely replace expired, canceled or reduced contracts with new business, our revenues could be harmed.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 13 and 14. &nbsp;The pertinent text has been underlined below.</B></P>
<P style="margin:0pt; font-family:Times New Roman">THE MAJORITY OF OUR SALES COME FROM A SMALL NUMBER OF CUSTOMERS WITH WHOM WE DO NOT HAVE LONG TERM CONTRACTS; IF WE LOSE ANY OF THESE CUSTOMERS, OUR SALES COULD DECLINE SIGNIFICANTLY.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Sales to our five largest customers have represented a significant percentage of our net sales in recent periods. Our five largest customers accounted for approximately 86% and 79% of net sales during the six twelve months ended December 31, 2004 and December 31,2003 respectively. </P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Our principal customers have varied from year to year, and our principal customers may not continue to purchase services from us at current levels, if at all. Significant reductions in sales to any of these customers, or the loss of major customers, would seriously harm our business. If we are not able to timely replace expired, canceled or reduced contracts with new business, our revenues could be harmed. </P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">The part number, quantity, &nbsp;price, workmanship standards, and scheduled delivery dates of the Products to be Manufactured are determined by written purchase orders given by our customers and accepted or confirmed by us in writing or via email. &nbsp;We agree to deliver the Products manufactured pursuant to each purchase order in accordance with the terms and conditions set forth in the purchase order. Probe manufactures hundreds of different types of assemblies on an ongoing basis and each product has a purchase order associated with it. &nbsp;Please see attcahed filing of several samples of these purchase orders. </P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman"><U>We do not have any long term agreements with our customers, and our principal customers may not continue to purchase services from us. The duration of a purchase order is usually from 30 to 90 days. These purchase orders could be cancelled or rescheduled at any time. Significant reductions in sales to any of these customers would reduce our projected sales, adversely affect our profits, and seriously harm our business.</U></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Times New Roman">Our top five customers include, Celerity Group, Newport Corporation, Asymtek Corporation, Jetline Engineering, and Apogee.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 24</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>The latter half of the discussion appears to mitigate the risks stemming from currency fluctuations. Please revise to focus on the risks, not the mitigating factors.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We removed the mitigating language from the risk disclosure as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> WE ARE EXPOSED TO FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES BECAUSE WE PROCURE PRODUCTS FROM SUPPLIERS IN FOREIGN COUNTRIES AND AS A RESULT OF THE VOLATILITY IN THE EXCHANGE RATES BETWEEN THE FOREIGN
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> CURRENCIES AND THE FUNCTIONAL CURRENCIES OF OUR ENTITIES COULD SERIOUSLY HARM OUR BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION.
</P>
<P style="margin:0pt; font-family:Times New Roman"><I> <BR>
</I></P>
<P style="margin:0pt; font-family:Times New Roman"> We transact business in various foreign countries because we procure products from suppliers in foreign countries. As a result, we are exposed to fluctuations in foreign currencies. We have currency exposure arising from both sales and purchases denominated in currencies other than the functional currencies of our entities. Volatility in the exchange rates between the foreign currencies and the functional currencies of our entities could seriously harm our business, operating results and financial condition. We try to manage our foreign currency exposure by entering into foreign exchange forward contracts. Mainly, we enter into foreign exchange forward contracts intended to reduce the short-term impact of foreign currency fluctuations on current assets and liabilities denominated in foreign currency. These exposures are primarily, but not limited to, cash, receivables, payables and inter-company balances, in currencies other than the functional currency uni
t of the operating entity. We will first evaluate and, to the extent possible, use non-financial techniques, such as currency of invoice, leading and lagging payments, receivable management or local borrowing to reduce transaction exposure before taking steps to minimize remaining exposure with financial instruments. Foreign exchange forward contracts are treated as cash flow hedges and such contracts generally expire within three months. The credit risk of these forward contracts is minimal since the contracts are with large financial institutions. The gains and losses on forward contracts generally offset the gains and losses on the assets, liabilities and transactions hedged.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 14 and 15.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE ARE EXPOSED TO FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES BECAUSE WE PROCURE PRODUCTS FROM SUPPLIERS IN FOREIGN COUNTRIES AND AS A RESULT OF THE VOLATILITY IN THE EXCHANGE RATES BETWEEN THE FOREIGN CURRENCIES AND THE FUNCTIONAL CURRENCIES OF OUR ENTITIES COULD SERIOUSLY HARM OUR BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION. </P>
<P style="margin:0pt; font-family:Times New Roman"><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman">We transact business in various foreign countries because we procure products from suppliers in foreign countries. As a result, we are exposed to fluctuations in foreign currencies. We have currency exposure arising from both sales and purchases denominated in currencies other than the functional currencies of our entities. Volatility in the exchange rates between the foreign currencies and the functional currencies of our entities could seriously harm our business, operating results and financial condition. These exposures are primarily, but not limited to, cash, receivables, payables and inter-company balances, in currencies other than the functional currency unit of the operating entity. Foreign exchange forward contracts are treated as cash flow hedges and such contracts generally expire within three months. </P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 25</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please delete the mitigating disclosure regarding the Pro-Source litigation.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The risk disclosure was removed to avoid redundancy and the litigation risks are discussed on page 31 under the heading &#147;Legal Proceedings.&#148; &nbsp;The mitigating language pertaining to the Pro-Source litigation was removed.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 26</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>The risk factor discussion appears to repeat information provided in the risk factor &#147;We depend on a limited number of suppliers&#133;&#148; on page 12. &nbsp;Please combine the risk factors and eliminate any redundant information.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The two risk factors have been combined and the amended text reads as follows:</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 10.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE MAY BE ADVERSELY AFFECTED BY SHORTAGES OF REQUIRED ELECTRONIC COMPONENTS. &nbsp;&nbsp;IN ADDITION, WE DEPEND ON A LIMITED NUMBER OF SUPPLIERS TO PROCURE OUR PARTS FOR PRODUCTION WHICH IF AVAILABILITY OF PRODUTS BECOMES COMPROMISED IT COULD ADD TO OUR COST OF GOODS SOLD AND AFFECT OUR REVENUE GROWTH. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">At various times, there have been shortages of some of the electronic components that we use, as a result of strong demand for those components or problems experienced by suppliers. These unanticipated component shortages have resulted in curtailed production or delays in production, which prevented us from making scheduled shipments to customers in the past and may do so in the future. Our inability to make scheduled shipments could cause us to experience a reduction in our sales and an increase in our costs and could adversely affect our relationship with existing customers as well as prospective customers. Component shortages may also increase our cost of goods sold because we may be required to pay higher prices for components in short supply and redesign or reconfigure products to accommodate substitute components. As a result, component shortages could adversely affect our operating results for a particular period due to the resulting revenue shortfall
 and increased manufacturing or component costs. &nbsp;In addition, we depend upon a number of major suppliers for our products. &nbsp;We do not have long-term agreements with our major suppliers, except for our purchase orders. &nbsp;&nbsp;There is an inherent risk that certain products will be unavailable for prompt delivery or, in some cases, discontinued. &nbsp;We will have only limited control over any third-party manufacturer as to quality controls, timeliness of production and deliveries and various other factors. &nbsp;Lack of long-term agreement with our major suppliers could also impact material availability and could delay shipments. &nbsp;Should the availability of products be compromised, it could also force us to develop alternative products, which could add to the cost of goods sold and compromise delivery commitments. &nbsp;</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 27</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>This risk factor discussion appears to repeat information already provided in the risk factor &#147;We depend on low to medium volume high mix technology products&#133;&#148; &nbsp;Please combine the risk factors and eliminate any redundant information.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The two risk factors have been combined and the amended text reads as follows:</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 11 and 12.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE DEPEND ON LOW TO MEDIUM VOLUME HIGH MIX TECHNOLOGY PRODUCTS THAT ARE BUILT DOMESTICALLY. &nbsp;THESE APPLICATIONS INCLUDE INDUSTRIAL INSTRUMENTATION AND SCIENTIFIC COMMUNICATION, SEMICONDUCTOR AND AUTOMOTIVE PRODUCTS, WHICH CONTINUALLY PRODUCE TECHNOLOGICALLY ADVANCED PRODUCTS WITH SHORT LIFE CYCLES; OUR INABILITY TO CONTINUALLY MANUFACTURE SUCH PRODUCTS ON A COST-EFFECTIVE BASIS COULD HARM OUR BUSINESS.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">During the twelve months ended December&nbsp;31, 2004 and for the six months ended June 30, 2005, we derived approximately 30% of our revenues from customers in the industrial product sector, whose products include adhesive dispensing equipment, motion controllers; approximately 40% of our revenues from customers in the semiconductor industry, whose products include mass flow controllers, and evaluation modules for integrated circuit manufactures; approximately 19% of our revenues from providers of communications infrastructure, whose products include equipment for optical networks, cellular base stations, radio frequency devices, telephone exchange and access switches and broadband devices; approximately 3% of our revenues from the automotive industry, whose products are electronic control units for alternative fuel systems. &nbsp;The remaining 8% of our revenues was derived from customers in a variety of other industries, including the medical, consumer an
d military industries. </P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">Factors affecting these industries in general could seriously harm our customers and, as a result, us. These factors include: </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Rapid changes in technology, which result in short product life cycles, often reduce the volume and market share for our customers and ultimately us. It will lead to the loss of previous design wins and frequent new product introductions and substantial development costs. This could result in loss of revenue and it could adversely affect our operating income.</FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Seasonality of demand for our customers&#146; products would force our customers to manage their inventories for seasonal variations and inventory management and excess build ups. Customers could dramatically increase their request for production quantities, which could cause lead time problems with getting the components or we may not be able to build enough products which could have loss of revenue for our customers. As a result we could lose these customers and it would adversely affect our projected sales. If the projected sales will not materialize, we will have loss of revenue and reduced margins. &nbsp;Any cancellation or delay in production would also have the same adverse effect on our sales projections and profitability.</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">The inability of our customers to successfully market their products, and the failure of these products to gain widespread commercial acceptance; could effect their long term business plans and sales. &nbsp;Our success depends upon the ability of our customers to successfully market their products and if they fail, it could result in cancellations or rescheduling orders lower sales volume and operating income. </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Recessionary periods in our customers&#146; markets will affect both our customers and our overall business output. It would require dramatic changes to the overall business model, layoffs and major adjustments to the business overhead. &nbsp;If we fail to adjust to new recessionary environment, our business would be adversely affected and we may not be able to compete successfully against other companies in our industry and achieve profitability.</FONT></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 28</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please expand your discussion of any known factors that management currently believes may affect the &#147;new outsourcing opportunities.&#148; &nbsp;Readers should get a better sense of the likelihood of the occurrence of the described risks.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The risk factor has been modified as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B> Previous Text
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> WE DEPEND ON THE CONTINUING TREND OF OUTSOURCING BY OEMS, IF THIS TREND CHANGES OR DECLINES OUR BUISSESS COULD BE SIGNIFICANTLY HARMED.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Future growth in our revenue depends on new outsourcing opportunities in which we assume additional manufacturing and supply chain management responsibilities from OEMs. To the extent that these opportunities are not available, either because OEMs decide to perform these functions internally or because they use other providers of these services, our future growth would be limited.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 15.</B></P>
<P style="margin:0pt; font-family:Times New Roman">WE DEPEND ON THE CONTINUING TREND OF OUTSOURCING BY OEMS, IF THIS TREND CHANGES OR DECLINES OUR BUSINESS COULD BE SIGNIFICANTLY HARMED. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Future growth in our revenue depends on new outsourcing opportunities in which we assume additional manufacturing and supply chain management responsibilities from OEMs. Although, in today&#146;s economic climate outsourcing is the trend, in the course of business decision OEMs must make a decision whether to build their products in house or outsource it. &nbsp;Lack of capacity by outsourcing companies, or protectionist policies could effect OEMs decision to build in house instead of outsourcing. &nbsp;However, growing complexity of electronics packaging requires additional equipment and expertise. &nbsp;If the OEM decides to build its product in-house, they have to invest in capital equipment and expertise. &nbsp;To the extent that outsourcing opportunities stay in-house and are not available, our future growth would be limited. &nbsp;&nbsp;</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 29</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please explain in a clearer manner how the penny stock restrictions will limit shareholders&#146; ability to resell the common stock. &nbsp;For example, you should explain in a clearer manner why shareholders may find it &#147;more difficult&#148; to resell the shares.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The risk factor has been modified as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> ANY MARKET THAT DEVELOPS IN SHARES OF OUR COMMON STOCK WILL BE SUBJECT TO THE PENNY STOCK RESTRICTIONS WHICH WILL CREATE A LACK OF LIQUIDITY AND MAKE TRADING DIFFICULT OR IMPOSSIBLE.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Until our shares of common stock qualify for inclusion in the NASDAQ system, if ever, the trading of our securities, if any, will be in the over-the-counter markets which are commonly referred to as the OTCBB as maintained by the NASD. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the price of our securities.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in &quot;penny stocks.&quot; Penny stocks (generally) are equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on NASDAQ, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. Prior to a transaction in a penny stock, a broker-dealer is required to:
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Deliver a standardized risk disclosure document prepared by the SEC;
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Provide the customer with current bid and offer quotations for the penny stock;
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Explain the compensation of the broker-dealer and its salesperson in the transaction;
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Provide monthly account statements showing the market value of each penny stock held in the customer's account;
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Make a special written determination that the penny stock is a suitable investment for the purchaser and receives the purchaser's; and
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Provide a written agreement to the transaction.
</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> These requirements may have the effect of reducing the level of trading activity in the secondary market for our stock. Because our shares are subject to the penny stock rules, you may find it more difficult to sell your shares.
