Perry Law System Quotations

While we welcome competition which validates the viability of the market for our system, we take great exception to unsubstantiated claims challenging our ability to develop such a system and implement it in the People's Republic of China or any other nation similarly faced with this monumental issue. Accordingly, we have brought the matter to our legal counsel to address this very serious issue. Should these actions continue, the Company will have no other choice but to seek full financial and legal recourse against the offending company.

Through superior application of world-class RFID and information technologies, the end result of our system will be to provide the central agency with the tools it needs to monitor poultry movement. With agency-designed alerts, the RTAC-PM system will allow the deployment of agency protocols to rapidly and effectively contain an outbreak of disease.

We feel our system can be very beneficial to the people of Hong Kong and Singapore when used as part of a comprehensive bird flu containment strategy. It is our understanding that government officials in Hong Kong and Singapore would be interested in seeing if our system can be applied in different areas of the poultry processing cycle. What's particularly beneficial about our system is that it is designed to be flexible and to accommodate different needs of different governments. Therefore, we believe our system will be able to accommodate the requirements of this market.

Everything is now in place to launch definitive testing in mid-March. At that time we will be conducting two tests/demos with various government agencies and authorities. While we are disappointed in the scheduling delays, we are charting some new territory and we want to be assured that our system is operating to the exacting standards required to achieve desired results.

It is our understanding that the Ministry of Agriculture and Rural Development has allowed Ho Chi Minh City to retain its ban on poultry farming until February 2007 to ensure there is no recurrence of bird flu due to the lack of safety measures currently undertaken by the poultry industry in this region. We believe our system can be used as part of their safety measures and provide the ministry with enough information and assurances that once the ban is lifted, the possible infiltration of the deadly bird flu in poultry flocks can be detected and dealt with swiftly to avoid any further devastation.