</FONT></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 17 as underlined below. </B></P>
<P style="margin:0pt; font-family:Times New Roman">ANY MARKET THAT DEVELOPS IN SHARES OF OUR COMMON STOCK WILL BE SUBJECT TO THE PENNY STOCK RESTRICTIONS WHICH WILL CREATE A LACK OF LIQUIDITY AND MAKE TRADING DIFFICULT OR IMPOSSIBLE.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Until our shares of common stock qualify for inclusion in the NASDAQ system, if ever, the trading of our securities, if any, will be in the over-the-counter markets which are commonly referred to as the OTCBB as maintained by the NASD. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the price of our securities.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in &quot;penny stocks.&quot; Penny stocks (generally) are equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on NASDAQ, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. Prior to a transaction in a penny stock, a broker-dealer is required to: </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Deliver a standardized risk disclosure document prepared by the SEC; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Provide the customer with current bid and offer quotations for the penny stock; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Explain the compensation of the broker-dealer and its salesperson in the transaction; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Provide monthly account statements showing the market value of each penny stock held in the customer's account; </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Make a special written determination that the penny stock is a suitable investment for the purchaser; and </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Provide a written agreement to the transaction. </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>These requirements may have the effect of reducing the level of trading activity in the secondary market for our stock. Because our shares are subject to the penny stock rules, you may find it more difficult to sell your shares. &nbsp;The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from recommending transactions in our securities, which could severely limit the liquidity of our securities and consequently adversely affect the market price for our securities.</U></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 30</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please delete any language that suggests your securities are currently traded in a public market (e.g., &#147;Even though our securities are quoted on the Over-the-Counter Bulletin Board&#133;&#148;).</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The risk factor has been modified as stated below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> IF AND WHEN OUR SECURITIES BECOME QUOTED ON THE OVER-THE-COUNTER BULLETIN BOARD OR OTHER EXCHANGE OUR SECURITIES MAY BE THINLY TRADED WHICH MAY NOT PROVIDE LIQUIDITY FOR OUR INVESTORS
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> If our securities are quoted on the Over-the-Counter Bulletin Board or other exchange our securities may be thinly traded which may not provide liquidity for our investors. The Over-the-Counter Bulletin Board is an inter-dealer, over-the-counter market that provides significantly less liquidity than the NASDAQ Stock Market or national or regional exchanges. Securities traded on the Over-the-Counter Bulletin Board are usually thinly traded, highly volatile, have fewer market makers and are not followed by analysts. The Securities and Exchange Commission's order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the Over-the-Counter Bulletin Board. Quotes for stocks included on the Over-the-Counter Bulletin Board are not listed in newspapers. Therefore, prices for securities traded solely on the Over-the-Counter Bulletin Board may be difficult to obtain and holders of our securities may be unable to resell their secu
rities at or near their original acquisition price, or at any price.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Investors must contact a broker-dealer to trade over-the-counter bulletin board securities. As a result, you may not be able to buy or sell our securities at the times that you may wish. Even though our securities are quoted on the Over-the-Counter Bulletin Board, the Over-the-Counter Bulletin Board may not permit our investors to sell securities when and in the manner that they wish. Because there are no automated systems for negotiating trades on the Over-the-Counter Bulletin Board, they are conducted via telephone. In times of heavy market volume, the limitations of this process may result in a significant increase in the time it takes to execute investor orders. Therefore, when investors place market orders to buy or sell a specific number of shares at the current market price it is possible for the price of a stock to go up or down significantly during the lapse of time between placing a market order and its execution.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 17 and 18 as underlined below.</B></P>
<P style="margin:0pt; font-family:Times New Roman">IF AND WHEN OUR SECURITIES BECOME QUOTED ON THE OVER-THE-COUNTER BULLETIN BOARD OR OTHER EXCHANGE OUR SECURITIES MAY BE THINLY TRADED WHICH MAY NOT PROVIDE LIQUIDITY FOR OUR INVESTORS. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">If our securities become quoted on the Over-the-Counter Bulletin Board or other exchange our securities may be thinly traded which may not provide liquidity for our investors. &nbsp;The Over-the-Counter Bulletin Board is an inter-dealer, over-the-counter market that provides significantly less liquidity than the NASDAQ Stock Market or national or regional exchanges. Securities traded on the Over-the-Counter Bulletin Board are usually thinly traded, highly volatile, have fewer market makers and are not followed by analysts. The Securities and Exchange Commission's order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the Over-the-Counter Bulletin Board. Quotes for stocks included on the Over-the-Counter Bulletin Board are not listed in newspapers. Therefore, prices for securities traded solely on the Over-the-Counter Bulletin Board may be difficult to obtain and holders of our securities may be unable to resell th
eir securities at or near their original acquisition price, or at any price. </P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman">Investors must contact a broker-dealer to trade over-the-counter bulletin board securities. As a result, you may not be able to buy or sell our securities at the times that you may wish. &nbsp;<U>Even if</U> our securities become quoted on the Over-the-Counter Bulletin Board, the Over-the-Counter Bulletin Board may not permit our investors to sell securities when and in the manner that they wish. Because there are no automated systems for negotiating trades on the Over-the-Counter Bulletin Board, they are conducted via telephone. In times of heavy market volume, the limitations of this process may result in a significant increase in the time it takes to execute investor orders. Therefore, when investors place market orders to buy or sell a specific number of shares at the current market price it is possible for the price of a stock to go up or down significantly during the lapse of time between placing a market order and its execution.
</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 31</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please describe in greater detail each planned use of proceeds. &nbsp;For example, with respect to the &#147;repayment of debt,&#148; please identify the specific indebtedness that will be repaid with the proceeds. &nbsp;With respect to &#147;Expansion of Internal Operations,&#148; you should describe the nature of the business expansion that will be funded with the proceeds. &nbsp;Furthermore, quantify the proceeds you will receive upon exercise of the warrants.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">This prospectus relates to shares of common stock that may be offered and sold from time to time by certain selling stockholders. &nbsp;We will not receive any proceeds from the sale of the shares. &nbsp;Therefore, this section has been modified to state this change on page 18.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 32</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note your statement &#147;the selling stockholders may have sold, transferred, or otherwise disposed of, or may sell, transfer, or otherwise dispose of, at any time or from time to time since the date on which they provided the information regarding the shares beneficially owned..&#148; &nbsp;Note that Item 507 of Regulation S-B requires the disclosure of the &#147;amount to be offered for the security holder&#146;s account.&#148; &nbsp;Therefore, please ensure that the selling stockholder table reflects the exact amount of shares offered for resale by each identified shareholder. &nbsp;Delete the statement quoted above; such statement suggests that the table does not necessarily reflect the correct amounts of securities offered.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text (the underlined text has been deleted).</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> SELLING SECURITY HOLDERS
</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> Based upon information available to us as of July 18, 2005 the following table sets forth the name of the selling stockholders, the number of shares owned, the number of shares registered by this prospectus and the number and percent of outstanding shares that the selling stockholders will own after the sale of the registered shares, assuming all of the shares are sold. The information provided in the table and discussions below has been obtained from the selling stockholders.
<U> The selling stockholders may have sold, transferred or otherwise disposed of, or may sell, transfer or otherwise dispose of, at any time or from time to time since the date on which they provided the information regarding the shares beneficially owned, all or a portion of the shares of common stock beneficially owned in transactions exempt from the registration requirements of the Securities Act of 1933.
</U> As used in this prospectus, &quot;selling stockholder&quot; includes donees, pledgees, transferees or other
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> successors-in-interest selling shares received from the named selling stockholder as a gift, pledge, distribution or other non-sale related transfer.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the Commission under the Securities Exchange Act of 1934. Unless otherwise noted, each person or group identified possesses sole voting and investment power with respect to the shares, subject to community property laws where applicable.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"><U> In some cases, the &#147;Shares Being Offered Column will reflect a higher number of shares than the &#147;Ownership Before the Offering&#148; column. &nbsp;This occurs when the selling shareholder has not received shares being registered on this registration statement because the selling shareholder holds shares of Series B Convertible Preferred Stock, warrant or other right to acquire shares of common stock but has not yet exercised that right.
</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 18 and 19.</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SELLING SECURITY HOLDERS</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Based upon information available to us as of October 3, 2005 the following table sets forth the name of the selling stockholders, the number of shares owned, the number of shares registered by this prospectus and the number and percent of outstanding shares that the selling stockholders will own after the sale of the registered shares, assuming all of the shares are sold as used in this prospectus. &quot;Selling stockholder&quot; includes donees, pledges, transferees or other successors-in-interest selling shares received from the named selling stockholder as a gift, pledge, distribution or other non-sale related transfer. </P>
<A NAME="fis_unidentified_table_8"></A><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the Commission under the Securities Exchange Act of 1934. Unless otherwise noted, each person or group identified possesses sole voting and investment power with respect to the shares, subject to community property laws where applicable. </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 33</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please refer to the paragraph right before the selling shareholder table (In some cases&#133;&#148;). &nbsp;Note that, pursuant to Rule 13d-3 of the Exchange Act, a person is deemed to beneficially own any securities that may be received within 60 days, including those received upon the exercise or conversion of another security. &nbsp;Therefore, please revise the &#147;Number of Shares Beneficially Owned Before the Offering&#148; column to include any shares issuable pursuant to the conversion or exercise of another security, such as the Series B stock and the warrants. &nbsp;Also delete the paragraph in question. &nbsp;Similarly revise the beneficial ownership table appearing on page 33.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The text &#147;In some cases, the &#147;Shares Being Offered Column will reflect a higher number of shares than the &#147;Ownership Before the Offering&#148; column. &nbsp;This occurs when the selling shareholder has not received shares being registered on this registration statement because the selling shareholder holds shares of Series B Convertible Preferred Stock, warrant or other right to acquire shares of common stock but has not yet exercised that right&#148; has been removed and is no longer relevant because no securities converting into common stock are being registered pursuant to this prospectus.</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 34</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please refer to footnote (2). &nbsp;In your response letter, please describe in greater detail the terms of the assignment agreement with eFund Capital Partners. &nbsp;Explain the business purpose of the assignment and cancellation of the 750,000 shares.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">In May of 2004 eFund Capital Partners, LLC purchased and was issued 2,000,000 shares of common stock and 200 shares of Series A Convertible preferred A Stock as consideration for $200,000 and for strategic assistance in the form of which included helping the management team to restructure its business by, streamlining its business operations, introduction to partners, helping find other sources of capital and improving corporate governance.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Two months after starting its engagement eFund realized they needed more assistance with restructuring the company&#146;s business operations and they wanted Ashford to also be involved in assisting them with the Probe&#146;s restructure, thus the decision was made to assign 1,000,000 shares of its common stock holding and 33 shares of its Series A holding. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">There is no relationship between eFund and Ashford and the assignment was only made because eFund required more assistance with restructuring Probe.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The return and cancellation of 5,000,000 shares of common stock held by our large shareholders was done in order to reduce the number of outstanding shares which the board of directors and the shareholders thought was in the best interest of the company. &nbsp;The following shares were returned:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">1.</P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Mr. Kambiz &nbsp;Mahdi= 1,750,000 shares returned;</P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">2.</P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Mr. Reza Zarif= 1,750,000 shares returned;</P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">3.</P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">eFund Capital Partners, LLC=750,000shares returned and;</P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">4.</P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Ashford Capital, LLC=750,000 shares returned.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 35</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that section 1 of the engagement agreement with eFund Capital Partners, which is filed as exhibit 10.11, refers to an &#147;equity line of credit agreement&#148; with eFund Capital Partners for $2 million. &nbsp;In your response letter, please tell us whether this equity line of credit was ever created and utilized. &nbsp;Clarify whether any of the shares offered for resale by eFund Capital Partners were issued pursuant to this equity line of credit.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The 2,000,000 line of credit referred to in exhibit 10.11 was never entered into between eFund Capital Partners, LLC and the company. &nbsp;Therefore, none of the shares offered for resale by eFund Capital Partners, LLC were issued pursuant to the credit line.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 36</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that Mr. Imbassahy did not have any relationship with the company within the past three years. &nbsp;In your response letter, please tell us if he had any prior relationship with the company.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Mr. Imbassahy has never had an affiliation with our company. &nbsp;&nbsp;Furthermore, it is no longer relevant because subject matter has been removed from the registration statement.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 37</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please disclose the natural persons who exercise the voting and/or dispositive powers with respect to the securities to be offered for resale by your selling stockholders that are non-reporting entities. &nbsp;For example, disclose the natural persons who have such powers over the shares held by the various trusts identified in footnote (7). &nbsp;Please see Interpretation 1.60 of our July 1997 Manual of Publicly Available Telephone Interpretations and Interpretation 4S of the Regulation S-K portion of the March 1999 Supplement to our July 1997 Manual of Publicly Available Telephone Interpretations.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We added the following footnotes to the Selling Shareholder table on pages 22-24 in order to disclose the natural person who have voting powers over there trusts.</P>
<P style="margin:0pt; font-family:Times New Roman">(8) Dennis Benner is a director of ours and acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(9) Robert and Mary Hicks acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The Hicks Family Trust&#148; Robert and Mary Hicks have dispositive and voting power over the shares in &#147;The Hicks Family Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(10) Edward and Mildred Lassiter acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The Edward and Mildred Lassiter Restated Trust.&#148; Mr. and Mrs. Lassiter have dispositive and voting power over the shares in &#147;The Edward and Mildred Lassiter Restated Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(11) Edward Smith acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Francis F. Smith Descendants Trust Edward F SMIT.&#148; Mr. &nbsp;Smith has dispositive and voting power over the shares in &#147;Francis F. Smith Descendants Trust Edward F SMIT&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(12) R. Sutton Edmondson acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Edmondson Farms Inc. Employees 401K Plan &amp; Trust.&#148; Mr. &nbsp;Edmondson has dispositive and voting power over the shares in &#147;Edmondson Farms Inc. Employees 401K Plan &amp; Trust&#148; and claims beneficial ownership of them..</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(13) James and Lisa Goodell acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;James Goodell and/or Lisa Goodell &nbsp;JT TEN WROS&#148; Mr. and Mrs. Goodell have dispositive and voting power over the shares in &#147;James Goodell and/or Lisa Goodell JT TEN WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(14) Robert Kofke and Cathy Kofke acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Robert Kofke and Cathy Kofke JT TEN WROS.&#148; Mr. and Mrs. Kofke have dispositive and voting power over the shares in &#147;Robert Kofke and Cathy Kofke JT TEN WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(15) Christopher Reed and Patricia Schone acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Christopher Reed and Patricia Schone JT WROS.&#148; Mr. Reed and Mrs. Schone have dispositive and voting power over the shares in &#147;Christopher Reed and Patricia Schone JT WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(16) Anthony and Angela Reed acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Anthony and Angela Reed Family Trust.&#148; &nbsp;Mr. and Mrs. Reed have dispositive and voting power over the shares in &#147;Anthony and Angela Reed Family Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(17) Linda Cadoity acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Cadioty/Werth Living Trust.&#148; &nbsp;Linda Cadioty has dispositive and voting power over the shares in &#147;Cadioty/Werth Living Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(18) Phillip Miller acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Miller Family Trust.&#148; Mr. Phillip Miller has dispositive and voting power over the shares in &#147;Miller Family Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(19) Veta Finer acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Finer Martial Trust.&#148; Veta Finer has dispositive and voting power over the shares in &#147;Finer Martial Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(20) Bennett and Janice Derman acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Bennett and Janice Family Trust.&#148; Mr. and Mrs. Derman have dispositive and voting power over the shares in &#147;Bennett and Janice Family Trust&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(21) Mark Bach acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Bach Living Trust.&#148; Mark Bach has dispositive and voting power over the shares in &#147;Bach Living Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(22) Veri Tan Riverdi acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Carolina Trust.&#148; Veri Tan Riverdi has dispositive and voting power over the shares in &#147;Carolina Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(23) William Duncan acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;Ducan Revocable Trust.&#148; &nbsp;William Duncan has dispositive and voting power over the shares in &#147;Duncan Revocable Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(24) George and Elieen Hill acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;George D. Hill an Elieen C. Hill JT WROS.&#148; &nbsp;Mr. and Mrs. Hill have dispositive and voting power over the shares in &#147;George D. Hill an Elieen C. Hill JT WROS&#148; and claim beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(25) Edward Lassiter acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;The Edward and Mildred Lassiter Restated Family Trust.&#148; Mr. Lassiter has dispositive and voting power over the shares in &#147;The Edward and Mildred Lassiter Restated Family Trust&#148; and claims beneficial ownership of them.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">(26) William Morse acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &#147;William W. Morse and Jill D. Morse JT WROS.&#148; Mr. Morse has dispositive and voting power over the shares in &#147;William W. Morse and Jill D. Morse JT WROS&#148; and claims beneficial ownership of them.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 38</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>In your response letter, please indicate whether any of the selling shareholders is a broker-dealer or affiliate, as defined by Rule 405 of Regulation C, of a broker-dealer.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">None of our selling shareholders are a broker dealer or affiliate, as defined by Rule 405 of Regulation C, of a broker-dealer.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 39</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note your references to &#147;pledges, assignees, and successors-in-interest&#148; of the selling shareholders. Please note that your registration statement must identify all selling shareholders. &nbsp;If you are currently aware of any &#147;pledges, assignees, and successors-in-interest&#148; who intend to use this registration statement, they must be identified and Item 507 information must be provided. &nbsp;In your response letter, confirm your understanding of this obligation. &nbsp;You may ad or substitute selling shareholders through the use of Rule 424(b) prospectus supplements only if certain conditions are satisfied. &nbsp;For additional guidance, refer to the July 1997 Telephone Interpretations B.81 and H.3.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We hereby confirm our understanding of our obligation to identify any pledges, assignees, and successor-in-interest who intend to use this registration statement and Item 507 information. We currently do not know of any such individuals.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 40</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise to eliminate any redundant language in the bullet-pointed sentences. &nbsp;For example, the first and third bullet-pointed sentences on page 29 appear to be substantially similar, as do the second and fourth bullet-pointed sentences.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have addressed the comment as follows:</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text (underlined portions have been deleted or combined).</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> PLAN OF DISTRIBUTION
</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> Each selling stockholder of our common stock and any of their pledges, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on the trading market if and when one develops, any other stock exchange if and when one develops, market or trading facility which the shares are traded if and when one develops or in private transactions. &nbsp;These sales may be at fixed or negotiated prices. &nbsp;The selling stockholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. The selling stockholders may sell the shares from time to time:
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"><U> &#183;
</U></P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><U>
</U><FONT FACE="Times New Roman"><U> If we are successful in our application to have our common stock list on the Over-the-Counter Bulletin Board in transactions on the Over-the-Counter Bulletin Board or on any national securities
</U></FONT></P>
<P style="margin:0pt; padding-left:36pt; text-indent:-18pt; font-family:Times New Roman"><U> <BR>
<BR>
</U></P>
<P style="page-break-before:always; margin:0pt; padding-left:36pt; font-family:Times New Roman"><U> exchange or U.S. inter-dealer system of a registered national securities association on which our common stock may be listed or quoted at the time of sale; or
</U></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> &nbsp;In private transactions and transactions otherwise than on these exchanges or systems or in the over-the-counter market; or
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"><U> &#183;
</U></P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><U>
</U><FONT FACE="Times New Roman"><U> If we are successful in our application to have our common stock list on the Over-the-Counter Bulletin Board at prices related to such prevailing market prices, or
</U></FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"><U> &#183;
</U></P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><U>
</U><FONT FACE="Times New Roman"><U> In privately negotiated transactions, or
</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in block trades in which the broker-dealer will attempt to sell shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Purchase by a broker-dealer as principal and resale by the broker-dealer for its account; or
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> An exchange distribution in accordance with the rules of the applicable exchange; or
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in settlement of short sales entered into after the date of this prospectus; or
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in broker-dealer transaction in which broker-dealers may agree with the selling stock holders to sell a specified number of such shares at a stipulated price per share; or
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Through the writing or settlement of option or other hedging transactions, whether through an options exchange or otherwise; or
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> In a combination of such methods of sale; or
</FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol"> &#183;
</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol">
<FONT FACE="Times New Roman"> Any other method permitted pursuant to applicable law.
</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this prospectus.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser, in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with NASDR Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with NASDR IM-2440.
</P>
<P style="margin:0pt; font-family:Times New Roman"> &nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> In connection with the sale of the common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of the common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus, as supplemented or amended to reflect such tr
ansaction.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> The selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act in connection with such sales. In such
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> We are required to pay certain fees and expenses incurred by us incident to the registration of the shares. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act. &nbsp;&nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Because selling stockholders may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. Each selling stockholder has advised us that they have not entered into any written or oral agreements, understandings or arrangements with any underwriter or broker-dealer regarding the sale of the resale shares. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the selling stockholders.
</P>
<P style="margin:0pt; font-family:Times New Roman"> &nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> We agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the selling stockholders without registration and without regard to any volume limitations by reason of Rule 144(e) under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant to the prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
</P>
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</P>
<P style="margin:0pt; font-family:Times New Roman"> Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the Common Stock for a period of two business days prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the Common Stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale.
</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 24-26 (added text is underlined).</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PLAN OF DISTRIBUTION</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Each selling stockholder of our common stock and any of their pledges, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on the trading market , any other stock exchange market or trading facility which the shares are traded if and when such market develops or in private transactions. &nbsp;These sales may be at fixed or negotiated prices. &nbsp;The selling stockholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. The selling stockholders may sell the shares from time to time:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock list on the Over-the-Counter Bulletin Board in transactions on the Over-the-Counter Bulletin Board or on any national securities exchange or U.S. inter-dealer system of a registered national securities association on which our common stock may be listed or quoted at the time of sale and at prices related to such prevailing market prices; or</FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">&nbsp;In private transactions and transactions otherwise than on these exchanges or systems or in the over-the-counter market; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in block trades in which the broker-dealer will attempt to sell shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Purchase by a broker-dealer as principal and resale by the broker-dealer for its account; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">An exchange distribution in accordance with the rules of the applicable exchange; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in settlement of short sales entered into after the date of this prospectus; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">If we are successful in our application to have our common stock listed on the Over-the-Counter Bulletin Board in broker-dealer transactions in which broker-dealers may agree with the selling stock holders to sell a specified number of such shares at a stipulated price per share; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Through the writing or settlement of option or other hedging transactions, whether through an options exchange or otherwise; or</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">In a combination of such methods of sale; or</FONT></P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#183;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Any other method permitted pursuant to applicable law. </FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this prospectus. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser, in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with NASDR Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with NASDR IM-2440.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">In connection with the sale of the common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of the common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus, as supplemented or amended to reflect such tra
nsaction. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We are required to pay certain fees and expenses incurred by us incident to the registration of the shares. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act. &nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Because selling stockholders may be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. Each selling stockholder has advised us that they have not entered into any written or oral agreements, understandings or arrangements with any underwriter or broker-dealer regarding the sale of the resale shares. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the selling stockholders.</P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman">We agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the selling stockholders without registration and without regard to any volume limitations by reason of Rule 144(e) under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant to the prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for a period of two business days prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Rule 105 of Regulation M prohibits a short seller from covering short sales with offering securities purchased from an underwriter or broker or dealer participating in the offering, if the short sale occurred during the Rule's restricted period, typically the five-day period prior to pricing.<SUP> </SUP>The reason for the prohibition is that pre-pricing short sales that are covered with offering shares artificially distort the market price for the security, preventing the market from functioning as an independent pricing mechanism and eroding the integrity of the offering price. &nbsp;Prices of &quot;follow-on offerings&quot;<SUP> </SUP>are typically based on a stock's closing price prior to the time of pricing, and thus short sales during the period immediately preceding pricing that reduce the market price can result in a lower offering price. The goal of Rule 105 is to promote offering prices that are based upon open market prices determined by supply 
and demand rather than artificial forces.</U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 41</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note the discussion on page 29 regarding possible short sales by the selling shareholders. &nbsp;In your response letter, please tell us whether any of the selling shareholders have taken, or plan to take, a short position or other forms of hedges in the company&#146;s common stock <U>prior</U> to this resale registration statement&#146;s effectiveness. &nbsp;Please note that creating short positions or similar hedges, with the intent of delivering registered shares before the resale registration statement&#146;s effectiveness, is inappropriate under Section 5 of the Securities Act because the shares underlying the short sales or hedges are deemed to be sold at the time such sales or hedges are made or created.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">None of our shareholders have taken or plan to take a short position or other forms of hedges in the company&#146;s common stock prior to this resale registration statement&#146;s effectiveness.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 42</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please discuss the impact of short selling on the company&#146;s stock.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We added the following text on page 26 to address the comment:</P>
<P style="margin:0pt; font-family:Times New Roman">Rule 105 of Regulation M prohibits a short seller from covering short sales with offering securities purchased from an underwriter or broker or dealer participating in the offering, if the short sale occurred during the Rule's restricted period, typically the five-day period prior to pricing.<SUP> </SUP>The reason for the prohibition is that pre-pricing short sales that are covered with offering shares artificially distort the market price for the security, preventing the market from functioning as an independent pricing mechanism and eroding the integrity of the offering price. &nbsp;Prices of &quot;follow-on offerings&quot;<SUP> </SUP>are typically based on a stock's closing price prior to the time of pricing, and thus short sales during the period immediately preceding pricing that reduce the market price can result in a lower offering price. The goal of Rule 105 is to promote offering prices that are based upon open market prices determined by supply and
 demand rather than artificial forces.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 43</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>For each of the legal proceedings described here, please provide all information required by Item 103 of Regulation s-B. &nbsp;For example, identify the courts in these proceedings are pending, the nature of relief sought, and the relevant dates for the proceedings.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have updated the legal proceedings section to include the information required by Item 103 of Regulation S-B.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> LEGAL PROCEEDINGS
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> As of July 18, 2005 we have the following legal proceedings and legal settlements:
</P>
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</P>
<P style="margin:0pt; font-family:Times New Roman"> 1. &nbsp;&nbsp;&nbsp;&nbsp;Cadence has a judgment against us for $98,000. &nbsp;The judgment was due to lack of payment by Probe to Cadence after Probe purchased the license to use its Alegro software program. &nbsp;Due to economic conditions after September 11<SUP>th</SUP> the market for the use of this product disappeared and Probe was not able to resale the services. &nbsp;Consequently, Probe was not able to generate any revenues from reselling of the software and could not pay Cadence. &nbsp;On August 9<SUP>th</SUP> 2004 we have entered into a payment agreement with the Cadence in which we pay them $2,500 a month until such time the debt is paid off and the balance currently due to Cadence under the agreement is $80,000.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> 2. IFC had a judgment against us for $144,403.00. &nbsp;The judgment resulted from our failure to pay IFC under the purchase agreement for a piece of X-Ray equipment. In September 2004 we entered into a settlement agreement whereby we have agreed to pay IFC $15,000 as an initial payment and $5,000 per month until settlement amount of $70,000.00 is paid in full. &nbsp;The balance due as of March 31, 2005 is $35,000.00.
</P>
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</P>
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<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> 3. Canon Financial has a judgment against us for $15000.00. &nbsp;The judgment was entered because Probe did not pay the lease payments due on a copy machine which was not properly maintained by Canon and was not functional &nbsp;most of the time. &nbsp;We have agreed to pay Canon $1000.00 per month until fully paid. &nbsp;Our balance as of March 31<SUP>st</SUP> 2004 is $9,000.00
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> 4. Pro-Source has filed a civil case against us for $35,000 for breach of contract. &nbsp;The claimed breach of contract is a result of our refusal to pay for their services they claimed rendered in 2003 and 2004. &nbsp;We&#146;re currently negotiating a settlement, however, if we are unable to negotiate a settlement we believe we will be successful on the merits of the case because of Pro-Source failure to provide the agreed to services.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> 5. We currently owe the Internal Revenue Service $140,000.00 for past tax liabilities which we are not currently able to pay in full. &nbsp;We have negotiated a settlement with IRS and have entered into a payment plan with them in which we pay IRS $2,500 per month. &nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> While we are currently able to service any and all payment obligation to the creditors, if we are unable in the future to service any payments, anyone of the creditors may instigate foreclosure proceedings against us. &nbsp;If we are unable to satisfy our obligations, we could b forced into bankruptcy.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> We believe that there are no other claims or litigation pending, the outcome of which could have a material adverse effect on our financial condition or operating results. &nbsp;However, if litigation should arise and the Company was to receive an unfavorable ruling, there is a possibility that it would have a material adverse impact on our financial condition, results of operations, or liquidity of the period in which the ruling occurs, or future periods
</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 31.</B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>LEGAL PROCEEDINGS</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">As of October 12, 2005 we have the following legal proceedings and legal settlements:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">1. &nbsp;&nbsp;&nbsp;&nbsp;Cadence has a judgment against us for $98,000 which was entered by the Superior Court Santa Clara County, California in September 2, 2003. &nbsp;The judgment was due to lack of payment by Probe to Cadence after Probe purchased the license to use its Alegro software program. &nbsp;Due to economic conditions after September 11<SUP>th</SUP> the market for the use of this product disappeared and Probe was not able to resale the services. &nbsp;Consequently, Probe was not able to generate any revenues from reselling of the software and could not pay Cadence. &nbsp;On August 9<SUP>th</SUP> 2004 we have entered into a payment agreement with the Cadence in which we pay them $2,500 a month until such time the debt is paid off and the balance currently due to Cadence under the agreement is $80,000. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">2. IFC has a judgment against us for $144,403.00 which was entered by the Superior Court Orange County, California. Judgment filed July 15, 2004. &nbsp;The judgment resulted from our failure to pay IFC under the purchase agreement for a piece of X-Ray equipment. In September 2004 we entered into a settlement agreement whereby we have agreed to pay IFC $15,000 as an initial payment and $5,000 per month until settlement amount of $70,000.00 is paid in full. &nbsp;The balance due as of March 31, 2005 was $35,000.00.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">3. Canon Financial has a judgment against us for $15,000.00which was entered by the Superior Court Burlington County, New Jersey on April 1, 2004 and also entered by the Superior Court , Orange County, California June 24, 2004. &nbsp;The judgment was entered because Probe did not pay the lease payments due on a copy machine which was not properly maintained by Canon and was not functional most of the time. &nbsp;We have agreed to pay Canon $1000.00 per month until fully paid. &nbsp;Our balance as of March 31<SUP>st</SUP> 2004 was $9,000.00.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">4. Pro-Source has filed a civil case against us for $35,000 for breach of contract which was filed in the Superior Court Orange County, California. &nbsp;Judgment was filed against us on March 9, 2005. &nbsp;We have reached a settlement with Pro-Source on September 9, 2004 whereby we agreed to pay $20,000 in three payments. &nbsp;The first payment was made on October 12, 2005 for $10,000 and then we must $5,000 on October 1, 2005 and $5,000 on November 1, 2005. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">5. We currently owe the Internal Revenue Service $140,000.00 for past tax liabilities which we are not currently able to pay in full. &nbsp;We have negotiated a settlement with the IRS and have entered into a payment plan with them in which we pay the IRS $2,500 per month. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">While we are currently able to service any and all payment obligation to the creditors, if we are unable in the future to service any payments, anyone of the creditors may instigate foreclosure proceedings against us. &nbsp;If we are unable to satisfy our obligations, we could be forced into bankruptcy.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We believe that there are no other claims or litigation pending, the outcome of which could have a material adverse effect on our financial condition or operating results. &nbsp;However, if litigation should arise and the company was to receive an unfavorable ruling, there is a possibility that it would have a material adverse impact on our financial condition, results of operations, or liquidity of the period in which the ruling occurs, or future periods</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 44</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please disclose the specific positions, and corresponding dates, held by Mr. Benner during the last five years.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Mr. Benner has never worked for our company. &nbsp;He became a director in November of 2004 and he serves as our chairman of the board of directors.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 45</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise this section to name Michael Johnson &amp; Co., LLC, as an expert who audited the company&#146;s financial statements for the year ended December 31, 2003.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B> INTEREST OF NAMED EXPERTS AND COUNSEL
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<BR>
</B></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> No expert or counsel within the meaning of those terms under Item 504 of Regulation S-B will receive a direct or indirect interest in the small business issuer or was a promoter, underwriter, voting trustee, director, officer, or employee of Probe Manufacturing, Inc. Nor does any such expert have any contingent based agreement with us or any other interest in or connection to us.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> The legality of our shares of common stock being offered hereby is being passed upon by Catherine Basinger, Esq. &nbsp;Ms. Basinger will not receive a direct or indirect interest in the small business issuer and has never been a promoter, underwriter, voting trustee, director, officer or employee of our company. &nbsp;Nor does Ms. Basinger have any contingent based agreement with us or any other interest in or connection to us.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> The financial statements included in this prospectus have been audited by our independent auditors Jaspers &amp; Hall, P.C., and have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. &nbsp;Jaspers &amp; Hall, P.C. has no direct or indirect interest in us, nor were they a promoter or underwriter.
</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 32 (underlined portion has been added).</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>INTEREST OF NAMED EXPERTS AND COUNSEL</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">No expert or counsel within the meaning of those terms under Item 504 of Regulation S-B will receive a direct or indirect interest in the small business issuer or was a promoter, underwriter, voting trustee, director, officer, or employee of Probe Manufacturing, Inc. Nor does any such expert have any contingent based agreement with us or any other interest in or connection to us. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The legality of our shares of common stock being offered hereby is being passed upon by Catherine Basinger, Esq. &nbsp;Ms. Basinger will not receive a direct or indirect interest in the small business issuer and has never been a promoter, underwriter, voting trustee, director, officer or employee of our company. &nbsp;Nor does Ms. Basinger have any contingent based agreement with us or any other interest in or connection to us.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The financial statements for the fiscal year ended December 31, 2004 included in this prospectus have been audited by our independent auditors Jaspers &amp; Hall, P.C., and have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. &nbsp;Jaspers &amp; Hall, P.C. has no direct or indirect interest in us, nor were they a promoter or underwriter.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>The financial statements for the fiscal year ended December 31, 2003 included in this prospectus have been audited by our independent auditors Michael Johnson &amp; Company, LLC and have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. Michael Johnson &amp; Company, LLC had no direct or indirect interest in us, nor were they a promoter or underwriter.</U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 46</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that you have not included the required consent of Jaspers &amp; Hall, PC. &nbsp;Please include the consent in the amended filing. &nbsp;Refer to Item 601 of Regulation S-B.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The required consent by Jaspers &amp; Hall, P.C. has been included in our filing under Exhibit 23.1</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 47</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>As noted in our comment above, the &#147;Description of Business&#148; section should give readers a clearer idea of the services or products that the company sells. &nbsp;To that end, using clear and more detailed language, please describe the nature of the services listed on pages 37-39. &nbsp;Similar revisions should be made to the description of services on pages 40-41. &nbsp;Business jargon, vaguely-phrased concepts, and marketing language, such as following examples, should be replaced with clearer descriptions: &#147;Box Build,&#148; &#147;full process audit,&#148; &#147;high quality innovative solutions,&#148; and &#147;highest positive outcomes and lowest total cost.&#148;</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We modified our business description as set forth below.</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text.</B></P>
<P style="margin:0pt; font-family:Times New Roman"> We incorporated in the State of California on July,7, 1995 as Probe Manufacturing Industries, Inc. On April 21, 2005 we reincorporated from California to Nevada whereby we changed our name to Probe Manufacturing, Inc. From our formation until present we have been a provider of advanced electronics manufacturing services, or EMS, to original equipment manufacturers, or OEMs, primarily in the industrial, automotive, semiconductor, medical, communication and military industries. &nbsp;&nbsp;Our strategy is to provide customers with a collaborative end-to-end service that involves engineering, supply chain management, and manufacturing services. &nbsp;Furthermore, we take responsibility for new product introduction and implementation, and logistics management, with the goal of delivering a complete packaged product. Once a complete packaged product is delivered, we also provide after-sale services such as repair and warranty services.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> &nbsp;Substantially all of our manufacturing services are provided on a turnkey basis, whereby we purchase customer-specified components from our suppliers, assemble the components on printed circuit boards and perform post-production testing upon request by our customers. However, we can assume supply chain responsibility at any time during the product life cycle. &nbsp;&nbsp;We offer our customers flexible, &quot;just-in-time&quot; delivery programs allowing product shipments to be closely coordinated with our customers' inventory requirements. Additionally, we complete the assembly of our customers' products at our facilities by integrating printed circuit board assemblies into other elements of our customers' products upon request by our customers.
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Our marketing strategy is to convince potential customers to engage us as an engineering and supply chain partner, rather than to simply change EMS suppliers whereby we collaborate with the customer through the entire process. &nbsp;To do this, we perform a full process audit on prospective customer&#146;s operations to ensure our objectives are aligned and make recommendations for integration of our processes to their technology, quality, and delivery process to achieve the highest positive outcome and lowest total cost. &nbsp;This process has been an extremely effective way to demonstrate the ways we can improve the targeted customer&#146;s business performance.
 </P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text On Page 5 and 37 .</B></P>
<P style="margin:0pt; font-family:Times New Roman">We incorporated in the State of California on July 7, 1995 as Probe Manufacturing Industries, Inc. On April 21, 2005 we re-domiciled from California to Nevada whereby we changed our name to Probe Manufacturing, Inc. Our business focuses on manufacturing electronics and providing services to original equipment manufacturers (OEMs) of industrial, automotive, semiconductor, medical, communication, military, and high technology products. The services that we provide are commonly referred to as electronics manufacturing services (EMS). We offer our customers comprehensive and integrated design and manufacturing services, from initial product design to production and direct order fulfillment. </P>
<P style="margin:0pt; font-family:Times New Roman">Our engineering services include product design, printed circuit board layout, prototyping, and test development. Our supply chain management solutions include purchasing, management of materials, and order fulfillment. Our manufacturing services include surface mount, hole assembly, cable assembly, mechanical assembly, and fully integrated box build systems for high complexity electronics.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">For example, Probe builds a Natural Gas Electronic Control Unit for Quantum Technologies which is used in GM&#146;s alternative fuel engines. We have supported this customer from the inception of its product. Our services started with full design review for manufacturability and testability of the product. &nbsp;Once the design review and recommendations were completed we source the materials and procure the components. We then take responsibility for assembling the components on to the boards, assembling the mechanical parts, installing the product inside the enclosure, and finally we perform a full functional test. Then the finished good product is shipped to the customer, who integrates it in to their final fuel delivery system and it&#146;s delivered to GM. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The majority of our revenue is driven from manufacturing a mix of complex Printed Circuit Card assemblies. &nbsp;Some of the examples of our customers finished goods products include automated fluid dispensing equipments, high performance gas and liquid delivery process modules, which are used in semiconductor fabrication equipment, photonics instrumentation to measure fiber optics, electronic control unit for hydrogen, natural gas, and propane engines, electronic control unit for welding equipment, portable ultrasound and electro-simulation therapy equipment, and target scoring systems for military.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 48</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please provide support for the claims regarding the OEM&#146;s increasing reliance on EMS companies for the manufacture of their products and the competitive advantages offered by EMS companies. &nbsp;Copies of any industry publications should be sent, with the relevant portions highlighted. &nbsp;If no independent support exists for the claims, please disclose the claims as your beliefs, along with the bases for these beliefs.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Please see the attached articles from industry publications supporting our claims concerning the OEM&#146;s increasing reliance on EMS companies for the manufacturing of their products and the competitive advantages offered by EMS companies.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 49</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Provide support for the characterization of your customers as &#147;high quality,&#148; &#147;leading OEMs in Southern California,&#148; &#147;world leader,&#148; and other similar descriptions. &nbsp;Otherwise, revise the statements as your beliefs.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have removed such statements, such as, &#147;high quality,&#148; leading OEM&#146;s in Southern California,&#148; and other similar descriptions on pages 36-37.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 50</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Revise the list of customers to distinguish in a clearer manner the services or products offered by your customers and the services or products you provide to your customers.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We revised our list of customers as follows:</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B> STRATEGIC RELATIONSHIPS AND ALLIANCES
</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><I> Customers
</I></B></P>
<P style="margin:0pt; font-family:Times New Roman"> Probe&#146;s customer partnership philosophy has resulted in a high quality list of loyal customers including some of the leading OEM&#146;s in Southern California. &nbsp;
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> Probe&#146;s current list of customers by their industry and what we help them produce is a follows:
</P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Aerospace
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Designs, manufactures and supports high-quality, innovative solutions for&nbsp;use in the commercial, military or general aviation aerospace&nbsp;markets.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Consumer
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Leading manufacturer of digital audio conversion systems for studio professionals and home recording enthusiasts.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Industrial
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Provides automated fluid dispensing systems.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Medical
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Our customer provides integrated, high-value products and services for genomics, proteomics, drug discovery &amp; development, oncology, and immune function.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Military
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Specializes in the design, manufacture and installation of target scoring systems for the military and government services around the world.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Semiconductor
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> World leader in the design and production of high performance gas and liquid delivery process modules and critical instruments that are integral to semiconductor manufacturing.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Semiconductor
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Evaluation Moules.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Industrial
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Automated, Point-of-Use dispensing technology.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Industrial
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Manufactures a full range of mechanized welding equipment for all arc and other high energy processes.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Military
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Designs, manufactures and supports state-of-the-art military defense electronics products and systems serving a variety of operational mission and laboratory test, simulation and training applications.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Medical
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Provides portable ultrasound and electro-stimulation therapy equipment.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Semiconductor
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> semiconductor company focused on enabling multi-element smart antennas (including MIMO) with RFICs.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Industrial/
</P>
<P style="margin:0pt; font-family:Arial"> Instrumentation
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Technology leader in lasers and the technology leader in&nbsp;precision photonics instrumentation, motion control, wafer handling and&nbsp;assembly automation.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Computers
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Full Range of printer solutions for OEM and POS applications.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Automotive
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Products &amp; Services for Hydrogen, Natural Gas &amp; Propane Applications.
</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"> <BR>
<BR>
</P>
<P style="page-break-before:always; margin:0pt; font-family:Arial"> <BR>
<BR>
<BR>
</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=120><P style="margin:0pt; font-family:Arial"> Instrumentation
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Providing Flow Instrumentation.
</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" width=120><P style="margin:0pt; font-family:Arial"> Industrial
</P>
</TD><TD style="background-color:#FFFF00" width=252><P style="margin:0pt; font-family:Arial"> Lighted pushbutton switches and ruggedized keyboards and keypads for both military and commercial applications.
</P>
</TD></TR>
<TR><TD width=120><P style="margin:0pt; font-family:Arial"> Instrumentation
</P>
</TD><TD width=252><P style="margin:0pt; font-family:Arial"> Standard and custom instrumentation for dynamic measurements.
</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 36-37.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>STRATEGIC RELATIONSHIPS AND ALLIANCES </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><I>Customers </I></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our current list of customers by their industry and what we help them produce is a follows:</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=1>&nbsp;</TD><TD valign=top width=103.2><P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Name/ Industry</P>
</TD><TD valign=top width=216 colspan=2><P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Services &amp; Products offered by our customers</P>
</TD><TD valign=top width=276><P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Services or products we provide to our customers</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Apogee/</P>
<P style="margin:0pt; font-family:Arial">Consumer</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures digital audio conversion systems for studio professionals and home recording enthusiasts.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit card assembly, test, and full box build assembly</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Asymtek/</P>
<P style="margin:0pt; font-family:Arial">Industrial</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Provides automated fluid dispensing systems.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly and Test</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">BD Bioscience/</P>
<P style="margin:0pt; font-family:Arial">Medical</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures of Blood Analyzers and agents.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit assembly and test.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Meggitt/</P>
<P style="margin:0pt; font-family:Arial">Military</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures target scoring systems for the military.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Printed Circuit card assembly</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Celerity Group/</P>
<P style="margin:0pt; font-family:Arial">Semiconductor</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufacturer of gas and liquid delivery process modules that are used in semiconductor fabrication equipment.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit card Assembly, and Test.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Jetline Engineering/</P>
<P style="margin:0pt; font-family:Arial">Industrial</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures a full range of mechanized welding equipment for all arc and other high energy processes.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Assembly, Test, Mechanical and Full Box Build Assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Trigtek/</P>
<P style="margin:0pt; font-family:Arial">Military</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures laboratory test, simulation and training applications.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, Test, and Box Build Assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Mettler Electronics/</P>
<P style="margin:0pt; font-family:Arial">Medical</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Provides portable ultrasound and electro-stimulation therapy equipment.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, Test, Mechanical, and Box Build Assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Motia/</P>
<P style="margin:0pt; font-family:Arial">Semiconductor</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures 802.11 wireless communication IC&#146;s.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Manufacture printed Circuit card assembly.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Newport/</P>
<P style="margin:0pt; font-family:Arial">Industrial &amp;</P>
<P style="margin:0pt; font-family:Arial">Instrumentation</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures lasers and precision photonics instrumentation, motion control, wafer handling and&nbsp;assembly automation.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials procurement, printed Circuit Card Assembly, Test, Mechanical, and Box Build Assembly. </P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Omniprint/</P>
<P style="margin:0pt; font-family:Arial">Computers</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Full Range of printer solutions for Point of Sales applications.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, and test.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Quantum/</P>
<P style="margin:0pt; font-family:Arial">Automotive</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures Electronics Control Units for Hydrogen, Natural Gas &amp; Propane engines.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Materials Procurement, Printed Circuit Card Assembly, test, mechanical assembly and full box build.</P>
</TD></TR>
<TR><TD width=109.4 colspan=3><P style="margin:0pt; font-family:Arial">Staco Switch/</P>
<P style="margin:0pt; font-family:Arial">Industrial</P>
</TD><TD width=210.8><P style="margin:0pt; font-family:Arial">Manufactures Lighted pushbutton switches and ruggedized keyboards and keypads for both military and commercial applications.</P>
</TD><TD valign=top width=276><P style="margin:0pt; font-family:Arial">Printed Circuit Card Assembly.</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We do not have any long term agreements with our customers, and our principal customers may not continue to purchase services from us. The duration of a purchase order is usually from 30 to 90 days. These purchase orders could be cancelled or rescheduled at any time. The part number, quantity, &nbsp;price, workmanship standards, and scheduled delivery dates of the Products to be Manufactured are determined by written purchase orders given by our customers and accepted or confirmed by us in writing or via email. &nbsp;We agree to deliver the Products manufactured pursuant to each purchase order in accordance with the terms and conditions set forth in the purchase order. Probe manufactures hundreds of different types of assemblies on an ongoing basis and each product has a purchase order associated with it. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">We currently only focus on attracting and servicng customers in Southern California.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 51</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please disclose the typical duration and renewal provisions of your &#147;supply arrangements.&#148;</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We addressed the comment as follows:</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B> SUPPLIERS
</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B> <BR>
</B></P>
<P style="margin:0pt; font-family:Times New Roman"> We currently procure our materials from a limited number of distributors, thus if a shortage of various components were to occur we would be forced to seek other distributors and our cost of goods could impact our revenues. &nbsp;Our main suppliers of materials include:
</P>
<P style="margin:0pt; font-family:Times New Roman"><B><I> <BR>
</I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U> Arrow Electronics, Inc
</U> . is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry, with 2004 sales of $10.7 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 175,000 original equipment manufacturers, contract manufacturers, and value-added resellers through more than 200 sales facilities and 23 distribution centers in 40 countries and territories.
</P>
<P style="margin:0pt; font-family:Times New Roman"><B><I> <BR>
</I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U> Future Electronics
</U> is the world&#146;s largest distributor specializing in passive, interconnect, and electromechanical components used in commercial and military applications, and they hold the top market share for most of our product lines. &nbsp;Headquartered in Fort Worth, Texas, TTI has 47 locations around the globe: 33 in North America, 11 in Europe and, most recently, 3 in Asia. From these facilities, they provide local service to customers around the world.
</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Page 38 (underlined section specifically addresses the comment).</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>SUPPLIERS </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">We currently procure our materials from a limited number of distributors, thus if a shortage of various components were to occur we would be forced to seek other distributors and our cost of goods could impact our revenues. &nbsp;Our main suppliers of materials include:</P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Arrow Electronics, Inc</U>. is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry, with 2004 sales of $10.7 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 175,000 original equipment manufacturers, contract manufacturers, and value-added resellers through more than 200 sales facilities and 23 distribution centers in 40 countries and territories. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Future Electronics</U> is the world&#146;s largest distributor specializing in passive, interconnect, and electromechanical components used in commercial and military applications, and they hold the top market share for most of our product lines. &nbsp;Headquartered in Fort Worth, Texas, TTI has 47 locations around the globe: 33 in North America, 11 in Europe and, most recently, 3 in Asia. From these facilities, they provide local service to customers around the world.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>We currently do not have long-term agreements with our major suppliers, however, we enter into purchase order agreements. &nbsp;Purchase orders are placed with suppliers based on our Material Requirement Planning (MRP). &nbsp;When we have an order in our operating system Manex, it generates a list of materials for procurement to satisfy that order. &nbsp;We then issue purchase orders to our suppliers with scheduled deliveries which acts as the only contractual agreements between us and our suppliers</U>.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 52</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Provide a clearer indication of the geographic scope of your markets. &nbsp;For example, indicate whether you sell your services and products to only customers in certain areas, such as Southern California.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The following sentence was added to page 37 to address the comment:</P>
<P style="margin:0pt; font-family:Times New Roman">&#147;We currently only focus on attracting and servicng customers in Southern California.&#148;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We also added a risk factor on page 10 which states:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">WE CURRENTLY ONLY SERVICE AND ATTEMPT TO OBTAIN CUSTOMERS IN THE LIMITED GEOGRAPHIC OF SOUTHERN CALIFORNIA WHICH IS A SMALL ADDRESSABLE MARKET AND COULD BE SUBJECT TO ECONOMIC HARDSHIP OR SLOWDOWN, AS A RESULT OUR GROWTH COULD BE LIMITED AND ADVERSELY AFFECT OUR PROJECTED SALES AND OPERATING INCOME.</P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">We currently only service, attempt to solicit new, and direct our marketing efforts to customers in the Southern California region. &nbsp;This is a very small addressable market which ultimately limits the amount of growth we could experience. &nbsp;In addition, this region could experience an economic recession or other market contraction which would cause our current customers and any potential customers to also contract their businesses as well and cease outsourcing any current products that we currently service and would attempt to obtain. Both the size of the market and any potential economic hardship affecting this &nbsp;small regional market could adversely affect our project sales and operating incomer. &nbsp;If we are forced to expand our marketing efforts outside this region we could also incur significant costs in an attempt to penetrate other regional or national markets.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 53</U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please describe in greater detail the nature of your arrangements with your suppliers. &nbsp;For example, indicate, if true, that you have no long-term supply agreements. &nbsp;To the extent your business is substantially dependent upon any principal suppliers, please file any contracts with them as exhibits to the registration statement pursuant to Item 601(b)(10)(i)(B) of Regulation S-B.</I></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We added the following text on page 38 as underlined below&#148;</P>
<P style="margin:0pt; font-family:Times New Roman"><B>SUPPLIERS </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">We currently procure our materials from a limited number of distributors, thus if a shortage of various components were to occur we would be forced to seek other distributors and our cost of goods could impact our revenues. &nbsp;Our main suppliers of materials include:</P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Arrow Electronics, Inc</U>. is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry, with 2004 sales of $10.7 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 175,000 original equipment manufacturers, contract manufacturers, and value-added resellers through more than 200 sales facilities and 23 distribution centers in 40 countries and territories. </P>
<P style="margin:0pt; font-family:Times New Roman"><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Future Electronics</U> is the world&#146;s largest distributor specializing in passive, interconnect, and electromechanical components used in commercial and military applications, and they hold the top market share for most of our product lines. &nbsp;Headquartered in Fort Worth, Texas, TTI has 47 locations around the globe: 33 in North America, 11 in Europe and, most recently, 3 in Asia. From these facilities, they provide local service to customers around the world.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>We currently do not have long-term agreements with our major suppliers, however, we enter into purchase order agreements. &nbsp;Purchase orders are placed with suppliers based on our Material Requirement Planning (MRP). &nbsp;When we have an order in our operating system Manex, it generates a list of materials for procurement to satisfy that order. &nbsp;We then issue purchase orders to our suppliers with scheduled deliveries which acts as the only contractual agreements between us and our suppliers.</U></P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have included on Exhibits 10.23 and 10.24 or our sample contracts with our two main suppliers.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 54</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please describe in greater detail the effect that government regulations have on your business. &nbsp;Clarify the nature of the &#147;material costs and liabilities&#148; that may arise from the current and future requirements.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We addressed the comment as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Previous Text</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>REGULATORY RESTRICTIONS ON OUR BUSINESS </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our operations, and the operations of businesses that we may acquire, are subject to certain foreign, federal, state and local regulatory requirements relating to environmental, waste management, and health and safety matters. We believe we operate in substantial compliance with all applicable requirements. However, material costs and liabilities may arise from these requirements or from new, modified or more stringent requirements. In addition, our past, current and future operations, and those of businesses we acquire, may give rise to claims of exposure by employees or the public or to other claims or liabilities relating to environmental, waste management or health and safety concerns. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on page 39 as underlined below.</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>REGULATORY RESTRICTIONS ON OUR BUSINESS </B></P>
<P style="margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman">Our operations, and the operations of businesses that we may acquire, are subject to certain foreign, federal, state and local regulatory requirements relating to environmental, waste management, and health and safety matters. We believe we operate in substantial compliance with all applicable requirements. However, material costs and liabilities may arise from these requirements or from new, modified or more stringent requirements. <U>Material cost may rise due to additional manufacturing cost of raw or made parts with the application of new regulations. &nbsp;Our liabilities may also increase due to additional regulations imposed by foreign, federal, state and local regulatory requirements relating to environmental, waste management, and health and safety matters.</U> &nbsp;In addition, our past, current and future operations, and those of businesses we acquire, may give rise to claims of exposure by employees or the public or to other claims or liabilitie
s relating to environmental, waste management or health and safety concerns.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 55 and 56</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 55</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><I><BR></I></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise the MD&amp;A section to provide all information required by Item 303(b) of Regulation S-B. For example, rather than simply stating that net sales &#147;stabilized and stayed flat,&#148; please provide quantified disclosure regarding the net sales from 2002 through 2004. &nbsp;Similarly, provide quantified disclosure regarding the financial results for 2004 described on page 43. &nbsp;Disclose the factors that contributed to the &#147;severe contraction in [your] business&#148; from 2001 to 2002 and indicate whether management expects these factors to affect the business in the near-future. &nbsp;Disclosure about known trends that are expected to affect financial results, such as your focus on the more capital-intensive ODM services, should be included. &nbsp;The historical impact of inventory losses, which appears to be significant, should also be discussed in greater detail, with quantified disclosure. &nbs
p;For additional guidance regarding the MD&amp;A section in general, please refer to Release No. 33-8350, which is available on our website (</I><FONT COLOR=#0000FF><I><U>www.sec.gov</U></I></FONT><I>).</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 56</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please expand your discussion of the basis for management&#146;s expectation of &#147;additional growth&#148; and &#147;profitability&#148; in the last three quarters of 2005. &nbsp;Note that management&#146;s projections of future economic performance must have a reasonable basis. &nbsp;Refer to Item 10(d) of Regulation S-B for guidance on proper disclosure of management&#146;s projections.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="margin:0pt; font-family:Times New Roman"> For the year ended December&nbsp;31, 2004, we incurred a net loss of ( $918,000.00) Thousand compared to net losses of ($1,200,000.00) in 2003 and ($1,500,000.00) in 2002. From 2001 to 2002, we experienced a severe contraction in our business where annual net sales declined from $17.9&nbsp;million in 2001 to $6.8&nbsp;million in &nbsp;2002. &nbsp;Our net sales stabilized and stayed flat from 2002 through 2004. &nbsp;However, we responded to the economic downturn by streamlining our processes and down sizing our operations from 225 employees in 2001 to 65 employees in 2004. The down sizing combined with other restructuring and cost containment initiatives resulted in a lower cost structure from 2002 through 2004. In the 4<SUP>th</SUP> quarter 2004 we realized one time inventory revaluation adjustment of ($155,000.00). &nbsp;We also realized one time warranty cost adjustment of ($50,000.00).
</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"> <BR>
</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"> In 2004, we experienced a strong net sale in 1<SUP>st</SUP> quarter due to increased sales from a major customer, one of our customers. &nbsp;In the 1<SUP>st</SUP> quarter 2004, the major customer accounted for 60% of our net sales at $1,400,000.00. &nbsp;In the second quarter, net sales from a major customer dropped by about $800,000.00 which explains the decreased net sales for 2<SUP>nd</SUP> quarter 2004. &nbsp;In the 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter 2004 net sales to the major customer dropped by another $500,000.00 which explains the additional reduction in our net sales for the third and the 4<SUP>th</SUP> quarter of 2004. &nbsp;Since 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter 2004 we started a sales campaign to add new customers. &nbsp;Consequently, we have added some new customers and our net sales have grown by 33% in 1<SUP>st</SUP> quarter of 2005 compared to 4<SUP>th</SUP> quarter of 2004.&nbsp; We continue to ev
aluate sales forecasts in relation to our
</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"> <BR>
<BR>
</P>
<P style="page-break-before:always; background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"> operations; we are anticipating additional growth in the 2<SUP>nd</SUP>, 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarters of 2005. &nbsp;The anticipated growth is due to existing customer&#146;s forecast and new sales activity pipeline. &nbsp;&nbsp;While we are constantly adjusting our operations to new sales forecast, we are anticipating profitability as our net sales grow to meet our fixed expenses.
</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on Pages 39 an 40.</B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Overview </U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>For the 6 months period ended June 30, 2005 we incurred a net loss of &nbsp;(321,684) and for the year ended December&nbsp;31, 2004, we incurred a net loss of ( $918,590) Thousand compared to net losses of ($1,244,761) in 2003 and ($1,513,846 ) in 2002. From 2001 to 2002, we experienced a severe contraction in our business where annual net sales declined from $17.9&nbsp;million in 2001 to $6.8&nbsp;million in &nbsp;2002. &nbsp;Our net sales stabilized and stayed flat from 2002 through 2004 and continues to remain flat through June 30, 2005. &nbsp;However, we responded to the economic downturn by streamlining our processes and down sizing our operations from 225 employees in 2001 to 65 employees in 2004. The down sizing combined with other restructuring and cost containment initiatives resulted in a lower cost structure from 2002 through 2004. In the 4<SUP>th</SUP> quarter 2004 we realized one time inventory revaluation adjustment of ($155,000),
 this was an accrual made for excess or obsolete inventory adjustments and or write-offs completed in 2005. &nbsp;We also realized a one time warranty cost adjustment of ($50,000). &nbsp;&nbsp;In 2005 we realized a net gain from the restructuring of debt in the amount of &nbsp;($89,000).</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman" align=justify>In 2004, we experienced a strong net sale in 1<SUP>st</SUP> quarter due to increased sales from a major customer, one of our customers. &nbsp;In the 1<SUP>st</SUP> quarter 2004, the major customer accounted for 60% of our net sales at $1,400,000 . &nbsp;In the second quarter, net sales from a major customer dropped by about $800,000 &nbsp;which explains the decreased net sales for 2<SUP>nd</SUP> quarter 2004. &nbsp;In the 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter 2004 net sales to the major customer dropped by another $500,000 &nbsp;which explains the additional reduction in our net sales for the third and the 4<SUP>th</SUP> quarter of 2004. &nbsp;Since 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter 2004 we started a sales campaign to add new customers. &nbsp;Consequently, we have added some new customers and our net sales have grown by 33% in 1<SUP>st</SUP> quarter and compared to 4<SUP>th</SUP> quarter of 2004 and sales g
rew by 15% from the 1st qtr to the 2<SUP>nd</SUP> qtr of 2005. We &nbsp;anticipated additional sales growth in the, 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarter of 2005, &nbsp;however anticipated demand from a key customer failed to materialize, due to a down turn in the semiconductor &#150; Chip industry, will result in missed sales opportunities of $500,000 for each of the 3<SUP>rd</SUP> and 4<SUP>th</SUP> qtr, therefore sales will remain flat for the remainder of 2005. &nbsp;&nbsp;While we are constantly adjusting our operations to new sales forecast, we are anticipating profitability as our net sales grow and expenses are cut to match current revenue levels.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Plan of Operation</U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. &nbsp;The company incurred a net loss of $321,684 for the six months ended June 30, 2005 and stockholder deficit of ($762,122) and as of &nbsp;June 30, 2005 and has a working capital deficit of approximately $348,364. The ability of the company to operate as a going concern is dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) cut operating costs such that the company can operate until such time that it resumes generating positive cash flow from operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Management is taking the following steps to address this situation: (a) reducing operating costs by: (i) re-negotiating direct material cost with all of our suppliers, (ii) reducing direct and indirect labor cost by streamlining production lines and other operations to create more efficiency and (iii) we are also evaluating the possibility of moving into a more feasible facility with lower rent and overhead, thus reducing the break even revenue level; (b) we are negotiating to replace our lines of credit with an agreement(s) that have more attractive terms and expand borrowing capacity; (c) increasing our revenue by making sure we bill for everything of value we do; acquiring new customers, and growing our existing customers. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>&nbsp;The future success of the company is likely dependent on its ability to attain additional capital to support growth and ultimately, upon its ability to attain future profitable operations. &nbsp;There can be no assurance that the company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. &nbsp;The successful outcome of these or any future activities cannot be determined at this time and there is no assurance that if achieved, the company will have sufficient funds to execute their business plans or generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the company be unable to continue as a going concern.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 57</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please provide a liquidity discussion, as required by Item 303 of Regulation S-B, with the information recommended by Release No. 33-8350. &nbsp;The discussion should provide historical information regarding sources of cash and capital expenditures, an evaluation of the amounts and certainty of cash flows, the existence and timing of commitments for capital expenditures and other known and reasonably likely cash requirements, and discussion and analysis of known trends and uncertainties. &nbsp;For example, the discussion should explain, with quantified disclosure, how your expansion plans will affect your need for liquidity. &nbsp;Similarly, explain how becoming a public company, with the increased expenses, will affect your cash requirements.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Added text to Page 41.</B></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><B>Liquidity and Capital Requirements</B></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><B><BR></B></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">Cash and cash equivalents increased to approximately $76 thousand at June 30, 2005 from 40 thousand &nbsp;at December &nbsp;31, 2004. The table below, for the six months ended June 30, 2005, &nbsp;provides the summary information regarding cashflows and cash position. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial" align=center><B>Six Months ended June 30, 2005</B></P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Operating Activities:</B></P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Net Income / (Loss)</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;$ &nbsp;&nbsp;(321,684)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Adjustments to reconcile net loss to net cash</P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;used in operating activities:</P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,190 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(200,290)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in inventory</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(489,662)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,855)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in deposits</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accounts payable</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(104,251)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Other (Decrease) increase in accrued expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,735 </P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Net Cash Used In Operating Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(971,817)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Investing Activities</B></P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Purchase of property and equipment</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,551)</P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Cash Flows Used In Investing Activities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,551)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Financing Activities</B></P>
</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Bank overdraft</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58,008 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Borrowings under line of credit, net</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;560,051 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Principal payments on capital lease obligations</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(119,060)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Issuance of stock</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;572,000 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133><P style="margin:0pt; font-family:Arial">Proceeds / Payments of notes payable</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61,094)</P>
</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Cash Flows Provided By Financing Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;1,009,905 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Net (Decrease) Increase in Cash and Cash Equivalents</P>
</TD><TD valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,537 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial">Cash and Cash Equivalents at December 31, 2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,402 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=397.133>&nbsp;</TD><TD valign=bottom width=126.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=433.133 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash and Cash Equivalents at June 30, 2005</B></P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=126.467><P style="margin:0pt; font-family:Arial">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76,939 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">&nbsp;Net cash used by operating activities was $971&nbsp;thousand during the six months ended June 39, 2005. This was mainly due to an operating loss of &nbsp;$321 thousand, an increase inventories of &nbsp;$490 thousand, an increase in accounts receivable and a decrease in accounts payable. &nbsp;The increase in inventory was a result of an anticipated ramp up in sales for the 3<SUP>rd</SUP> and 4<SUP>th</SUP> quarters. &nbsp;The increase in receivables was caused by an increase in sales in the month of June. &nbsp;The cash used in operating activities was funded by and increase in the borrowings under lines of credit of $560 thousand and the issuance of stock (under the Private Placement Memorandum) &nbsp;of &nbsp;$572 thousand. &nbsp;&nbsp;With the added reporting expense resulting from the filing on the SB2 the company has operating expense by $35 thousand per month effective October 1, 2005. &nbsp;The cash flows from operation
s will be relatively flat in the 3<SUP>rd</SUP> qtr., and slightly positive in the 4<SUP>th</SUP> qtr. &nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 58</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise this section to discuss the results of the interim period ended March 31, 2005 or later, as applicable. &nbsp;Your present discussion under this section has been limited to the fiscal year ended December 31, 2004. &nbsp;Refer to Item 303 of Regulation S-B.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Begging on &nbsp;page 39 the Management discussions have been updated through June 30, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 59</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>You disclose under the caption &#147;Overview&#148; that in the fourth quarter 2004 you realized one time inventory revaluation adjustment of $155,000. &nbsp;Please explain to us the nature of the inventory adjustment.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The comment was addressed as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"> For the year ended December&nbsp;31, 2004, we incurred a net loss of ( $918,000.00) Thousand compared to net losses of ($1,200,000.00) in 2003 and ($1,500,000.00) in 2002. From 2001 to 2002, we experienced a severe contraction in our business where annual net sales declined from $17.9&nbsp;million in 2001 to $6.8&nbsp;million in &nbsp;2002. &nbsp;Our net sales stabilized and stayed flat from 2002 through 2004. &nbsp;However, we responded to the economic downturn by streamlining our processes and down sizing our operations from 225 employees in 2001 to 65 employees in 2004. The down sizing combined with other restructuring and cost containment initiatives resulted in a lower cost structure from 2002 through 2004. In the 4<SUP>th</SUP> quarter 2004 we realized one time inventory revaluation adjustment of ($155,000.00). &nbsp;We also realized one time warranty cost adjustment of ($50,000.00).
 </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on page 40.</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>For the 6 months period ended June 30, 2005 we incurred a net loss of &nbsp;(321,684) and for the year ended December&nbsp;31, 2004, we incurred a net loss of ( $918,590) Thousand compared to net losses of ($1,244,761) in 2003 and ($1,513,846 ) in 2002. From 2001 to 2002, we experienced a severe contraction in our business where annual net sales declined from $17.9&nbsp;million in 2001 to $6.8&nbsp;million in &nbsp;2002. &nbsp;Our net sales stabilized and stayed flat from 2002 through 2004 and continues to remain flat through June 30, 2005. &nbsp;However, we responded to the economic downturn by streamlining our processes and down sizing our operations from 225 employees in 2001 to 65 employees in 2004. The down sizing combined with other restructuring and cost containment initiatives resulted in a lower cost structure from 2002 through 2004. In the 4<SUP>th</SUP> quarter 2004 we realized one time inventory revaluation adjustment of ($155,000),
 this was an accrual made for excess or obsolete inventory adjustments and or write-offs completed in 2005. &nbsp;We also realized a one time warranty cost adjustment of ($50,000). &nbsp;&nbsp;In 2005 we realized a net gain from the restructuring of debt in the amount of &nbsp;($89,000).</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 60</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note on pages 46 to 53 that your entire disclosure is identical to the information presented under the Notes to the financial statements presented on page F-6 to F-14. &nbsp;Please revise the entire section to provide the disclosure required by Item 303 of Regulation S-B.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The MD&amp;A section has been revised and information that was redundant to the notes of the financial statements has been removed. &nbsp;Please review text from pages 39 to 50.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 61</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Your present disclosures does not discuss your critical accounting policies, which would provide the investors with an understanding of those estimates and assumptions that are both important to the portrayal of your financial condition and results of operations and require your most difficult, subjective or complex judgments.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Revise your disclosures to include sensitivity analysis and other quantitative information when it is reasonably available. &nbsp;You should address the questions that arise once the critical accounting estimate or assumption has been identified, by analyzing, to the extent material, such factors as how they arrived at the estimate, how accurate the estimate/assumption has been in the past, how much the estimate/assumption has changed in the past, and whether the estimate/assumption is reasonably likely to change in the future.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>For additional guidance, refer to Items 303(b) and (c) of Regulation S-B as well as section five of the Commission&#146;s Interpretive Release on Management&#146;s Discussion and Analysis of Financial Condition and results of Operation, which is located on our website at </I><FONT COLOR=#0000FF><I><U>http://www.sec.gov/rules/interp/33-8350.htm</U></I></FONT><I>.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Beginning on page &nbsp;48 the text has been amended has follows.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Critical Accounting Policies</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">Management is required to make judgments, assumptions and estimates that affect the amounts reported when we prepare financial statements and related disclosures in conformity with generally accepted accounting principles. &nbsp;Estimates are used for, but not limited to, our accounting for contingencies, allowance for doubtful accounts, inventory valuation, &nbsp;and income taxes. Actual results could differ from these estimates. The following critical accounting policies are impacted significantly by judgments, assumptions and estimates used in the preparation of our consolidated financial statements. </P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Inventory</U></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">The companies&#146; inventories are stated at the lower of weighted average cost or market. This industry, is characterized by rapid change in technology. &nbsp;Customer commitments are generally short term in nature and their demands can fluctuate and change very rapidly. &nbsp;We make provisions for estimated excess and obsolete inventories based on these factors as well as cost and market value fluctuations in pricing as well as regular reviews of inventory quantities on hand and the latest forecasts of product demand and production requirements from our customers. Our provisions for excess and obsolete inventory are also impacted by our contractual arrangements with our customers including our ability or inability to re-sell such inventory to them. If actual market conditions or our customers&#146; product demands are less favorable than those projected or if our customers are unwilling or unable to comply with any contractual a
rrangements related to excess and obsolete inventory, additional provisions may be required.</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><U>Allowance for doubtful accounts</U></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">The company grants credit to customers within the United States of America and does not require collateral. The company&#146;s ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by the company.</P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman">Reserves for un-collectable amounts are provided, based on past experience and a specific analysis of the accounts, which management believes are sufficient. Although the company expects to collect amounts due, actual collections may differ from the estimated amounts. </P>
<P style="background-color:#FFFFFF; margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Goodwill</U></P>
<P style="margin:0pt; font-family:Times New Roman">In accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;142, &#147;Goodwill and Other Intangible Assets&#148;. &nbsp;&nbsp;&nbsp;At this time we have no amounts recorded under goodwill or intangible assets.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Loss per Share</U></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>We utilize SFAS No. 128, &quot;Earnings per Share.&quot; Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><U>Revenue and Expense recognition.</U></P>
<P style="margin:0pt; font-family:Times New Roman">Net sales are recognized when title is transferred to our customers, which generally occurs upon shipment from our facilities. Net sales from design, engineering and other services are generally recognized as the services are performed. Our sales are recorded net of customer discounts and credits taken or expected to be.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Cost of goods sold includes materials, labor, and overhead expenses incurred in the manufacture of our products and are recognized and matched to the period when the revenue is recognized. Cost of goods sold also includes charges and credits related to manufacturing operations for lease exit costs, impairment of long-lived assets, and obsolete and slow moving inventories. Many factors affect our gross profit, including capacity utilization, product mix, and production volume. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Selling, general, and administrative expenses primarily include the salaries for executive, finance, accounting, IT personnel, program management and human resources personnel; salaries and commissions paid to our internal sales force and external sales representatives and marketing costs; insurance expenses; depreciation expense related to assets not used in manufacturing activities; bad debt charges and recoveries; professional fees for auditing and legal assistance; and general corporate expenses. &nbsp;These expenses are accrued and recognized in the period that they are incurred.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Impairment of long-lived assets reflects charges related to property, equipment and intangible assets not used in manufacturing activities; impairment of manufacturing assets is included in cost of goods sold. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Interest expense relates to our credit facilities and other debt obligations. Interest expense also includes the amortization of debt issuance costs. &nbsp;These are accrued and recognized at the time they are incurred.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Estimates</U></P>
<P style="margin:0pt; font-family:Times New Roman">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates may be materially different from actual financial results. Significant estimates include the recoverability of long-lived assets and the collectability of accounts receivable.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Federal Income Taxes</U></P>
<P style="margin:0pt; font-family:Times New Roman">The company accounts for income taxes under SFAS No. 109, which requires the asset and liability approach to accounting for income taxes. &nbsp;Under this method, deferred tax assets and liabilities are measured based on differences between financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. &nbsp;During the year ended December 31, 2004, the company changed from a &#147;S&#148; corporation to a &#147;C&#148; corporation.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Segment Information</U></P>
<P style="margin:0pt; font-family:Times New Roman">The Corporation operates primarily in a single operating segment, providing printed circuit board assemblies.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Stock Based Compensation</U></P>
<P style="margin:0pt; font-family:Times New Roman">SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (&#147;SFAS No. 123&#146;) allows an entity to elect to continue to measure compensation cost under Accounting Principles Board Opinion No. 25, &#147;Accounting for Stock Issued to Employees&#148; (&#147;APB No. 25&#148;), but requires pro forma disclosures of net loss and loss per share as if the fair-valued-based method of accounting had been applied. &nbsp;In accordance with SFAS 123, the company elected to continue to measure compensation cost under APB No. 25, and comply with the pro forma disclosure requirements.</P>
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<P style="margin:0pt; font-family:Times New Roman">The company has adopted for footnote disclosure purposes SFAS No. 123, which requires that companies disclose the cost of stock-based employee compensation at the grant date based on the value of the award (the fair value method) and disclose this cost over the service period. &nbsp;The value of the stock-based award is determined using a pricing model whereby compensation cost is the excess of the fair value of the award as determined by the model at grant date or other measurement date over the amount an employee must pay to acquire the stock.</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman">Transactions in which goods or services are received from non-employees for the issuance of equity securities or stock-based awards are accounted for based on the fair value of the consideration received. &nbsp;Stock amounts of $5,500 were valued for services during the year ended December 31, 2004.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Inflation </U></P>
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<P style="margin:0pt; font-family:Times New Roman">We do not believe that inflation has had or is likely to have any significant impact on our revenues. </P>
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<P style="margin:0pt; font-family:Times New Roman"><U>Subsidiaries </U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 62</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that management is addressing the going concern opinion by &#147;reducing operating costs.&#148; &nbsp;Please include disclosure reconciling the fact that management intends to reduce operating costs while, at the same time, it is seeking to expand its operations, as discussed on page 13 (&#147;&#133;we expect to incur new fixed operating expenses associated with our expansion efforts&#133;&#148;).</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have removed the inconsistency and the risk factor relating to the expansion of operations on page 13 has been deleted. &nbsp;Management intends to solely focus on the reduction of operating costs.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 63</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Indicate the status of management&#146;s efforts to replace the existing line of credit. &nbsp;State when management expects a new borrowing facility will be in place.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">This comment was addressed on page 42.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>The company had a revolving line of credit (the &#147;Line&#148;) with a financial institution, which allowed them to borrow a maximum of $1,100,000 based on 80% of eligible accounts receivable, as defined. &nbsp;Borrowings under the Line, bore interest at prime (4.25% plus 10.5% per annum) were secured by substantially all of the company&#146;s assets and are personally guaranteed by the stockholders. &nbsp;In March 2004 the Line was restructured into a term loan in the amount of $500,000. Terms of the Note were: (1) monthly installment payments of $5,000, (2) interest at the rate of 4% plus the prime rate by the agent (3) secured by accounts receivable (4) with a discount provision of $200,000 after timely payments of the first $300,000. &nbsp;In December 2004, the note was restructured into a new line of credit and discounted by $200,000. This new line of credit allows the company to borrow a maximum of $125,000 based on 80% of eligible acco
unts receivables, payable in monthly installments of $5,000 plus interest at the rate of 4% plus the prime-lending rate. &nbsp;As of June 30, 2005, the company had borrowed $120,114. &nbsp;The company has an additional unsecured line of credit in the amount of $775,000. &nbsp;Borrowings under the Line of credit bear interest at the rate of 15% (10% paid in cash and 5% paid in common stock in the company) per annum. &nbsp;&nbsp;As of June 30, 2005 the company had an outstanding balance against this line of credit in the amount of $580,000. The company has not been successful at replacing the existing line of credit. &nbsp;The company has secured additional lines of credit, for a total of $725,000, as follows, with restructured terms as follows:</P>
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<P style="margin:0pt; font-family:Times New Roman">Efund Capital Partners - &nbsp;&nbsp;$150,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Rufina V. Paniego - &nbsp;&nbsp;$75,000 @ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Ashford Capital - $150,000 @ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Benner Exemption Trust &nbsp;- $200,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">Edward Lassiter &nbsp;- &nbsp;$100,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">William Duncan &nbsp;- $50,000 &nbsp;@ 15% interest, 10% paid in cash and 5% paid in the form of common stock @ .80 per share.</P>
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<P style="margin:0pt; font-family:Times New Roman">The holders of the notes do not have discretion in deciding whether to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 64</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please describe in greater detail the nature of the &#147;strategic assistance&#148; provided by eFund Capital Partners. &nbsp;Explain why 1,750,000 common shares were subsequently cancelled and returned to the company</I>.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Previous Text </B></P>
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<P style="margin:0pt; font-family:Times New Roman"> In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us. &nbsp;In exchange, we gave eFund Capital partners, 2,000,000 shares of common stock (of which 1,750,000 shares were cancelled and returned to the company) and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman"> shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2004.
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended Text on page 43 (underlined text was added).</B></P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us <U>which included helping the management team to restructure its business by, streamlining its business operations, introduction to partners, helping find other sources of capital and improving corporate governance</U>. &nbsp;In exchange, we gave eFund Capital partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. C
onrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2004.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 65</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please describe in greater detail the nature of the &#147;restructuring of certain notes payable and capital leases&#148; that resulted in a gain of $275,000.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Amended on pages 44 and 45.</B></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify><B>Gross Profit (Loss).</B> Our gross profit decreased by $154,000 &nbsp;from 1,370,000 &nbsp;&nbsp;for 2003 to 1,220,000 for 2004. Similarly, gross profit as a percentage of net sales decreased from 21.2% for 2003 19.7% for 2004. The decrease in gross profit for 2004 is primarily attributable to the decrease in net sales while fixed manufacturing costs remained relatively unchanged. &nbsp;Our Gross profit as a percent of sales has decreased from 19.7% &nbsp;in 2004 to 18.3% for the 6 months ended June 30, 2005, mainly as a result of pricing pressures from Newport corporation and Celerity.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>In 2004, the company incurred a net loss of ($918,000) an improvement of $322,000 over the 2003 loss of ($1,240,000). &nbsp;This was primarily due to a gain on restructuring of certain notes payable and capital leases, totaling 275,000. &nbsp;&nbsp;As of April 5, 2004 the company had a line of credit in the amount of $1,078676, with Camel financial, Inc. &nbsp;On April 6, 2004 the loan was paid down by $618,676 and the company entered into a new loan agreement in the amount of $460,000, &nbsp;the provisions had a discount of $200,000 if paid in full by February 2006. &nbsp;In December of &nbsp;the company paid an additional $75,000 and Camel agreed to discount the note by the $200,000 at that time, which was recognized as a gain on settlement of debt. &nbsp;The company entered into a new amortizing line of &nbsp;credit in the amount of $140,000.The company had negotiated various other settlements, with vendors that resulted in a net gain of $75,000, recog
nized as a gain on settlement of debt for the year ended 2004.</U></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Also certain pieces of manufacturing equipment are nearing the end there useful lives, resulting in a decrease in depreciation expense of $58,000 from 2003 of $299,000 to 2004 of </P>
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<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>$241,000. &nbsp;The company Incurred &nbsp;a net loss of $321,684 and $543,211 for the 6 months ended June 30, 2005 and 2004 respectively. &nbsp;The improvement is due to decreased operating costs, mainly derived from lowered interest cost a result of the restructuring of the lines of credit.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 66</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Identify the &#147;financial institution&#148; with which the company has the $1,100,000 revolving line of credit.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The company to not have but had a 1,100,000 revolving line of credit with Camel Financial, Inc. &nbsp;It has been amended to read as follows on page 42.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>The company <U>had </U>a revolving line of credit (the &#147;Line&#148;) with a financial institution, Camel Financial, Inc., &nbsp;which allowed them to borrow a maximum of $1,100,000 based on 80% of eligible accounts receivable, as defined. &nbsp;Borrowings under the Line, bore interest at prime (4.25% plus 10.5% per annum) were secured by substantially all of the company&#146;s assets and are personally guaranteed by the stockholders. &nbsp;In March 2004 the Line was restructured into a term loan in the amount of $500,000. Terms of the Note were: (1) monthly installment payments of $5,000, (2) interest at the rate of 4% plus the prime rate by the agent (3) secured by accounts receivable (4) with a discount provision of $200,000 after timely payments of the first $300,000. &nbsp;In December 2004, the note was restructured into a new line of credit and discounted by $200,000. This new line of credit allows the company to borrow a maximum of $1
25,000 based on 80% of eligible accounts receivables, payable in monthly installments of $5,000 plus interest at the rate of 4% plus the prime-lending rate. &nbsp;As of June 30, 2005, the company had borrowed $120,114. &nbsp;The company has an additional unsecured line of credit in the amount of $775,000. &nbsp;Borrowings under the Line of credit bear interest at the rate of 15% (10% paid in cash and 5% paid in common stock in the company) per annum. &nbsp;&nbsp;As of June 30, 2005 the company had an outstanding balance against this line of credit in the amount of $580,000. The company has not been successful at replacing the existing line of credit. &nbsp;The company has secured additional lines of credit, for a total of $725,000, as follows, with restructured terms as follows:</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 67</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please disclose the number of common shares issued to eFund Capital Partners as interest payment under the $150,000 credit line agreement. &nbsp;Indicate whether eFund Capital Partners has any discretion in deciding whether to accept interest payments in the form of cash or common stock. &nbsp;In your response letter, indicate whether any of the shares offered for resale by eFund Capital Partners were issued as interest payment. &nbsp;Provide similar information for the $150,000 credit line agreement with Ashford Capital, LLC, $200,000 credit line agreement with Benner Exemption Trust, $100,000 credit line agreement with Edward Lassiter, and $75,000 credit line agreement with Rufina V. Paniego.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The text was amended to include the shares issued under the credit lines. &nbsp;Please see pages 46 and 47. &nbsp;The amended text has been underlined below.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 we entered into a credit line agreement with eFund Capital Partners, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the comp
any &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 15% or less interest. &nbsp;As <U>of &nbsp;June 30, 2005 the outstanding balance was $75,000. and we have issued 2,772 shares of common stock</U>. The holders of the notes do not have discretion in deciding whether to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>8. On January 1, 2005 &nbsp;we entered into a credit line agreement with Ashford Capital, LLC for $150,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the c
ompany &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. &nbsp;&nbsp;<U>As of June 30, 2005 the outstanding balance was $100,000 and has been issued 4,320</U>. The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>9. On March 8, 2005 we entered into a credit line agreement with Benner Exemption Trust for $200,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accursed and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the compan
y &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. <U>As of &nbsp;June 30, 2005 the outstanding balance was &nbsp;$140,000. Dennis Benner is a director of ours and controls the Benner Exemption Trust. &nbsp;Mr. Benner has also been issued 3,192 shares of common stock</U>. The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>10. On March 22, 2005 &nbsp;we entered into a credit line agreement with Edward Lassiter for $100,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the compan
y &nbsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. <U>As of &nbsp;June 30, 2005 the outstanding balance was $140,000</U>. &nbsp;Edward Lassiter is a shareholder of ours and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter currently holds 312,500 shares of our common stock which is 9% of the outstanding shares of common stock. &nbsp;<U>Mr. Lassiter has received 2,102 shares of common stock</U>. &nbsp;The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>11. On January 1, 2005 we entered into a credit line agreement with Rufina V. Paniego for $75,000 . &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 3007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 15% per annum payable as follows: (a) 10% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 5% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the company &n
bsp;was &nbsp;not &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. T <U>As of &nbsp;June 30, 2005 the outstanding balance was &nbsp;$75,000. &nbsp;Rufina Paniego is the wife of Reza Zarif who is our founder, COO and director. &nbsp;Mrs. Paniego has received 3,041 shares of common stock</U>. The holders of the notes do not have discretion in deciding weather to accept interest in the form of cash or common stock. &nbsp;None of the stock is being registered under this prospectus or being offered for resale.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 68</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please provide disclosures in the notes to the financial statements for the related party transactions described on pages 58 to 60. &nbsp;Your disclosure should include all applicable information required by paragraph 2 to SFAS no. 57.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We amended the text of the related party transactions on page 50-53 to include the information required by paragraph 2 to SFAS no. 57. &nbsp;Please see underlined text below.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>The company &nbsp;leases its 35,000 sq/ft facility for $20,000 per month from Kambiz Mahdi, Reza Zarif and Pacific Sail Bay Trust. &nbsp;&nbsp;Kambiz Mahdi is a co-founder and a director of the company. &nbsp;Reza Zarif is the chief executive officer and a director of the company. &nbsp;&nbsp;Pacific Sail Bay Trust is managed by Frank Kavanaugh. &nbsp;Frank Kavanaugh is also the managing member of Ashford Capital, LLC, and Apt Leadership, LLC and the managing partner of Ashford Transition Fund, L.P. &nbsp;Furthermore, Mr. Kavanaugh was a director of the company from July 2004 to December 2004. Total payments made during the 6 months ended June 30, 2005 were $110,422, with an unpaid balance of $12,851 at June 30, 2005</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>Jeffrey Conrad provides legal services for the company and receives a monthly retainer of $2,500 and is one of the company directors. &nbsp;Jeffrey Conrad is also a managing member of eFund Capital Partners, LLC. &nbsp;Mr. Conrad jointly has authority regarding the portfolio management decisions with respect to the shares of common stock owned by eFund Capital Partners, LLC. Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Conrad does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;eFund Capital Partners, LLC received their shares pursuant to an investment agreement with us in April of 2004. Total payments made during the 6 months ended June 30, 2005 were $110,422, with an unpaid balance
 of $12,500 at June 30, 2005</P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we issued 2,000,000 each to our two founders, Kambiz Mahdi and Reza Zarif, for no cash consideration when converted the corporation from an S to a C corporation in order for the two founders to maintain ownership in the corporation going forward.</P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us. &nbsp;In exchange, we gave eFund Capital Partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Ev
ans and Mr. Conrad have both been directors of ours since May 2004.</P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 100 shares of Series A Preferred Stock to Kambiz Mahdi pursuant to a Series A Convertible Preferred Stock Agreement.</P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 100 shares of Series A Preferred Stock to Reza Zarif pursuant to a Series A Convertible Preferred Stock Agreement.</P>
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<P style="margin:0pt; font-family:Times New Roman">In July 2004 eFund Capital Partners, LLC assigned 1,000,000, shares of common stock and 33 shares of Series A Convertible Preferred Stock to Ashford Capital, LLC. The Managing Member of Ashford Capital, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Ashford Capital, LLC received there shares pursuant to an assignment agreement with eFund Capital Partners, LLC. &nbsp;Ashford Capital, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kav
anaugh was a director of ours from May 2004 until December 2004. &nbsp;eFund assigned its shares to Ashford as a result of eFund realizing they needed more assistance with restructuring the company&#146;s business operations and they want Ashford to also be involved in assisting them with the Probe&#146;s restructure.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 we entered into a credit line agreement with Rufina V. Paniego for $75,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditors wil
ling to provide a loan for 20% or less interest. There is currently an outstanding balance of $75,000 as of June 30, 2005. &nbsp;Rufina Paniego is the wife of Reza Zarif who is the company&#146;s founder, COO and director. Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $3,345 of interest , with accrued interest payable of &nbsp;$3,287 at June 30, 2005.</P>
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<P style="margin:0pt; font-family:Times New Roman">In July of 2004 eFund Capital Partners, LLC assigned 67 shares of Series A Convertible Preferred Stock to Apt Leadership, LLC as consideration for Apt Leadership, LLC&#146;s assistance in helping restructuring our company. The Managing Member of Apt Leadership, LLC is Frank Kavanaugh. &nbsp;Mr. Kavanaugh has authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Kavanaugh may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Kavanaugh does not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and disclaims any beneficial ownership of such shares of common stock. &nbsp;Apt Leadership, LLC and eFund Capital Partners, LLC have no affiliation. &nbsp;Mr. Kavanaugh was a director of ours from May 2004 until December 20
04.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>In September of 2004 we issued the Ashford Transition Fund, L.P 40 shares of the company&#146;s &nbsp;Series A Convertible Preferred Stock as consideration for a loan they gave the company in the amount of $456,000. &nbsp;Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $60,060 of interest , with accrued interest of $20,020 at June 30, 2005.</P>
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<P style="margin:0pt; font-family:Times New Roman">In September of 2004 eFund Capital Partners, LLC assigned 30 shares of Series A Convertible Preferred Stock to Dennis Benner. &nbsp;Dennis Benner is a director of ours and acquired shares in our private placement memorandum dated July 15, 2004 as restated and amended on November 16, 2004 through &nbsp;&#147;The DW &amp; JS Benner Family Trust.&#148; Mr. Benner has dispositive and voting power over the shares in The DW &amp; JS Benner Family Trust and claims beneficial ownership of them. &nbsp;Mr. Benner and eFund Capital Partners, LLC have no affiliation.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005, we entered into a credit line agreement with eFund Capital Partners, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other c
reditors willing to provide a loan for 20% or less interest<U>. &nbsp;There is currently an outstanding balance of $75,000 as of June 30, 2005. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $3,890 of interest , with accrued interest payable of &nbsp;$4,029 at June 30, 200</U>5.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $350,000 as consideration. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of ours since May 2
004.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Kambiz Mahdi 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;&nbsp;Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership.</P>
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<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Reza Zarif 4,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;The company received $450,000 as consideration. &nbsp;Reza Zarif is our chief executive officer and a director of ours. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He has all the rights pursuant to such ownership.</P>
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<P style="margin:0pt; font-family:Times New Roman">On December 31, 2004, Ashford Capital, LLC, eFund Capital Parnters, LLC each returned 750,000 shares of common stock to the company for cancellation and Kambiz Mahdi and Reza Zarif each returned 1,750,000 shares to the company for cancellation. &nbsp;This transaction took place because our board of directors and our large inside shareholders thought it was in the best interest of the company to reduce the number of outstanding shares of common stock.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On January 1, 2005 we entered into a credit line agreement with Ashford Capital, LLC for $150,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditors
 willing to provide a loan for 20% or less interest. &nbsp;<U>There is currently an outstanding balance of $100,000 as of &nbsp;June 30, 2005. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $5,104 of interest , with accrued interest payable of &nbsp;$4,882 at June 30, 2005</U>.</P>
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<P style="margin:0pt; font-family:Times New Roman">On January 1, 2005 we entered into a credit line agreement with Rufina V. Paniego for $75,000.00. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 3007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if we had entered into &nbsp;it &nbsp;on &nbsp;an &nbsp;arms &nbsp;length &nbsp;basis &nbsp;with an unrelated third party because the company &nbsp;was &nbsp;no
t &nbsp;aware of any other creditors willing to provide a loan for 20% or less interest. <U>There is currently an outstanding balance of $75,000. &nbsp;Rufina Paniego is the wife of Reza Zarif who is our founder, COO and director</U>.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 8, 2005 we entered into a credit line agreement with Benner Exemption Trust for $200,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accursed and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditor
s willing to provide a loan for 20% or less interest. <U>There is currently an outstanding balance of $140,000 as of June 30, 2005. Dennis Benner is a director of the company and controls the Benner Exemption Trust. Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $2,738 of interest , with accrued interest payable of &nbsp;$3,780 at June 30, 2005</U>.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=justify>On March 22, 2005 we entered into a credit line agreement with Edward Lassiter for $100,000. &nbsp;This is an interest only line of credit. &nbsp;There are no scheduled principal payments due other than on March 22, 2007, when the entire outstanding balance plus any accrued and unpaid interest will be due and payable in full. &nbsp;Interest will accrue at the rate of 20% per annum payable as follows: (a) 12% will be paid on a monthly basis in US dollars based on the average outstanding balance of the previous month and (b) 8% will be paid in common stock of the company at the end of each quarter based on the average outstanding balance for the previous quarter. &nbsp;The Interest due will be converted to our common stock at the price of $0.80 per share. This transaction is no less favorable than if the company had entered into it on an arms length basis with an unrelated third party because the company was not aware of any other creditors willi
ng to provide a loan for 20% or less interest. <U>There is currently an outstanding balance of $140,000 as of June 30 2005. &nbsp;Edward Lassiter is a shareholder of the company and holds his shares in The Edward &amp; Mildred Lassiter Restated Family Trust and The Edward &amp; Mildred Lassiter Restated Family Trust dated April 14, 2000. &nbsp;Mr. Lassiter currently holds 312,500 shares of the company&#146;s common stock, which is 9% of the outstanding shares of common stock. &nbsp;Total payments made during the 6 months ended June 30, 2005 consisted of $0 in principal and $493 of interest , with accrued interest payable of &nbsp;$3,304 at June 30, 2005</U>.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Additional Information, page 62</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 69</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise to state the SEC&#146;s new address: 100 F Street, NE, Washington, DC 20549.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The address was changed on page 54.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 70</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please make a reference under this caption to the location of the financial statements. &nbsp;Please note that the required financial statements should be included in the prospectus and not in Exhibit 99.5 to the registration statement.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Financial section has been included in the document and exhibit 99.5 has been reviewed.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 71</U></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please state the applicable exemption, with the necessary factual support, for each of the unregistered sales described on pages 64-65. &nbsp;See Item 701 of Regulation S-B.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The text has been amended please see pages 59-63 and underlined text below.</P>
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<P style="margin:0pt; font-family:Times New Roman" align=center><B>ITEM 26. &nbsp;RECENT SALES OF UNREGISTERED SECURITIES</B></P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we issued 2,000,000 each to our two founders, Kambiz Mahdi and Reza Zarif, for no cash consideration when converted the corporation from an S to a C corporation in order for the two founders to maintain ownership in the corporation going forward.</P>
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<P style="margin:0pt; font-family:Times New Roman">From June 16, 2004 to March 31, 2005 the company sold 234,587 common stock units pursuant to a Private Placement Memorandum at $8.00 per unit to 53 individuals generating net proceeds of $1,876,700.00. &nbsp;Each Unit entitled the holder to purchase ten (10) shares of common stock. &nbsp;In addition, each unit entitled the holder to purchase a total of 10 shares of Probe common stock through the exercise of warrants as follows: Class A Warrants, 5 shares at a price of $2.00 per share for a period of 12 months from November 16, 2004, which shall be November 15, 2005; and, Class B Warrants, 5 shares at a price of $3.00 per share for a period of 18 months from November 16, 2004, which shall be May 15, 2006.</P>
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<P style="margin:0pt; font-family:Times New Roman"><U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended (&quot;Act&quot;), by the fact that:</U></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
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<P style="margin:0pt; font-family:Times New Roman">In May of 2004 we entered into an agreement with eFund Capital Partners, LLC whereby eFund invested $200,000 and agreed to provide strategic assistance to us. &nbsp;In exchange, we gave eFund Capital partners, 2,000,000 shares of common stock and 200 shares of Series A Convertible Preferred Stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Ev
ans and Mr. Conrad have both been directors of ours since May 2004. <U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
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<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 200 shares of Series A Preferred Stock to Kambiz Mahdi pursuant to a Series A Convertible Preferred Stock Agreement. <U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In May of 2004 the company issued 200 shares of Series A Preferred Stock to Reza Zarif pursuant to a Series A Convertible Preferred Stock Agreement. <U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In September of 2004 we issued the Ashford Transition Fund, L.P 40 shares of our Series A Convertible Preferred Stock as consideration for a loan they gave the company in the amount of $456,000.00. Frank Kavanaugh is the managing partner of Ashford Transition Fund, L.P. <U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued eFund Capital Partners, LLC 3,500 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;eFund converted $350,000 worth of debt into the Series B stock. The managing members of eFund Capital Partners, LLC are Barrett Evans and Jeffrey Conrad. Mr. Evans and Mr. Conrad jointly have authority regarding the portfolio management decisions with respect to the shares of common stock owned by the selling security holder. &nbsp;Mr. Evans and Mr. Conrad may be deemed to have dispositive and voting power over the shares of the common stock owned by the selling security holder. &nbsp;However, Mr. Evans and Mr. Conrad do not have the right to receive dividends from or the proceeds from the sale of such common stock by the selling shareholder and they disclaim any beneficial ownership of such shares of common stock. &nbsp;Mr. Evans and Mr. Conrad have both been directors of 
ours since May 2004. <U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Kambiz Mahdi 450,000 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;Mr. Mahdi converted $450,000 worth of debt into Series B stock. &nbsp;&nbsp;Kambiz Mahdi is one of our founders and a director of ours. &nbsp;Mr. Mahdi has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership. <U>The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">In December of 2004 we issued Reza Zarif 450,000 shares of Series B Convertible Preferred Stock pursuant to a Series B Convertible Preferred Stock Purchase Agreement. &nbsp;Mr. Zarif converted $450,000 worth of debt into Series B stock. &nbsp;Reza Zarif is our chief executive officer and a director of the company. &nbsp;Mr. Zarif has dispositive and voting power over his shares and claims beneficial ownership of them. &nbsp;He is all the rights pursuant to such ownership<U>. The sales set forth above were undertaken under Rule 506 of Regulation D under the Securities Act of 1933, as amended(&quot;Act&quot;), by the fact that:</U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the sales were made to sophisticated or accredited investors, as defined in Rule 502;</U></FONT></P>
<P style="margin:0pt; padding-left:20.25pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the gave each purchaser the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>at a reasonable time prior to the sale of securities, the company advised each purchaser of the limitations on resale in the manner contained in Rule 502(d)2;</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>neither the company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and </U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:38.25pt; text-indent:-18pt; font-family:Symbol"><U>&#183;</U></P>
<P style="margin:0pt; padding-left:38.25pt; font-family:Symbol"><U></U><FONT FACE="Times New Roman"><U>the company exercised reasonable care to assure that each purchaser of the securities is not an underwriter within the meaning of Section 2(11) of the Securities Act of 1933 in compliance with Rule 502(d).</U></FONT></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 72</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please delete the undertaking relating to Rule 430A; your offering is not relying on such rule.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The text referring to Rule 430A has been deleted please see pages 64-65 </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 73</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please ensure that your principal accounting officer or controller, or person acting in such capacity, signs the registration statement, as required by Form SB-2.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The controller, John Bennett signed the registration statement in his capacity. &nbsp;Please se page 66.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 74</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that the opinion is dated as of June 3, 2005 and that counsel &#147;disclaims any obligation to advise&#133;of any change in any of these sources of law or subsequent legal or factual developments which might affect any matters or opinions set forth herein.&#148; &nbsp;Prior to effectiveness, please provide an updated legality opinion.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The opinion of counsel, Catherine Basinger, has been updated. &nbsp;Please see Exhibit 5.1.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 75</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><I><BR></I></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please request your auditors to revise their report for the following:</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt"><I>&#183;</I></P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Symbol; font-size:12pt"><I></I><FONT FACE="Times New Roman"><I>To make reference to the Standards of the Public Company Accounting Oversight Board in accordance with auditing standard no. 1 of the PCAOB; and,</I></FONT></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt"><I>&#183;</I></P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Symbol; font-size:12pt"><I></I><FONT FACE="Times New Roman"><I>To include a signed audit report.</I></FONT></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The report has been amended to include reference to the Standards of the Public Company Accounting Oversight Board in accordance with auditing standard no. 1 of the PCAOB and signed please see report on page F-1.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:6pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Added Text on Page F-1</B></P>
<P style="margin-top:0pt; margin-bottom:6pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (Unites States) in accordance with auditing standard No. 1 of the PCAOB. &nbsp;Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. &nbsp;An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. &nbsp;An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. &nbsp;We believe that our audit provides a reasonable basis for our opinion.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 76</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note that the auditor&#146;s report refers to the statements of operations and stockholder&#146;s deficit; however, you have included the income statement and statement of stockholders equity. &nbsp;Please revise the auditor&#146;s report or the titles to the financial statements presented on pages F-3 and F-4.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The titles to the financial statements have been changed please see pages F-1 to F-6.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 77</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note in fourth paragraph that your current auditors, Jasper &amp; Hall, make reference to the report of &#147;Other accountants&#148; for the fiscal year 2003. &nbsp;Based on the information appearing in Exhibit 23.3, please include in the amended filing the audit report of Michael Johnson &amp; Company, LLC, who audited the financial statements for the fiscal year ended December 31, 2003. &nbsp;Refer to Rule 2-05 of Regulation S-X.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The audit report of Michael Johnson &amp; Company, LLC has been included. &nbsp;Please see F-2.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I><U>Comment 78</U></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>It appears to us that the number of Preferred B stock issued and outstanding on page F-2 and page F-17 should be 12,500 instead of 1,250. &nbsp;Also, you indicate that the number of common stock issued and outstanding were 2,613,125, while you indicate that the authorized common stock was 10,000. &nbsp;Please revise the disclosure presented under this caption to agree with the information presented in Note 9- Capital Stock transactions, on page F-12.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The amount of Preferred B Stock outstanding has been adjusted to 12,500 on F-3 and F-25. &nbsp;&nbsp;Furthermore, the amount outstanding of 2,613,125 fir 2004 and 10,000 for fiscal year 2003 have been accurately stated on F-3, F-25 and in note 9 on F-14. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 79</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please explain to us how you determined the weighted average number of common shares outstanding disclosed on page F-3.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The weighted average has been adjusted and has been amended on page &nbsp;F-4 and on pages 7 and 8.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="background-color:#FFFF00" valign=bottom width=64>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=112>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>WEIGHTED AVERAGE</B></P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=96>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD valign=bottom width=64>&nbsp;</TD><TD valign=bottom width=112>&nbsp;</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>NUMBER OF SHARES CALCULATION</B></P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=112>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=96>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=88>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>2004 Month</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;New Shares Issued </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Shares Redeemed </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Outstanding Number of Shares </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Number of Months Outstanding</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;Weighted Avg </P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jan</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=112>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>12</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Feb</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>11</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Mar</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>10</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Apr</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>9</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>May</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,990,000 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,000,000 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>8</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,993,333 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jun</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125,000 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,125,000 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>7</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,917 </P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Jul</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;262,500 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,387,500 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>6</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;131,250 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Aug</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,750 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,456,250 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>5</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,646 </P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Sep</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137,500 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,593,750 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>4</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,833 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Oct</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;568,750 </P>
</TD><TD valign=bottom width=174.733>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,162,500 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>3</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;142,188 </P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Nov</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,500 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,325,000 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>2</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,083 </P>
</TD></TR>
<TR><TD valign=bottom width=64><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Dec</P>
</TD><TD valign=bottom width=112><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;288,125 </P>
</TD><TD valign=bottom width=174.733><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,000,000)</P>
</TD><TD valign=bottom width=108><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613,125 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>1</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(392,656)</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=64>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=112>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=174.733>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=108>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=96>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=350.733 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>Weighted Average Shares as of 12/31/2004</P>
</TD><TD valign=bottom width=108>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,058,594 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 80</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>It is unclear to us why you have shown the stock issued for debt as cash flows from operating activities. &nbsp;It appear to us it should be treated as the cash flows from financing activity. &nbsp;Refer to paragraph 32 to SFAS no. 95.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have amended our cash flow statement on page F-6.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash Flows from Financing Activities</B></P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=36>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Bank overdraft</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,235)</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=26.667>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;151,802 </P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Borrowings / (Payments) on line of credit, net</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(810,719)</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;169,083 </P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=36>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Advances from related parties</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=26.667>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,166 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"><U><BR>
<BR></U></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial"><U><BR>
<BR>
<BR></U></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Distributions</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115,932)</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=36>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Proceeds from long term debt</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221,900 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=26.667>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Stock issued for debt</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;994,488 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=36>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Principal payments on capital lease obligations</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,766)</P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=26.667>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(91,344)</P>
</TD></TR>
<TR><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Proceeds from sale of stock</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,455,000 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=36>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Proceeds from notes payable</P>
</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;531,000 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=26.667>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Arial">Cash Flows Provided By Financing Activities</P>
</TD><TD valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,288,668 </P>
</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243,775 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 81</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please disclose under the caption &#147;Supplemental Information,&#148; or in the notes to the financial statements, the information about non-cash issuance of equity securities during the fiscal years ended December 31, 2004 and December 31, 2003. &nbsp;Refer to paragraph 32 to SFAS no. 95.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have amended our cash flow statement on page F-6 and F-7.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=335.933 colspan=2><P style="margin:0pt; font-family:Arial">Non-cash investing and financing activities</P>
</TD><TD valign=bottom width=121.067>&nbsp;</TD><TD valign=bottom width=26.667>&nbsp;</TD><TD valign=bottom width=105.333>&nbsp;</TD></TR>
<TR><TD style="background-color:#FFFF00" valign=bottom width=36>&nbsp;</TD><TD style="background-color:#FFFF00" valign=bottom width=299.933><P style="margin:0pt; font-family:Arial">Issuance of 12,500 shares of preferred B stock in exchange for cancellation of indebtedness of $994,488</P>
</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=121.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;994,488 </P>
</TD><TD style="background-color:#FFFF00" valign=bottom width=26.667>&nbsp;</TD><TD style="background-color:#FFFF00; border-bottom:0.5pt solid #000000" valign=bottom width=105.333><P style="margin:0pt; font-family:Arial" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 82</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>We note under the caption &#147;Federal Income Taxes&#148; on page F-8 that during the year ended December 31, 2004, the company changed from a &#147;S&#148; corporation to a &#147;C&#148; corporation. &nbsp;All undistributed earnings or deficit until the date of termination of &#147;S&#148; election should be transferred to additional paid-in capital in the amended filing. &nbsp;Refer to Topic 4B of the Staff Accounting Bulletins.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We have amended our Statement of Shareholder&#146;s Equaity statement on page F-5 as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=157.133>&nbsp;</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Arial; font-size:8pt" align=center>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; font-family:Arial; font-size:8pt" align=center>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial; font-size:8pt" align=center>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; font-family:Arial; font-size:8pt" align=center>&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=157.133>&nbsp;</TD><TD style="border:0.5pt solid #000000" valign=bottom width=126.333 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Preferred Stock A $1,000 Stated Value</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=116.533 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Preferred Stock B &nbsp;&nbsp;&nbsp;$100 Stated Value</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=129 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Common Stock &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.001 Par</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72 rowspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Additional Paid in Capital</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72 rowspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Advances to Related Parties</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=84 rowspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Accumulated Deficit</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96 rowspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Stockholders' Deficit Totals</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=157.133><P style="margin:0pt; font-family:Arial; font-size:8pt"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>&nbsp;Amount </B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Amount</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Shares</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Amount</B></P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Balance, December 31, 2002</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </B></P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,308,528 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(130,166)</P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,576,681)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,398,309)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Advances to related parties</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,166 </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,166 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Distributions</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115,932)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115,932)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Net loss</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,244,761)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,244,761)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Balance, December 31, 2003</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,192,596 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,821,442)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,628,836)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133>&nbsp;</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Stock Issued to founders</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right>200</P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000 </P>
</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,990,000 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,990 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(203,990)</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Stock Cancelled</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;(3,500,000)</P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,500)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,500 </P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Stock issued for cash</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right>200</P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000 </P>
</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000,000 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48,000 </P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Stock Cancelled</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;(1,500,000)</P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,500)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 </P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Stock Issued in lieu of debt</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;12,500 </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,250,000 </P>
</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(255,512)</P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;994,488 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Stock issued in consideration for note to Company</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,000 </P>
</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40,000)</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Shares issued for cash</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,506,250 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,506 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,203,494 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,205,000 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Shares issued for services</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;106,875 </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;107 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,393 </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,500 </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Net loss through end of s-corp life</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(543,212)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(543,212)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Transfer of equity at end of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s-corp life</P>
</TD><TD valign=bottom width=58.667>&nbsp;</TD><TD valign=bottom width=67.667>&nbsp;</TD><TD valign=bottom width=54.667>&nbsp;</TD><TD valign=bottom width=61.867>&nbsp;</TD><TD valign=bottom width=69>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,364,654)</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,364,654 </P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Net loss subsequent to s-corp life</P>
</TD><TD valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD></TR>
<TR><TD valign=bottom width=157.133><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">Balance, December 31, 2004</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=67.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440,000 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=54.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;12,500 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=61.867><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;$ &nbsp;1,250,000 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613,125 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,613 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;$ &nbsp;(2,329,673)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(375,378)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,012,438)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 83</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please disclose your accounting policies for the inventory as required by paragraph 8 and 13 of APB Opinion no. 22.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Our Inventory section on page F-9 was amended as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>Inventory</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="background-color:#FFFFFF; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Inventories are valued at the lower of weighted average cost or market value. &nbsp;&nbsp;Our Industry experiences changes in technology, changes in market value and availability of the raw materials, as well as changing customer demand. &nbsp;The Company makes provisions for estimated excess and obsolete inventories based on regular reviews and cycle counts of our on-hand inventory levels and forecasted customer demands and at times additional provisions are made. &nbsp;As of March 31, 2005 the Company has a reserve of $347,294.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 84</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><I><BR></I></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>You indicate in the last sentence of the first paragraph that the estimated lives of the related assets range from three to ten years; however the Leasehold Improvements are being amortized over 20 years. &nbsp;Please revise as necessary and disclose if the Leasehold Improvements are being amortized over the estimated life of the lease.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Property and Equipment section on page F-9 and F-10 has been amended as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; padding-left:-9pt; font-family:Arial" align=justify><B>Property and Equipment </B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify>Property and equipment, including renewals and betterments, are stated at cost. Assets held under capital leases are recorded at lease inception at the lower of the present value of the minimum lease payments or the fair market value of the related assets. &nbsp;The Company follows the practice of capitalizing property and equipment purchased over $1,250. &nbsp;The cost of ordinary maintenance and repairs is charged to operations while renewals and replacements are capitalized. &nbsp;Depreciation and amortization are computed on the straight-line method over the following estimated useful lives of the related assets, which range from three to twenty years, and are as follows:</P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="background-color:#FFFF00; border:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>Furniture and fixtures</P>
</TD><TD style="background-color:#FFFF00; border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>3 to 7 years</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>Equipment</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>7 to 10 years</P>
</TD></TR>
<TR><TD style="background-color:#FFFF00; border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>Vehicles</P>
</TD><TD style="background-color:#FFFF00; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>5 years</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>Leasehold improvements</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=295.2><P style="margin:0pt; font-family:Times New Roman" align=justify>20 years (estimated life of the lease)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 85</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>You disclose that the revenue is recognized at the time goods are shipped or services are provided to the customers. &nbsp;Please tell us, and disclose in your revenue recognition policy, whether your stated shipping terms are FOB shipping point or FOB destination pursuant to your sales agreements with customers. In addition, please also tell us and disclose whether your sales agreements contain right or inspection or acceptance provisions. &nbsp;Also, if your sales agreements are silent as to when title passes, please tell us and disclose why sales recognition is appropriate upon shipment, rather than upon delivery to and acceptance by the customer. &nbsp;Even if your sales agreements state that title passes upon shipment, customer acceptance provisions or a history of your replacing goods damaged or lost in transit may also make the recognition of revenue upon delivery to and acceptance by the customer more appropriate.
 &nbsp;Revise or advise. &nbsp;See the Interpretive Response to Question 3 of SAB Topic 13:A.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Our Revenue Recognition section on page F-10 has been revised as follows:</P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=justify><B>Revenue Recognition</B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR></B></P>
<P style="margin:0pt; padding-left:-9pt; font-family:Times New Roman" align=justify><B><BR>
<BR></B></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=justify>Revenue from product and services are recognized at the time goods are shipped or services are provided to the customer, with an appropriate provision for returns and allowances. Terms are generally FOB destination with the right of inspection and acceptance. The company has not experienced a material amount of rejected or damaged product</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 86</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please revise to address the comments above, as appropriate.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I><U>Note1. General</U></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><I><U><BR></U></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><U><BR></U></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><U>Comment 87</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Please discuss in MD&amp;A, under the caption &#147;Plan of operations,&#148; management&#146;s viable plans to overcome Probe&#146;s financial difficulties and include a reasonable detailed discussion of your ability to generate sufficient cash to support operations during the twelve months following the date of the financial statements presented in the filing. &nbsp;Refer to the guidance in Section 607.02 of the Financial Reporting Codification.</I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The following section title &#147;Plan of operations&#148; has been added to our MD&amp;A section on page 40.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U><BR></U></P>
<P style="margin:0pt; font-family:Times New Roman"><U>Plan of Operation</U></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. &nbsp;The company incurred a net loss of $321,684 for the six months ended June 30, 2005 and stockholder deficit of ($762,122) and as of &nbsp;June 30, 2005 and has a working capital deficit of approximately $348,364. The ability of the company to operate as a going concern is dependent upon its ability (1) to obtain sufficient debt and/or equity capital and/or (2) cut operating costs such that the company can operate until such time that it resumes generating positive cash flow from operations.</P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>Management is taking the following steps to address this situation: (a) reducing operating costs by: (i) re-negotiating direct material cost with all of our suppliers, (ii) reducing direct and indirect labor cost by streamlining production lines and other operations to create more efficiency and (iii) we are also evaluating the possibility of moving into a more feasible facility with lower rent and overhead, thus reducing the break even revenue level; (b) we are negotiating to replace our lines of credit with an agreement(s) that have more attractive terms and expand borrowing capacity; (c) increasing our revenue by making sure we bill for everything of value we do; acquiring new customers, and growing our existing customers. </P>
<P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;The future success of the company is likely dependent on its ability to attain additional capital to support growth and ultimately, upon its ability to attain future profitable operations. &nbsp;There can be no assurance that the company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. &nbsp;The successful outcome of these or any future activities cannot be determined at this time and there is no assurance that if achieved, the company will have sufficient funds to execute their business plans or generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the company be unable to continue as a going concern.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Thank you for your time and review of our registration statement on Form SB-2. &nbsp;If there was any information that you requested that was not enclosed please give me a call at (562)547-0364.</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Sincerely,</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>/s/ Catherine Basinger</P>
<P style="margin-top:5pt; margin-bottom:5pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Catherine Basinger</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Times New Roman; font-size:12pt"><BR></P>
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